TIOL-DDT 800 · the untouched capture
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<td background="http://taxindiaonline.com/RC2/image/ddt/ddt800_bg.jpg"><p><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT is 800 – Thank You for the patronage </strong></font></p>
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<p><font size="3"><strong><font color="#663399" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 800 </font></strong><font face="Verdana, Arial, Helvetica, sans-serif"><strong></strong></font></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><br>
08.02.2008 <br>
Friday </strong></font></p>
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<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"><strong><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"><strong><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"><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_post_500.bmp" alt="Legal Corner Icon" width="280" height="215" hspace="5" border="0" align="left"></b></strong></b></font></b></font></b></font></b></font></b></font></b></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font>800 </strong> is just another milestone, but <strong>DDT </strong> needs to express its humble feelings of gratitude to all the netizens, colleagues, friends and above all the Government of India that made 800 editions of DDT possible. DDT requests continued patronage and promises continued dosage – daily. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT is but a small part in TIOL's larger mission of being the fast, first and accurate in bringing you all the tax information that you would ever need in tax matters. The whole idea is to provide you a capsule which you can swallow in about fifteen minutes that keeps you healthily informed. Your critical comments and suggestions are gratefully welcomed </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Anti Dumping Duty on flexible slabstock polyol ( FSP ) – re imposed. </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The ADD on flexible slabstock polyol or FSP falling under sub-heading 3907 20 originating in, or exported from, the United States of America, Japan, the European Union and Singapore, imposed vide notification , No. 120/2002-Customs, dated the 31 st October, 2002 was extended till 10.2.2008 by Notification No. 12/2007 -Customs dated the 6 th February, 2007. Before this could expire this Sunday, as the Designated Authority has recommended continued imposition of anti-dumping duty against the subject goods originating in, or exported from, the United States of America, to offset dumping and against Singapore and Japan to prevent recurrence of dumping in order to remove the likelihood of injury to the domestic industry, the Government has introduced Anti Dumping Duty on the goods for another period of five years from 5.2.2008. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Consequently Notification No. 120/2002 which has a couple of more days to die has been rescinded. </font></p>
<p><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_015.htm" target="_blank">NOTIFICATION NO. 15</a><strong> and</strong> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_016.htm" target="_blank">16/2008- <strong>Cus </strong>., Dated: February 5, 2008 </a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Cell sites/ RF Antennas atop building terraces – Not excise but Service Tax! </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT </strong> has received this piece of information from a Netizen. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mushrooming Cell Sites/Base trans-receiver stations propelled the Central Excise department to book cases against the cellular service providers contending that erecting a Cell site etc. amounts to manufacture under CEA '44 . No doubt, after all those notices & adjudications, the result came a cropper as the Tribunal WZB in the case of BPL Mobile Communication 2005-TIOL-923-CESTAT-Mum held that <strong>no “excisable” activity was taking place on the “terraces”. </strong> The appeal of the Department, 87 of 2007 before the Bombay High Court also came to be called as - <strong><em>Call lost! </em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, every time the Central Excise officer sees a BTS/Cell site, he gets angry. But probably he has hope in the form of Service Tax. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">These cell phone companies hire/lease space on the roof tops and terraces of residential and commercial buildings for installation of these cell sites and there are also instances of BPOs & some companies paying handsome amounts for installation of the <strong><em>Radio Frequency ( RF ) antennas on these terraces </em></strong>. The long & short - both commercial property owners & residential societies are minting money. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Naturally, these commercial property owners and residential societies are in the process renting immovable properties for a consideration & that too, a good one. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is, therefore, but natural that they pay Service Tax on these amounts charged, at least from 1 st June 2007. Luckily for the residential societies, they may stand excluded as per the exclusion contained in section 65(105 )( zzzz)] of the Finance Act, 1994. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, will we have Central Excise officers zipping up through the escalators & searching for these antennas & cell sites on the terraces once again? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT </strong> is
not aware whether any Service Tax is being collected on the above service. Before
the high profile Directorate takes a clue and issues bland instructions
just like the one we reported in <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=6764">DDT-798</a></strong>, it is requested
that we receive a feedback! </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax department detects 100 Crore evasion </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Income Department conducted a survey on a Gurgaon based real estate developer and the survey resulted in admitted unaccounted income of over Rs. 100 Crores! Rs. 2 Crores in cash had been already seized. It's really big money times. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Clubbing of Advance Authorisations under paragraph 4.20 of HBP – DGFT clarifies </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Representations have been received from the trade and industry that some of the Regional Authorities are not accepting the request for clubbing of advance authorizations in case the export product is different in two or more advance authorizations for which clubbing has been sought. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The DGFT has considered the issue and clarifies that as long as imported inputs (for which clubbing has been sought) are same, the facility of clubbing would be available for closure of the authorisations irrespective of the fact that the export products are different. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2007/dgft07cir029.htm" target="_blank">DGFT POLICY CIRCULAR NO. 29 (RE-07)/2004-2009 Dated: February 6, 2008 </a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Procedure for claiming Deemed Exports Drawback & Terminal Excise Duty Refund / Exemption from payment of Terminal Excise Duty </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Para 8.3.3 of the Handbook Of Procedure (HOP) states, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Where All Industry Rate of Drawback is not available or same is less than 4/5th of duties actually paid on materials or components used in production or manufacture of the said goods, exporter / supplier may apply for fixation of brand rate in application form as given in ANF 8 to RA or DC. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now this is changed to </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Where All Industry Rate of Drawback is not available or same is less than 4/5 th of duties actually paid on materials or components used in production or manufacture of the said goods, an application in ANF 8 along with prescribed documents may be made to RA or DC, for fixation of brand rate. Recipient may claim benefits on production of a suitable disclaimer from supplier along with a self declaration in Appendix 22 C of HBP Vol. I regarding non- availment of CENVAT credit in addition to prescribed documents”. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2007/dgft07pn105.htm" target="_blank">DGFT PN NO. 105 (RE-07)/2004-2009 Dated: February 6, 2008 </a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SION amended </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The DGFT has amended the Standard Input Output Norms ( SION ) for several commodities. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2007/dgft07pn107.htm" target="_blank">DGFT PN NO. 107 (RE-07)/2004-2009 Dated: February 7, 2008 </a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT amend DEPB rates </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The DGFT has amended the DEPB rates for Non-Cast Hardware Fittings made of Stainless Rod, Titanium Dioxide ( Rutile ), Polyester Chip for Moulding Grade (High Pressure Grade), Acrylic Yarn (Acrylic content 100%) </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2007/dgft07pn109.htm" target="_blank">DGFT PN NO. 109 (RE- 2007)/2004-2009 Dated: February 7, 2008 </a></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><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"><strong><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"><strong><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"><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></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></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 size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">'Precedence of Crown dues' falls flat once again – Central Excise has no priority over banks which are secured creditors: Bombay High Court </font></strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MANY</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong>in the Department believe that because they are THE GOVERNMENT, they have precedence over all others and as part of arrears recovery dramas, property can be attached left right and centre. The Courts in this country have been trying to teach some law, commerce economics and plain common sense to the Revenue <em>babus </em>, with absolutely no positive effect. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Bombay High Court in an exhaustive judgement once again held that, Central Excise arrears do not take precedence over bank dues; even if the property is attached by the Central Excise, it has no effect as the attachment is <em>non est </em>; and the purchaser of the property from the bank has absolutely no liability to Central Excise. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs: </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT does not have power to amend licence retrospectively; Once an advance licence was issued and not questioned by licensing authority, Customs authorities are bound to follow same and grant exemption: CESTAT Larger Bench </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE following questions are before Larger Bench of the Tribunal concerning the case of Bhilwara Spinners Ltd. as reported earlier [ <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=52&filename=legal/cestat/2007/2007-TIOL-1206-CESTAT-MUM.htm">2007-TIOL-1206-CESTAT-MUM </a>] : - </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Whether DGFT has powers to amend the licence including the re-validation (obviously referring to a situation where validity is expired) and whether amendment will be retrospective in nature? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) <em>Whether as to the amendment carried out by the DGFT, whether right or wrong can be the subject matter of the scrutiny and challenge by the customs authorities? </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is what the Bench concluded – </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(i) The licensing authorities do not have powers to amend any licence retrospectively. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(ii) The Customs authorities cannot challenge the powers of the licensing authority for amendment of the licence. </em></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Wealth Tax </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>If assessee is a member of Coop society and if a building or part thereof is allotted or leased to him, assessee would be deemed to be owner of such building or part thereof : Bombay High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE question before the High Court was </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"Whether a flat in a tenant co-operative housing society which is transferred to the name of an assessee on 17th April, 1993 and which comes to the legal ownership of the assessee only on that date, can be said to be "belonging" to the assessee as on the valuation date of 31st March, 1993 so as to be liable to wealth tax for the assessment year 1993-94? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">Some facts:</font> </strong> The society had granted no objection to the previous member to sell the property before 1.4.1993. There was an agreement to sell between the appellant and the previous owner and full consideration had been paid before 1.4.1993. The resolution was passed by the society admitting the appellant as a member before 1.4.1993. The appellant themselves included the said property as their assets in their books for the Annual year 1992-93. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Section 4(7) of the Wealth Tax Act, 1957, the requirements are that the assessee must be a member and further that building or part thereof is allotted or leased to them. If these two conditions are satisfied then notwithstanding anything contained in the Act or any other law for the time being in force, such assessee would be deemed to be the owner of such building or part thereof </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><font color="#FF6666"></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></td>
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