TIOL-DDT 885 · 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 885 </font><br>
12.06.2008 <br>
Thursday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Austerity
By Example! <em>Chhota mantri</em> surrenders car </font></strong></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/cobweb/Bansal.gif" alt="Legal Corner Icon" width="71" height="91" hspace="5" border="0" align="left"></b></font></strong></font></strong></font></strong>Pawan Kumar Bansal is not very well known as the Minister of State for Finance, but is apparantly concerned about Finance – of the Nation. In response to the call by the Prime Minister for austerity, he has surrendered the official car attached to him. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When ministers travel in large convoys, it is nice to see a minister surrendering his car. Though this would hardly make any difference in our huge fuel shortage, the gesture is exemplary and if all ministers and officers behave like servants of the poor people of India , it would certainly make a difference. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Incidentally, Bansal still lives in his MP's quarters and has not moved into his ministerial bungalow. Bansal like his illustrious senior colleague PC, is a lawyer. </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 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/citizens.jpg" alt="Legal Corner Icon" width="333" height="225" hspace="5" border="0" align="center"></b></font></strong></font></strong></font></strong></font></p>
<p align="center"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">You are their servant – should you live like a prince? </font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Area Based exemption - Ceiling in rate - Sealing of fate? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Remember the confusing “value addition” based; refund based; area based; exemption Notifications? Have a look at <font color="#663399"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=7096" target="_blank">DDT 835 31.03.2008</a></font> and our story <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=7089" target="_blank">Ceiling in rate - Sealing of fate</a> </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the government has further amended these notifications. The government explains the amendments as:- </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) In respect of iron & steel, cement, starch & coco-butter a uniform rate of 75% of the total duty payable has been specified for computing the refund amount, when these are manufactured starting from specified inputs in the same factory. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Some relaxation has also been made in the provisions relating to determination of special rate. Prior to the amendment, a manufacturer was permitted to file an application for fixation of special rate not later than 60 days from the beginning of a financial year. This time limit has now been relaxed and manufacturers have been permitted to file such applications by the 30th of September of a financial year, so that they are in a position to make a claim on the basis of the finalized accounts for the previous financial year. New units commencing production on or after the 1st of April, 2008, have also been permitted to make an application for special rate. They will now be entitled to claim refund at a special rate from the date of commencement of commercial production. Finally, the condition that a manufacturer would be entitled to apply for a special rate only if his actual value addition is more than 25% of the prescribed rate has also been relaxed. Under the revised provision, he would be entitled to apply if the actual value addition exceeds the prescribed rate by 15%. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) There is a condition in the notification that the refund paid to a manufacturer will be restricted to the total duty paid by him in cash during a month. It has been represented that manufacturers purchasing raw materials in bulk are at a disadvantage because of this provision. This grievance has been considered and the comparison of the refund payable as per value addition with duty paid in cash has now been permitted on annual basis </font></p>
</blockquote>
<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_31.htm" target="_blank">Notification No. 31</a>,<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_32.htm" target="_blank">32</a>,<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_33.htm" target="_blank">33</a>,<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_34.htm" target="_blank">34</a>,<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_35.htm" target="_blank">35</a>,<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_36.htm" target="_blank">36</a>,<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_37.htm" target="_blank">37</a> <strong>to</strong> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_38.htm" target="_blank">38/2008-CE all dated 10th June, 2008 </a></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC appoints Adjudicating Authorities for specific cases. </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has appointed certain Commissioners for adjudication of some specific DR cases. </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=24&filename=notification/custom/2008/cnt08_069.htm" target="_blank">Notification No. 69</a>,<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2008/cnt08_070.htm" target="_blank">70</a>,<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2008/cnt08_071.htm" target="_blank">71 </a><strong>to</strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2008/cnt08_072.htm" target="_blank"> 72 /2008– cus NT - all dated 10th June, 2008 </a></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti Dumping Duty on acetone </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government has imposed anti dumping duty on acetone originating in, or exported from, Korea . </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_075.htm" target="_blank">Notification No. 75 /2008– cus dated 10th June, 2008 </a></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Refund of Terminal excise Duty – Simplification or..? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT has amended the Form ANF 8 with regard to refund of terminal excise duty. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Sl No. 23 of the Form, <font color="#FF6633">Central Excise Invoice and corresponding ER-1/ER-3 showing amount of Terminal Excise Duty paid or self certified Invoice showing the amount of Terminal Excise Duty paid</font>, had to be submitted. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now this is changed to, <font color="#FF6633">Central excise attested invoices with corresponding ER-1/ER-3 showing amount of Terminal Excise Duty paid</font> . Who will attest? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Guideline 2a, <font color="#FF6633">“ Supply invoices certified by Project Authority or self certified or excise attested invoices.”</font> had to be submitted. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now this is changed to, </font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Supply invoices certified by Central excise.. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And 2e stipulated <font color="#FF6633">Original input stage Invoices with corresponding ER-1/ER-3 duly certified by Excise authorities or self certified invoice showing the Terminal Excise Duty paid. </font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now this is changed to, </font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Original input stage invoices with corresponding ER-1/ER-3 duly certified by Central excise authorities showing the Terminal excise duty paid. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per guideline 3d, <font color="#FF6633">Original input invoices with corresponding ER-1/ER-3 duly certified Central excise authorities or self-certified invoices showing payments of excise duty in support of the details shown in DBK-III and DBK-IIIA in the format given in Appendix 35,</font> had to be submitted for claiming brand rate of drawback. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now it is, </font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Original input invoices with corresponding ER-1/ER-3 duly certified by Central excise authorities showing payments of excise duty in support of the details shown in DBK-III and DBK-IIIA in the format given in Appendix 35. </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/dgft08pn028.htm" target="_blank">DGFT Public Notice No. 28 /2008– dated 9th June, 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></strong></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 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_hammer.jpg" alt="Legal Corner Icon" width="100" height="84" hspace="5" border="0" align="left"></b></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>Process of standardization and pasteurization of milk does not amount to manufacture / production for the purpose of claiming deduction under sections 80-I and 80HHA – ITAT Sp. Bench.</strong> </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It does not go beyond the stages of "processing" and by this processing it has become little more "clean" and "more fit" for consumption. But the milk in its raw stage was also fit for consumption. Assessee does processing. But alt processing does not amount to production of an article or thing. If the assessee markets curd, ghee or other products after processing, that amounts to "manufacture or production of an article or thing". Pasteurization and standardization does not amount to production. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax</strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mazgaon Dock Ltd wins Rs 6.18 Cr Service Tax case – Providing Services of Chipping, Painting and repairing of Ships and Vessels under authorization of Mumbai Port Trust is not 'Port Service': Tribunal </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ACTUALLY, Mazgaon Dock Ltd (MDL) should not have been worried at all about this gargantuan Service Tax demand of Rs 6.18 crores plus accoutrements for the simple reason that the alleged activity that</strong> was being performed by them of Chipping, Painting and repairing of Ships and Vessels either in its own backyard or in the leased out premises of Mumbai Port Trust was also on occasions being sub-contracted to contractors and one of whom was M/s Homa Engineering Works and this contractor was already groped by the Service Tax department with a demand of Rs.68.50 lakhs and a penalty of Rs.1.37 crores and the Tribunal had vide its order dated 03.05.2007 [<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=52&filename=legal/cestat/2007/2007-TIOL-769-CESTAT-MUM.htm"><font size="1"><strong>2007-TIOL-769-CESTAT-MUM</strong></font></a>] set aside this demand. </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">Provisions of Rule 209A and rule 26 of CER, 2002 are applicable only to an individual person and not a partnership firm – Tribunal by Majority </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Larger Bench in the case of Steel Tubes of India has also noted the definition of the word “person” in Section 3(42) of the General Clauses Act and concluded that provisions of Rule 209A would be applicable only to an individual person and not to the firm. . </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 <strong>DDT </strong></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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