TIOL-DDT 768 · the untouched capture
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<p><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 768 </font><font size="3"></font><font size="2"><br>
26.12.2007 <br>
Wednesday </font></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Appeals before ITAT - instructions on paper books </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Income Tax Appellate Tribunal (ITAT) has issued instructions that </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) Paper Books must be legibly written or type-written in double space. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) Each paper filed should be certified as true copy by the party filing the same, or by his authorized representative. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) Each paper should be indexed in such a manner as to give the brief description of the relevance of the document, with page numbers stating the authority before whom it was filed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) Xerox copy of a document should be legible. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(e) Additional evidence should be filed by way of separate paper book along with the reasons for filling such additional evidence. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(f) No supplementary paper book should be filed except with the leave of the Bench. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(g) Paper books not conforming to the above rules are liable to be ignored. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(h) The paper Book in duplicate duly indexed and page should be submitted in the office of the Tribunal at least a day before the date of hearing of the appeal along with proof of service of a copy of the same on the other side at least a week before. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/itatregistrar.htm" target="_blank">ITAT F.No . 70- Jd ( ATD ) / 07 Dated the 26th November, 2007 </a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The CESTAT also has similar procedure </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Rule 16 of the CESTAT (Procedure) Rules, 1982 reads as </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>16. Preparation of paper book </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. The appellant shall, along with the appeal or within one month of filing of the appeal, submit in such number of copies as of the memorandum of appeal, a paper book containing copies of the documents, statements of witnesses and other papers on the file of, or referred to in the orders of, the departmental authorities, which he proposes to rely upon at the hearing of the appeal. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. The respondent may also file a paper book containing such documents as are referred to in sub-rule (1), which he proposes to rely upon at the time of hearing of the appeal, in such number of copies as of the memorandum of appeal, within one month of the service of the notice of the filing of the appeal on him, or within two weeks of the service of the paper book, whichever is later. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. The Tribunal may, in its discretion, allow the filing of any paper book referred to in sub-rule (1) or sub-rule (2) after the expiry of the period referred to therein. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. The Tribunal may on its own motion direct the preparation of as many copies as may be required of a paper book by and at the cost of the appellant or the respondent, containing copies of such statements, papers or documents as it may consider necessary for the proper disposal of the appeal. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. The President may in his discretion direct by a general or special order that only such documents as may be specified by him in his order may be initially filed with the appeal; and the paper book as prescribed in sub-rule (1) and (2) may be filed subsequently on receipt of notice of hearing of the appeal by way of a general or specific notice for the case(s) or advance cause list. <br>
The President may further direct that in case of non-filing of the documents as specified under this Rule, the Registrar/Deputy Registrar or any other authorised officer would be competent to return the specified documents or sets of documents and to receive the same back only after rectification of the defects to the satisfaction of the proper officer or the Bench as the case may be and on the return the case may be assigned a new number. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. President may by a general or special order allow attestation of the documents filed along with appeal/application or as a part of paper book or otherwise by a gazetted officer or such other person as may be authorised by the President to attest or certify such documents or photo copies thereof. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. All paper books shall contain clearly legible documents duly paged, indexed and be tagged firmly. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Inform the Status of previous cases - Court asks Income Tax Department </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Bombay High Court has noticed that appeals are filed in respect of the same assessees on the same issues for different years and the Department is not able to tell the court either the Appeal Numbers or as to what the decisions were. There is every possibility of the Court giving different judgements on the same issues for different years. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Recently
we brought to you a judgement of the Supreme Court where the Department's
Counsel pleaded that the Central Excise Department's appeal in the Sri Chakra
case ( CUM DUTY) was pending in the Supreme Court. The judges pointed out
to the Counsel that the Department's appeal was dismissed six years ago!
[<font size="1"><strong> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=32&filename=legal/sc/2007/2007-TIOL-232-SC-CX.htm" target="_blank">2007-TIOL-232-SC-CX</a><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=32&filename=legal/sc/2007/2007-TIOL-232-SC-CX.htm" target="_blank"></a></strong></font><strong> ] </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Apparently, neither of the Revenue Boards has a record of the appeals and what happened to those appeals. Two years ago TIOL was invited for a presentation before the CBEC and they asked me if TIOL can provide a <strong><font color="#FF6633">present status</font> </strong> for the appeals before the Supreme Court and High Courts and even the Tribunal decisions. I told the Board that we would be happy to provide the service, but the information has to come from the Board - we can only upload the information but certainly cannot collect it. I suggested to the Board that they can collect the information from the Commissioners and we can prepare a data bank on the latest status of every case and this would make work easy for the Department, the courts, the litigant lawyer and the assessee. Today many of the Commissionerates waste a lot of time in corresponding with other Commissionerates to find out the status of cases. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the Bombay High Court has asked the Income Tax Department to do exactly that. The High Court judgement said, </font></p>
<blockquote>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">For the past six months it has come to our notice and we have been repeatedly pointing out that though the appeals are filed in respect of the same assessee on the same questions for different assessment years when matters come up for hearing, Counsel for the appellant are not in a position to inform this Court either of the numbers of the appeal or what has happened. </font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">The Income Tax Officer must maintain a record of all the appeals with their numbers which they have preferred and the status of these appeals. If a system of maintaining such records has not been so far prepared in respect of each assessee, the same should be done immediately and a compliance report be filed in this Court within two weeks from today of the steps that are being taken so that valuable judicial time is saved.</font><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"> </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Let us hope that at least now, the judicial decision will make both the Boards to maintain this very badly needed record which they should have started maintaining at least 50 years ago. And TIOL would be only too glad to assist the Boards in this task - if only they are willing to share information. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=51&filename=legal/hc/2007/2007-TIOL-747-HC-MUM-IT.htm" target="_blank">Click here for the judgement . </a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>E- TDS return - Demand for less than Rs. 100/- to be ignored </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per the Central Action Plan for the year 2007-08 for electronic filing of TDS returns, processing is required to be done by the RCCs (Regional Computer Centres ). After initiation of bulk processing by RCCs , the TDS Assessing Officers are to assess the mis -match report, issue show cause notices and take follow-up action. Board has noticed that the total demand against defaults in the large number of cases is Rs.100 /- or less. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Since in such default/demand cases of Rs.100 /- or less, the cost of compliance by issue of show cause notices along with the justification of demand or default and follow-up action may be much more than Rs. 100/-, CBDT has decided to allow the Assessing Officers to ignore such cases and drop the demand where the demand/default is upto a level of Rs. 100/- or less. However, the DDOs in such cases may be warned to be careful in future so as to ensure that they do not become habitual in short deduction of tax. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">These instructions shall apply to all TCS / TDS cases under all direct tax enactments. These instructions will come into force immediately. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT has done some real costing. Maybe they can amend the law to provide for a mandatory presumptive fine of Rs. 5000/- whenever the TDS is short by Rs. 500/- or less so that DDOs are more careful. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=67&filename=notification/cbdt/2007/instruct0711.htm" target="_blank">CBDT
Instruction No 11/2007, Dated: December 18, 2007 </a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Anti Dumping Duty on Caustic soda - extended </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Vide Notification No. No.142 /2003-Customs, dated the 23 rd September, 2003, anti dumping duty was imposed on Sodium Hydroxide, commonly known as Caustic Soda, originating in, or exported from, Republic of Korea and the People's Republic of China. Imposition of the provisional anti-dumping duty was from the 26th December, 2002 and would have expired on 25 th December 2007. Now the Government has extended this till the 25th December 2008 - and this was done before it really expired. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2007/ctariff07_121.htm" target="_blank">NOTIFICATION NO. 121 /2007- Cus , Dated: December 20, 2007 </a></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Jurispruden</font><font color="#663399" size="5">tiol</font> <font color="#006600">- Tomorrow's cases </font></strong></font></p>
<p align="justify"><font 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><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></b></font></b></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax - Mayawati wins </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">Income Tax - Rs 60 lakhs gift to Mayawati - these gifts are made out of natural love and affection by donors - Element of reverence, veneration or personal esteem and faith all depend upon personal feelings and desire - Mayawati wins huge case in ITAT </font></strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong>is not elections alone that Mayawati can win emphatically. She has proved that she can win income tax cases with equal force. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The issue before the Tribunal is the gifts amounting to Rs. 12 lakhs in cash and Rs . 62 Lakhs in immovable property received by Mayavati . The donors had even borrowed money and made the gifts to her. The AO was not convinced but the CIT ( A) was and Revenue is in appeal before the Tribunal. Assessee Mayavati is also before the Tribunal pleading Standard deduction of Rs. 30,000/-. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Why would totally unrelated persons want to donate such huge sums to Madam Mayawati ? Out of natural love and affection borne out of her selfless service to the downtrodden! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">Service Tax </font> </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">Service Tax - Even wayside painters would, for an amount, quickly paint out advertisements for anyone who engages them and they would surely not become an 'advertising agency' : CESTAT </font></strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A <em>good name is to be chosen over great riches. It's tax free! - Anon. </em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Unfortunately, the above quip did not hold good as far as the present appellant was concerned for he was taxed by the enterprising Central Excise officials -<font color="#FF6633"> <strong><em>well almost ! </em></strong></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">How did the case originate </font></strong><font color="#FF6633">-</font> During the scrutiny of the records of M/s Mangalam Cement Ltd., it was noticed by the officers that the appellant had received an amount of Rs. 24 ,76,417 /- on account of advertisement. Without wasting much time, the Revenue concluded that the appellant was a commercial concern engaged in providing services connected with making, preparation, display and exhibition of advertisements and also providing consultancy in advertisements; that the appellant had not obtained registration in respect of the said taxable service, 'Advertising Agency'. Noticing that no reply was being filed, the Revenue proceeded to confirm the Service Tax demand of Rs. 1 ,23,821 /- & imposed penalties. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The order was challenged on the ground that the appellant was only a painter </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Cenvat Credit on capital goods - AC of assessee availing credit can not change classification of capital goods - it is job of his counterpart having jurisdiction over supplier's factory: CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE eligibility of the Cenvat Credit is decided by the classification of the goods. The credit is allowed only on the goods falling under specified chapters. Obviously the document to decide the classification and the eligibility of credit is the supplier's invoice. But, what if the receiver of the goods contends that the classification shown is the invoice is not correct? </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our columns tomorrow for the judgements </strong></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 time. </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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