TIOL-DDT 785 · 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 size="2"><strong><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 785 </font><font size="3" face="Verdana, Arial, Helvetica, sans-serif"></font><font face="Verdana, Arial, Helvetica, sans-serif"><br> 18.01.2008 <br> Friday </font></strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Courage – Grace under pressure – Leader of the year </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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><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/pm_01.jpg" alt="Legal Corner Icon" width="149" height="208" hspace="5" border="0" align="left"></b></strong></b></font></b></font></b></font></b></font></b></font></b></font></strong></font></strong>Prime Minister Manmohan Singh was yesterday crowned with NDTV's “leader of the year” award. He said at the awards function, attended by the rich and powerful and glamour of India , that courage is “grace under pressure” and Mr. PM you have lots of it! In the last 17 years in politics, nobody has seen him lose his temper or utter a bad word. But the star of the function was the debonair FM. He was referred to several times. Hindi superstar Sharukh Khan said, “by the taxes I pay, Mr. Chidambaram knows that not many producers can afford me.”. He also said that he pays his taxes in full. The Prime Minister clapped heartily when he asked politicians not to take money under the table. Who else can clap heartily on such a suggestion? Maybe both of them are not aware that it is no more under the table, but right across! When Tamil hero Rajnikant was asked, “as the highest paid actor…”, he retorted, “who told you, I am the highest paid actor?” The anchor said, “You are saying this because the FM is here?” </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And the FM presented the Businessman of the Year award to the richest Indian, Mukesh Ambani . </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Anti dumping Duty on D (-) Para Hydroxy Phenyl Glycine Base - discontinued </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti dumping duty on D (-) Para Hydroxy Phenyl Glycine Base (PHPG Base) originating in, or exported from, the People's Republic of China was vide notification No. 122/2002-Customs, dated the 31st October, 2002 . This was extended up to 14th February, 2008 by N otification No. 13/2007 -Customs dated the 14th February, 2007 . </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the Designated Authority has recommended discontinuation of anti-dumping duty on imports of the goods . So the Government has now rescinded the Notification No. 122/2002-Customs , thereby doing away with the anti dumping duty on the goods. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Similar is the case with anti dumping duty on D (-) Para Hydroxy Phenyl Glycine Base originating in or exported from Singapore . Notification No. 100/2006-Customs, dated the 29th September, 2006 is rescinded. </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/2008/ctariff08_008.htm" target="_blank">NOTIFICATION NO. 8</a> <strong>and</strong> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_009.htm" target="_blank">9 /2008-Cus., Dated: January 14, 2008 </a></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Imports of goods of Singapore origin – effective rates </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The government has notified concessional rates of duty for over 500 items of Singapore origin. </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/2008/ctariff08_010.htm" target="_blank">NOTIFICATION NO. 10 /2008-Cus., Dated: January 15, 2008 </a></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>No competent DRs to argue cases before CESTAT – Tribunal wants Commissioners to depute competent officers. </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A miscellaneous order of the Kolkata Bench of the CESTAT reads as, </font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">We find that adequate number of <strong>competent </strong> DRs have not been posted to argue the Revenue cases before East Zonal bench resulting in ineffective representation of the departmental cases, which is detrimental to public interest. As such, the A.R. is directed to inform all the Appellant/Respondent Commissioners in the Zone to depute competent officials to ensure effective representation to their cases before the Tribunal. The A.R. may also send a copy of this order to all the Chief Commissioners in the Zone and the Member (L&J), CBE&C, New Delhi for their information. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So the Bench feels that enough <strong><font color="#FF6633">competent</font> </strong> DRs are not posted in the CESTAT. Is the problem about sufficient number or sufficient <strong><font color="#FF6633">competent</font> </strong> number of DRs? Does it mean that the DRs posted are not competent? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the Tribunal wants the Commissioners to depute <strong><em><font color="#FF6633">competent</font> </em></strong> officers to defend the Department's cases. This is an idealistic situation – preferably the officer who booked the case, or the one who issued the SCN or the one who adjudicated should be asked to represent the Department before the Tribunal – but which Commissioner will take the trouble? Now they don't provide even minimum assistance to the DRs in defending department's cases – will they bother to send <em>competent </em> officials to defend the cases? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Only yesterday, a Commissioner who was a former SDR, told me that he was only reiterating the submissions before the Tribunal. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By the way, if the Department is not bothered about posting <em>competent </em> DRs in the Tribunal, why should the Tribunal bother? </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/order.htm" target="_blank">CESTAT Misc. Order No. 5/KOL/2008 dated 10 th January 2008 </a></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT denies permission to its officer to participate in the Ship for World Youth Programme </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Ten youths from India will share their experiences with representatives from 13 other countries on a ship for 42 days as part of a programme organised by the Japanese government to promote friendship and international cooperation. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Under Japan 's 20th 'Ship For World Youth Program', 119 youths from that nation and 141 from 13 other countries, including India , will spend 42 days on board a ship, starting January 24. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">One of the ten Indians is supposed to be Yogendra Chaudhary of the IRS(Income Tax) who is/was the Executive Director of the Nehru Yuva Kendra . But the Appointments Committee of the Cabinet has held that the continuation of Chaudhary as ED beyond 8 th July 2007 as unauthorised and unapproved. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So the CBDT has denied permission to Choudhary to participate in the cruise as it would construe wilful violation of the ACC decision. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This was communicated by the CBDT to the Ministry of Youth Affairs on 15 th January, 2008. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But has Mr Choudhary already left for the ship? </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=70&filename=pitara/sernews/order/cbdtorder010_2008.htm" target="_blank">CBDT Order No. 10., Dated: January 15, 2008 </a></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Paying taxes – not all that easy </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">You are an honest taxpayer and you want to pay your taxes – it is not always easy, especially if the tax you want to pay is Central Excise or Service Tax. The TR 6 Challan has given way to the GAR-7, but not all banks and all Departmental officers know about it! Officers forcing the assessees to make ‘spot payments' still insist on a copy of the TR-6 challan! Yesterday these columns carried details of an RBI circular on the issue. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An agitated Netizen wrote to us, </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The BSR Code, Challan No and dates of payments issued by banks are invariably illegible. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ There is a huge confusion while filing service-tax returns </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Department wants the original paid challan which is the ONLY copy issued to the tax payer by the bank </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Why can't the service tax department accept xerox certified copies from the assessee? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ If Income-tax is accepting challan, they should do the same or at least rely on the certified copies from the <br> assessees. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Your portal should put these issues before the concerned authorities and the issues resolved in public interest at the earliest to save the honest taxpaying public from unnecessary hassles. </font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Jurispruden</font> <font color="#FF6633" size="5">tiol </font> – <font color="#006600">Monday's cases </font></strong><strong><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><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></strong></font></strong></font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax </strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax disallows provisions for doubtful debts and damaged stocks - Assessee suffers damages on account of expiry, shortages and leakages during transportation which are ascertained liabilities - Books prepared in compliance with Sec 115JA - deduction allowable : Delhi HC </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">TILL a few months back, it used to be a rare event in which the Delhi High Court used to impose costs on the Income Tax Department. And this is what perhaps encouraged the Revenue to keep filing appeals indiscriminately and virtually in all cases. But such a cosy run has evidently run out of luck now. So much exasperated is the High Court over the Department's thick-skinned approach to curb frivolous appeals that it can now be seen imposing costs in most of the cases. And it happened even in this case where the issue revolves around allowance of bad debts and stock damages. While computing book profits u/s 115JA, the AO added back the provisions of doubtful debts and stock damages as he felt that such provisions cannot be categorised as ascertained liabilities in advance. </font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax </strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GTA muddle – receipt of goods into factory is input service; clearance of goods from factory is output service? - Consignee factory eligible for credit even if consignor pays Service Tax on goods transport: CESTAT </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE jinxed tax that is Service Tax on GTA , is haunting the tax administration, courts and the hapless assessees for more than a decade. While the net collection from this tax would be less than peanut, the amount of litigation it has generated must have cost the nation heavily – the Government should seriously consider doing away with this tax or maybe levying a flat 2% without credit. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Here is a landmark judgement, where the Tribunal has come to some remarkable conclusions. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">You are a factory receiving raw materials by trucks and the Service Tax on goods transport is to be paid either by the consignor or you as the consignee. Now if you pay the tax, it is input service for you and you can take credit. But what happens if the consignor pays the tax? Can you take credit? “ <strong><font color="#FF6633">YES</font> </strong>”, says the Tribunal. “ <strong><font color="#FF6633">in respect of service tax on the freight paid for receiving inputs/raw materials, the service tax paid whether by the consignor or by the respondents as consignees they are eligible to take credit of the service tax paid. Whether the service tax was paid by the consignor of the inputs or by the respondents does not make any difference in so far as eligibility for credit of the duty paid. The nature of input service does not undergo a change merely because the tax is paid by the recipient. </font></strong></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>Climax and Stud are Anaesthetics - Revenue loses sexually stimulating appeal before Tribunal </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">NO, our site has not been hacked just like that of the leading political party down South. It is just that we could not <strong><font color="#FF6633">“erect” </font></strong>any other caption while reporting this story. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, what are Climax & Stud doing in Central Excise – nothing, dear netizens except that it is their classification that is being <strong><font color="#FF6633">“hotly”</font> </strong>debated. Whereas the Excise authorities felt that it cannot be termed as Anesthetics, the assessee was very much convinced that it was & hence claimed the benefit of the exemption notification available to “Anesthetics”. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">No doubt, everyone was too shy to reveal as to where these aerosol sprays were being used except referring to the fact that <strong><font color="#FF6633">they are used on a specific part of the human anatomy.</font> </strong>We also wish to keep everyone's penile feelings intact, hence try not revealing the same! </font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our columns Monday for the judgements </strong></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 weekend. </font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif"></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></font></p> </body> </html>