TIOL-DDT 691 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<!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" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT 691</font><br>
03.09.2007<br>
Monday</b></font></p>
<p align=center style='text-align:center'><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Advance authorisation - bank guarantee - limit of Rs. 1 crore - CBEC clarification</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The manufacture exporters registered with Central Excise who have paid excise duty of Rs. 1 crore or more during the preceding financial year are exempted from executing bank guarantee under Advance Authorisation and EPCG Schemes in terms of Para 3.1(e) of CBEC Circular No. 58/2004-Cus, dated 21.10.2004. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There were doubts whether the limit of Rs. 1 crore of Central Excise duty prescribed in the Circular refers to duty payment from <st2:stockticker
w:st="on">PLA</st2:stockticker> only or whether payments through Cenvat credit accounts can also be taken into consideration while calculating the total duty paid by an assessee.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has examined the matter and clarifies that the excise duty paid through Cenvat credit shall also be taken into account while calculating the excise duty paid by a manufacturer exporter for the purposes of Para 3.1(e) of the circular.</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_30.htm" target="_blank">CIRCULAR NO.30/2007-Cus., Dated : <st2:date ls="trans" Month="8" Day="21" Year="2007" w:st="on">August 21, 2007</st2:date></a></u><b><u><st2:date ls="trans" Month="8" Day="21" Year="2007" w:st="on"></st2:date></u></b></font></p>
<p align=center style='text-align:center'><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Tariff Value of Brass Scarp - Decreased</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBEC has decreased the Tariff Value of imported Brass Scrap from US $. 4673 to US$. 4622. There is no change in the Tariff Value of other products.</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=24&filename=notification/custom/2007/cnt07_090.htm" target="_blank">Notification Nos. 90/2007-Cus. (<st1:GivenName
w:st="on">N.T.) , Dated <st2:date
ls="trans" Month="8" Day="31" Year="2007" w:st="on">August 31, 2007</st2:date></a></u><b><u><st2:date
ls="trans" Month="8" Day="31" Year="2007" w:st="on"></st2:date></u></b></font></p>
<p align=center style='text-align:center'><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Tax Deduction at source - amendments </b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per the first proviso to Rule 31A of the Income Tax Rules,</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">the person responsible for deducting tax at source in the case of every office of Government and the principal officer in the case of every company responsible for deducting tax at source shall deliver or cause to be delivered such quarterly statements on computer media (3.5"1.44 MB floppy diskette or CD-ROM of 650 MB capacity)</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now this is amended to </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">Provided</font></strong> that where,- </font></p>
<p style='text-align:justify;
'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) the deductor is an office of Government: or</font></p>
<p style='text-align:justify;
'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) the deductor is a company; or</font></p>
<p style='text-align:justify;
'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) the deductor is a person required to get his accounts audited under section 44AB in the immediately preceding financial year; or</font></p>
<p style='text-align:justify;
'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) the number of deductees records in a quarterly statement for any quarter of the immediately preceding financial year is equal to or more than fifty, </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">the person responsible for deducting tax at source, and the principal officer in the case of a company shall deliver or cause to be delivered such quarterly statements on computer media (3.5 1.44 MB floppy diskette or CD-ROM of 650 MB capacity):;</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">They are still talking of floppies! </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=35&filename=notification/cbdt/2007/it07not238.htm" target="_blank">NOTIFICATION NO. 238/2007, Dated: <st2:date ls="trans" Month="8"
Day="30" Year="2007" w:st="on">August 30, 2007</st2:date></a></u><b><u><st2:date ls="trans" Month="8"
Day="30" Year="2007" w:st="on"></st2:date></u></b></font></p>
<p align=center style='text-align:center'><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Councils authorized to issue Registration-cum-Membership Certificate (RCMC) Certificate.</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The provisions relating to registering authorities for issuing Registration-cum-Membership Certificate (RCMC) are at Para 2.67 of Hand Book of Procedures Vol.I. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT clarifies that:</font></p>
<p style='text-align:justify;'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i) While obtaining RCMC, an exporter has to declare his main line of business in the application. The exporter is required to obtain RCMC from the Council which is concerned with the product of his main line of business.</font></p>
<p style='text-align:justify;'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ii) Irrespective of para (i) above, a status holder has the option to obtain RCMC from Federation of Indian Export Organisation (FIEO).</font></p>
<p style='text-align:justify;'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iii) In case an export product is not covered by any Export Promotion Council/ Commodity Board, etc. RCMC in respect thereof is to be obtained from FIEO.</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/dgft07cir009.htm" target="_blank">DGFT CIRCULAR NO.9 (RE-07)/2004-2009 Dated: <st2:date ls="trans"
Month="8" Day="31" Year="2007" w:st="on">August 31, 2007</st2:date></a></u><b><u><st2:date ls="trans"
Month="8" Day="31" Year="2007" w:st="on"></st2:date></u></b></font></p>
<p align=center style='text-align:center'><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Bonanza for Central Government employees - <st2:City w:st="on"><st2:place w:st="on">Hyderabad</st2:place></st2:City> A1 Class city? Political or economic? </b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><st2:City w:st="on"><st2:place
w:st="on">Hyderabad</st2:place></st2:City>, notwithstanding the blasts, is in for some positive news. The Central government employees in <st2:City w:st="on"><st2:place
w:st="on">Hyderabad</st2:place></st2:City> are in for a salary hike of 15%. <st2:place
w:st="on"><st2:City w:st="on">Hyderabad</st2:City></st2:place> is now A1 City and that means 30% HRA for government servants instead of the present 15%. This is a hike far higher than what any Pay Commission can give and officers in <st2:City w:st="on"><st2:place w:st="on">Hyderabad</st2:place></st2:City> are celebrating! But what about cities like <st2:City w:st="on">Bangalore</st2:City>, <st2:City w:st="on">Ahmadabad</st2:City> and Pune, which richly deserve the status that has been granted to <st2:City w:st="on"><st2:place
w:st="on">Hyderabad</st2:place></st2:City>? Is the <st2:City w:st="on"><st2:place
w:st="on">Hyderabad</st2:place></st2:City> status more political than economic or demagogic? Has it any relation to the visit of <st1:title w:st="on">Madame <st1:Sn w:st="on">Sonia to <st2:PersonName w:st="on"><st1:GivenName
w:st="on">Andhra <st1:Sn w:st="on">Pradesh</st2:PersonName> or the recent blasts? How should <st2:City w:st="on"><st2:place w:st="on">Ahmadabad</st2:place></st2:City> get the status? By blast, by <st1:GivenName w:st="on">Sonia or in spite of Mody?</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>F</strong><b>rom
our Legal Corner - Wednesday'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"><b>Income Tax</b></font></p>
<p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Separate agreements for supply and erection - not works contract - No <st2:stockticker w:st="on">TDS</st2:stockticker> for supply - even if both agreements are in same document, it cannot be treated as works contract : ITAT </b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">THIS</font> </b>is the age of Works Contract and litigation on works contract as far as service Tax is concerned is yet to start, but apparently there is enough litigation in the Income tax and sales tax sides of litigant taxes.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The assessee is a central government undertaking engaged in the activity of transmission across the country. During the year under consideration, the assessee was involved in three projects for which contracts were awarded to different contractors. The assessee awarded contracts to various parties to construct/execute the transmission line/sub-station. </font></p>
<p align="justify" ><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Central Excise </b></font></p>
<p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Modvat - dutiable and exempted final products - 8% payable even when there is no sale - Supreme Court.</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The issue in this civil appeal is as to whether in the absence of any "sale", rule 57CC of the Central Excise Rules, 1944 would have any application or not. The contention of the assessee is that in the case of "stock transfer" there is no "sale" and, therefore, rule 57CC was not applicable. This contention has been accepted by the Tribunal, hence this civil appeal. . The assessee is engaged in manufacture of paper falling under Chapter 48 of the Central Excise Tariff. The assessee is availing the benefit of MODVAT Scheme under Rule 57A of the Central Excise Rules. The assessee is also manufacturing pulp falling under Chapter 47 of the Central Excise Tariff, which is chargeable to nil rate of duty. The said pulp is captively consumed for the manufacture of paper. According to the assessee, a small portion of the pulp is sent to the sister unit of the assessee at Asthi; there was no sale of pulp as alleged by the Department; a small quantity of pulp manufactured by the assessee was stock transferred to its sister unit at Asthi.</font></p>
<p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Whether Committee of Commissioners is required to record reasons while reviewing an order passed by Appellate Commissioner - Matter referred to Larger Bench of Tribunal </b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">THAT'S</font> </b>a quickie - it is only two years since the birth of the concept of Committee in the Central Excise Act & Customs Act and now the matter reaches the Larger Bench. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Incidentally, while reporting the Tribunal decision in Angel Foto <a
href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=52&filename=legal/cestat/2007/2007-TIOL-1176-CESTAT-MUM.htm"><font size="1">2007-TIOL-1176-CESTAT-MUM</font></a> holding that <i>"Minutes of meeting conducted by the Committee of Commissioners cannot constitute an authorization in terms of Section 129A(2) of the Customs Act, 1962" </i>, we had pointed out - </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><i><font color="#663399">"A fresh look required - minutely, of course </font>- </i></b><i>The relevant provisions concerning Review by a Committee of Commissioner and Chief Commissioners throw up quite a few startling facts - </i></font></p>
<p style='text-align:justify; font-weight: bold;'><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tomorrow is a national <st2:place w:st="on">Holiday</st2:place> for Lord Krishna's Birthday. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><st2:PersonName w:st="on"><st1:GivenName
w:st="on">Yatra <st1:middlename
w:st="on">Yogeshwara <st1:Sn
w:st="on">Krishno</st2:PersonName>,</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><st2:PersonName w:st="on"><st1:GivenName
w:st="on">Yatra <st1:middlename
w:st="on">Partho <st1:middlename
w:st="on">Dhanur <st1:Sn w:st="on">Dharh</st2:PersonName>,</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><st2:PersonName w:st="on"><st1:GivenName
w:st="on">Tatra <st1:middlename
w:st="on">Shree <st1:middlename w:st="on">Vijayo <st1:Sn w:st="on">Bhooti</st2:PersonName>,</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><st2:PersonName w:st="on"><st1:GivenName
w:st="on">Dhroov <st1:middlename
w:st="on">Neetir <st1:Sn w:st="on">Matir</st2:PersonName> mamah</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(The Geeta,chapter 18,sloka 78)</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(Wherever, there is combination of Yogeshwara Shri Krishna and Dhanushdhari Arjuna, there shall be <st2:PersonName w:st="on">Mother <st1:Sn w:st="on">Luxmi</st2:PersonName>, victory, prosperity, steadfastness and correct polity that is my firm principle.)</font></p>
<p style='text-align:justify; font-weight: bold;'><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Though it's a holiday. We have an important judgement for you tomorrow.</font></p>
<p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Preloaded operating system software is an integral part of a laptop and cannot be classified separately - Revenue wins big case in Supreme Court -</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The appeal is against the CESTAT order holding that the Software-loaded Hard Discs are classifiable under Heading 85.24 of the First Schedule to Customs Tariff Act. It was further held that respondent will be eligible for duty exemption under Notification No.21/2002-Cus as amended. It was held that rest of the machine would be classified under Heading 84.71. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Department had demanded customs duty of about Rs.5.9 crores from the respondent by classifying goods imported by them under Heading 84.71 of the First Schedule of the Act and denying them benefit of exemption Notification No.21/2000-Cus. dated 1.3.2002.</font></p>
<p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u>See our columns Wednesday for the judgements</u></b></font></p>
<p align="justify" ><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Wednesday 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>
</body>
</html>