TIOL-DDT 836 · the untouched capture
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<div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT
836</font></strong><br>
<strong>01.04.2008<br>
Tuesday </strong></font></div>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Government
fights inflation – no import duty on Crude palm oil</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">To
combat inflation, the government yesterday decided to scrap import duty on crude
palm and soya oils and ban export of non-basmati rice and pulses.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
decisions were taken at a meeting of the Cabinet Committee on Prices at Prime
Minister Manmohan Singh's residence attended by Commerce and Industry Minister
Kamal Nath, Agriculture Minister Sharad Pawar, Railway Minister Lalu Prasad,
besides our own FM, Chidambaram. They deferred a decision on duty reduction
on iron and steel as Steel Minister Ram Vilas Paswan is away from the country.
Steel producers have increased prices between Rs 3,500 to Rs 4,000 per tonne
during the past three months, triggering concerns among dealers and realty developers.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Cabinet Committee approved ban on export of non-basmati rice with immediate
effect and decided to extend the ban on pulses export for one more year from
Monday. The FM said that these would be effective midnight 31st March and the
Notification would be issued today. NO APRIL FOOL THIS!</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
FM said that all edible oils in crude form can be imported at zero duty, while
the duty on oils in the refined form would be 7.5 per cent.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
government also decided to raise the minimum export price of Basmati rice
to USD 1,200 per ton from USD 1100, to discourage export and increase availability
in the domestic market. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It
is also decided to scrap import duty on maize from 15 per cent at present.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Union Government also advised states to impose limits on stocks of commodities
under the Essential Commodities Act, besides asking steel producers not to raise
prices. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We
will bring you the notifications if they are issued today.</font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT
extends DEPB rates</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
DEPB rates notified by Public Notice No. 17 dated 12.07.2007, were to be valid
till 31st March, 2008. Now this is extended indefinitely till “further
amendments”.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Consequently
para 1.1 of the Handbook Of Procedure is amended. The para now reads as,</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In
pursuance of the provisions of paragraph 2.4 FTP, the Director General of Foreign
Trade (DGFT) hereby notifies the compilation known as HBP v1, HBP v2 and Schedule
of DEPB rates. <font color="#FF6633">These compilations, as amended from time
to time, shall remain in force until 31st March, 2009.</font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now,
the last sentence is amended to read as </font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">These
compilations, as amended from time to time, shall remain in force until 31 st
March, 2009 except DEPB scheme which shall continue to be operative till further
orders.</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=47&filename=notification/dgft/2007/dgft07pn133.htm" target="_blank">PUBLIC
NOTICE NO. 133 </a><strong>and </strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2007/dgft07pn134.htm" target="_blank">134 /(RE-2007) /2004-2009, Dated: March
29, 2008</a></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT
adds to SION</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
DGFT has added certain items to the the statement of Standard Input Output Norms</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=47&filename=notification/dgft/2007/dgft07pn131.htm" target="_blank">PUBLIC
NOTICE NO. 131 /(RE-2007) /2004-2009, Dated: March 28, 2008</a></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central
Excise and Service Tax on TV production</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">TV
serial producers have represented that they are subjected to Service Tax, under
the category of "TV or Radio Programme production service' or Sale of spare
or time for advertisement' from 2004. However, after budget 2007, in view of
entry No. 23 in Notification No. 6/2006 [Recorded Video cassette intended for
television broadcasting and supplied in formats such as Umatic, Betacam or any
similar format - 8% duty] the Central Excise Department is also demanding Excise
duty on same product.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now
the Board wants comments from the field on</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1)
Whether both the Service Tax and Excise duty are payable; on same activity or
not?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2)
Whether for both taxes, the same value is considered or different value is considered.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3)
Practices of work adopted by this industry.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4)
Whether the CENVAT Credit procedure would take care of problem of double levy?.
Whether Excise duty or Service Tax paid by TV serial manufacturer are eligible
for credit to the receiver?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5)
Any other relevant fact, including practice followed.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Shouldn’t
the Board clarify these issues instead of asking the field for clarifications?</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=41&filename=notification/servicetax/2008/tvserial.htm" target="_blank">CBEC
Dy.No. 167/11/08-CX.4 Dated: March 05, 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">– Tomorrow ' s cases </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><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></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>Charitable
institution collecting capitation fee not eligible for exemption: ITAT</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">A</font> </strong>private Engineering College run by a trust registered as a charitable
institution is collecting capitation fees – Is the Trust eligible for
IT exemptions. That is the question before the ITAT. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
assessee-society is running educational institutions and hostel in the States
of Andhra Pradesh and Maharashtra. For the asst.year 2003-04, the assessee filed
return of income on 3-12-2003 claiming exemption under section 11 of the Income
Tax Act.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">Is
the assessee a Charitable Institution?</font></strong> The Tribunal noted that it is
obvious that “education” is included in the charitable purpose.
Admittedly, the assessee society is running educational institutions. So the
answer is ‘YES”</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">When
the assessee collects money over and above the fees prescribed by the Government,
whether it constitutes a charitable institution or not.</font> </strong>it is a clear
case of sale of education by the assessee society. In our opinion as such, the
assessee cannot be considered as a charitable institution under S.2(15) of the
Income Tax Act. Therefore, the assessee is not eligible for exemption under
S. 11 of the Income-tax Act.</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CESTAT
</strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Aggrieved
Revenue - Tribunal says it does not understand the purpose for which Revenue
filed application - ROM application filed beyond six months, hence dismissed
- But, then who did really file the ROA application?</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Revenue had then filed a Miscellaneous Application seeking rectification of
the July 2007 order of the Tribunal contending that the respondent had not signed
the ROA application inasmuch as the signature on the application did not match
the one available on their records. The Revenue adduced their submission with
a report from the Government Examiner of Questioned Documents, Hyderabad. This
application was dismissed by the Tribunal in November 2007 on the ground that
the Revenue was not challenging the application for Restoration of Appeal on
the ground of disputed signature of the applicant.</font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service
Tax </font></strong></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Commissioner(A)
reducing penalty in terms of Section 80 of Finance Act, 1994 not improper -
Following judicial discipline does not mean re-writing of the statute : Tribunal</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In
the present case, the Revenue filed an appeal along with an application for
condonation of delay of 20 days. The Bench observed that this authorization
does not bear any date & hence it is not possible to ascertain whether the
delay is twenty days or more. Anyways, the <em><strong><font color="#FF6633">COD application was allowed</font> </strong></em>as the matter lay in a very short compass.</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="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until
Tomorrow with more<strong> DDT</strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have
a </font><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">
nice day.</font></p>
<p align="justify"><font color="#FF6633" 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" target="_blank">vijaywrite@taxindiaonline.com</a></font></p>
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