TIOL-DDT 681 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body> <p align="justify"><b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL</font></b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif"><b>-DDT 681</b></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><br> 20.08.2007<br> Monday</b></font></p> <p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>India will be third largest economy in the world - Chidambaram</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"Studies show by growing close to 9 per cent, we will become the third largest economy in 20-25 years; We must produce wealth and then divide it equitably. How can we have a welfare state without wealth?", asked Mr. PC addressing the valedictory dinner of a professional course organised by the Foreign Service Institute (FSI) for professional diplomats from countries including Bhutan, Sri Lanka, Mozambique, South Korea, Turkmenistan, Lesotho and Turkmenistan. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chidambaram told the diplomats</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The country's fiscal requirement towards infrastructure stood revised to $475 billion at current prices over the next five years as against an earlier estimate of $320 billion.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ We are growing and continue to grow at around 9 per cent.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Infrastructure was the main constraint to growth and this was pulling the expansion of gross domestic product (GDP) down by as much as one-two per cent.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The challenge of infrastructure is huge. The requirement of funds is humungous.</font></p> <p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Chidambaram wants PSU banks to go overseas</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#663399">The PSU banks should compete with private and foreign banks in order to register a robust growth. They should not limit their services within the country, </font>said the FM at the centenary celebrations of the Indian Bank. He told the PSU banks, "you should not only cater to the needs of NRIs but also to foreign organisations and to various sections."</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Can you believe it, the PSU banks have over Rs. 20 Lakh Crores of deposits.</font></p> <p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Government wants to popularise e-taxation in North East</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Income-tax Department has set up a Regional Computer Centre at Shillong, for this purpose. Government has provided the facility of electronic filing of monthly/quarterly excise returns, namely, ER-1, ER-2. ER-3 under Central Excise Rules, 2002 and dealers return prescribed under sub-rule (6) of rule 7 of the CENVAT Credit Rules,<font color="#663399"> <b>2002</b></font>(?) to all manufacturers of excisable goods, EOUs and registered dealers with effect from 30.06.2004. The facility to file excise returns electronically is optional, and is available to all assesses. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This information was given by Shri S.S. Palanimanickam, Minister of State for Finance in reply to a question raised by Shri Anwar Hussain in the Lok Sabha on Friday.The babus who prepared the minister's reply are either not aware that the Cenvat Credit Rules, 2002 simply do not exist or they are so careless that they don't mind their minister making a goof inside parliament. It is about three years since the 2002 rules have been superseded by the 2004 Rules! </font></p> <p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u1:p><font color="#006600">Utilization of information in AIRs – CBDT instructions</font></b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For utilization of information in the Annual Information Returns (AIRs) relating to financial year 2004-05, Board had earlier instructed the Chief Commissioners to confer concurrent jurisdiction on one or more AOs. Now Board says the Commissioners can do this job instead of Chief Commissioners.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What to do if the address of the assessee is not traceable? It may be because of incomplete address or change in address. All efforts should be made to trace the assessee in accordance with the procedure. However, it should be ensured that there is valid service of notice. Further if, because of time taken in tracing the assessee, no time is available for issue of notice under section 142(1) and for making the assessment up to 31-12-2007, notice may be issued under section 148 after 31-12-2007.</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=67&filename=notification/cbdt/2007/instruct0707.htm" target="_blank">CBDT INSTRUCTION NO. 7/2007, Dated: August: 16, 2007</a></u></font></p> <p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>How to do distinguish artistic work? – DGFT instructions</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Under VKGUY scheme benefits has been extended to export of identified ‘Artistic Wooden Furniture' items. For the purpose of grant of benefits under VKGUY scheme, exporters shall be required to get the invoices duly certified/authenticated by EPCH / AIHBs (All India Handicraft Boards) / State Handicraft Boards / Handloom & Handicraft Export Corporation / State Emporiums (of State Governments). </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Regional authorities (RA) shall call for invoices duly certified/authenticated as above, in addition to export documents prescribed in ANF3C. </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=46&filename=notification/dgft/2007/dgft07cir003.htm" target="_blank">DGFT CIRCULAR NO. 03 (Re-2007)/2004- 09 Dated: August 10, 2007 </a></u></font></p> <p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Focus market scheme benefit for non EDI ports and MDA assistance limit enhanced.</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Vide Notification No. 6/2007 dated 23.5.2007, DGFT had made the benefits of Focus Market Scheme and Focus Product Scheme available to exports from Non-EDI ports also, but it was not clear as to from when it would be effective. Now it would be effective from 1.4.2006</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Marketing Development Assistance (MDA)Scheme is intended to provide financial assistance for a range of export promotion activities implemented by EPCs, ITAs on a regular basis every year. The scheme is administered by DoC.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Assistance includes, amongst others, participation in</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Trade Fairs and Buyer Seller meets abroad or in India, and</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Export promotion seminars.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Financial assistance with travel grant is available to exporters traveling to Latin America, Africa, CIS region, ASEAN countries, Australia and New Zealand. In other areas,financial assistance without travel grant is available.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MDA assistance is available for exporters with annual export turnover upto <b><font color="#663399">Rs 10 Crores</font></b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now this is made Rs. 15 Crores.</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=45&filename=notification/dgft/2007/dgft07not022.htm" target="_blank">NOTIFICATION NO. 22(RE-2007)/2004-2009., Dated: August 13, 2007</a></u></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></p> <p align=center ><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> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u1:p></u1:p> </font> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><u1:p><font color="#FF0000">Central Excise <u1:p></u1:p></font><u1:p></u1:p></strong></font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Whether refund can be claimed without challenging assessment order - Larger Bench says 'No' </b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE interesting aspect of this Larger Bench decision is the number of Advocates representing the respondent company as against the <i>lone </i>SDR. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Seven Advocates set out with their arguments for having a decision in their favour by emphasizing the resulting redundancy in the provisions of Section 27 of the Customs Act if it is held that a refund cannot be claimed without challenging the assessment order. The clarifications contained in the Customs Appraising Manual were also referred to and a reminder that the Revenue officers are bound by the Board's instructions in view of the Apex Court decision in <i>Dhiren Chemical Industries</i>. So also, the Apex Court decision in <i>Karnataka Power Corporation</i> was adverted to<b>.</b></font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Electric Power fencing system - whether excisable - matter remanded to Tribunal : Supreme Court </b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE question is whether electric power fencing system by use of solar power is excisable. The Commissioner classified it in sub-heading 8543.90 as other electrical machinery and apparatus having individual functions. The Commissioner had invoked larger period in terms of Section 11A, confirmed the duty demand and also imposed like sum as penalty under Section 11AC. Penalty of rupees five lakhs was also levied on the Managing Director.</font></p> <p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Service Tax</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u1:p><font color="#663399">Commission received from foreign airlines in Indian rupees - not export of service; failure to file return was enought to invoke extended period under old Sec 73 : Tribunal </font></b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">THE</font> </b>dispute is service tax on "Overriding Commission" (ORC) received by the appellants in Indian currency from Malaysian Airlines who had appointed the appellants as "General Sales Agent" (GSA) for India. The services rendered by the appellants to Malaysian Airlines fell in the category of "Business Auxiliary Service", which had become taxable w.e.f. 1-7-2003. The appellants had not paid the tax.</font></p> <p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Income Tax </b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u1:p><font color="#663399">Reason for reopening assessment must be genuine - where assessee utilises certain sum for purposes specified in Sec 80HHD(4) and draws the same from '80HHD reserve account' it is open to assessee to utilise the fund for any purpose it deems fit and proper : Bombay HC</font></b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Under the Income Tax Act, concluded assessments can be reopened only if the assessing officer has reason to believe that the income chargeable to tax has escaped assessment. The reasons for reopening the assessments must be genuine, reliable and not imaginary or based on conjectures or surmises.</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> <div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u1:p></u1:p> </font><font face="Verdana, Arial, Helvetica, sans-serif"> </font> </div> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more DDT</font><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif"><u1:p></u1:p> </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> </html>