TIOL-DDT 898 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT 898</font><br>
01.07.2008<br>
Tuesday </b></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Don't take Show cause Notices lightly – Draconian provisional attachment of property - procedure in place</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For the last two years, Section 28BA was happily sleeping in the <st1:PersonName
w:st="on">Customs Act. Under this Section, the Proper officer can attach the property after issue of Show cause Notice, even before the adjudication order is passed. Though it was provided for in the Act to attach property, for the last two years, it seems to have been not put into action. Now the Board has issued guidelines for implementation of the unholy scheme.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 1. Proceedings can be initiated only after a Show cause Notice has been issued to demand duty(thankfully it is not applicable immediately after an Audit Objection)</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 2. The Proper Officer proposing to attach property should make a written proposal in the prescribed format to the <st1:PersonName w:st="on">Commissioner. If <st1:PersonName w:st="on">Commissioner himself is the proposer, he can straight away go ahead.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 3. <st1:PersonName
w:st="on">Commissioner of <st1:PersonName
w:st="on">Customs will serve a notice of attachment and then duly pass an order of attachment which the Proper Officer will implement.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 4. The provisional attachment of property shall be resorted to only when the duty involved is more than Rs. 25 Lakhs. ( Now this is not in the statute and so a High <st1:PersonName
w:st="on">Court may say that this is not binding on the courts, as we recently reported in a case)</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 5. Movable property should be attached only if the immovable property available for attachment is not sufficient to protect the interests of revenue.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When these provisions were at the legislation stage, <b><font color="#FF6633">TIOL</font></b> submitted to the Parliamentary <st1:PersonName w:st="on">Committee on Finance,</font></p>
<blockquote>
<p align="justify" style="text-align:justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">These clauses are draconian, outrageous and arbitrary. It will lead to gross miscarriage of justice and will become a tool in the hands of quasi-judicial officers for harassing the assessees. Mere service of notices does not make the persons guilty of committing /breaching the provisions of the Act. This provision has no place in a progressive society aiming to provide transparent tax laws and an efficient tax <st1:PersonName w:st="on">administration.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Parliamentary <st1:PersonName w:st="on">Committee asked the Government as to the means by which the Government proposes to address the concerns on preventing harassment, ensuring that manufacturing activities were not hampered. The <st1:PersonName w:st="on">Committee also recommended that apart from ensuring proper usage of the provision, <b><font color="#FF6633">appropriate disciplinary action should be initiated against such tax officials who may be found to exercise the proposed powers frivolously and without sound reasons.</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government had assured the <st1:PersonName w:st="on">Committee that it would take appropriate steps in that direction.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In tune with this assurance, the Guidelines issued by the Board, stipulate that</font></p>
<p align="justify" > <font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is important to note that there should be sufficient justification to hold a view that the provisional attachment of property is necessary to protect the interests of revenue. The remedy of attachment being, by its very nature, extraordinary, has to be resorted to with utmost circumspection and with maximum care and caution. The grounds on which the proper officer entertains the reasonable belief that the noticee would dispose of, or remove, the property and the source of his information, if any, should be clearly stated while seeking the previous approval of the <st1:PersonName
w:st="on">Commissioner of <st1:PersonName w:st="on">Customs. Normally, the proposal to be made to the <st1:PersonName w:st="on">Commissioner of <st1:PersonName w:st="on">Customs should be forwarded within one month's period of the issue of S<st1:PersonName w:st="on">CN. It may also be noted that appropriate disciplinary action shall be initiated against the officers who may be found to exercise the powers of provisional attachment of property frivolously and without sound reasons. [Recommendation of the Standing Committee on Finance (Fourteenth <st1:PersonName w:st="on"><st2:GivenName
w:st="on">Lok</st2:GivenName> <st2:Sn w:st="on">Sabha</st2:Sn>) in its 27th Report.]</font></p>
<p align="justify" > <font size="2" face="Verdana, Arial, Helvetica, sans-serif">It should also be ensured that such attachment does not hamper normal business of manufacturer importer/ exporter or assessee. This would mean that raw materials and inputs required for production or finished goods, in case of manufacturer importer/ exporter should not be attached by the department.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Similar provisions exist on the Service Tax and <st1:PersonName w:st="on">Central Excise side too, and similar guidelines are bound to follow.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Lawyers are going to have a good time ahead. With <st1:PersonName w:st="on">Classification and Valuation disputes gone, <st1:PersonName w:st="on">CENVAT issues almost settled, there is a feeling that scope for litigation is limited. Every time the lawyer faces prospective unemployment, the good Government drops opportunities on him like manna from heaven. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><st1:PersonName w:st="on"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2008/cuscir08_10.htm" target="_blank">CBE<st1:PersonName
w:st="on">C <st1:PersonName w:st="on">Circular NO</a></u> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2008/cuscir08_10.htm"><u>10/2008-<st1:PersonName
w:st="on">Cus., Dated: <st1:date ls="trans" Month="6"
Day="30" Year="2008" w:st="on">June 30, 2008</u></a></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Kunio Mikuriya of Japan is the New Secy General of W<st1:PersonName
w:st="on">CO</b></font></p>
<p align="justify" style=' text-align:justify;'><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u1:p></u1:p>173 Members of the World Customs Organization elected their new Secretary General, <st1:PersonName
w:st="on"><st2:GivenName w:st="on">Kunio</st2:GivenName> <st2:Sn w:st="on">Mikuriya</st2:Sn>, on Saturday 28 June. The elections which saw 9 candidates vying for the top position took place during the W<st1:PersonName w:st="on">CO's annual <st1:PersonName w:st="on">Council Sessions in <st1:place
w:st="on"><st1:City w:st="on">Brussels from 26 to 28 June 2008. <b><font color="#FF6633">DDT 883 on 10.6.2008</font></b> had brought you profiles of the nine candidates in the fray.</font></p>
<p align="justify" style=' text-align:justify;'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">54 year old English and French speaking <ns1:givenname><st1:PersonName w:st="on"><st2:GivenName w:st="on">Kunio</st2:GivenName></ns1:givenname> <st2:Sn w:st="on">Mikuriya</st2:Sn> had been a Deputy Secretary General of the WCO, since 2002.</font></p>
<p align="justify" style=' text-align:justify;'> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><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 color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><img src="http://www.taxindiaonline.com/RC2/image/stories/wco.jpg" alt="Legal Corner Icon" width="128" height="192" hspace="5" border="0" align="left"></b></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></font></strong> Kunio who will take over in January 2009, said, “I<i> intend to lead the Organization by example, vigorously enhancing good governance by strengthening Member participation in decision-making, guaranteeing transparency, and ensuring accountability</i>”.</font></p>
<p align="justify" style=' text-align:justify;'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Before being elected Deputy Secretary General by the WCO Council in June 2001 Kunio Mikuriya spent 25 years with Japan's Ministry of Finance. During his career with the Ministry of Finance, Kunio occupied a variety of senior posts, which have given him broad experience in Customs, trade development, budget, and financial policies. He served as Director of International Negotiations, Director of the Enforcement Division, and Director of the Research and International Affairs Division in the Tariff and Customs Bureau. He also served as Director of the Salaries and Allowances Control Division and as budget controller in the Budget Bureau. He was a Counsellor at the Japanese Mission in Geneva and participated in the Uruguay Round negotiations. This experience enabled him to acquire an excellent knowledge of trade-related issues. Since January 2002, he has been leading an effort to co-ordinate the work of the WCO Secretariat with other international organizations such as the WTO, with financing bodies such as the World Bank, IMF, etc., and the private sector.</font></p>
<p align="justify" style=' text-align:justify;'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Kunio is said to be a friend of India and it seems India had supported him in the elections. We hear that he had called up the Indian Customs gratefully after his victory. Last year, exactly around this time, he was in India and visited the DG, Valuation on 4<sup>th</sup> July 2007 and suggested that India should offer technical assistance to developing countries in building up their valuationdatabases.</font></p>
<p align="justify" style=' text-align:justify;'><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#FF6633">TIOL</font></b> wishes Mr. Mikuriya all the very best in his years as the leader of World Customs.</font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Tariff Value of brass scrap increased </b></font></p>
<p align="justify" style=' text-align:justify;'><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u1:p></u1:p>Tariff value of brass scrap has been increased from 4332 US Dollars to 4453 dollars There is no change in the Tariff Values of other items.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u><u1:p></u1:p></u></b><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2008/cnt08_085.htm" target="_blank">Notification No. 85/2008-Customs(NT) , Dated the </a></u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2008/cnt08_085.htm"><ns0:date
ns2:ls="trans" ns2:month="6" ns2:day="3" ns2:year="2008"><ns1:givenname><ns0:date
ns2:year="2008" ns2:day="16" ns2:month="6" ns2:ls="trans"><ns1:givenname><u>June</u></ns1:givenname></ns0:date><u> 30, 2008</u></ns1:givenname></ns0:date></a><ns0:date
ns2:ls="trans" ns2:month="6" ns2:day="3" ns2:year="2008"><ns1:givenname></ns1:givenname></ns0:date></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Anti Dumping Duty on Graphic Electrodes - extended</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Anti Dumping Duty on graphite electrodes, originating in, or exported from, People's Republic of China, imposed vide notification No.101/2003-Customs dated the 7th July, 2003, is extended for another year, till the 6<sup>th</sup> day of July, 2009</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_081.htm" target="_blank">Notification NO</a></u> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_081.htm"><u>81/2008-Cus., Dated: June 27, 2008</u></a></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Anti Dumping Duty on vitrified and porcelain tiles</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti Dumping Duty on imports of vitrified and porcelain tiles, other than vitrified industrial tiles originating in, or exported from, the People's Republic of China (China PR) and United Arab Emirates was imposed by Notification No. 73/2003-Customs, dated the 1<sup>st</sup> May, 2003.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On a sunset review of the anti dumping duty, the Designated Authority has concluded that there is no dumping taking place from United Arab Emirates, but if the duty is withdrawn, the goods are likely to enter Indian market at dumped prices from China.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So now the anti dumping duty is freshly imposed on the goods originating from China.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_082.htm" target="_blank">Notification NO</a></u> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_082.htm"><u>82/2008-Cus., Dated: June 27, 2008</u></a></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Exemption to goods manufactured by Tool Rooms</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By Notification No. 63/95-Central Excise, dated the 16<sup>th</sup> March, 1995, Goods manufactured by Tool Rooms or Institutions specified below are exempted from excise duty:-</font></p>
<blockquote>
<p align="justify" class="MsoNormal" style="text-align:justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
(i) Central Tool Room, Ludhiana.</font></p>
<p align="justify" class="MsoNormal" style="text-align:justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Central Tool Room and Training Centre, Calcutta.</font></p>
<p align="justify" class="MsoNormal" style="text-align:justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) Central Institute of Tool Design, Hyderabad.</font></p>
<p align="justify" class="MsoNormal" style="text-align:justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) Institute for Designing of Electrical Measuring Instruments, Bombay.</font></p>
<p align="justify" class="MsoNormal" style="text-align:justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(v) Central Institute of Hand Tools, Jallandhar.</font></p>
<p align="justify" class="MsoNormal" style="text-align:justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(vi) <b>Tool Room and Training Centre, Delhi.</b></font></p>
<p align="justify" class="MsoNormal" style="text-align:justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(vii) Government Tool Room and Training Centre, Bangalore.</font></p>
<p align="justify" class="MsoNormal" style="text-align:justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(viii) Institute of Training and Tool Room of Uttar Pradesh, Lucknow.</font></p>
</blockquote>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now it appears that the name of “Tool Room and Training Centre, Delhi” is changed to “Delhi Institute of Tool Engineering”. The Notification is amended to change the name. But you see, Calcutta remains unchanged.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_41.htm" target="_blank">Notification NO</a></u> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_41.htm"><u>41/2008-Cx., Dated: June 27, 2008</u></a></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Guidelines for import of Rough Marble Blocks/Slabs for the year 2008-09.</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT has issued guidelines for the import of Rough Marble Blocks/Slabs for the year 2008-09.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Eligibility: </b></font></p>
<p align="justify" class=MsoListParagraphCxSpFirst ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 1. Units should have installed marble gang saw machine. The units should have been in operation since prior to 31.03.2001.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 2. Should have indigenous sales turnover of marble slabs/tiles only, of Rs.1.00 Crore (Rupees One Crore only) and above in each of the three financial years 2004-05, 2005-06 and 2006-07.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Floor Price:</b></font></p>
<blockquote>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i ) For crude or roughly trimmed marble – US$325 per Metric Tonne ( MT); </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ii) For rough marble blocks – US$325 per Metric Tonne (MT); and </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iii) For Slabs – US$ 500 per Metric Tonne (MT) </font></p>
</blockquote>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Entitlement:</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (a) Unit having one marble gang saw machine will be entitled for a maximum licence of 3,000 MT of marble blocks/slabs. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (b) Units having more than one marble gang saw machine will be entitled for a maximum licence of 3000 MT of marble blocks/slabs for the first gang saw machine and 1500 MT of marble blocks/slabs per additional marble gang saw machine.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2008/dgft08cir013.htm" target="_blank">DGFT Circular NO</a></u> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2008/dgft08cir013.htm"><u>13 (RE-08)/2004-2009 Dated: June30, 2008</u></a></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Marble blocks and tiles – Import Policy</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Import of Marble is permitted freely if the CIF value is US Dollars 50 & above per square metre</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2008/dgft08not018.htm" target="_blank">DGFT Notification NO</a></u> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2008/dgft08not018.htm"><u>18 / (RE-2008)/2004-09, Dated: June 30, 2008</u></a></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Jurispruden<font color="#FF6633" size="5"> tiol</font></strong></font><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> – Tomorrow's cases</font></strong><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><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 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></strong></font></strong></font></strong></font></font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Central Excise </b></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Various hues to Berger case – WZB of Tribunal refuses to modify earlier order asking for pre-deposit of Rs.2.5 Cr – time extended for payment of amount – SZB decision in assessees own case of no help</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">WE</font> </strong>had reported the <em>Berger Paint </em>case heard by the WZB, Mumbai <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=44&filename=legal/cestat/2008/2008-TIOL-269-CESTAT-MUM.htm" target="_blank"><font size="1">[2008-TIOL-269-CESTAT-Mum]</font></a></strong> and where the Bench had ordered the company to make a pre-deposit of Rs. 2.5 Crores and report compliance by 12.05.2008.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A similar case was booked against the same assessee down South and when the matter came up for hearing, the Bench after hearing the assessee granted complete stay. <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=44&filename=legal/cestat/2008/2008-TIOL-913-CESTAT-MAD.htm" target="_blank"><font size="1">[See 2008-TIOL-913-CESTAT-MAD]</font></a>.</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em><b><font color="#FF6633">Egged </font></b></em>by this decision, the assessee filed a modification application before the WZB – without success of course.</font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>NCCD - exemption notification does not have retrospective effect - Revenue wins: CESTAT</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is far-fetched to say that the exemption provided under this Notification should be extended for a period prior to the date of introduction of the exemption. The Revenue's appeal is well-founded and is firmly supported by the case law cited. The impugned order is set aside and the appeal is allowed.</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Income Tax </b></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Sec 80IA benefits not available to assessees engaged only in operating and maintaining power plants: ITAT</b></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ARE Sec 80IA benefits available to an enterprise which has only a service contract with a power generating undertaking? While dismissing the appeal of the assessee, the Tribunal has held that the assessee which had only an operating and maintenance contract for running the power plant cannot claim Sec 80IA(4)(iv)(a) benefits as it had no ownership right of the final output being generated. What further disentitles the assessee the works contract nature of the contract which is unambiguously excluded from deduction u/s 80IA as introduced by Finance Act 2007 with retrospective effect from April 1 2000.</strong></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>See our columns tomorrow for the judgements</b></font></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>
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