TIOL-DDT 658 · 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 658</font><font face="Verdana, Arial, Helvetica, sans-serif"><br>
17.07.2007<br>
Tuesday</font></b></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Drawback rates notified</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The much awaited drawback rates have been finally notified effective from 18.7.2007 for the reduced rates and retrospectively from 1.4.2007 for the increased rates subject to certain conditions. And there is a condition 2A. Why couldn't they make it condition 3? Some of the important conditions are</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. The General Rules for the Interpretation will apply for drawback too.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. When the rate is a percentage, it relates to the FOB value.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. These rates are not applicable to exports by EOUs, discharge of certain export obligations, when rebate is claimed or exported under bond for inputs, DEPB etc,</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The new rates for some important commodities are </font></p>
<table width="450" border=1 align="center" cellpadding=3 cellspacing=0>
<tr>
<td width=238 rowspan=2 valign=top>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Commodity</font></strong></p></td>
<td width=228 colspan=2 valign=top>
<p align=center><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Revised Drawback</font></strong></p></td>
</tr>
<tr>
<td width=84 valign=top>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">rate</font></strong></p></td>
<td width=144 valign=top>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">peak</font></strong></p></td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Silk: higher quality silk fabrics</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10.8%</font></p></td>
<td width=144 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.325/kg</font></p></td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Wool:</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8%</font></p></td>
<td width=144 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.42/kg</font></p></td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">woollen worsted yarn (dyed)</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9%</font></p></td>
<td width=144 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.48/kg</font></p></td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">woollen worsted yarn (grey)</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8%</font></p></td>
<td width=144 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.27/kg</font></p></td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">dyed yarn – hosiery grade</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9%</font></p></td>
<td width=144 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.30/kg</font></p></td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">grey cotton yarn of less than 60 counts</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5.4%</font></p></td>
<td width=144 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.11/kg</font></p></td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">dyed cotton yarn of less than 60 counts</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6.5%</font></p></td>
<td width=144 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.18/kg</font></p></td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">cotton yarn of 60 counts and more</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8.8% </font></p></td>
<td width=144 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.26 per kg </font></p></td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">cotton fabrics</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6.4% (grey) </font></p></td>
<td width=144 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.19 per kg (grey) </font></p></td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">lungies and Real Madras Handkerchiefs</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6.4%</font></p></td>
<td width=144 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.28/kg</font></p></td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">denim fabrics</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8.5%</font></p></td>
<td width=144 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.32/kg</font></p></td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">synthetic / artificial filament yarn</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">16% (grey) </font></p></td>
<td width=144 valign=top><font color="#999999"> </font>
</td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">woven fabrics of synthetic / artificial filament yarn</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10.5% (grey) </font></p></td>
<td width=144 valign=top><font color="#999999"> </font>
</td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">hand knotted woolen carpets</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12.5%</font></p></td>
<td width=144 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.700 per sqm</font></p></td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">silk carpets</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15.5%</font></p></td>
<td width=144 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.2750 per sqm</font></p></td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">cotton durries</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11.5%</font></p></td>
<td width=144 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.26/kg</font></p></td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">knotted carpets</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12.5%</font></p></td>
<td width=144 valign=top><font color="#999999"> </font>
</td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">knitted blouses/shirts/tops of cotton is</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10%</font></p></td>
<td width=144 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.48 per piece</font></p></td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">knitted blouses/shirts/tops of man-made fibre</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11.5%</font></p></td>
<td width=144 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.48 per piece</font></p></td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">knitted blouses/shirts/tops of cotton and man made fibre blend</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10.7%</font></p></td>
<td width=144 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.48 per piece</font></p></td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">bed linen, table linen, toilet linen, kitchen linen and curtains of cotton</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9.1%</font></p></td>
<td width=144 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.110 per kg</font></p></td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">finished leather</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7.5%</font></p></td>
<td width=144 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.8 per sq.ft.</font></p></td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">leather footwear for adults</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11.5%</font></p></td>
<td width=144 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.105 per pair</font></p></td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">leather apparel</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11.4%</font></p></td>
<td width=144 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.650 per piece</font></p></td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">semi-finished steel, HR Coils, CR Sheets, GP Sheets and bars & rods of mild steel</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1%.</font></p></td>
<td width=144 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs. 625/MT to Rs.1000/MT</font></p></td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">similar items of stainless steel</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2%.</font></p></td>
<td width=144 valign=top><font color="#999999"> </font>
</td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">stainless steel utensils</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">17%</font></p></td>
<td width=144 valign=top><font color="#999999"> </font>
</td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">stainless steel cutlery</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">17%</font></p></td>
<td width=144 valign=top><font color="#999999"> </font>
</td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">brass hardware</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">18%</font></p></td>
<td width=144 valign=top><font color="#999999"> </font>
</td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">bicycles</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">13%</font></p></td>
<td width=144 valign=top><font color="#999999"> </font>
</td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Parts of bicycles</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">13%-15%</font></p></td>
<td width=144 valign=top><font color="#999999"> </font>
</td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">sports goods</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4%.</font></p></td>
<td width=144 valign=top><font color="#999999"> </font>
</td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">toys</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6%</font></p></td>
<td width=144 valign=top><font color="#999999"> </font>
</td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ball point pen</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8.5%</font></p></td>
<td width=144 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.225 per 100 pcs</font></p></td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">felt tipped pen</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">13.3%</font></p></td>
<td width=144 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.275 per 100 pcs</font></p></td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">high value fountain pens</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3%</font></p></td>
<td width=144 valign=top><font color="#999999"> </font>
</td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">perfumed agarbattis</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12%</font></p></td>
<td width=144 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.33/kg</font></p></td>
</tr>
<tr>
<td width=238 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Furnace Oil and HSD</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.1160/MT</font></p></td>
<td width=144 valign=top><font color="#999999"> </font>
</td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2007/cnt07_068.htm" target="_blank">NOTIFICATION NO. 68/2007 - Customs, (N.T.), Dated: July 16, 2007</a></u></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Drawback rates – Board instructions </font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has clarified that </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Drawback rates have been increased in most cases.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. However, in a few cases such as primary steel, dyes and chemicals, the drawback rates have been reduced.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. The reduced rates will take effect prospectively from 18.7.2007, i.e. the date of coming into force of the notification.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. The increased rates of drawback have been made effective retrospectively from 1.4.2007.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. The incidence of service tax paid on taxable services which are used as input services in the manufacturing or processing of export goods has been factored.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board wants the Commissioners to </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. ensure that a quick and efficient administrative system is in place to deal with all drawback claims for hassle-free crediting of drawback the moment the exports take place.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. ensure that the drawback amount is credited into the exporter's account immediately after ‘let export' order and filing of manifest by the carrier.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. look into <b></b>the grievances of exporters relating to payment of drawback quickly and if the same are not addressed within 72 hours, to bring the matter to the notice of Member (Cus/EP) by e-mail.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. As the increased rates of drawback have been given retrospective effect, to create separate cells to settle the supplementary claims.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. personally monitor this and ensure that such claims are settled as expeditiously as possible.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. issue a suitable Public Notice for information of the Trade and Standing Order for guidance of the staff.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. bring to the notice of the Board any difficulties in implementation of the changes</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2007/cuscir07_25.htm" target="_blank">CIRCULAR NO. 25/2007-Cus., Dated: July 16, 2007</a></u></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">From our Legal Corner – tomorrow's cases</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_31.gif" alt="Legal Corner Icon" width="191" height="160" hspace="5" border="0" align="left"></b></font></b></font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF0000">Customs</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">Customs AC flouts law laid down by HC - hauled up for contempt - let off on unconditional apology : <st1:place w:st="on"><st1:City w:st="on">Bombay</st1:City></st1:place> HC </font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">WHEN </font></b>will the babus learn to obey the courts? <b><font color="#663399">However high you are, the law is above you!</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Here is a case of yet another Assistant Commissioner hauled up before the Court for contempt but let off after an apology.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court had, in several cases, held that during the period of limitation available for filing an appeal, no coercive action should be taken to enforce the order.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#FF0000">Service Tax </font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">Highly aggrieved Tata Technologies finds solace in Tribunal order - Rs 1.77 Cr Service Tax demand set aside </font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">HAD </font></strong>it not been for the Tribunal making such a remark, we would not have known that Tata Technologies was <i>highly aggrieved </i>with what appears to be a routine confirmation of duty demand by the Commissioner of Central Excise. Just imagine the fate of thousands of assessees whose life is blown to smithereens by confirmation of high value duty demands which usually are proved unsustainable! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF0000">Income Tax</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">Assessee company shuts down business but claims deduction for expenditure on salary and bonus - Since expenditure has no nexus to capital gains and dividend income, no deduction allowable : HC </font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">HERE is an interesting scenario where a public limited company shuts down its business totally, but claims deductions for expenses on account of heads like wage, bonus etc. While answering the question of admissibility, the High Court held that since the deduction is not related to the income earned nor relevant to keep the status of the company alive and, therefore deduction on that account cannot be allowed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u><font color="#663399">See our columns tomorrow for the judgements</font></u></b></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow 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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