TIOL-DDT 816 · the untouched capture
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<p><font size="3" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">TIOL-DDT 816 </font></strong><strong></strong></font><font face="Verdana, Arial, Helvetica, sans-serif"><font size="2"><strong><br>
03.03.2008 <br>
Monday </strong></font></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Oh! What a Budget! TIOL thanks the Netizens for the overwhelming response </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Budget is certainly not what you see in the TV channels. The fine print in the
Bill and the notifications are never highlighted in those power packed TV debates.
<strong>TIOL </strong> is grateful to all our immensely knowledgeable netizens
and analysts who have dissected the budget minutely and enabled us to bring
you incisive analysis on the fine print of the budget. PC is after all a very
clever political economist caught between the Scylla of Electoral politics and
the Charybdis of Economic Development and it requires an eagle eye to see through
his brilliant plans. Our analysts, being experts in the field with rich experience
could see through the scheme with their intellectual x rays and we have brought
you the best possible analysis of the budget from the best brains in the country.
And it's not yet over. Today we bring you some more important aspects of the
budget dissected by our experts and in the days ahead, we will bring you more.
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Rule 6 in the Cenvat Credit Rules is a classic example of what legislation should
not be. We bring you yet another analysis today wondering on the alphabetic
confusion in the Rule with the missing letter “P”. WE will bring
you some more in the days to come. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
amendment in the Income Tax Act regarding disallowing of expenditure of Rs.
20,000 or more paid in cash has created so much of confusion with leading chartered
accountants and MNC firms understanding it differently – we bring you an in-house
analysis of the situation today. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Stay
with us for an exciting analysis of the budget. </font></p>
<p align="justify"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The
Budget provisions at a glance </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT
</strong> brings you a rough summary of the major provisions of the Budget in
terms of the Finance Bill and the notifications pertaining to the tax matters.
This is only meant to be a general guide for you to see the provisions that
are of interest to you. Most of the issues have been covered in our columns
or will be in the next few days. </font></p>
<p><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The Lofty Legislation: </strong></font></p>
<p align="center"><font color="#006600"><strong>Income Tax </strong></font></p>
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top" width="103"><p align="center"><strong>Finance Bill, 2008 <em>clause </em></strong></p>
<p align="center"> </p></td>
<td valign="top" width="172"><p align="center"><strong>Income Tax Act Provision </strong></p></td>
<td valign="top" width="408"><p align="center"><strong>Amendment </strong></p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>3 (a) </strong></p></td>
<td valign="top" width="172"><p>Section 2 ( 1A ) </p></td>
<td valign="top" width="408"><p>Income from <strong>saplings or Seedlings
grown in a nursery, </strong> deemed to be Agricultural Income. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>3(b) </strong></p></td>
<td valign="top" width="172"><p>Section 2 (15) </p></td>
<td valign="top" width="408"><p>‘Charitable purpose' <strong>not to
include </strong>trade, commerce or business or any service for a CESS,
fee or any other consideration irrespective of the use of the income. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>5 </strong></p></td>
<td valign="top" width="172"><p>Section 35 </p></td>
<td valign="top" width="408"><p>Deduction of 1.25 times any sum paid to a
company for <strong>scientific research </strong>. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>7 </strong></p></td>
<td valign="top" width="172"><p>Section 36 </p></td>
<td valign="top" width="408"><p>Deduction allowed for Securities Transaction
tax and Commodities Transaction Tax. Consequently the deduction not allowed
under Section 40(a )( ib ) is deleted with effect from 01.04.2009. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>9 </strong></p></td>
<td valign="top" width="172"><p>Section 40A (3) </p></td>
<td valign="top" width="408"><p><strong>Cash expenditure above Rs.20 ,000
/- not allowed. </strong></p>
<p>[ <em>A little clarification </em>: As per the existing provisions,
payment made in excess of Rs.20 ,000 /- by cash is not allowed as deduction.
Now, this is made as payment of Rs.20 ,000 /- <strong>to a person in
a day.] </strong></p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>11 </strong></p></td>
<td valign="top" width="172"><p>Section 47 </p></td>
<td valign="top" width="408"><p>Transfer by way of conversion of certain
bonds and capital asset in reverse mortgage, <strong>not to be treated
as transfer. </strong></p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>13 </strong></p></td>
<td valign="top" width="172"><p>Section 80C </p></td>
<td valign="top" width="408"><p>Senior Citizen Savings Account, 5 Year Term
Deposit with Post Office allowed for deduction under Section 80C . </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>14 </strong></p></td>
<td valign="top" width="172"><p>Section 80D </p></td>
<td valign="top" width="408"><p><strong>The whole Section is substituted </strong>.
It was earlier deduction for a medical insurance; <strong>it is now for
health insurance. </strong> The added feature is there is an exemption
of Rs.15 ,000 /- for Health Insurance of parents. It is Rs.20 ,000 /-
for Senior Citizens. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>15 </strong></p></td>
<td valign="top" width="172"><p>Section 80IB </p></td>
<td valign="top" width="408"><p>No deduction for refining of Mineral Oil,
if refining is started after 01.04.2009. </p>
<p>100% deduction to hospitals having 100 or more beds which start functioning
between 01.04.2008 and 31.03.2013. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>16 </strong></p></td>
<td valign="top" width="172"><p>Section 80ID </p></td>
<td valign="top" width="408"><p>100% deduction to hotels in certain areas
extended to hotels located in a World Heritage site. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>17 </strong></p></td>
<td valign="top" width="172"><p>Section 88E </p></td>
<td valign="top" width="408"><p>No deduction of STT from the Assessment Year
beginning 01.04.2009. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>18 </strong></p></td>
<td valign="top" width="172"><p>Section 111A </p></td>
<td valign="top" width="408"><p>Short Term Capital Gains Tax increased from
10% to 15%. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>19 </strong></p></td>
<td valign="top" width="172"><p>Section 115AD </p></td>
<td valign="top" width="408"><p>Short Term Capital Gains Tax for FIIs increased
from 10% 15%. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>21 </strong></p></td>
<td valign="top" width="172"><p>Section 115O </p></td>
<td valign="top" width="408"><p>Dividend Distribution Tax – Dividend
received from subsidiary to be deducted. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>22 </strong></p></td>
<td valign="top" width="172"><p>Section 115WB </p></td>
<td valign="top" width="408"><p><strong>Fringe benefits – “Prepaid
Electronic Meal Card” included. </strong></p>
<p>Fulfilling statutory obligations, mitigating occupational hazards,
providing first-aid facility, crèche, organizing sports or sponsoring
sports-men, <strong>not liable for tax under Fringe benefits </strong>. </p>
<p>Guest house outside the purview of fringe benefits. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>24 </strong></p></td>
<td valign="top" width="172"><p>Section 115WD </p></td>
<td valign="top" width="408"><p>Fringe benefit return to be filed by 30 th
September instead of 31 st October. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>25 </strong></p></td>
<td valign="top" width="172"><p>Section 115WE </p></td>
<td valign="top" width="408"><p>Procedure prescribed for processing fringe
benefit return </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>26 </strong></p></td>
<td valign="top" width="172"><p>Section 115WKB </p></td>
<td valign="top" width="408"><p>This is a new Section under which if the
FBT is recovered by the employer from the employee in respect of ESOP,
the employee is not eligible for a refund or credit against his tax liability. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>27 </strong></p></td>
<td valign="top" width="172"><p>Section 139 </p></td>
<td valign="top" width="408"><p>Income tax return to be filed by 30 th September
instead of 31 st October. </p>
<p><strong>Is the TDS certificate back-in-action? </strong>As per Section
139(9 )( c)( i ), the TDS certificate is to be enclosed for TDS deducted
before 1 st April, 2008. Now this date 1 st April, 2008 is deleted. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>28 </strong></p></td>
<td valign="top" width="172"><p>Section 142 </p></td>
<td valign="top" width="408"><p>Audit Report – Extension of time – <em>suo
motto </em> or on application by the assessee. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>29 </strong></p></td>
<td valign="top" width="172"><p>Section 143 </p></td>
<td valign="top" width="408"><p>Assessment – procedure for processing
the return prescribed. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>30 </strong></p></td>
<td valign="top" width="172"><p>Section 147 </p></td>
<td valign="top" width="408"><p>Income escaping assessment – AO can
assess or re-assess income not involved in appeal or revision. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>31 </strong></p></td>
<td valign="top" width="172"><p>Section 151 </p></td>
<td valign="top" width="408"><p>Sanction by JC /Commissioner/Chief Commissioner
for issue of notice – notice need not be issued by these officers. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>33 </strong></p></td>
<td valign="top" width="172"><p>Section 153A </p></td>
<td valign="top" width="408"><p>An assessment order annulled in appeal will
stand revived from the date the annulment order is received by the Commissioner. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>32 </strong></p></td>
<td valign="top" width="172"><p>Section 153 </p></td>
<td valign="top" width="408"><p>Such revived assessment as mentioned above
has to be assessed within one year from the date of revival. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>37 </strong></p></td>
<td valign="top" width="172"><p>Section 156 </p></td>
<td valign="top" width="408"><p>Intimation about tax determined – to
be treated as notice. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>38 </strong></p></td>
<td valign="top" width="172"><p>Section 191 </p></td>
<td valign="top" width="408"><p>A person liable to deduct tax, including
the Principal officer of a company, who fails to deduct or fails to pay
after deduction, will be treated as an assessee in default. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>39 </strong></p></td>
<td valign="top" width="172"><p>Section 193 </p></td>
<td valign="top" width="408"><p>No interest needs to be deducted on interest
payable on any security in D- MAT form </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>40 </strong></p></td>
<td valign="top" width="172"><p>Section 194C </p></td>
<td valign="top" width="408"><p>TDS on contracts – “any association
of persons or body of individuals whether incorporated or not” included
in the list of TDS for contracts. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>41 </strong></p></td>
<td valign="top" width="172"><p>Section 195 </p></td>
<td valign="top" width="408"><p>TDS on payment to Non-residents – information
relating to payment to be furnished in a form to be prescribed by the
Board. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>42 </strong></p></td>
<td valign="top" width="172"><p>Section 199 </p></td>
<td valign="top" width="408"><p>Credit of TDS – This whole section
is re-written
– Board to frame Rules to allow credit. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>43 </strong></p></td>
<td valign="top" width="172"><p>Section 201 </p></td>
<td valign="top" width="408"><p>Failure to deduct tax – to be treated
assessee in default. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>44 </strong></p></td>
<td valign="top" width="172"><p>Section 203 </p></td>
<td valign="top" width="408"><p>TDS certificate to continue? As per Section
203(3), where the tax has been deducted or paid after 1 st day of April,
2008, there is no requirement to furnish a TDS certificate. This date
is now changed to 1 st day of April, 2010. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>45 </strong></p></td>
<td valign="top" width="172"><p>Section 206C </p></td>
<td valign="top" width="408"><p>TDS for liquor, forest produce, scrap etc.
No TDS certificate after 01-04-2010 (instead of 01-04-2008 ) – Rules
to be framed by the Board for giving credit of TDS . </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>46 </strong></p></td>
<td valign="top" width="172"><p>Section 254 </p></td>
<td valign="top" width="408"><p>Stay granted by Tribunal stands vacated after
365 days even if the delay is not attributable to the assessee. [The
Government gets a lot of pleasure in making such unenforceable law. How
can the assessee be blamed if Tribunal cannot decide the case. In any
case, judicial opinion is a stay is a stay until vacated by the authority
granting the stay or a higher one. So whatever you write in the Income
Tax Act, the stay continues! ] </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>47 </strong></p></td>
<td valign="top" width="172"><p>Section 268A </p></td>
<td valign="top" width="408"><p>No <em>estoppel </em> against State. A new
Section 268A has been inserted giving the Board the power to issue orders,
fixing monetary limits on Income Tax authorities to file appeal, reference
etc. Non-filing of an appeal on a particular issue will not bar the Government
from filing an appeal on the same issue for a different assessee or same
assessee for a different period. [There seems to be a cell in the Board
whose only job is to find out ways and means of undoing judicial decisions.] </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>48 </strong></p></td>
<td valign="top" width="172"><p>Section 271 </p></td>
<td valign="top" width="408"><p><em>Satisfaction </em> of the Assessing Officer
– dereliction of revenue officers condoned with retrospective effect.
Penalty is imposed under the Income Tax Act if the AO, Commissioner( Appeals),
Commissioner is satisfied that income is concealed, notice is not complied
with etc. The Department has lost several cases because this <em>satisfaction </em>had
not been established. Now the law is amended to state that if penalty proceedings
are ordered, that itself is <em>satisfaction. </em> And this <em>satisfaction </em> is
deemed to have been in existence from 01.04.1989. Lost ten years' cases
can be revived. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>49 </strong></p></td>
<td valign="top" width="172"><p>Section 273 A </p></td>
<td valign="top" width="408"><p>If you fail in Settlement Commission, go
to Commissioner, for now Commissioners have been empowered to grant immunity
from penalty where settlement proceedings have abated. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>50 </strong></p></td>
<td valign="top" width="172"><p>Section 278AB </p></td>
<td valign="top" width="408"><p>And immunity from prosecution too. Commissioners
are empowered to grant this immunity also. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>51 </strong></p></td>
<td valign="top" width="172"><p>Section 282A </p></td>
<td valign="top" width="408"><p>Notice authenticated if the name of the officer
is printed, stamped or written, with his designation. [Does this mean
that the officer need not sign the notice?] </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>52 </strong></p></td>
<td valign="top" width="172"><p>Section 292BB </p></td>
<td valign="top" width="408"><p>If you have appeared before an authority,
you cannot claim that notice was not served on you. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>53 </strong></p></td>
<td valign="top" width="172"><p>Section 292C </p></td>
<td valign="top" width="408"><p>If you handover books or documents to the
Income Tax officer, it will be deemed that they have been taken into
custody from you. </p></td>
</tr>
</table>
<p align="center"><font color="#006600"><strong>CUSTOMS ACT </strong></font></p>
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top" width="103"><p><strong>63 </strong></p></td>
<td valign="top" width="172"><p>Section 28B </p></td>
<td valign="top" width="408"><p>Any ‘person' who collects any amount
in excess of assessed duty of Customs to deposit it with the Government. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>64 </strong></p></td>
<td valign="top" width="172"><p>Section 108 </p></td>
<td valign="top" width="408"><p>Any officer of Customs can summon – with
retrospective effect. [Prior to 13.07.2006, any Gazetted officer of Customs
had the power to summon. From 13.07.2006 only those officers empowered
by the Government could summon. The Government forgot to empower any
one and finally woke up a few days ago and empowered all Gazetted Officers
to summon. DDT 810 had pointed out that all summons issued between 13.07.2006
and 20.02.2008 were illegal. The King can do no wrong – even after
it is done. So now the wrong is made right retrospectively.] </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>65 </strong></p></td>
<td valign="top" width="172"><p>Section 117 </p></td>
<td valign="top" width="408"><p>General penalty enhanced to Rs.1 ,00,000
/- from Rs.10,000 /-. Inflation is catching up with the Government. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>66 </strong></p></td>
<td valign="top" width="172"><p>Section 129A </p></td>
<td valign="top" width="408"><p>Appeal against orders of Commissioner( Appeals)
– If the Committee of Commissioners, differs, refer the matter to
the Chief Commissioner. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>67 </strong></p></td>
<td valign="top" width="172"><p>Section 129D </p></td>
<td valign="top" width="408"><p>Appeal against orders of Commissioner – If
there is difference of opinion in the committee of Chief Commissioners,
refer the matter to the Board. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>68 </strong></p></td>
<td valign="top" width="172"><p>Section 129EE </p></td>
<td valign="top" width="408"><p>Interest on pre-deposit refunded </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>69 </strong></p></td>
<td valign="top" width="172"><p>Section 141 </p></td>
<td valign="top" width="408"><p>Customs powers to be outsourced ? Rules to
be framed. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>70 </strong></p></td>
<td valign="top" width="172"><p>Section 158 </p></td>
<td valign="top" width="408"><p>Contravening Rules or Regulations. For contravening
or non-compliance of a Rule, the penalty was Rs.500 /- and for Regulation,
it was Rs.200 /-. <strong>Now, for both it is made Rs.50,000 /- </strong></p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>71 </strong></p></td>
<td valign="top" width="172"><p>Validation of Notification </p></td>
<td valign="top" width="408"><p>Cenvat Credit of DEPB debit allowed from
04.06.2005. </p></td>
</tr>
</table>
<p align="center"><font color="#006600"><strong>CENTRAL EXCISE </strong></font></p>
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top" width="103"><p><strong>73 </strong></p></td>
<td valign="top" width="172"><p>Section 2 </p></td>
<td valign="top" width="408"><p>For the first time, “goods” defined
under the Central Excise Act. Even this is an inclusive definition to
say that
“ goods” includes “any article, material or substance
which is capable of being bought and sold for a consideration and such
goods shall be deemed to be marketable”. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>74 </strong></p></td>
<td valign="top" width="172"><p>Section 3A </p></td>
<td valign="top" width="408"><p>Excise duty based on capacity of production
is back. Sure to generate a lot of action. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>75 </strong></p></td>
<td valign="top" width="172"><p>Section 11B </p></td>
<td valign="top" width="408"><p>Provision to refund interest. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>76 </strong></p></td>
<td valign="top" width="172"><p>Section 11D </p></td>
<td valign="top" width="408"><p>Every person who has collected excess excise
duty, to deposit it with the Government. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>77 </strong></p></td>
<td valign="top" width="172"><p>Section 11DD </p></td>
<td valign="top" width="408"><p>Any person liable – interest on excess
collection. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>78 </strong></p></td>
<td valign="top" width="172"><p>Section 35B </p></td>
<td valign="top" width="408"><p>Appeal against orders of Commissioner( Appeals)
– difference in Committee of Commissioners – refer to Chief
Commissioner. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>79 </strong></p></td>
<td valign="top" width="172"><p>Section 35E </p></td>
<td valign="top" width="408"><p>Appeal against orders of Commissioner – difference
in Committee of Chief Commissioners – refer to Board. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p><strong>80 </strong></p></td>
<td valign="top" width="172"><p>Section 35FF (new) </p></td>
<td valign="top" width="408"><p>Interest on pre-deposit refunded. </p></td>
</tr>
</table>
<p align="center"><strong>SERVICE TAX – FINANCE ACT, 1994 </strong></p>
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top" width="103"><p><strong>85 </strong></p></td>
<td valign="top" width="172"><p>Section 67 </p></td>
<td valign="top" width="408"><p>Gross amount charged includes payment by
cheque, credit card, deduction from account, credit or debit notes and
book adjustments. To this illustrious list now added, </p>
<p>“ any amount credited or debited, whether called suspense account,
or by any other name in the books of account of a person liable to
pay Service Tax where the transaction is with any associated enterprises.” </p></td>
</tr>
<tr>
<td valign="top" width="103"><p> </p></td>
<td valign="top" width="172"><p>Section 71 </p></td>
<td valign="top" width="408"><p>Service Tax Return Preparer Scheme </p></td>
</tr>
<tr>
<td valign="top" width="103"><p> </p></td>
<td valign="top" width="172"><p>Section 72 </p></td>
<td valign="top" width="408"><p>Best judgment assessment for those who fails
to furnish return or pay tax properly. This Section was omitted in 2004
and makes its re-entry now. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p> </p></td>
<td valign="top" width="172"><p>Section 77 </p></td>
<td valign="top" width="408"><p>It's penal time in Service Tax. If you don't
take registration, penalty can be Rs.5000 /- or Rs.200 /- per day of
offence – of course whichever is higher. </p>
<p>If you don't maintain records, furnish information to the officer,
produce documents called for or disobey the summons issued by the officer;
if you don't pay tax through internet banking; issue an invoice without
all the required particulars – you can't get away. There is a
hefty penalty awaiting you. The Department is sure to collect a large
revenue through penalty. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p> </p></td>
<td valign="top" width="172"><p>Section 78 </p></td>
<td valign="top" width="408"><p>If penalty is payable under Section 78, there
will be no penalty under Section 76. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p> </p></td>
<td valign="top" width="172"><p>Section 86 </p></td>
<td valign="top" width="408"><p>Difference of opinion in Committee of Commissioners
and Chief Commissioners – push the matter up. </p></td>
</tr>
<tr>
<td valign="top" width="103"><p> </p></td>
<td valign="top" width="172"><p>Section 95 </p></td>
<td valign="top" width="408"><p>All mistakes in the Bill and after it becomes
an Act can be corrected within one year of enactment </p></td>
</tr>
</table>
<p align="center"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The
Delegated Legislations - Notifications </strong></font></p>
<p align="center"><strong><font color="#006600">CUSTOMS NON TARIFF NOTIFICATIONS </font></strong></p>
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top" width="151"><p align="center"><strong>Notification No. </strong></p></td>
<td valign="top" width="98"><p align="center"><strong>Date </strong></p></td>
<td valign="top" width="408"><p align="center"><strong>Gist </strong></p></td>
</tr>
<tr>
<td valign="top" width="151"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2008/cnt08_011.htm">11/2008-
Cus ( N.T. ) </a></p></td>
<td valign="top" width="98"><p>01-03-2008 </p></td>
<td valign="top" width="408"><p>Amends the First Schedule to the Customs
Tariff Act. </p></td>
</tr>
</table>
<p align="center"><font color="#006600"><strong>CUSTOMS TARIFF NOTIFICATIONS </strong></font></p>
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top" width="148"><p align="center"><strong>Notification No. </strong></p></td>
<td valign="top" width="148"><p align="center"><strong>Date </strong></p></td>
<td valign="top" width="544"><p align="center"><strong>Gist </strong></p></td>
</tr>
<tr>
<td valign="top" width="148"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_020.htm">20/2008-
C.T </a></p></td>
<td valign="top" width="148"><p>01-03-2008 </p></td>
<td valign="top" width="544"><p>Amends Notification No.21 /2006- Cus . Dated
01.03.2006. </p></td>
</tr>
<tr>
<td valign="top" width="148"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_021.htm">21/2008-
C.T </a></p></td>
<td valign="top" width="148"><p>01-03-2008 </p></td>
<td valign="top" width="544"><p>Amends Notification No.21 /2002- Cus . dated
01.03.2002. </p></td>
</tr>
<tr>
<td valign="top" width="148"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_022.htm">22/2008-
C.T </a></p></td>
<td valign="top" width="148"><p>01-03-2008 </p></td>
<td valign="top" width="544"><p>Exemption to Textile Articles from NCCD . </p></td>
</tr>
<tr>
<td valign="top" width="148"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_023.htm">23/2008-
C.T</a> </p></td>
<td valign="top" width="148"><p>01.03.2008 </p></td>
<td valign="top" width="544"><p>Amends Notification No.19 /1965- Cus dated
06.02.1965 regarding percentage of import duty for draw back. </p></td>
</tr>
<tr>
<td valign="top" width="148"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_024.htm">24/2008-
C.T</a> </p></td>
<td valign="top" width="148"><p>01-03-2008 </p></td>
<td valign="top" width="544"><p>Amends Notification NO.84 /1997- Cus dated
11.11.1997 – exemption to UN Finance Projects. </p></td>
</tr>
<tr>
<td valign="top" width="148"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_025.htm">25/2008-
C.T.</a> </p></td>
<td valign="top" width="148"><p>01-03-2008 </p></td>
<td valign="top" width="544"><p>Makes certain amendments to Notification
No.25 /1999- Cus . dated 28.2.1999. </p></td>
</tr>
<tr>
<td valign="top" width="148"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_026.htm">26/2008-
C.T</a> </p></td>
<td valign="top" width="148"><p>01-03-2008 </p></td>
<td valign="top" width="544"><p>Exempts goods falling under 851712 (Cell
Phones) from NCCD . </p></td>
</tr>
<tr>
<td valign="top" width="148"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_027.htm">27/2008-
C.T </a></p></td>
<td valign="top" width="148"><p>01-03-2008 </p></td>
<td valign="top" width="544"><p>Amends Notification No.27 /2002- Cus . dated
01.03.2002 – Exemption to re-exported goods. </p></td>
</tr>
<tr>
<td valign="top" width="148"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_028.htm">28/2008-
C.T </a></p></td>
<td valign="top" width="148"><p>01-03-2008 </p></td>
<td valign="top" width="544"><p>Amends Notification No.171 /1993- Cus . dated
16.09.1993 – Technical correction – Duty free imported gifts. </p></td>
</tr>
<tr>
<td valign="top" width="148"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_029.htm">29/2008-
C.T</a> </p></td>
<td valign="top" width="148"><p>01-03-2008 </p></td>
<td valign="top" width="544"><p>Supersedes Notification No.77 /2003- Cus
. dated 14.05.2003 – exempts additional duty equal to NCCD on all
goods except Cell Phones. </p></td>
</tr>
</table>
<p align="center"><font color="#006600"><strong>Central Excise NON-TARIFF NOTIFICATIONS </strong></font></p>
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top" width="148"><p align="center"><strong>Notification No. </strong></p></td>
<td valign="top" width="148"><p align="center"><strong>Date </strong></p></td>
<td valign="top" width="544"><p align="center"><strong>Gist </strong></p></td>
</tr>
<tr>
<td valign="top" width="148"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/exnt08_10.htm">10/2008-Central
Excise (NT) </a></p></td>
<td valign="top" width="148"><p>01-03-2008 </p></td>
<td valign="top" width="544"><p>Amends the CENVAT Credit Rules, 2004 – controversial,
complicated and impossible Rule 6 introduced ; general penalty increased
to Rs.5000 /- </p></td>
</tr>
<tr>
<td valign="top" width="148"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/exnt08_11.htm">11/2008-Central
Excise (NT)</a> </p></td>
<td valign="top" width="148"><p>01-03-2008 </p></td>
<td valign="top" width="544"><p>Amends the First Schedule to the Central
Excise Tariff Act – mainly to defeat judicial verdict. “Labeling
or re-labeling of containers and re-packing” changed to “labeling
or re-labeling of containers or re-packing”. Now both labeling
and re-packing are not required, one would be enough. </p></td>
</tr>
<tr>
<td valign="top" width="148"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/exnt08_12.htm">12/2008-Central
Excise (NT)</a> </p></td>
<td valign="top" width="148"><p>01-03-2008 </p></td>
<td valign="top" width="544"><p>Amends Notification No.3 /2006-CE (NT) dated
02.06.1998 – Tariff value. </p></td>
</tr>
<tr>
<td valign="top" width="148"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/exnt08_13.htm">13/2008-Central
Excise (NT)</a> </p></td>
<td valign="top" width="148"><p>01-03-2008 </p></td>
<td valign="top" width="544"><p>Prescribes Rules for determining the value
of goods covered under Section 4A ( RSP ) </p></td>
</tr>
<tr>
<td valign="top" width="148"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/exnt08_14.htm">14/2008-Central
Excise (NT)</a> </p></td>
<td valign="top" width="148"><p>01-03-2008 </p></td>
<td valign="top" width="544"><p>Prescribes the abatement rates for goods
covered under RSP . </p></td>
</tr>
</table>
<p align="center"><font color="#006600"><strong>Central Excise - TARIFF NOTIFICATIONS </strong></font></p>
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top" width="148"><p align="center"><strong>Notification No. </strong></p></td>
<td valign="top" width="148"><p align="center"><strong>Date </strong></p></td>
<td valign="top" width="544"><p align="center"><strong>Gist </strong></p></td>
</tr>
<tr>
<td valign="top" width="148"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_02.htm">02/2008-Central
Excise (T) </a></p></td>
<td valign="top" width="148"><p>01-03-2008 </p></td>
<td valign="top" width="544"><p>Prescribes effective rate of duty of 14%
on most of the goods. </p></td>
</tr>
<tr>
<td valign="top" width="148"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_03.htm">03/08-Central
Excise (T)</a> </p></td>
<td valign="top" width="148"><p>01-03-2008 </p></td>
<td valign="top" width="544"><p>Amends Notification No.03 /2006-Central Excise
dated 01.03.2006 – specifies effective rate of duty on certain
products </p></td>
</tr>
<tr>
<td valign="top" width="148"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_04.htm">04/08-Central
Excise (T)</a> </p></td>
<td valign="top" width="148"><p>01-03-2008 </p></td>
<td valign="top" width="544"><p>Amends Notification No.04 /2006-Central Excise
dated 01.03.2006 – specifies effective rate of duty on certain
products </p></td>
</tr>
<tr>
<td valign="top" width="148"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_05.htm">05/08-Central
Excise (T)</a> </p></td>
<td valign="top" width="148"><p>01-03-2008 </p></td>
<td valign="top" width="544"><p>Specifies effective rate of 8% duty on open
tap sanitary cans and 14% on certain other items – amends notification
No.05 /2006 Central Excise dated 01.03.2006 </p></td>
</tr>
<tr>
<td valign="top" width="148"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_06.htm">06/08-Central
Excise (T) </a></p></td>
<td valign="top" width="148"><p>01-03-2008 </p></td>
<td valign="top" width="544"><p>Amends Notification No.06 /2006-Central Excise
dated 01.03.2006 – specifies effective rate of duty on certain
products </p></td>
</tr>
<tr>
<td valign="top" width="148"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_07.htm">07/08-Central
Excise (T) </a></p></td>
<td valign="top" width="148"><p>01-03-2008 </p></td>
<td valign="top" width="544"><p>Amends Notification No.64 /1995 Central Excise
dated 16.03.1995 – exempts certain goods for use in satellite project
of ISRO </p></td>
</tr>
<tr>
<td valign="top" width="148"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_08.htm">08/08-Central
Excise (T)</a> </p></td>
<td valign="top" width="148"><p>01-03-2008 </p></td>
<td valign="top" width="544"><p>Amends Notification No.08 /2003-Central Excise
dated 01.03.2003 to include goods falling under Chapter 39 in the SSI
Exemption </p></td>
</tr>
<tr>
<td valign="top" width="148"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_09.htm">09/08-Central
Excise (T) </a></p></td>
<td valign="top" width="148"><p>01-03-2008 </p></td>
<td valign="top" width="544"><p>Amends Notification No.21 /2005-Central Excise
dated 13.05.2005 – exemption from NCCD </p></td>
</tr>
<tr>
<td valign="top" width="148"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_10.htm">10/08-Central
Excise (T) </a></p></td>
<td valign="top" width="148"><p>01-03-2008 </p></td>
<td valign="top" width="544"><p>Amends Notification No.23 /2003-Central Excise
dated 31.03.2003 - increases excise duty payable for DTA clearances from
EOUs </p></td>
</tr>
<tr>
<td valign="top" width="148"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_11.htm">11/08-Central
Excise (T) </a></p></td>
<td valign="top" width="148"><p>01-03-2008 </p></td>
<td valign="top" width="544"><p>Amends Notification No.49 /2003-Central Excise
dated 10.06.2003 – Uttarakhand and Himachal exemption </p></td>
</tr>
<tr>
<td valign="top" width="148"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_12.htm">12/08-Central
Excise (T) </a></p></td>
<td valign="top" width="148"><p>01-03-2008 </p></td>
<td valign="top" width="544"><p>Amends Notification No.49 /2006-Central Excise
dated 30.12.2006 – effective rate of duty on computer software
increased from 8 to 12% </p></td>
</tr>
<tr>
<td valign="top" width="148"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_11.htm">13/08-Central
Excise (T) </a></p></td>
<td valign="top" width="148"><p>01-03-2008 </p></td>
<td valign="top" width="544"><p>Amends Notification No.108 /1995-Central
Excise dated 28.08.1995– clarification on goods supplied to UN
Financed projects. </p></td>
</tr>
<tr>
<td valign="top" width="148"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_14.htm">14/08-Central
Excise (T) </a></p></td>
<td valign="top" width="148"><p>01-03-2008 </p></td>
<td valign="top" width="544"><p>Textiles – exemption from NCCD . </p></td>
</tr>
</table>
<p align="center"><font color="#006600"><strong>Service Tax NOTIFICATIONS </strong></font></p>
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top" width="179"><p align="center"><strong>Notification No. </strong></p></td>
<td valign="top" width="116"><p align="center"><strong>Date </strong></p></td>
<td valign="top" width="583"><p align="center"><strong>Gist </strong></p></td>
</tr>
<tr>
<td valign="top" width="179"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2008/stnot08_004.htm">4/2008-Service
Tax </a></p></td>
<td valign="top" width="116"><p>01-03-2008 </p></td>
<td valign="top" width="583"><p>Service Tax Rules amended – provision
for optional advance payment of tax; excess tax paid can be adjusted
upto Rs.1,00,000 /- instead of Rs.50,000 /- ; revised return can be filed
within 90 days instead of 60 days; penalty may be waived if the tax payable
is nil. </p></td>
</tr>
<tr>
<td valign="top" width="179"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2008/stnot08_005.htm">5/2008-Service
Tax </a></p></td>
<td valign="top" width="116"><p>01-03-2008 </p></td>
<td valign="top" width="583"><p>Export of services through internet – deemed
as service performed outside India </p></td>
</tr>
<tr>
<td valign="top" width="179"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2008/stnot08_006.htm">6/2008-Service
Tax </a></p></td>
<td valign="top" width="116"><p>01-03-2008 </p></td>
<td valign="top" width="583"><p>Import of services through internet – deemed
as service performed in India . </p></td>
</tr>
<tr>
<td valign="top" width="179"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2008/stnot08_007.htm">7/2008-Service
Tax </a></p></td>
<td valign="top" width="116"><p>01-03-2008 </p></td>
<td valign="top" width="583"><p>Composition of Works Contract – tax
increased from 2% to 4%. </p></td>
</tr>
<tr>
<td valign="top" width="179"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2008/stnot08_008.htm">8/2008-Service
Tax </a></p></td>
<td valign="top" width="116"><p>01-03-2008 </p></td>
<td valign="top" width="583"><p>Small Scale exemption limit enhanced to ten
lakhs rupees </p></td>
</tr>
<tr>
<td valign="top" width="179"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2008/stnot08_009.htm">9/2008-Service
Tax </a></p></td>
<td valign="top" width="116"><p>01-03-2008 </p></td>
<td valign="top" width="583"><p>Registration to be taken on turn over crossing
rupees nine lakhs. </p></td>
</tr>
<tr>
<td valign="top" width="179"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2008/stnot08_010.htm">10/2008-Service
Tax </a></p></td>
<td valign="top" width="116"><p>01-03-2008 </p></td>
<td valign="top" width="583"><p>Registration to be taken on turn over crossing
rupees nine lakhs. </p></td>
</tr>
<tr>
<td valign="top" width="179"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2008/stnot08_011.htm">11/2008-Service
Tax </a></p></td>
<td valign="top" width="116"><p>01-03-2008 </p></td>
<td valign="top" width="583"><p>Amends Notification No.32 /2005: Registration
to be taken on turn over crossing rupees nine lakhs. </p></td>
</tr>
<tr>
<td valign="top" width="179"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2008/stnot08_012.htm">12/2008-Service
Tax </a></p></td>
<td valign="top" width="116"><p>01-03-2008 </p></td>
<td valign="top" width="583"><p>Amends Notification No.01 /2006-Service Tax
dated 01.03.2006 – deletes GTA from the abatement scheme. </p></td>
</tr>
<tr>
<td valign="top" width="179"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2008/stnot08_013.htm">13/2008-Service
Tax </a></p></td>
<td valign="top" width="116"><p>01-03-2008 </p></td>
<td valign="top" width="583"><p>Exempts 75% of the tax payable by GTA without
any conditions </p></td>
</tr>
<tr>
<td valign="top" width="179"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2008/stnot08_014.htm">14/2008-Service
Tax </a></p></td>
<td valign="top" width="116"><p>01-03-2008 </p></td>
<td valign="top" width="583"><p>Exempts Service relating to booking of Hotel
Accommodation from abroad </p></td>
</tr>
<tr>
<td valign="top" width="179"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2008/stnot08_015.htm">15/2008-Service
Tax </a></p></td>
<td valign="top" width="116"><p>01-03-2008 </p></td>
<td valign="top" width="583"><p>Have you evaded Service Tax ? The Department
is going to publish your name and other details in the official gazette,
print and electronic media. Already many of the Commissionerates and
Directorates are doing this. There was a D GS T who would reel out the
names of alleged offenders at every meeting he addressed and his list
would invariably contain the top public sector units of India . By a
recent letter the Board had confirmed that the Department of Posts is
an offender. May be the Department can publish in the Gazette as well
as print and electronic media that Madam Pratibha Patil in her capacity
as the President of India representing the Postal Department is an offender.</p></td>
</tr>
</table>
<p align="center"><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600" size="2">Jurispruden</font> <font color="#FF6633" size="5">tiol</font> <font size="2"> – <font color="#006600">Today's/Tomorrow's
cases</font></font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><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><font color="#663399">Income
Tax</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">{Though
fully submerged in the Budget, we could not desist from bringing you
this important order today.} </font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chit
Fund Scheme: Revenue cannot insist on changing method of accounting until
it proves assessee's method distorts profits, says Apex Court </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">IT
is a well settled law that every assessee is entitled to arrange his affairs,
and also follow the method of accounting of his choice. However, this can
continue only till the Revenue establishes that a particular type of accounting
method distorts the profits of the assessee and thus hurts the interest of
Revenue. If the Revenue fails to do so, it cannot insist on changing the
method of accounting as per its whims and fancies. This is what constitutued
the core of the dispute which has been decided by the Apex Court in a chit
fund case. Since the Bench found that the substitution of the completed contract
method by the percentage of completion method was revenue neutral, and the
AO had not recorded any findings indicating any sort of distortion of the
profits, the Apex Court has dismissed the Revenue's appeal. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">Tomorrow: </font></strong></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>UP Trade Tax </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Levy of tax is not on use of goods but on the transfer of the right to use goods : Supreme Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It has been further held that Article 366(29-A )( d) shows that levy of tax is not on use of goods but on the transfer of the right to use goods. That, right to use arises only on the transfer of such a right under the contract and unless there is transfer of such right, the right to use does not arise. Therefore, it is the transfer which is sine qua non for the right to use any goods. If the goods are available, the transfer of the right to use takes place when the contract in respect thereof is executed. As soon as the contract is executed, the right is vested in the lessee. </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">When ground for rejecting appeal of appellant is totally non-existent on date of order, the order is required to be set aside with consequential relief : Tribunal </font></strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOTWITHSTANDING</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong>the provisions of Section 11BB of the CEA '44 that requires interest to be paid in case of delay in granting refunds, the excise authorities come out with all sorts of revolutionary excuses to reject a refund claim are not afraid to even ink them in black white. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In fact, the Board had categorically mentioned in its Circular 572/9/2001- CX . Dated 22.02.2001 that where refund arises consequent to the decision of any authority, the first and foremost action ought to be to expeditiously file an appeal/stay application well before the expiry of stipulated period of three months (and not waiting for the last date of filing of appeal) that <strong><em><font color="#FF6633">no refund/rebate claim should be withheld on the ground that an appeal has been filed against the order giving the relief, unless stay order has been obtained </font></em></strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until tomorrow with more <strong>DDT </strong></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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