TIOL-DDT 604 · the untouched capture
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<p align="justify"><font size="2"><b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 604</font></b><font face="Verdana, Arial, Helvetica, sans-serif"><b><br>
01.05.2007<br>
Tuesday</b></font></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">One Commissioner </font></b><font color="#006600"><b>does constitute committee – CESTAT</b></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Yesterday we reported a case wherein the CESTAT held that one Commissioner wearing two hats cannot constitute the Committee of Commissioners for review of the orders of the Commissioner (Appeals).</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Today we bring you a diametrically opposite judgement. The Mumbai bench of the Tribunal has held that even a single Commissioner holding charge of the other Commissioner can constitute the Committee. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Mumbai Tribunal observed,</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Commissioner of Central Excise, Belapur appears to be holding additional charge of the post of Commissioner of Central Excise, Raigad; as such there was nothing wrong in reviewing the appeal by the Commissioner of Central Excise, Belapur who is also Commissioner of Central Excise, Raigad by forming a committee by themselves. An officer who is full additional in charge of the other equivalent post and as per notification these two Commissioners constitute a reviewing committee, they are quite competent to act and take a decision. I am in full agreement with the submission made by the department and hold that the Committee was validly constituted and the appeal was rightly reviewed in the dual capacity. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is in sharp contrast to the decision by the Kolkotta Bench decision which we reported yesterday and mentioned in <b>DDT</b> too. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maybe the issue has to go to a Larger Bench.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our </strong><u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=5408" target="_blank">Breaking News</a></u> <strong>for the details of the case</strong></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Bachchans</font></b><font color="#006600"><b> – highest
tax paying family in the country</b></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
highest tax payers are not the businessmen but our film stars. With the Senior
Bachchan and Junior one between them paying around 20 Crores and the new
Bahu paying about 5 Crores, the Bachchan family has paid more than 25 Crores
as advance Income Tax. Maybe they deserve that special treatment in Tirupati.
The three top income tax payers in Mumbai are reported to be Hrithik Roshan,
Amitabh Bachchan and superstar Shah Rukh Khan – in that order, each
paying around 15 Crores.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Bollywood pays about 400 Crores of Income Tax. </font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Anti Dumping Duty on Parts of CFL – DGAD clarifies but Customs not convinced.</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We are told of a letter addressed by DGAD to TRU in CBEC on the Anti Dumping duty on the scope of the product CFL imported from China PR and covered under Anti-Dumping Investigation conducted by the Designated Authority. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We understand that DGAD in letter OM No. 162/2006-DGAD dated the 1<sup>st</sup> May, 2006 has told the Revenue Ministry that </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a.</font></p></td>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti dumping duties were recommended / imposed on the following two types of CFLs :</font></p></td>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i) Complete, ready to use compact fluorescent lamps wherein choke is integrated within the lamp.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ii) Complete, ready to use compact fluorescent lamps wherein choke is external.</font></p></td>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b.</font></p></td>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti dumping duties were not recommended on parts / components of CFL.</font></p></td>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c.</font></p></td>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“CFL with choke” is complete ready to use compact fluorescent lamps wherein choke is an internal part.</font></p></td>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">d.</font></p></td>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CFL without choke as defined in the final findings is complete ready to use compact fluorescent lamps wherein choke would be external part.</font></p></td>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We are told that Customs Authorities simply refuse to accept the clarification. Fair enough, when they normally do not accept even CBEC clarifications and Supreme Court orders!</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But it’s time that either/and or the CBEC issues a public clarification on the issue.</font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Landmark order from ITAT</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sony Entertainment Television was set up to source advertising for AXN - a channel owned by Singapore-based SET Satellite. The Singapore</st1:country-region> company, SET Satellite, didn't pay any tax on advertising revenue from India</st1:country-region></st1:place> as it was carrying on its activities through a commission agent.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The ITAT held, "whether one carries on the business directly or through a dependent agent, the profit attributable to such business continues to be taxable in the source country." What about the Ruling of the Advance Ruling Authority? That apparently is not binding on the Tribunal. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This judgement bound to have serious ramifications for the MNCs in India</st1:country-region></st1:place>, is brought to you by TIOL today. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=5409" target="_blank">See
'Breaking News' </a></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#FF6666"></font></b><font color="#FF6666">Tomorrow is a Holiday</font></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until the day after with more DDT</font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day. </font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="mailto:vijaywrite@taxindiaonline.com"> vijaywrite@taxindiaonline.com</a> </font></p>
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