TIOL-DDT 665 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT 665</font><br>
26.07.2007<br>
Thursday</b></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Income Tax Returns will be accepted on Saturday and Sunday also</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The last date for filing the returns is 31<sup>st</sup> July, 2007. The Income Tax Department will accept the returns this Saturday and Sunday - 28<sup>th</sup> and 29<sup>th</sup> July, 2007. Special arrangements are being made by opening additional receipt counters wherever required from 25<sup>th</sup> July to 31<sup>st</sup> July. And a press release says that special arrangements will be made to facilitate media coverage on the occasion.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/itret.htm" target="_blank">CBDT F.No. F.No.220/3/2007-ITA-II, July 24, 2007 </a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Reduction in Customs duty on edible oils - Corrigendum issued</b></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>On 23<sup>rd</sup>July, 2007 the Ministry issued </strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2007/ctariff07_087.htm" target="_blank">Notification No. 87/2007</a><strong> decreasing the Customs duty on various types oils, fixing the duty at 40% for three items, 50% for one item and 52.5% on another item. Two days later board issues a Corrigendum as follows:</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 87/2007-Customs, dated the 23rd July, 2007 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.499 (E), dated the 23rd July, 2007, at page 2, in line 16, for "40%", read "45%".</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Now for one of the three items which were to be charged 40%, the duty is increased to 45%. But from the above corrigendum how could you find where was page 2 line 16 of the Gazette of India Extraordinary (which is an elusive document). We have ascertained from the Board that it refers to crude palm oil. But why can't the Board make the corrigendum to the notification as it is known to the people or make the gazette available to the public? </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2007/corri.htm" target="_blank">Board's F.No. 354/106/2006-TRU, <u>Dated July 25, 2007</u></a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Condition of SSI Notification - Non-implementation of - Board Cautions</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Notification No. 8/2003-C.E., Dated 1.3.2003 the exemption is not available to power driven water pumps which do not conform to BIS Standards. CBEC has received representations that this condition is not being implemented and because of that manufacturers of spurious goods without BIS certification are able to get benefit of the exemption. Board desires that necessary steps should be taken for proper implementation of the Notification.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2007/excise_letter.htm" target="_blank">Board's F.No. 167/16/2007-CX-4, July 5, 2007</a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Returns on Trust - Develop a repository of legal knowledge - FM tells CCs</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Addressing the Chief Commissioners and Directors General of Income Tax, the Finance Minister wanted the Chief Commissioners to make the working of the department non-discretionary and non-discriminatory; he wanted the Chief Commissioners to bring down the number of tax payer grievances. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He wanted the department to have a Human Resources Management Directorate with a legal wing to act as repository of legal knowledge and develop in-house talent on advocacy skills, so that the domain knowledge of the officers can be effectively used in Tribunals and Courts. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The FM also said that if cases are won in the courts, retrospective amendments can be avoided. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(This means the assessees are anyway meant to be doomed. If the Department wins in the court, the assessee anyway loses - but if the assessee wins, we have the retrospective route any way!)</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He said the Computerisation of the department was on its final leg and is on a scale never tried anywhere in the world.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For the first time in the 35 years, he said that the cumulative tax arrears declined for the year ended 31.3.2007. The FM asked the Chief Commissioners to hold meetings to emphasise the need for correctly quoting PAN in TDS Returns.</font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Service
Tax - exemption for exports - are the Commerce and Finance Minister not
on talking terms? What happened to Kamal Nath's policy?</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When the Commerce Minister announced in the Foreign Trade Policy that Service Tax will be exempted for exports, all in the enlightened media of <st1:country-region
w:st="on"><st1:place w:st="on">India</st1:place></st1:country-region> screamed headlines "kamal exempts Service Tax". We were the only ones to say that he was not the person to do it and we have a Finance Minister. It is more than three months since KamalNath announced his policy, but the FM is silent. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Hindu today reported that Nath has written to the Prime Minister thrice.
The report also says that the DGFT R S Gujral has <b><font color="#663399">asked the industry to lobby with the Finance Ministry for its early notification.</font> </b>Strange!, the industry has to lobby with the Finance Ministry to implement what a cabinet minister has announced. The Commerce Minister should at least now realise that the FM, Chidambaram had never ventured to reduce railway fare!</font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>"Empowerment of women" KiranBedi overlooked.</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Country's first Woman IPS officer suffered a humiliating career-stroke as another woman took over as President of India. KiranBedi, undoubtedly, the most famous Police officer in the Country has been superseded by an officer two years, her junior for the post of Commissioner of Police, <st1:City w:st="on"><st1:place w:st="on">Delhi</st1:place></st1:City>. </font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>From our Legal Corner - tomorrow's cases</b></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><b><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></b></b></font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax</strong></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Firm engaged in processing of rough stones is an 'industrial undertaking' and eligible for exemption u/s 5(1) of Wealth Tax Act : Rajasthan HC </b></font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">Import of explosive material in Heavy Melting Scrap - Confiscation of HMS and imposition of penalty on importer not justified : Tribuna</font>l </b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is also to be noted that in the absence of specific charges against the appellants in terms of specific subsections of Section 112, and also by imposing penalties under the relevant sub-section, authorities have rendered it difficult to understand the charge against each of the appellants. The Hon'ble Supreme Court has strongly disapproved of such generalized proceedings in the case of Amrit Foods. </font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax </strong></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Service tax on international in-bound roamers - whether exempted or hit by provisions of Rule 6(3)(c) of Credit Rules - Tribunal directs Hutch to pre-deposit Rs 40 lakh in cash for obtaining stay </b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">A</font> </strong>demand of Rs 2.60 crores was confirmed by the Commissioner of Customs & Central Excise, <st1:City
w:st="on"><st1:place w:st="on">Meerut</st1:place></st1:City>-I on 31<sup>st</sup> January 2007 against the Service provider. It is alleged that the assessee had incorrectly availed Cenvat Credit of Rs.81.89 lakhs on Capital goods and Input Services that were received prior to 10<sup>th</sup> September 2004. There is also another demand of Rs.1.78crores on the ground that the Service provider had provided exempted Services to International in-bound roamers and hence provisions of rule 6(3)(c) of the Cenvat Credit Rules, 2004 stood attracted resulting in the assessee being entitled to only 20% of the credit taken. Nonetheless, penalty of Rs.50.10 lakhs has also been imposed. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u>See our columns tomorrow for the judgements</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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