TIOL-DDT 899 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN"
"http://www.w3.org/TR/html4/loose.dtd">
<html>
<head>
<title>Untitled Document</title>
<meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1">
</head>
<body>
<p><font size="3" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">TIOL-DDT 899</font></strong></font><font face="Verdana, Arial, Helvetica, sans-serif"><font size="2"><strong><br>
02.07.2008 <br>
Wednesday </strong></font></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Draconian attachment provisions in Central Excise and Service Tax too </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As mentioned in yesterday's DDT, the guidelines for provisional attachment of Property after issue of Show cause Notice and before adjudication are in place. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For Service Tax, the Service Tax (Provisional Attachment of Property) Rules, 2008, had been notified. </font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">A circular has been issued to explain the provisions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now if you are an alleged offender in Customs, Excise or Service Tax and the ingenious department has issued a Show cause Notice demanding more than Rs. 25 Lakhs, your property is at risk. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">These provisions will never be used; they will be abused and misused. Every noticee can now be threatened with provisional attachment of property. The Department does not really have the infrastructure or experience to attach property and manage the attached property. But they can always threaten vulnerable assessees. During next March, this will be the most powerful weapon with the Department to meet their Revenue Targets. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And if the Department is serious about attachment, High Courts are going to be clogged with writ petitions to lift the attachments. </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=40&filename=notification/servicetax/2008/stnot08_030.htm" target="_blank">Notification No. 30/2008-Service Tax - Dated 01 July 2008 </a></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/sercir103.htm" target="_blank">Circular No. 103/ 06 /2008-Service Tax - Dated 01 July 2008 </a></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=31&filename=notification/excise/2008/excircular874.htm" target="_blank">Circular No. 874/12/2008- CX., Dated: June 30, 2008 </a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><em>Paan
Masala</em> under compounded Levy </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Section 3A of the Central Excise Act had been in and out of the Act and always leaving behind a trail of litigation. This year's Finance Act had seen its resurrection. This section, in simple terms gives the government the power to levy excise duty based on the capacity of production rather than on the quantum of clearances. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the Government has notified </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i)
<em>paan</em> masala falling under tariff item 2106 90 20 of the First Schedule
to the Central Excise Tariff Act, 1985 (5 of 1986), except the pan masala
containing not more than 15% betel nut; and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii)
paan masala containing tobacco, commonly known as <em>gutkha</em>, falling under
tariff item 2403 99 90 of the said Tariff Act, </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">manufactured with the aid of packing machine and packed in pouches as notified goods, on which there shall be levied and collected duty of excise in accordance with the provisions of the section 3A. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government has also notified the Pan Masala Packing Machines (Capacity Determination And Collection of Duty) Rules, 2008. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government has also issued a notification specifying the duty applicable which is as follows:- </font></p>
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top" width="8%"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>S. No. </strong></font></p></td>
<td valign="top" width="37%"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Retail sale price (per pouch) </strong></font></p>
<p align="center"> </p></td>
<td valign="top" width="54%" colspan="2"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Rate of duty per packing machine per month <br>
</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>(Rs. in lakh )</strong></font></p> </td>
</tr>
<tr>
<td valign="top" width="8%"><p> </p></td>
<td valign="top" width="37%"><p> </p></td>
<td valign="top" width="24%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Pan masala </strong></font></p></td>
<td valign="top" width="30%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Pan masala containing tobacco </strong></font></p></td>
</tr>
<tr>
<td valign="top" width="8%"><p> </p></td>
<td valign="top" width="37%"><p> </p></td>
<td valign="top" width="24%"><p> </p></td>
<td valign="top" width="30%"><p> </p></td>
</tr>
<tr>
<td valign="top" width="8%"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>(1) </strong></font></p></td>
<td valign="top" width="37%"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>(2) </strong></font></p></td>
<td valign="top" width="24%"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>(3) </strong></font></p></td>
<td valign="top" width="30%"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>(4) </strong></font></p></td>
</tr>
<tr>
<td valign="top" width="8%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. </font></p></td>
<td valign="top" width="37%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Up to Rs. 1.00 </font></p></td>
<td valign="top" width="24%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9.25 </font></p></td>
<td valign="top" width="30%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12.50 </font></p></td>
</tr>
<tr>
<td valign="top" width="8%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. </font></p></td>
<td valign="top" width="37%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">From Rs. 1.01 to Rs. 1.50 </font></p></td>
<td valign="top" width="24%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">14 </font></p></td>
<td valign="top" width="30%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">19 </font></p></td>
</tr>
<tr>
<td valign="top" width="8%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. </font></p></td>
<td valign="top" width="37%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">From Rs. 1.51 to Rs. 2.00 </font></p></td>
<td valign="top" width="24%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">18 </font></p></td>
<td valign="top" width="30%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">24 </font></p></td>
</tr>
<tr>
<td valign="top" width="8%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. </font></p></td>
<td valign="top" width="37%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">From Rs. 2.01 to Rs. 3.00 </font></p></td>
<td valign="top" width="24%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">26 </font></p></td>
<td valign="top" width="30%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">36 </font></p></td>
</tr>
<tr>
<td valign="top" width="8%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. </font></p></td>
<td valign="top" width="37%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">From Rs. 3.01 to Rs. 4.00 </font></p></td>
<td valign="top" width="24%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">34 </font></p></td>
<td valign="top" width="30%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">47 </font></p></td>
</tr>
<tr>
<td valign="top" width="8%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. </font></p></td>
<td valign="top" width="37%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">From Rs. 4.01 to Rs. 5.00 </font></p></td>
<td valign="top" width="24%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">43 </font></p></td>
<td valign="top" width="30%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">59 </font></p></td>
</tr>
<tr>
<td valign="top" width="8%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. </font></p></td>
<td valign="top" width="37%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">From Rs. 5.01 to Rs. 6.00 </font></p></td>
<td valign="top" width="24%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">51 </font></p></td>
<td valign="top" width="30%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">70 </font></p></td>
</tr>
<tr>
<td valign="top" width="8%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. </font></p></td>
<td valign="top" width="37%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Above Rs.6.00 </font></p></td>
<td valign="top" width="24%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">50 + 8.36 * (P - 6), </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">where P represents retail sale price of the pouch </font></p></td>
<td valign="top" width="30%"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">69 + 11.45 * (P - 6), where P represents retail sale price of the pouch </font></p></td>
</tr>
</table>
<p> </p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Illustration. - </em>The rate of duty per packing machine per month for a gutkha pouch having retail sale price of Rs. 8.00 (i.e. 'P') shall be </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">= Rs. 69 + 11.45*(8-6) lakhs </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> = Rs. 91.90 lakhs </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">TIOL</font> illustration </strong></font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It
seems there is mathematician in Board who is getting all his researched
formulae wrong. If your Gutkha pouch has MRP of Rs 6.00, as per the above
table, you have to pay Rs. 70 lakhs a month. You can save Rs 89,000/-
duty per month per machine by just increasing the MRP to Rs 6.01/ - This
is how it works. Since the MRP is more than Rs 6/-, you are under Serial
No 8. Now, as per the formula, your duty will be Rs 69 + 11.45 multiplied
by ( 6.01-6.00). This makes the total duty as Rs 69.11 lakhs ( Rs 69
lakhs plus 0.11 lakhs ) </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>So now, Gutkha with MRP of Rs 5.50/- attracts more duty than Gutkha with MRP of Rs 6.01/- </strong></font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">This duty will be inclusive of all duties like AED , NCCD, Education Cess and the SHE Cess. </font></p>
<p align="justify"><font color="#FF0000"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Notifications were issued late yesterday evening and are applicable from early morning of yesterday. </font></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_29.htm" target="_blank">Notification No. 29/2008- Central Excise( N.T. )</a><strong>, </strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/exnt08_30.htm" target="_blank">30/2008- Central Excise( N.T. )</a><strong>, </strong>and <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_42.htm" target="_blank">42/2008- Central Excise, all Dated: July 1, 2008 </a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Classification of Large Format Printers – CBEC clarifies </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A doubt has been raised by the field formations about the classification of Large Format Printers ( LFP ). One view is that these are classifiable as ‘other printers' under sub-heading 8443 31 / 8443 32, since these are capable of connecting to an Automatic Data Processing ( ADP ) machine; the other view is that these are classifiable under sub-heading 8443 39, as these are much closer in features and applications to the inkjet printing machines, which perform a specific function other than data processing. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Prior to implementation of HS 2007 changes, the classification of printers was under sub-heading 8471 60, if these were capable of connecting to a central processing unit and able to accept / deliver data in the form used by the ADP system, as an output unit of an ADP . However, inkjet printing machines, other than those as above classifiable under 8471 were separately classified under sub-heading 8443 51. Subsequently, the classification of Printers was revised in HS 2007 and grouped under single heading 8443. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC now clarifies that the appropriate classification of Large Format Printers would be under sub-heading 8443 32. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So the Board directs the field to take necessary action and the pending assessments of LFP imports to be finalized accordingly. </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=25&filename=notification/custom/2008/cuscir08_11.htm" target="_blank">CBEC Circular No. 11/2008- Cus., Dated: July 1, 2008 </a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Payment of Drawback in the Exporter's Core Banking Enabled Bank Account in Any Branch/ Bank Anywhere in the Country </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per the existing Customs Procedure for computerised processing of drawback Shipping Bills and drawback claims under the Indian Customs EDI System (ICES) an exporter is required to open a bank account only with the authorized bank branch at the port of export . This has been done to enable direct credit of the drawback amount to their accounts, obviating the need for issue of cheques. The exporter has to indicate the bank account number in the prescribed declaration form. Shipments for exports under claim for drawback are not accepted in case the account number of the exporter in the authorized bank branch is not indicated in the declaration form. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">With
the introduction of CBS (Core Bank Solution) by the Public Sector and other
banks and its expansion to a large number of branches/cities and other technology
changes in the banking sector, there have been demands from the exporters
and various trade associations, especially the Delhi Exporters' Association,
for crediting of drawback amount in the exporter's core banking enabled bank
account, in any branch/bank anywhere in the country. The matter has been
examined in consultation with the Reserve Bank of India , Indian Banks' Association
and the Principal Chief Controller of Accounts, CBEC. It has now been decided
to credit the drawback amount in the exporter's account in any core banking
branch of the authorized bank anywhere in the country. In respect of exporters
whose accounts are not in the authorized banks at the EDI location but in
some other bank, the facility of RTGS (Real Time Gross Settlement) and NEFT
(National Electronic Fund Transfer) would be used to transfer the credit
of drawback amount in the exporter's account provided the concerned branch
of the other bank is RTGS and NEFT enabled. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">With the introduction of this procedure it will no longer be mandatory for any new exporter to open a bank account only with the designated authorized bank branch at the port of export </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is proposed to introduce this procedure with effect from the July 1st, 2008 at the Jawahar Lal Nehru Custom House ( Nava Sheva ), ICD Tughlakabad , ICD Pataprganj and Air Cargo (Exports) NCH , New Delhi . Remaining ICES locations will implement the above procedure with effect from 15-07-2008. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/paymentdrawback.htm" target="_blank">Circular No. 1/2008-Systems Dated: 24th June, 2008 </a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Export Duty on Steel Products cleared to SEZ – at least clarify who has to pay the duty </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT </strong> has information that DRI sleuths have raided the premises of some manufacturers of steel products who have cleared their goods to SEZs . If at all export duty is to be paid, it has to be paid by the SEZ units and not the manufacturers. It is high time the CBEC clarifies the position, as to whether export duty is to be paid and if so by whom. Board should end this uncertainty. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And if export duty is to be paid, why the SEZ units should get the products from Indian manufacturers; they can as well import! Is the whole idea to kill the Indian Industry? </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Inflation – the Government's explanation – It's actually negative for some commodities like salt </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government admits that Year-on-year inflation measured in terms of the Wholesale Price Index increased to 11.42 per cent on June 14, 2008 . Though this is the highest inflation in the last 13 years, it is largely commodity centric. Government is taking measures to moderate the inflationary pressures. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government's press release says that there has been actually a decline of 0.04% in price of salt! Great relief indeed. What is the percentage of salt in a family's budget? If you have been spending Rs. 100/- on salt, now you will be spending 4 paise less – a great relief indeed! And four paise for the whole year!!!!! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If your head is on a heater and your feet are in a freezer, the average temperature of your body should be around a comfortable 30 degrees, but your head will get burnt and your legs frozen. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If you are six feet tall and try to cross a river which has an average depth of five feet, you are statistically entitled to cross the river, but at a point where the river is eight feet deep, you are entitled to get drowned and you do! </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><font size="2" face="Verdana, Arial, Helvetica, sans-serif"></font></p>
<p 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/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><font color="#663399">Central Excise </font></strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Whether special provisions for petroleum refineries under erstwhile Rule 143A of Central Excise Rules can continue to have effect under Central Excise (No 2) Rules 2001 and Central Excise Rules 2002? - Matter referred to Larger Bench </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">THE</font></strong> respondent is a petroleum refinery. They produce among other products, Fuel Oil, which is used captively for generation of steam, which is in turn used for fractional distillation of crude petroleum. One of the petroleum products manufactured is Raw Naphtha which is cleared to fertilizer manufacturers at Nil rate of duty. The department demanded duty on the Fuel Oil used for manufacture of Raw Naphtha on pro rata basis by denying exemption under Notification 67/95 CE and is in appeal before the Tribunal against the order of the Commissioner (Appeals) who held that no duty need be paid on the impugned goods. </font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Committee of Commissioners – One head two hat syndrome continues unabated – Tribunal dismisses Revenue appeal </strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">THE</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"></font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Committee procedure for reviewing of orders passed is getting murkier day by day. <strong><font color="#FF6633">Paucity</font> </strong>of Commissioners in some Commissionerates in the country warrants that one Commissioner is given additional charge of a nearby Commissionerate. Unfortunately, by virtue of such an administrative exigency, the said Commissioner lands up as, both, the first and the second Committee Member that constitutes the Committee for review purposes. Needless to mention, he signs for both the Committee Members, in the Review order. </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>Income disclosed and return filed after raid - not voluntary; penalty leviable: ITAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is amply clear that, only after the Revenue was in the possession of incriminating materials pertaining to undisclosed income of the assessee found during the search of SRM Group and summons u/s 131(1) were issued to the assessee, did the assessee come out with payment of advance tax and disclosure of additional income by a revised return. Hence, on the touchstone of these decisions and discussions, the assessee's action of paying tax and filing revised return cannot be called to be a voluntary one. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our columns Tomorrow for the judgements </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#FF6666">Until Tomorrow with the <font size="3"><strong><font size="6">900th</font></strong></font><font size="6"> <strong>DDT</strong></font></font></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" target="_blank">vijaywrite@taxindiaonline.com</a></font></p>
</body>
</html>