TIOL-DDT 876 · 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 876 </font><br>
30.05.2008 <br>
Friday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">
FM inaugurates Chief Commissioners conference</font></strong></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/cobweb/conference.jpg" alt="Legal Corner Icon" width="300" height="180" hspace="5" border="0" align="center"></b></font></strong></font></strong><b style='mso-bidi-font-weight:
normal'></b></font></p>
<p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Inaugurating the Conference of Chief Commissioners and DGs of Central Excise and Customs, the Finance Minister was confident that</font></p>
<ul>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> We will meet customs and service tax targets. We are concerned about sluggish growth in central excise. The customs target is a 14.4 percent increase. It would be met.</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> the target increase in service tax was 26.1 percent for the fiscal year 2008/09 and it should be possible to meet that goal.</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> Excise growth is at 8.8 percent for this year and that at the moment seems a little formidable.</font></li>
</ul>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> “But we are monitoring closely manufacturing as well as other channels and have asked commissioners to clamp down on misuse of Cenvat credit”, said the FM..</font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Mumbai LTU – CBEC issues jurisdiction notification
</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> The CBEC has notified the Committees of Commissioners and Chief Commissioners for review of orders passed by the Commissioners of Central Excise and Service Tax and appellate Commissioners in the Mumbai LTU. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> The Mumbai LTU is said to be functioning from March 2008 and the Board has taken two months to appoint these committees. Maybe the orders are yet to be passed or there is still time to review them.</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=30&filename=notification/excise/2008/exnt08_25.htm" target="_blank">NOTIFICATION NO 25</a> <strong>and</strong> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/exnt08_26.htm" target="_blank">26 /2008-CX., (N.T.), Dated: May 27, 2008</a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Nepal is a republic – monarchy ends</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Our neighbour has shed its kingly image. Nepal has been declared a sovereign, secular, inclusive, federal democratic republic. King Gyanendra has been given 15 days to vacate the palace. A President is to be the head of the State and Supreme Commander of the Army.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> By what has this ‘good news' got to do with <font color="#FF6600"><strong>DDT?</strong></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Nothing, Sir, it is only to remind the guys in the Finance Ministry and the Commerce Ministry to rewrite the notifications which were drafted in the light of the Indo Nepal Treaty that was inked between the Indian Commerce Secretary & the Secretary, Ministry of Industry, Commerce and Supplies, His Majesty's Government of Nepal.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Notable amongst these notifications are the ones related to exports. <strong><font color="#FF6633">DDT</font></strong> requests that needful is done at the earliest so that inconvenience to both exporters & importers, across India and Nepal is at the minimum.</font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Dough for preparation of bakers' wares – exempted from excise duty</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> The Government has exempted Dough for preparation of bakers' wares of heading no. 1905 from the whole of excise duty.</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=30&filename=notification/excise/2008/etariff08_29.htm">NOTIFICATION NO 29/2008-Central Excise , Dated: May 28, 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">– Monday's cases </font></strong></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 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><font color="#663399">Central Excise </font></strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Equality before law means that among equals law should be equal and should be equally administered, that like should be treated alike - Petitions challenging constitutional validity of proviso to sub-section (1) of Sec 35 of Central Excise dismissed: Gujarat HC</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> As per the settled legal position, right to appeal is neither an absolute right nor an ingredient of natural justice, the principles of which must be followed in a judicial or quasi-judicial adjudication. The right to appeal is a creature of the statute and, therefore, such right can be circumscribed by the conditions in the grant.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> It is not the law that adjudication by itself, following the rules of natural justice, without any right of appeal would be violative of any constitutional or statutory right. If the statute gives a right to appeal upon certain conditions, it is upon fulfilment of those conditions that the right becomes vested and available to the appellant Where a right of appeal is provided under an Act, limitation thereof must also be provided in the Act.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Accordingly, when the Parliament confers the right of appeal under Section 35(1) of the Central Excise Act, the Parliament also has the power to restrict the right by providing for a specific period of limitation. The Parliament also has the equal power to provide for the maximum period of condonable delay.</font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Central Excise</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Doctrine of merger assists assessee in winning case – Tribunal holds that Commissioner(A) could not have passed an order against the assessee</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> When the fact of the matter is that the Revenue appeal E/132/2007 is pending before the Tribunal, acceding to the DR's request, the same could have also been taken up and decided with the present appeal of the assessee, quipped an onlooker. What would be the fate of that appeal if and when it is listed for hearing is another matter! By the way, the Apex Court in the case of Maruti Udyog [</font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=32&filename=legal/sc/2002/2002-TIOL-611-SC-CX.htm" target="_blank"><strong>2002-TIOL-611-SC-CX</strong></a></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">]
has held that the principle of doctrine of merger would not apply when the
subject matter of appeals by the Revenue and the other party are different.</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"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Arrears of enhanced rent, on upward revision, would be liable to be included in income of relevant previous year, in which it was received; Revenue will not be entitled to initiate proceedings u/s 147, as it does not amount to income being under assessed: High Court</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Arrears of enhanced rent, on upward revision, would be liable to be included in the income of relevant previous year, in which it was received: the amount of arrears of enhanced rent, as received by the assessee, consequent upon retrospective upward revision of rent, would be liable to be included in the income of relevant previous year, in which it was received, and that on that count, the Revenue will not be entitled to initiate proceedings under, or to take recourse to, provisions of Section 147/148 of the Act, as it does not amount to income being under assessed while making assessment, as contemplated by Explanation 2 of Section 147, and that the provisions of Section 25B are clarificatory in nature, and are required to be given retrospective effect.</font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"> See our columns Monday for the judgements</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <font color="#FF6666">Until Monday with more <strong>DDT</strong></font></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Have a nice Weekend.</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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