TIOL-DDT 841 · 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
841</font></strong><br>
<strong>08.04.2008<br>
Tuesday </strong></font></div>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti
Dumping Duty on Vitamin E – Government extends yet another dead notification!
</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti
Dumping Duty on Vitamin E, originating in or exported from the People’s
Republic of China, was imposed vide notification of the Government of India
in the Ministry of Finance (Department of Revenue), No. 145/2003- CUSTOMS dated
the 6th October, 2003. The Designated Authority has requested for extension
of anti-dumping duty for a period of one year from the date of its expiry. The
Anti Dumping duty expired on 16.3.2008. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now
the Government has extended the notification till 16.3.2009. But this should
have been done before 16.3.2008. But Government has no machinery to keep track
of expiring notifications and they believe in resurrection of dead notifications.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But
what happens for the period between 16.3.2008 and 4.4.2008, when the Notification
was extended? Litigation? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_043.htm" target="_blank">NOTIFICATION
NO. 43/ 2008-Cus., Dated: April 4, 2008</a></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Evasion
of Service Tax by banks – on government transactions - MO Circular</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">During
the course of audit at the State Bank of Mysore (Treasury Branch), Mysore, conducted
by Central Excise Commissionerate, Mysore, a case was detected where 'commission'
received on Government transactions and deducted by 'SBM G-SEVA Branch' Bangalore
(which functions at 'Nodal Bank') is not being taken into consideration while
discharging service tax liability by 'currency chest branches' of State Bank
of Mysore and service tax is paid only on net amount of commission received.
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board
feels that it is possible that similar practice is being followed by other banks,
in as much as their nodal banks may not have been registered with the department
and also may not be paying service tax on the commission netted by such nodal
banks.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So
DGST wants the field formations to detect similar evasion by other banks and
inform the DG about the results. </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/mocir.htm" target="_blank">DGST
MODUS OPERANDI CIRCULAR No. 01/2008, Dated : March 14, 2008 </a></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">New
DEPB rates</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT
has notified new DEPB rates for the following products.</font></p>
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td class="Normal" valign="top" width="97"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DEPB</strong> <strong><br>
Sl. No. </strong></font></p></td>
<td class="Normal" valign="top" width="290"><h4><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description </font></h4></td>
<td class="Normal" valign="top" width="76"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DEPB </strong><strong><br>
Rate </strong></font></p></td>
<td class="Normal" valign="top" width="60"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Value Cap</strong> </font></p></td>
</tr>
<tr>
<td class="Normal" valign="top" width="97"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">608 </font></p></td>
<td class="Normal" valign="top" width="290"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I.C. Engines of 3 HP upto and including 720 HP </font></p></td>
<td class="Normal" valign="top" width="76"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4% </font></p></td>
<td class="Normal" valign="top" width="60"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">-- </font></p></td>
</tr>
<tr>
<td class="Normal" valign="top" width="97"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">609 </font></p></td>
<td class="Normal" valign="top" width="290"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Gensets from 3 KVA upto and including 20 KVA </font></p></td>
<td class="Normal" valign="top" width="76"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4% </font></p></td>
<td class="Normal" valign="top" width="60"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">-- </font></p></td>
</tr>
<tr>
<td class="Normal" valign="top" width="97"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">610 </font></p></td>
<td class="Normal" valign="top" width="290"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Gensets above 20 KVA upto and including 600 KVA </font></p></td>
<td class="Normal" valign="top" width="76"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5% </font></p></td>
<td class="Normal" valign="top" width="60"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">-- </font></p></td>
</tr>
<tr>
<td class="Normal" valign="top" width="97"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">611 </font></p></td>
<td class="Normal" valign="top" width="290"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Pumpsets from 3 HP upto and including 28 HP </font></p></td>
<td class="Normal" valign="top" width="76"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4% </font></p></td>
<td class="Normal" valign="top" width="60"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- </font></p></td>
</tr>
<tr>
<td class="Normal" valign="top" width="97"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1027 </font></p></td>
<td class="Normal" valign="top" width="290"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Captopril USP (Powder) </font></p></td>
<td class="Normal" valign="top" width="76"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4% </font></p></td>
<td class="Normal" valign="top" width="60"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">-- </font></p></td>
</tr>
<tr>
<td class="Normal" valign="top" width="97"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1028 </font></p></td>
<td class="Normal" valign="top" width="290"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Het Diol (1,4,5,6,7,7 Hexa Chloro-2-3 Bis (Hydroxy Methyl) Bicyclo-2(2,1,1)-heptane-5. </font></p></td>
<td class="Normal" valign="top" width="76"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3% </font></p></td>
<td class="Normal" valign="top" width="60"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">-- </font></p></td>
</tr>
</table>
<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/dgft07pn140.htm" target="_blank">DGFT
Public Notice NO. 140 (RE-2007) /2004-2009, Dated: April 7, 2008</a></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Malaysia
refutes claim by Indian Customs that Malaysia is a transit point for drug smuggling.
</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Narcotics
Crime Investigation Department director Datuk Zulhasnan Najib Baharudin described
the comment by the New Delhi Customs Department as “baseless”. A
senior Customs officer from the New Delhi Customs was quoted as saying that
Kuala Lumpur was being used as a transit point to distribute heroin in Southeast
Asia. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Najib
said,</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We
agree that Malaysia is located near many Southeast Asian countries and other
Asian nations, but this does not mean that Malaysia is becoming a hotspot for
drug smugglers.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We
do not give room to drug smugglers as our intelligence unit always updates us
on drug syndicates. We will also know about (the activities of) drug smugglers
in other countries.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
arrest in New Delhi was a rare case...security at our airports is one of the
best in the world.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He
(the New Delhi senior customs officer) should check with other agencies, like
Interpol before concluding his statement.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nevertheless,
we will refer this matter to the New Delhi Customs and Interpol for further
clarification.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Last
week a 26-year-old Thai woman who was about to board a Malaysia-bound flight
with 2.48 kg heroin worth RM2.5 million hidden under the bottom layer of her
suitcase was arrested at Delhi’s Indira Gandhi International Airport.
The arrest came just weeks after New Delhi Customs arrested a 42-year-old Filipino
man who was heading towards Kuala Lumpur with 70 heroin capsules worth RM 800,000
in his stomach.</font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Our
Hyderabad Seminar </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">One
of the innumerable mails that we got today, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I
would like to appreciate the efforts of you and your team in arranging such
type of seminar and moreover to bring policy makers of indirect taxation under
one platform. I have enjoyed and learnt from the seminar which I cannot express
in words.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I
sincerely feel that country requires revenue officers like Mr. Gautam Bhattacharya
who explains each and every aspect in details and also appreciate the points
raised by trade.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Here
is our Star Gautam explaining a point.</font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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/group.jpg" alt="Legal Corner Icon" width="450" height="300" hspace="5" border="0" align="center"></b></font></strong></font></strong></font></p>
<p align="justify"></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Incidentally,
perhaps the best speech in the Seminar came from our Editor Shailendra, who
referred to the FM’s Budget speech and said the speech has many important
issues other than mere tax proposals. He explained the budget proposals other
than the taxation measures and especially dwelt on allocation for education. </font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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/s_kumar.jpg" alt="Legal Corner Icon" width="340" height="320" hspace="5" border="0" align="center"></b></font></strong></font></strong></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>Central
Excise </strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Captively
consumed methane gas – Revenue has not proved marketability; not excisable
– Supreme Court</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
issue involved in the present appeal is whether Methane gas classifiable under
Chapter Heading 2711.29 specified in the Schedule to the Central Excise Tariff
Act, 1985 is liable to excise duty when consumed captively and not marketed.
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
respondent-assessee was engaged in the manufacture of de-natured Ethyl Alcohol
and during the manufacture of de-natured Ethyl Alcohol, a residue known as spent
wash comes into existence and the same is reacted in a closed type digester
and Methane gas is produced which, in turn, is used by the respondent as fuel
in distillery. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Adjudicating Authority, vide order dated 03rd April 2001, confirmed the demand.</font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Easehaler
value, whether to be included in value of Easecap – Tribunal grants
waiver of pre-deposit and orders Stay</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">FOR
asthmatic patients, invention of Easehaler is a boon. Easehaler, a patient-friendly
device is one of the smallest dry powder inhalers of its kind available in the
world and is very easy to carry. Transparent new Easehaler device ensures inhalation
of full dose of medication, while the unique design of the device helps full
intake of the drug into the lung even at a low inspiratory flow rate. Asthmatic
patients find this device easy to use, easy to monitor and very affordable in
price. The Easehaler device made of plastic can be used with dry powder inhalation
therapy like, Vent, Vent SF, Vent Plus and Vent FB.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Vent
FB is an internationally well-accepted fixed dose combination of quick acting
bronchodilator, Formoterol with dependable inhaled corticosteroid, Budesonide
to improve lung function and Peak Expiratory Flow Rate (PEFR) of asthma patients.
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There
are other similar drugs available in the market viz. Budamate Transcaps to be
used with Transhaler.</font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income
Tax </font></strong></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Newsy
NDTV wins income tax case; Tribunal quashes invocation of powers u/s 263 and
holds 'records' does not include only assessment order but also submissions
made by assessee</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">IN
an interesting order which has gone in favour of noted news channel NDTV Ltd,
the Tribunal has once again observed that the revisionary powers of the Commissioner
of Income Tax u/s 263 should be invoked with due caution, and only when the
twin conditions prescibed by the Apex Court in the Malabar Industrial case (<font size="1"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=50&filename=legal/sc/2002/2002-TIOL-491-SC-IT.htm" target="_blank">2002-TIOL-491-SC-IT</a></font>)
are satisfied <strong><font color="#FF6633">i.e the order should not only be erroneous but also prejudicial
to the interests of revenue. However, in this case which revolves around the
exports of news software and other broadcast programmes and the assessee claiming
deduction u/s 80HHF, the Tribunal found that the objections raised by the CIT
were without any legs and no independent inquiry was conducted to rebut the
findings of the AO.</font></strong></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"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service
Tax - Port services – <span class="SpellE"><i
style='mso-bidi-font-style:normal'>Velji</i></span> upheld : Supreme Court</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In
<font color="#FF6633">HOMA ENGINEERING WORKS - </font><font size="1"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=52&filename=legal/cestat/2007/2007-TIOL-769-CESTAT-MUM.htm" target="_blank">2007-TIOL-769-CESTAT-MUM</a></font>, the Tribunal had held that
Ship repairs done in port is not a port service : Board Circular not in accordance
with law; In VELJI P & SONS (AGENCIES) PVT LTD - <font size="1"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=52&filename=legal/cestat/2007/2007-TIOL-1452-CESTAT-AHM.htm" target="_blank">2007-TIOL-1452-CESTAT-
AHM</a></font> - CESTAT relying on the Homa case held <font color="#FF6633">that Port Services - vis-à-vis
Custom House Agent - Services rendered by the appellant are hiring of the barges,
cranes, forklifts etc., and as such services not required to be rendered by
the Port cannot be treated as ‘Port Services’.</font> Against, this case,
the Revenue is in appeal before the Supreme Court. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As
the Revenue had not filed any appeal against the Homa case, the Supreme Court
dismissed this appeal.</font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See
our columns tomorrow for the judgements</font></strong></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 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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