TIOL-DDT 845 · the untouched capture
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<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="3">TIOL-DDT 845</font></strong></font><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br />
15.04.2008<br />
Tuesday</font></strong></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax on club or association membership service – Board wants tax compliance</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What triggered this alert notice is a case booked against a reputed club for non-payment of service tax to the tune of nearly three Crores under club or association service. This reputed club reportedly had not paid a single rupee right from 16.6.2005, from which date the service was brought under the tax net. The Board is not happy with the pleas often put forward by the clubs or associations like, the club provides services to its own members only which is in the nature of self-service and is not chargeable to tax. This is not legally sustainable in view of the explanation added to Section 65(121) in 2006, says the letter. (Section 65(121) is missing in the letter – proof readers – most wanted!).</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The other argument that the activities are of charitable nature is also not acceptable in view of the Circular dated 19.9.2006. So the Board has desired that all prominent clubs and associations should be contacted for recovery of the tax.</font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">The clubs are not paying, but what is the government doing – these clubs are very popular and well known. Does the fact their members are powerful in society make any difference?</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/club.htm" target="_blank">F.No. 137/50/2008-CX.4 Dated : March 5, 2008</a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Export of non dutiable goods – DGFT amends Public Notice 79 dated 2.1.2006</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Vide Public Notice 79 dated 2.1.2006, the DGFT laid down certain guidelines in consultation with Department of Revenue for disposal of the old cases of advance licences issued before 31.03.2002 where the licencee was unable to produce the logged DEEC books.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Para 1(v) of the public notice, in respect of QABAL, the licensee is required to furnish the following document:</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A copy of the MODVAT Non-availment certificate duly countersigned by Central excise Authority.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This condition has now been amended as:</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"A copy of the MODVAT / CENVAT non- availment Certificate duly counter-signed by Central Excise Authority or a certificate from the Central Excise authorities that imported inputs have been used for the production of dutiable goods in his factory or in the factory of his supporting manufacturer. However, such certificate would not be required in case of export of non-dutiable products."</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However,
no such amendment has been done to condition 2(iv) of the public notice No
79, (for VABAL licensees) and it still reads that the licensee is required
to produce:</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"A copy of the MODVAT Non-availment certificate duly countersigned by Central excise Authorities"</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/2008/dgft08pn002.htm" target="_blank">PUBLIC NOTICE NO 2 (RE-2008) /2004-09, Dated: April 11, 2008</a></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Advance Authorisation Scheme – Haldia Seaport and Dabolim Airport added to the ports of registration.</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Para 4.19 of the HBP V I has been amended to include Haldia Seaport and Dabolim Airport to the list of specified sea/airports of registration for Advance Authorisation Scheme.</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/2008/dgft08pn003.htm">PUBLIC NOTICE NO 3 (RE-2008) /2004-09, Dated: April 11, 2008</a></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs Non-Tariff Notification 63/94 dated 21.11.1994 amended.</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What is this notification? It specifies the Land Customs Station for the clearance of all goods or any class of goods imported or exported by land from or to the land frontiers specified and the specified routes by which alone all goods or class of goods may pass by land or inland water into or out of India to the said land frontiers. Now, in respect of Bangladesh, the specified route for land customs station at Gede Railway Station has been amended from "Sealdah-Gede-Poradah Railway Line" to Kolkata – Gede – Darsana – Dhaka</font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2008/cnt08_036.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 36/2008-Customs (N.T.) dated 10.4.2008</font></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Provisional Anti-dumping duty imposed on Diclofenac Sodium exported from China.</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Based on the recommendations of the DGAD, provisional anti-dumping duty has been imposed on Diclofenac Sodium originated or exported from China. This duty shall be effective upto and inclusive of the 9th October 2008.</font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_046.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No 46/2008-Cus, Dated : April 10, 2008</font></a></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></strong><font color="#006600"><strong>– Tomorrow's cases</strong></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font 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><font color="#663399">Customs</font></strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Onus to prove undervaluation is on the Revenue – Department’s appeal against undervaluation ends up in dismissal with costs : Supreme Court</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Apex Court observed that the assessing authority as also the appellate authority have wrongly proceeded on the basis that the onus of proof was on the importer. If that conclusion is not premised on any legal principle and the revenue having not brought on records any contemporaneous evidence to the contrary, it cannot be said to have discharged its burden.</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"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">No penalty is leviable when unproved income is offered to purchase peace – High Court not to discuss perversity of Tribunal’s order when that was not the question raised before it : SC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The decision of the Tribunal on the facts can be gone into by the High Court in the reference jurisdiction only if a question has been referred to it which says that the finding arrived at by the Tribunal on the facts is perverse, in the sense that no reasonable person could have taken such a view. Since the frame of the question was not as to whether the findings recorded by the Tribunal on facts were perverse, the High Court was precluded from entering into any discussion regarding the perversity of the finding of fact recorded by the Tribunal</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FERA</strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FERA - No question of law involved in appeals - On the facts, case has been decided on basis of voluminous material available and findings are not perverse - is not a fit case for interference - appeals summarily dismissed by Bombay HC</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There is no question of law involved in these appeals. On the facts, the case has been decided on the basis of voluminous material available and it is not possible to draw an inference that the findings are perverse. The appeals are summarily dismissed.</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="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more DDT</font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day.</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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