TIOL-DDT 755 · the untouched capture
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<p><b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 755</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
05.12.2007<br>
Wednesday</font></b></p><p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Service Tax in <st1:State w:st="on"><st1:place
w:st="on">Jammu and Kashmir</st1:place></st1:State></span></b></font></p><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If I have an agent to sell my goods in <st1:City w:st="on"><st1:place
w:st="on">Srinagar</st1:place></st1:City>, I don't need to pay any Service Tax on the commission I give him - nor does he need to pay as there is no Service Tax in <st2:GivenName w:st="on">J&K.</st2:GivenName> But if my agent is in <st2:GivenName w:st="on"><st1:City w:st="on"><st1:place
w:st="on">Sydney</st1:place></st1:City></st2:GivenName>, I have to pay Service Tax on the commission I pay him! Strange? But that is taxation!</span></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While
this column is scared of treading into the territory of the erudite G-Bee's <st1:PersonName
w:st="on"><b>ST <st2:Sn w:st="on">se</st2:Sn></b></st1:PersonName><b> GST tak</b>,
an interesting clarification appearing in Delhi Service Tax Commissioner's
website made the temptation irresistible.</span></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The website says,</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u><font color="#663399">The doubt was raised if the services provided by a Delhi based company for conduction of topographical survey work of project area in Jammu and Kashmir is chargeable to Service Tax, if the contract for the construction of the project in the state of J & K was awarded to Mumbai based company.</font></u></b></font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u></u></b></font></p><p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u>It was clarified by the Board in consultation of the Ministry of Law that even if the object of service is in the state of J & K but as the service provider and the service receiver are outside the State of J & K, the Service Tax shall be chargeable from the service provider.</u></b></font></p><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Has the Board really clarified this? This opens up quite a bit of possibilities. Now what will happen in the reverse scenario? If the service provider and the receiver are in J&K and the service is rendered in <st1:City w:st="on"><st1:place w:st="on">Delhi</st1:place></st1:City>? Does the location of the service provider's home determine the tax liability? Will they be spared of the tax if they execute the agreement at <st1:City w:st="on">Srinagar</st1:City> airport and fly back and should the agreement read, "I, xx, temporarily residing outside <st1:City w:st="on">Srinagar</st1:City> airport in the State of <st1:State w:st="on">Jammu and Kashmir</st1:State> hereby authorise and request Shriyyy, temporarily residing outside <st1:place w:st="on"><st1:City w:st="on">Srinagar</st1:City></st1:place> airport to undertake, execute and provide the following services..."</span></span></font></p><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If the Board has really given this clarification, why is it available only with the Delhi Commissioner's website?</font></p><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And incidentally there is already a Service Tax in J&K - the state service tax - they seem to be far ahead of the rest of the country in introducing GST by simply having a definition in the Kashmir General Sales Tax Act that goods includes services.</font></p><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This year, the State Finance Minister increased the Service Tax from 4% to 8% and brought in new services like courier services, marriage and banquet halls, private educational and professional institutions, coaching institutions, cable network, insurance, banking and other financial services. He informed the assembly that the Government of India is levying 12% Service Tax - maybe a justification for his doubling the tax!</font></p><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Coming back to our Board - Is the Board confused with the concept of export and import of services? And does it feel like treating Kashmir as not part of <st1:country-region
w:st="on"><st1:place w:st="on">India</st1:place></st1:country-region>? That will give a lot of material to our neighbour when not busy with elections, emergencies and evicting chief justices. </span></font></p><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A Pakistan PM/President/General (whoever they normally have at the head of government/state) is reported to have told an Indian Prime Minister who suggested that they have a bilateral summit in a third country, "fine, I would prefer <st1:place w:st="on"><st1:City w:st="on">Srinagar</st1:City></st1:place>"</span></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://servicetaxdelhi.gov.in/readnews.asp?nid=61">Link to Delhi Service Tax Commissioner's clarification on J&K Service Tax </a></font></p><p></p><p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Money Laundering Adjudication Authorities - Supreme Court stays selection process - OM shanti OM</b></font></p><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By its <st1:place
w:st="on"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/postlundering.pdf%20">OM</a></st1:place><a href="http://www.taxindiaonline.com/RC2/pdfdocs/postlundering.pdf%20" target="_blank"> No.</span>F.No.6/15/2007-E.S. Dated the 26th October, 2007</a>, the Department of Revenue had called for applications for selection of three members for the Adjudication Authority under the Prevention of Money Laundering Act, 2002 (PMLA)</font></p><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The eligible candidates are </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.Those who are qualified for appointment as a District Judge. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. A Grade-I officer of the Indian Legal Service </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. IAS and <st1:stockticker w:st="on">IPS</st1:stockticker></font>
<font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> officers of Joint Secretary and above level</span> </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Group A officers of central Service of JS level
</font> </p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is yet another <b><font color="#663399">plus two</font></b> job and it seems several senior Revenue officers including a Board member had applied for the posts. It is understood that the interviews were also scheduled to be held in a week, but now the Supreme Court has put a stop to the <st1:place
w:st="on">OM.</st1:place></span></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In an order delivered on 3.12.2007 in WRIT PETITION (CIVIL) NO(s). 634 OF 2007, the Supreme Court ordered,</font></p><p><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>There shall be interim stay of further proceedings pursuant to the Notification/Office Memorandum dated 26.10.2007.</b></font></p><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Those who wanted to benefit from the <st1:place w:st="on">OM</st1:place> may not have shanti for some more time!</span>
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</font></p><p></p><p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Jurispruden<font color="#663399" size="5">tiol</font>- Tomorrow's cases</b></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><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></b></font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b></b></font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Anti-dumping </b></font></p><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#FF6633">Anti dumping duty on seamless grade alloy and non-alloy steel billets, bars and rounds originating in or exported from Russia, China and Ukraine - there was no valid reason for the Government to prematurely withdraw the duty - Government directed to review whether the duty should continue beyond five years - assessments to be provisional from 1.2.2008 - High Court </font></b></font></p><p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong>Petitioner has prayed for an appropriate writ to the Central Government not to withdraw the anti-dumping duty imposed by Notification No.65/2001-Cus dated 25th June, 2001. Anti-dumping duty was provisionally imposed by Notification No. 151/2000-Cus dated 26th December, 2000 till 25th June, 2001. Thereafter, it was extended by the Notification dated 25th June, 2001 and was to remain in force for 5 years with effect from 26th December, 2000. However, it was prematurely withdrawn by Notification No.69/2005-Cus dated 19th July, 2005</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399"></font></b></font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Central Excise </b></font></p><p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Notification 30/2004CE - Nylon twine manufactured out of exempted Nylon mono-filament yarn - When the language of the notification does not lend itself to the interpretation of the Revenue, the benefit cannot be denied - Tribunal.</b></font></p><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The short fact involved in the present appeals before the Tribunal was as to whether the appellants are entitled for exemption to Nylon Twine manufactured from Nylon Multi-filament yarn of 210 deniers, in terms of notification 6/2002CE, dated 1.3.2002 & the later notification 30/2004CE, dated 9.7.2004.</font></p><p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Income Tax </b></font></p><p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>It was incumbent on the Assessing Officer to show in the reasons recorded by him that any income escaped assessment due to error or omission on the part of the assessee in not disclosing all material facts - DR not prepared - adjournment refused - ITAT</b></font></p><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The DR pointed out that she has not prepared the case for lack of time and, therefore, the case may be adjourned. </font></p><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The counsel for the assessee pointed out that the facts are clear from the orders of the Assessing Officer and the <st1:stockticker w:st="on">CIT</st1:stockticker>(A) and, therefore, there is no reason to adjourn the hearing of the case. After hearing preliminary arguments on this issue, the request for adjournment of the DR was refused and the case was proceeded with. Thereafter, the learned DR did not make any argument in the matter thereafter.</span></font></p><p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Now had the DR said that she was not feeling well and sought an adjournment, it would have been surely given, but for her honest admission that she was not prepared, the Revenue lost the chance of defending the case.</b></font></p><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399"></font></b></font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u>See our columns tomorrow for th 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></span></font></p>
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