TIOL-DDT 723 · 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><font face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT 723</font></b><font size="2"><b><br> 19.10.2007<br> Friday </b></font></font></p> <p align=center style='text-align:center'><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Tax Recovery Officer to have powers of Assessing Officer</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This has a fairly long history. By <font color="#FF0000">Taxation Laws (Amendment) Bill 2005,</font> it was proposed to add the following to the definition of "Tax Recovery Officer" in section 2(44) of the Income Tax Act, </font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">"and also to exercise or perform such powers and functions which are conferred on, or assigned to, an Assessing Officer under this Act and which may be prescribed"</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The <st2:GivenName w:st="on">Bill</st2:GivenName> was referred to the Standing Committee of Parliament. Taxindiaonline was invited by the Parliamentary Committee to give suggestions on the <st2:GivenName w:st="on">Bill</st2:GivenName>. In the meeting we had with the Committee, in Parliament, we submitted to the Hon'ble MPs,</font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Why create a diarchy? The Assessing Officer knows more of a Case; he can examine issues from a different observation-post. <st1:stockticker w:st="on">TRO works in a different protocol. The Department would need, if the amendment is brought about, to sort out disputes inter se the <st1:stockticker w:st="on">TRO and the AO. It would be a waste of resources. Better not to go ahead with this change.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The committee asked the Ministry to respond and the Ministry responded with,</font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">"Clause 2 of the <st2:GivenName w:st="on">Bill</st2:GivenName> seeks to enable a Tax Recovery Officer (<st1:stockticker w:st="on">TRO) to exercise limited functions of an Assessing Officer (AO) as may be prescribed. Such limited functions shall be like carrying of rectification of apparent mistakes, giving effects to order of appellate authorities, etc. Such power will enable a <st1:stockticker w:st="on">TRO to expeditiously determine the demand to be collected by him in cases where a claim is made before him that demand referred to him for collection needs some adjustments. The delay in giving appeal effects, etc. in such cases, may not be solved administratively, because <st1:stockticker w:st="on">TRO has to refer the matter back to the Assessing Officer. Therefore, it is appropriate to assign such powers to <st1:stockticker w:st="on">TRO himself. Further, as a <st1:stockticker w:st="on">TRO will have to act upon in respect of application made to him, there will be no problem in fixing responsibility for delay in disposing off such application by him. There is also no legal conflict in assigning the limited functions of AO to <st1:stockticker w:st="on">TRO." </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">During oral evidence, the Ministry submitted,</font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">"It was felt by the Committee that most probably the role which we are assigning to the <st1:stockticker w:st="on">TRO may not be in line with the functional requirement of the work. It was also felt that the <st1:stockticker w:st="on">TRO is given only the work of recovery, and, with much more functional specialization, he may be able to perform better. But our experience has been that sometimes, the <st1:stockticker w:st="on">TRO is not effective. The point is that when he proceeds to recover the demand dues, the point that comes is that some rectification is pending or sometimes it is found that some other appeal effect is not given. We want to give limited powers to the <st1:stockticker w:st="on">TRO. We are not giving all the powers of the Assessing Officer but only a limited power."</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The committee in its report to Parliament observed,</font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">By way of conferring additional powers of the Assessing Officer on the <st1:stockticker w:st="on">TRO--which are proposed to be limited to rectification of mistakes in the assessment orders, giving effect to orders of appellate authorities etc., it is intended to enable speedy and effective settlement of the demands/applications of the assessees. Though the proposal enabling for speedy settlement of assessment related issues would be tax payer friendly, the Committee feel that for achieving the intended purpose it may be essential to comprehensively address the prevailing norms, procedures and regulations relating to the functioning of the 'Tax Administration'. </font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">The Committee, therefore, desire that the administrative instructions/regulations relating to the additional powers proposed to be conferred on the <st1:stockticker w:st="on">TRO are clear and specific on confining such powers to rectification of mistakes in assessment orders, effecting orders of Appellate Authorities etc. The Committee also expect the Government to ensure that the proposal would, in no way, affect the co-ordination in the hierarchy of Income Tax authorities.</font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">The Committee find that the Government are bringing in amendments to the Income Tax Act very frequently, which cause difficulties in comprehending the law by various people concerned. The Committee, therefore, urge the Government to come out with a comprehensive simplified single legislation at the earliest.</font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government went ahead with the proposal and so as per the Act, TROs can also exercise specified powers of the AO. This was brought in with effect from 13.7.2006 by the Taxation Laws (Amendment) Act, 2006. But what powers and functions of the AO that <st1:stockticker w:st="on">TRO can exercise or perform, have not been specified by the Rules, which is done now. A new Rule <st1:metricconverter ProductID="117C" w:st="on">117C is inserted in the Income Tax Rules, by which the <st1:stockticker w:st="on">TRO is given the power to rectify any mistake apparent. At least so far, the Government is fair. It has kept the promise given to the Parliamentary Committee.</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/it07not262.htm" target="_blank">NOTIFICATION NO. 262/2007, Dated : <st1:date ls="trans" Month="10" Day="16" Year="2007" w:st="on">October 16, 2007</a></u></font></p> <p align=center style='text-align:center'><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>New ICD notified</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Janori, Taluka-Dindori, Nashik District has been notified as an ICD and Nashik Airport has been notified as a Customs airport for Unloading of imported goods and loading of export goods</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_104.htm" target="_blank">NOTIFICATION NO. 104</a></u><b><u> & </u></b><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2007/cnt07_105.htm" target="_blank">105/2007-CUSTOMS (<st2:GivenName w:st="on">N.T.</st2:GivenName>) Dated : <st1:date ls="trans" Month="10" Day="17" Year="2007" w:st="on">October 17, 2007</a></u></font></p> <p align=center style='text-align:center'><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Booming revenue - beaming FM</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b></b>Unlike, the stock market, the Central tax revenue is on a continuous rise. Net Direct Taxes collected up top 15<sup>th</sup> October 2007, stood at a whopping 1.22 <st2:GivenName w:st="on">Lakh</st2:GivenName> Cror<strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><b></b></b></font></b></font></strong></font></b></font></strong></font></b></font></strong></font></b></font></strong></font></b></font></strong></font></b></font></strong></font></b></font></strong></font></b></font></strong>es! Even the insignificant looking Banking Cash Transaction Tax fetched 284 Crores while the FBT brought in 2326 Crores!</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><b><b><img src="http://www.taxindiaonline.com/RC2/image/stories/fm1.jpg" alt="Legal Corner Icon" width="81" height="101" hspace="5" border="0" align="left"></b></b></b></font></b></font></strong></font></b></font></strong></font></b></font></strong></font></b></font></strong></font></b></font></strong></font></b></font></strong></font></b></font></strong></font></b></font></strong>The Government believes that growth of over 49 percent in direct taxes deducted / collected at source is a strong indicator of increasing employment, employee compensation and private investments; while growth of about 30 percent in advance direct tax collections is indicative of better profitability and improved cash-flows in businesses - particularly in the core, consumption and financial sectors. Increase of 64 percent in self-assessment tax confirms the trend of better tax compliance.</font></p> <p align=center style='text-align:center'><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Monthly Economic report - 09/07</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government clarified in a Press Note,</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The overall growth of <st1:stockticker w:st="on">GDP during 2006-07 (as per the Revised Estimates of CSO) has been placed 9.4 per cent. Growth during the 1<sup>st</sup> Quarter 2007-08 has been estimated at 9.3 percent</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The Post Monsoon Season rainfall from <st1:date ls="trans" Month="10" Day="1" Year="2007" w:st="on">October 1, 2007 to <st1:date ls="trans" Month="10" Day="10" Year="2007" w:st="on">October 10, 2007 was normal/excess in 35 per cent of meteorological sub-divisions.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Food grain stocks were 23.91 million tonnes as on <st1:date ls="trans" Month="6" Day="1" Year="2007" w:st="on">June 1, 2007.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Overall industrial growth was 9.8 per cent during April-August, 2007-08 as compared with 11.0 per cent in April-August, 2006-07.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Core infrastructure sectors achieved an average growth rate of 6.6 per cent during April-August, 2007-08 as compared with 8.3 per cent in April-July, 2006-07.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Broad Money (M3) growth (year-on-year) was 21.0 per cent as of September, 2007 as compared with 19.0 per cent last year. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Exports grew by 18.4 per cent in dollar terms during April-August, 2007. Imports increased by 31.1 per cent in April-August, 2007.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Forex reserves (excluding Gold and SDRs) stood at $239.955 billion at the end of September, 2007.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Rupee appreciated against US Dollar and Japanese Yen and depreciated against Euro and Pound Sterling in September, 2007.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The annual inflation rate in terms of <st1:stockticker w:st="on">WPI (Base 1993-94=100) was 3.26 per cent for the week ended <st1:date ls="trans" Month="9" Day="29" Year="2007" w:st="on">September 29, 2007 as compared with 6.32 per cent a year ago.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Tax revenue (net to Centre) during April-August, 2007-08 was higher by 22.0 per cent compared with corresponding period 2006-07.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ In terms of value, Fiscal deficit during April-August, 2007-08 increased by 14.0 per cent over corresponding period last year.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ In terms of value, Revenue deficit during April-August, 2007-08 was lower by 32.6 per cent over corresponding period last year. </font></p> <p align=center style='text-align:center'><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Service Tax ads - no significant impact?</b></font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><b><b><img src="http://www.taxindiaonline.com/RC2/image/stories/stax_ad.jpg" alt="Legal Corner Icon" width="400" height="300" hspace="5" border="0" align="center"></b></b></b></font></b></font></strong></font></b></font></strong></font></b></font></strong></font></b></font></strong></font></b></font></strong></font></b></font></strong></font></b></font></strong></font></b></font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In a recent meeting taken by the Finance Minister, he observed that the 'general appeal to pay taxes properly', placed as advertisement in the newspapers, does not have significant impact on the taxpayers. He therefore, directed that in future, advertisement (especially relating to service tax) should be more focused and specific, which should address to specific target groups (which may consist of a specific types of service providers or receiver) and should point out the need to pay tax (or avail benefit such as e-payment), the facilitation measures introduced by the department and consequences of non-payment/delay in payment of taxes or non-filing/late-filing of returns.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, Board wants suggestions from the field regarding the issue and content.</font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=41&filename=notification/servicetax/2007/serletter02.htm">F.No. 137/230/207-CX.4 Dated : <st1:date ls="trans" Month="9" Day="24" Year="2007" w:st="on">September 24, 2007</a></u></b></font></p> <p align=center style='text-align:center'><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Service Tax - Issuance of SCNs for levy of penalty where service tax is paid suo-moto by the assessee - Board clarifies.</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Section 73 (1A) of the Finance Act, 1994, if the taxpayer pays service tax liability along with interest and a penalty equal to 25% of service tax amount, within a period of one month from the date of issue of SCNs, the proceedings against him are concluded. Similarly, section 73 (3) provides conclusion of adjudication proceedings in other cases on payment of service tax and interest.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A question has been raised as to whether the conclusion of proceedings in such cases is limited to the action taken under section 73 of the Act or all proceedings under the Finance Act, 1994, including those under section 76,77 and 78, get concluded.</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. Law prescribes conclusion of proceedings against such person to whom SCN is issued under sub-section(1) of section 73. Therefore, it is not merely a conclusion under sub-section (1), but conclusion of all proceeding against such person. Similar is the position in respect of sub-section (3) of section 73.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Accordingly, conclusion of proceeding in terms of sub-section (1A) and (3) of section 73 implies conclusion of entire proceedings under the Finance Act, 1994.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is wonderful that Board had come out with this kind of clarifications. Let us hope the trigger happy field will stop issuing Show cause Notices in these cases. But it is a mystery known only to the Board as to why such important clarifications are secretly communicated to the field instead of being circulated publicly? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=41&filename=notification/servicetax/2007/serletter01.htm">F.No. 137/167/2006-CX.4 Dated : <st1:date ls="trans" Month="10" Day="3" Year="2007" w:st="on">October 3, 2007</a></u></b></font></p> <p align=justify style='text-align:center'><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>From our Legal Corner - Monday's cases</b></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><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></b></font></strong></font></b></font></strong></font></b></font></strong></font></b></font></strong></font></b></font></strong></font></b></font></strong></font></b></font></strong></font></b></font></strong></font></p> <p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Customs</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">If somebody claims that mangoes brought by him are produced in Iceland or New Zealand, it would be very difficult to swallow it - Cloves are not grown in Pakistan - No concession to import of cloves from Pakistan : Tribunal</font></b></font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong>appellants imported Cloves from <st1:place w:st="on"><st1:country-region w:st="on">Pakistan</st1:country-region> under two Bills of Entry claiming concessional assessment under SAARC Preferential Trading Agreement (SAPTA) Notification No. 105/99. The country of Origin, as per the Certificate of Origin, is <st1:place w:st="on"><st1:country-region w:st="on">Pakistan</st1:country-region>. Since <st1:place w:st="on"><st1:country-region w:st="on">Pakistan</st1:country-region> does not produce Cloves, investigations were carried out. The Commissioner referred the matter to the Spices Board for confirmation as to whether <st1:place w:st="on"><st1:country-region w:st="on">Pakistan</st1:country-region> is known to have Clove production and export. The Spices Board referred the matter to the Indian High Commission in <st1:place w:st="on"><st1:City w:st="on">Islamabad. After local enquiries, the High Commission found that Cloves are not grown in <st1:place w:st="on"><st1:country-region w:st="on">Pakistan</st1:country-region>.</font></p> <p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>CESTAT</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">Contradiction in final order vis-a-vis discussion in concluding paragraph - Tribunal rectifies mistake - ROM application allowed</font></b></font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THIS</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> c</strong>ase was reported six months ago <b>[</b><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=52&filename=legal/cestat/2007/2007-TIOL-534-CESTAT-MUM.htm">2007-TIOL-534-CESTAT-MUM</a><b>] </b>with the caption - <i>"Although automobiles cess and education cess are duties of excise, yet tractors exempted from <st1:stockticker w:st="on">BED cannot be called as dutiable goods - Rule 6 of Cenvat Credit stands attracted - Explanation III to Rule 6(3) is not clarificatory - Tribunal."</i></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><font color="#663399">Provisions of Sec 2(22)(e) of I-T Act cannot be applied on presumptions - Burden is on Revenue to prove that all conditions of deeming provision are fully satisfied : <st1:PersonName w:st="on"><st2:GivenName w:st="on">ITAT</st2:GivenName> <st2:nameSuffix w:st="on">Third</st2:nameSuffix> Member</font></b></font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THIS</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong>hinges around one of the most influential businessman in India today - an Indian tycoon who apparently started his small deposits para-banking business with a capital of Rs <st1:metricconverter ProductID="2000 in" w:st="on">2000 in 1978 to become a mega giant presently towering over a diversified business group with interests in housing, entertainment and media - a business group which has since attained the iconic stature having sponsored the Indian and hockey cricket teams; one who creates news and attracts media attention - whether seen in public with the likes of the Big B and politicians like Mulayam Singh Yadav and Amar Singh or otherwise or for his extravagant life style - throwing glitzy parties and rubbing shoulders with the who's who of Bollywood; one who manages to create news even if not seen in public - raising speculation that he is seriously ill - One can go on and on discussing his profile, but a couple of lines above would be enough for the name to surface therefrom - Popularly known as "Saharasri" - self styled 'chief guardian' of the Sahara Group - Subroto Roy also known as Subroto Roy Sahara !</font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u>See our columns Monday for the judgements</u></b></font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday 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><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>