TIOL-DDT 838 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 838</font> <br>
03.04.2008 <br>
Thursday </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Our Microsoft story - If imitation is the best form of flattery – we are flattered! </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">More than 5000 websites and newspapers have picked up our story - <strong><font color="#FF6633">Microsoft software - 'The Product is licensed, not sold'</font> – </strong>and not even ten percent of them credited the story to us. Some of them were so blatant and careless that they mentioned the name of TIOL in their stories without telling their readers what TIOL is. Many of the foreign websites and newspapers have given us credit and given links to our website, many of the Indian websites and other media made it as their story without really knowing what the story is all about. Of course while some of the Indian media like CNBC carried our editor's voice bites and SIFY gave credit to us, there were many who carried our story as theirs. There were a few websites who mentioned TIOL without telling their readers what TIOL is. But we found that most of the foreign sites and news media were graceful to mention the source to us and even give a link to our site, many of the Indian sites and newspapers carried pathetic reproduction of our story without giving us any credit. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The fact is nobody has the order except us and they all wanted stories. And they used ours! </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Excise Duty exemption - pipes used in water treatment plants – CBEC clarifies </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Full exemption from excise duty is currently available to all items of machinery including instruments, apparatus and appliances, auxiliary equipment and their components/parts required for setting up of water treatment plants in terms of Sr. No. 7 of notification No. 6/2006-CE dated 1.3.2006. This exemption covers pipes needed for delivery of water from its source to the plant (including clear treated water reservoir) and from there to the storage facility as well as pipes of outer diameter exceeding 20 cm when they are an integral part of the water supply project. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Doubts have been raised about whether the exemption pertaining to pipes applies only to pipes required for the setting up of water treatment plants or also to pipes for replacement of worn-out/damaged pipes. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board has given a benign clarification that <font color="#FF6633">“In view of the policy objective of creating the requisite infrastructure for augmenting the availability of clean, portable drinking water, it is clarified that the aforesaid exemption would also apply to pipes required for replacement and not just those for initial setting up.” </font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Let's hope the Board gives more such clarifications! </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2008/instruct03.htm">CBEC's F.No . 354/34/2008- TRU Dated : March 14, 2008 </a></font></strong></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Prohibition on export of pulses to continue </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT has extended the validity of prohibition on export of pulses till 31.3.2009 </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=45&filename=notification/dgft/2007/dgft07not091.htm" target="_blank">DGFT NOTIFICATION NO.91 Dated : April 1 , 2008 </a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Export of edible oils – restriction not applicable to certain oils </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT has notified that the restriction on export of edible oils will not apply to </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">• Export of Castor Oil, (of non-edible grade), </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">• Export of Coconut Oil through Cochin Port, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">• Deemed export of edible oils (as input raw material) from DTA to 100% EOUs for production of non-edible goods, to be exported, and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">• Export of Oils produced out of minor forest produce. </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=45&filename=notification/dgft/2007/dgft07not092.htm" target="_blank">DGFT NOTIFICATION NO 92 Dated : April 1 , 2008</a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Non basmati rice – export – prohibition </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT has notified conditions and relaxations for export of rice. </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=45&filename=notification/dgft/2007/dgft07not093.htm" target="_blank">DGFT NOTIFICATION NO.93 Dated : April 1 , 2008</a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Our Seminar in Hyderabad tomorrow </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Top brass of the CBEC and leading advocates are all set to address our seminar in Hyderabad tomorrow. Are you there too? </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<br>
</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"><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"><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"><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></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></strong></font></strong></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>Dividend not received by assessee – no tax; If income does not result at all, there cannot be tax, even though in book-keeping, an entry is made about a hypothetical income, which does not materialise : Bombay HC </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">THE</font> </strong>revenue has preferred this appeal on the following questions:- Whether on facts and in the circumstances of the case and in law, the ITAT was right in law </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i) in holding that the dejure owner of the shares alone is entitled to the dividend declared by a company, though the assessee company might be de facto owner of shares but had no right to receive the dividend from the company unless it is the registered shareholder of the company ? <br>
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ii) in holding that the dividend of Rs.16,84,150/- has not accrued to the assessee and thereby holding that such dividend income could not form part of the total income of the assessee ? <br>
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iii) in accepting the assessee's submission, that even though the amounts were paid for acquiring the shares, shares have not been delivered to the assessee company and the change in ownership of the shares have not been registered and notified and therefore the assessee's name did not appear in the share registers of the respective companies on the record date and therefore, it could not have received the dividend at all ? </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>VAT </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Compulsory audit by CAs in preference to lawyers – Not illegal – High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The main challenge in the petitions is to the constitutional validity of Section 61(1) and the explanation thereto, of the Maharashtra Value Added Tax Act on the ground that it infringes the equality clause as enshrined in Article 14, the right to carry on profession under Article 19(1)(g) as also under Article 254, as the provisions for "audit" would not fall within the competence of the State Legislature under Entry No. 54 of List II of the VIIth schedule to the Constitution of India. In the alternative to read down Section 61, so as to empower Advocates and Sales Tax Practitioners to audit and give report in Form No. 704. </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>Revenue's idea of irrigating a ROM with a fertile idea fails before Tribunal - Rs 9 Cr case once again lost by Revenue </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">WE are indeed fortunate enough to have accompanied the case since the time the stay application was heard before the Tribunal. This is because as the case proceeded before the Tribunal, with the passage of time, the never-say-die attitude of the Revenue came to the fore with more vigour than ever. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When the Stay application was listed, the Bench had found a strong prima facie case in favour of the applicant & granted waiver of pre-deposit of Rs.8.91 crores duty & lakhs of penalties etc. & fixed the case for an early hearing. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While granting stay, the Tribunal held – “ Even if the fact remains that the goods have been removed clandestinely, the question of confirmation of demand will not arise as the goods are entitled for full exemption .” [ </font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=52&filename=legal/cestat/2007/2007-TIOL-800-CESTAT-MUM.htm">2007-TIOL-800-CESTAT-MUM </a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">] </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The final order passed by the Tribunal [ </font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=52&filename=legal/cestat/2007/2007-TIOL-1818-CESTAT-MUM.htm">2007-TIOL-1818-CESTAT-MUM </a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">]
saw the demand of Rs.8.91 crores & various penalties being swept away
by holding that the adjudicating authority had thoroughly agreed that these <strong><font color="#FF6633">“clandestinely removed” goods were entitled to exemption under notification 46/94CE & if this be so, there could not be any further duty demand </font></strong><font color="#FF6633">.</font> </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 nice </font><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">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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