TIOL-DDT 743 · the untouched capture
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<p ><font size="2"><b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 743</font><font face="Verdana, Arial, Helvetica, sans-serif"><br>
19.11.2007<br>
Monday</font></b> </font></p>
<p align="center" ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Permanent IEC Numbers for certain importers and exporters</b></font></p>
<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per para 2.8(v) of Handbook of Procedures (v1) </font></p>
<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(v) Following permanent IEC numbers shall be used by non-commercial PSUs and categories of importers / exporters mentioned against them for import / export purposes.</font></p>
<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the following two more categories are added to the list.</font></p>
<table width=450 border=1 align="center" cellpadding=3 cellspacing=0 >
<tr>
<td width=84 valign=top><p align="center" ><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl.No.</font></strong></p></td>
<td width=113 valign=top><p align="center" ><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Code No.</font></strong></p></td>
<td valign=top><p align="center" ><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Categories of importers/ exporters</font></strong></p></td>
</tr>
<tr>
<td width=84 valign=top><p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">13</font></p></td>
<td width=113 valign=top><p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">0100000142</font></p></td>
<td valign=top><p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Ordinance factories under the Ordinance </font></p>
<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Factories Organisation</font></p></td>
</tr>
<tr>
<td width=84 valign=top><p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">14</font></p></td>
<td width=113 valign=top><p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">0100000151</font></p></td>
<td valign=top><p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Directorate of Purchase and Stores, </font></p>
<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Department of Atomic Energy, Government of <st2:country-region
w:st="on"><st2:place w:st="on">India</st2:place></st2:country-region></font></p></td>
</tr>
</table>
<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2007/dgft07pn081.htm" target="_blank">DGFT PUBLIC NOTICE No.81 (RE-2007)/2004-2009 Dated: November 15, 2007</a></u></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Export of onions - amended policy</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Export of Onion including Bangalore Rose onions and Krishnapuram onions fresh or chilled, frozen, provisionally prepared or dried but excluding onions cut, sliced or broken in powder form, will be allowed through the following agencies subject to conditions laid down by DGFT from time to time.</font></p>
<p class=MsoListParagraphCxSpFirst style='text-align:justify;'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) </font></p>
<p class=MsoListParagraphCxSpMiddle style='text-align:justify;'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. <st2:place
w:st="on"><st2:PlaceName w:st="on">Maharashtra</st2:PlaceName> <st2:PlaceType
w:st="on">State</st2:PlaceType></st2:place> Agricultural Marketing Board (MSAMB) </font></p>
<p class=MsoListParagraphCxSpMiddle style='text-align:justify;'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Gujarat Agro Industries Corporation Ltd. (GALC)</font></p>
<p class=MsoListParagraphCxSpMiddle style='text-align:justify;'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. The Spices Trading Corporation Ltd. (STCL)</font></p>
<p class=MsoListParagraphCxSpMiddle style='text-align:justify;'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. The <st2:place
w:st="on"><st2:PlaceName w:st="on">A.P.</st2:PlaceName> <st2:PlaceType w:st="on">State</st2:PlaceType></st2:place> Trading Corporation</font></p>
<p class=MsoListParagraphCxSpMiddle style='text-align:justify;'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. The Karnataka State Co-operative Marketing Federation Ltd. (KSCMF)</font></p>
<p class=MsoListParagraphCxSpMiddle style='text-align:justify;'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. The National Co-operative Consumers Federation of India Ltd., (NCCF)</font></p>
<p class=MsoListParagraphCxSpMiddle style='text-align:justify;'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. The <st2:place
w:st="on">North Karnataka</st2:place> Onion Growers Co-operative Society (NKOGCS)</font></p>
<p class=MsoListParagraphCxSpMiddle style='text-align:justify;'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9. West Bengal Essential Commodities Supply Corporation (WBECSC) Ltd., Kolkata</font></p>
<p class=MsoListParagraphCxSpMiddle style='text-align:justify;'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10. M.P. State Agro Industries Development Corporation ((MPSAIDC), <st2:City w:st="on"><st2:place
w:st="on">Bhopal</st2:place></st2:City></font></p>
<p class=MsoListParagraphCxSpMiddle style='text-align:justify;'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11. <st2:PlaceName
w:st="on">Karnataka</st2:PlaceName> <st2:PlaceType
w:st="on">State</st2:PlaceType> Produce Processing and Export Corporation (KAPPEC), <st2:City w:st="on"><st2:place w:st="on">Bangalore</st2:place></st2:City></font></p>
<p class=MsoListParagraphCxSpMiddle style='text-align:justify;'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12. Madhya Pradesh State Co-operative Oil Seeds Growers Federation Ltd., </font></p>
<p class=MsoListParagraphCxSpLast style='text-align:justify;
'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">13. The Andhra Pradesh Marketing Federation (<st2:PersonName
w:st="on"><st1:GivenName w:st="on">AP <st1:Sn w:st="on">MARKFED</st2:PersonName>), </font></p>
<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Further,</font></p>
<p class=MsoListParagraphCxSpFirst style='text-align:justify;'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) Export of Onions is allowed without quantitative ceiling subject to conditions of quality laid out by NAFED from time to time. </font></p>
<p class=MsoListParagraphCxSpLast style='text-align:justify;'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) The maximum service fee of one percent of the invoice value can be charged from the exporter by the listed STEs.</font></p>
<p ><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/dgft07not051.htm" target="_blank">DGFT NOTIFICATION No. 51 (RE - 2007)/2004-2009Dated: November14, 2007</a></u></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Please give your complete email address in your e mail for reply of emails </b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Hyderabad Customs has recently released a booklet containing information on Baggage Rules and other particulars for Haj pilgrims. The Booklet contains a note as under:<br>
<br>
<b><font color="#FF9966">Please note that the queries by e mail will be replied by e mail only. The return e mail address must be clearly indicated in the communication.</font></b><font color="#FF9966"> </font></font></p>
<p align="justify" ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Prasadam
not excisable - Once the ladoos get the blessing of the lord, they are
no more <i>goods</i>.</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In his interesting speech laced with his poetry at the Silver Jubilee function of the Tribunal, <st2:PersonName
w:st="on"><st1:title w:st="on">Dr. <st1:GivenName w:st="on">SL <st1:Sn w:st="on">Peeran</st2:PersonName>, Member, CESTAT, <st2:place
w:st="on"><st2:City w:st="on">Bangalore</st2:City></st2:place> spoke of some interesting cases the Tribunal had to decide and he mentioned Tirupathi ladoos. While deciding the issue of prasadm in an order in 1992, <st2:PersonName
w:st="on"><st1:title w:st="on">Dr. <st1:Sn w:st="on">Peeran</st2:PersonName> observed,</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a manufactured item should have a market and it should be sold. <st2:City
w:st="on"><st2:place w:st="on">Sale</st2:place></st2:City> implies a bargain and there is profitability and gain attached to it. There are no religious sentiments and the item is purchased by one and all. In the light of the intendment of the legislature to impose duty on goods which are brought to the market for sale the items 'Prasad' or 'Prasadam' cannot be considered as goods. The mere entry 'Prasad' or 'Prasadam' which is purely a religious offering made to the deity cannot be brought within the ambit of the Act. The mere specification in the tariff schedule will not make the item goods and exigible; merely because the devotee has purchased it from the temple precincts it cannot be considered as an exigible commodity. The item may be goods before they are taken for presentation to the deity and at that stage the excisability of the product could be considered. The said item before presentation to the deity would not be 'Prasad' or 'Prasadam' but it would be known in the stage in which it is. Therefore, the item, after it is presented to the deity by the temple authorities and offered to devotees on charges, cannot be considered as 'goods'. The term 'goods' as has been noted in the definitions, does not carry any religious sentiments nor does it have any blessings of deity. Goods are commodities which are brought to the market for sale, while the 'Prasad' or 'Prasadam' are the blessings of a deity which has a great religious significance. Therefore, in my opinion 'Prasad' or 'Prasadam' cannot be made exigible. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We bring you the text of <st2:PersonName
w:st="on"><st1:title w:st="on">Dr. <st1:Sn w:st="on">Peeran</st2:PersonName>'s speech today.</font></p>
<p align="center" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">DDT Cartoon</font></b></font></p>
<p align="center" ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Today
we bring you another cartoon from the retired bureaucrat's book, <st2:PersonName w:st="on"><st1:title w:st="on">Dr. <st1:GivenName
w:st="on">V S <st1:Sn w:st="on">Gopalakrishnan</st2:PersonName></b></font></p>
<p align="center" > <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b> <span class="style4"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><strong><b><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_cartoon_743.jpg" alt="Legal Corner Icon" width="346" height="365" hspace="5" border="0" align="center"></b></strong></b></font></b></font></span> </b></font></p>
<p align="center" ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>From our Legal Corner - Tomorrow's cases<span class="style4"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><strong><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></strong></b></font></b></font></span></b></font></p>
<p align="justify" ><font color="#FF3366" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>CST</b></font></p>
<p align="justify" ><font color="#FF9966" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>goods despatched to consignment agents for sale to customer involves inter-state sales - liable to CST - Supreme Court</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The goods which were triggered from Rourkela and sold to the subsidiaries of the CIL through the appellant's consignment agents were essentially meant to be sold to the subsidiaries of the CIL and the goods primarily triggered from Rourkela and were sent to the subsidiaries of the CIL amounted to inter-State sale and the view taken by the Division Bench of the Orissa High Court is correct.</font></p>
<p align="justify" ><font color="#FF3366" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Income Tax</b></font></p>
<p align="justify" ><font color="#FF9966" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Exemption to charitable trusts cannot be denied if part of the income was used for religious purposes - ITAT</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The AO was of the opinion that the activities have been carried out in such a way that it is for the benefit of particular religious community i.e. Christianity. The AO proposed to invoke the provisions of Section 13(1)(b) so as to deny exemption u/s 11 & 12 of the Act. The appellant submitted that the amount incurred on conference was spent on ordinary kind of food, stay and conveyance for the participants and it was donated by "Word Outreach". By this activity, there was no direct or indirect benefit to the participant. The benefit of this activity is for the public at large. The AO held that benefit of exemption u/s 11 & 12 would not be available to any trust which has created for the benefit of any religious community. The AO found that the society has incurred various expenditure on the teams which have been sent to different parts to serve the victims of flood for community service, to educate the masses etc. Such activities are charitable in nature. However, the society has also applied its income for the benefit of a particular religious community i.e. Christianity and hence, the benefit of exemption u/s 11 was denied. </font></p>
<p align="justify"><font color="#FF3366" 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><font color="#FF9966">Review vs appeal - AC imposes penalty, Commissioner (A) confirms, CESTAT sets aside, jurisdictional Commissioner enhances penalty, CESTAT sets aside, Revenue appeals to Bombay HC - appeal dismissed</font></b></font></p>
<p align="justify" ><font color="#FF9966" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>THE</b></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b> </b>provisions of review and appeal in Service Tax are playing havoc with litigation hungry revenue officers going full steam.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Commissioner is empowered to review and revise orders passed by his subordinates, but he has to remember that the assessees also have appellate channels. So when an order is set aside by the Commissioner (Appeals) or Tribunal, there is no point in the jurisdictional Commissioner passing a review order.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The respondent <i>Hutchison Max Telecom</i> were under the impression that sale of sim cards and activation charge did not involve any service and they were paying sales tax on these sales. The Service Tax department thought otherwise and demanded Service Tax and imposed penalty.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">They did not contest the tax liability but challenged the penalty. The Commissioner (Appeals) upheld the original adjudicating authority. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#FF3366">Central Excise</font></b></font></p>
<p align="justify" class=style5><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#FF9966">Incorrect Cenvat availment also attracts penalty under rule 25 & interest in terms of Rule 8(3) of the CER - A Double whammy by Tribunal</font></b></font></p>
<p align="justify" ><font color="#FF9966" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong>appellant took Cenvat credit amounting to Rs.2,83,340/- on 12.06.2003 on the basis of an invoice and by mistake took the same credit again on the basis of same invoices on 21st June 2003. Later on, upon detecting the mistake (on their own) they debited excess credit taken by them on 21.08.2003 & also paid the interest for the said period under section 11AB on 04.03.2004. That should have settled the issue amicably, but then the department had other plans!</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 weekend.</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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