TIOL-DDT 910 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT 910</font><br>
17.07.2008<br>
Thursday </b></font></p>
<p align=center style='text-align:center'><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><st1:PersonName w:st="on"><st2:title
w:st="on"><b>Pan</b></st2:title><b> <st2:Sn w:st="on">Masala</st2:Sn></b></font></p>
<p style='text-align:justify'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Pan Masala Packing Machines (Capacity Determination and Collection of duty) Rules 2008 have been amended. In Rule 5 of these Rules, the following proviso has been inserted in the explanation.</font></p>
<p style='text-align:justify'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In case of multiple track or multiple line packing machine which are incapable of performing such additional processes, one such track or line shall be deemed to be one individual packing machine for the purpose of calculation of number of pouches.</font></p>
<p style='text-align:justify'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The explanation to the Rule reads that in case of multiple line packing machines which are capable of performing additional functions like moulding and giving a definite shape to the pouch, two such lines / tracks will be treated as a single machine for the purpose of calculation of the capacity. </font></p>
<p style='text-align:justify'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If a multi track machine has two packing and two moulding lines, and the two moudling lines are not functional, as per the existing explanation, it will be treated as a single machine though two lines are used for production. May be to avoid this, the above proviso has been inserted. Now if the additional lines/tracks are incapable then each line will be treated as one single machine. Similarly if the multi line machine has no additional functions, then also each line will be treated as a single machine.</font></p>
<p style='text-align:justify'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Consequential amendments have been made to the rest of the Rule 6 and the declaration Form 1 prescribed.</font></p>
<p style='text-align:justify'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Tariff Notification No. 42/2008-Central Excise, dated 1st July, 2008, is also amended suitably. </font></p>
<p style='text-align:justify'><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/exnt08_31.htm" target="_blank">Notification 31/2008 CE(NT) dated 15.7.2008</a> </b>and <b><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_43.htm" target="_blank">Notification 43/2008 CE dated 15.7.2008</a></b></font></p>
<p align=center style='text-align:center'><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Service Tax – accounting codes for new services </b></font></p>
<p style='text-align:justify'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government while imposing new taxes, is not prompt in announcing the Head of accounts under which the tax is to be paid, leaving the tax payers as well as the Department in utter confusion. We have been getting several frantic calls from concerned assessees as to what the codes are for the new taxes imposed in this year's budget. When we expressed our ignorance, many taxpayers asked us, “if you don't know, who will know?” – We only report; we don't create.</font></p>
<p style='text-align:justify'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Principal Chief Controller of Accounts, CBEC has notified the accounting codes for the new services: </font></p>
<table width="450" border=1 align="center" cellpadding=3 cellspacing=0 class=MsoNormalTable>
<tr>
<td valign=top> <p align="center" class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Head of Accounts</b></font></p></td>
<td valign=top> <p align="center" class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Description</b></font></p></td>
<td valign=top> <p align="center" class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Serial Code</b></font></p></td>
<td valign=top> <p align="center" class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>SCCD Code</b></font></p></td>
</tr>
<tr>
<td valign=top> <p class=MsoNormal><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>004400205</b></font></p></td>
<td valign=top> <p align="justify" class=MsoNormal><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Minor Head -</b> Services provided by any person in relation to information technology software for use in the course, or furtherance, of business or commerce.</font></p></td>
<td valign=top> <p class=MsoNormal><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">00440449</font></p></td>
<td valign=top> <p class=MsoNormal><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">111</font></p></td>
</tr>
<tr>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440020501</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sub-head - Tax Collection</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440452</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">111</font></p></td>
</tr>
<tr>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440020502</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sub-head - Other Receipt</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440450</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">113</font></p></td>
</tr>
<tr>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440020503</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sub-head - Deduct Refunds</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440451</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">118</font></p></td>
</tr>
<tr>
<td valign=top> <p class=MsoNormal><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>004400206</b></font></p></td>
<td valign=top> <p align="justify" class=MsoNormal><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Minor Head -</b> Services provided by an insurer on life insurance business, in relation to management of investment, under unit linked insurance business, commonly known as Unit Linked Insurance Plan (ULIP) scheme</font></p></td>
<td valign=top> <p class=MsoNormal><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">00440429</font></p></td>
<td valign=top> <p class=MsoNormal><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">113</font></p></td>
</tr>
<tr>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440020601</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sub-head - Tax Collection</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440430</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">111</font></p></td>
</tr>
<tr>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440020602</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sub-head - Other Receipt</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440431</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">110</font></p></td>
</tr>
<tr>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440020603</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sub-head - Deduct Refunds</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440432</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">119</font></p></td>
</tr>
<tr>
<td valign=top> <p class=MsoNormal><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>004400207</b> </font></p></td>
<td valign=top> <p align="justify" class=MsoNormal><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Minor Head -</b> Services provided by a recognized stock exchange in relation to assisting, regulating or controlling the business of buying, selling or dealing in securities and includes services provided in relation to trading, processing, clearing and settlement of transactions in securities.</font></p></td>
<td valign=top> <p class=MsoNormal><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">00440433</font></p></td>
<td valign=top> <p class=MsoNormal><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">112</font></p></td>
</tr>
<tr>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440020701</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sub-head - Tax Collection</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440434</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">117</font></p></td>
</tr>
<tr>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440020702</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sub-head - Other Receipt</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440435</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">114</font></p></td>
</tr>
<tr>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440020703</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sub-head - Deduct Refunds</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440436</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">115</font></p></td>
</tr>
<tr>
<td valign=top> <p align="justify" class=MsoNormal><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>004400208</b></font></p></td>
<td valign=top> <p align="justify" class=MsoNormal><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Minor Head -</b> Services provided by a recognized/registered association in relation to assisting, regulating or controlling the business of the sale or purchase of any goods or onward contracts and includes services provided in relation to trading, processing, clearing and settlement of transactions in goods or forward contracts.</font></p></td>
<td valign=top> <p align="justify" class=MsoNormal><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">00440437</font></p></td>
<td valign=top> <p align="justify" class=MsoNormal><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">116</font></p></td>
</tr>
<tr>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440020801</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sub-head - Tax Collection</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440438</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">113</font></p></td>
</tr>
<tr>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440020802</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sub-head - Other Receipt</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440439</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">118</font></p></td>
</tr>
<tr>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440020803</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sub-head - Deduct Refunds</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440440</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">118</font></p></td>
</tr>
<tr>
<td valign=top> <p class=MsoNormal><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>004400209</b></font></p></td>
<td valign=top> <p align="justify" class=MsoNormal><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Minor Head -</b> Services provided by a processing and clearing house in relation to processing, clearing and settlement of transactions in securities, goods or forward contracts including any other matter incidental to, or connected with, such securities, goods and forward contracts.</font></p></td>
<td valign=top> <p class=MsoNormal><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">00440441</font></p></td>
<td valign=top> <p class=MsoNormal><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">113</font></p></td>
</tr>
<tr>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440020901</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sub-head - Tax Collection</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440442</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">116</font></p></td>
</tr>
<tr>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440020902</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sub-head - Other Receipt</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440443</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">115</font></p></td>
</tr>
<tr>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440020903</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sub-head - Deduct Refunds</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440446</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">112</font></p></td>
</tr>
<tr>
<td valign=top> <p class=MsoNormal><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>004400210</b></font></p></td>
<td valign=top> <p align="justify" class=MsoNormal><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Minor Head -</b> Services provided by any person in relation to supply of tangible goods including machinery, equipment and appliances for use, without transferring right of procession and effective control of such machinery, equipment and appliances.</font></p></td>
<td valign=top> <p class=MsoNormal><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">00440444</font></p></td>
<td valign=top> <p class=MsoNormal><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">114</font></p></td>
</tr>
<tr>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440021001</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sub-head - Tax Collection</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440445</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">117</font></p></td>
</tr>
<tr>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440021002</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sub-head - Other Receipt</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440447</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">119</font></p></td>
</tr>
<tr>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440021003</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sub-head - Deduct Refunds</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">00440448</font></p></td>
<td valign=top> <p class=MsoNormal><font size="2" face="Verdana, Arial, Helvetica, sans-serif">110</font></p></td>
</tr>
</table>
<p style='text-align:justify'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Sub-head "Other Receipt" is meant for interest, penalty leviable on delayed payment of Service Tax. </font></p>
<p style='text-align:justify'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Sub-head "Deduct Refunds" is not to be used by the assessees, it is meant for the department while allowing refund of Tax. </font></p>
<p style='text-align:justify'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Primary Education Cess on all taxable services will be booked under 00440298 and Secondary and Higher Education Cess will be booked under 00440426.</font></p>
<p class=MsoNormal style=' text-align:justify'><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/final_accounting_code.pdf" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Coord/13-6/H/ A/cs/VoI.<st1:stockticker w:st="on">VII/42 of the PR CHIEF CONTROLLER OF ACCOUNTS Dated: <st1:date ls="trans" Month="6" Day="9" Year="2008" w:st="on">June 9, 2008</b></font></a></p>
<p class=MsoNormal align=center style='text-align:center'><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Import of rough marble blocks/slabs – DGFT clarifies</b></font></p>
<p class=MsoNormal style='text-align:justify'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT clarifies that for establishment of eligibility and entitlement of the unit, the applicants shall be required to submit the following documents, along with their application:-</font></p>
<blockquote>
<p class="MsoNormal" style="text-align:justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> i) A certificate issued by State Industry Department (District Industry Center) stating whether the applicant, as on date, has established gang saw in his unit or not. The verification shall also state number of gang saws established by the unit.</font></p>
<p class="msolistparagraph0" style=" text-align:justify;"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ii) The SSI/SIA Registration Certificate duly certified by State Industry Department (District Industry Centre) indicating that the unit has been in operation since prior to 31.3.2001.</font></p>
<p class="MsoNormal" style="text-align:justify;"> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">iii) List of equipments/capital goods set up by the applicant in its unit prior to 31.3.2001, showing processing equipment for marble slabs/tiles, as per the balance sheet submitted to income tax authorities for the Year 2000-01, duly certified by a Chartered Accountant.</font></p>
<p class="msonormalcxspmiddle" style=" text-align:justify;"> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">iv) Copy of income tax return for the year 2000-01, indicating processing of marble by the unit, duly certified by a Chartered Accountant.</font></p>
<p class="msonormalcxspmiddlecxspmiddle" style="
text-align:justify;"> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">v) A Charted Accountant Certificate indicating the indigenous sales turnover of marble slabs/tiles of the applicant for the years 2004-05, 2005-06 and 2006-07. The CA certificate is to be supported by certified copies of income tax returns filed by the applicant for each of the years and by certified copies of VAT/Sales Tax returns filed by the applicant for each of the years indicating the indigenous sales turnover of marble slabs/tiles.</font></p>
<p class="msonormalcxspmiddle" style=" text-align:justify;"> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">vi) The sale against Form H and other relevant Forms, job work income earned by any unit sawing marble blocks of third parties in to slabs/tiles and the amount of excise duty, service tax and sales tax/VAT paid on such indigenous sales turnover of marble slabs/tiles may also be included for calculating indigenous sales turnover of the applicant.</font></p>
<p class="MsoNormal" style="text-align:
justify;"> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">vii) With regard to calculation of indigenous sales turnover, it is further clarified that the turnover will include the net sales after deducting the sales returns from the gross sales. It is also clarified that the turnover of the applicant only shall be taken into consideration and the turnover of group concerns/ sister concerns/ subsidiaries etc. shall not be counted for calculating the turnover.</font></p>
</blockquote>
<p class=MsoNormal style='text-align:
justify;'><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2008/dgft08cir020.htm" target="_blank">DGFT Policy Circular No. 20 (RE-08)/2004-2009 Dated: <st1:date ls="trans" Month="7" Day="16"
Year="2008" w:st="on">July 16, 2008</a></b></font></p>
<p align=center style='text-align:center'><font size="2" face="Verdana, Arial, Helvetica, sans-serif"></font><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></p>
<p style='text-align:justify'><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><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></strong></font><font color="#663399">Central Excise</font> </b></font></p>
<p style='text-align:justify'><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>CBEC vs CESTAT – Board Member again summoned by CESTAT</b></font></p>
<p class=MsoNormal style='text-align:justify'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It indicates the state of utter confusion that is prevailing in regard to making statutory appointments for carrying out various statutory functions under the Customs, Excise and Service Tax Law. The level of ignorance of the Key Personnel manning the administration side of an important statutory body like the Central Board of Excise and Customs vested with statutory powers and functions under the Indirect Tax Laws become self-evident.</font></p>
<p class=MsoNormal style='text-align:justify'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Since Shri B.K.Gupta, Member of the Board has failed to file a proper affidavit as earlier directed; and as the deposition of the Officer deputed by him does not meet the requirement of law; and further, as the reason given by Shri Gupta for exemption from personal appearance is far from satisfactory, Shri B.K.Gupta, Member is directed to appear in person and depose before this Bench on the next date of hearing on 20.8.2008.</font></p>
<p class=MsoNormal style='text-align:justify'><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Commissioner(Appeals) does not have the power of remand – he lost it by Finance Act, 2001, says Tribunal</b></font></p>
<p style='text-align:justify'><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WAY </strong>back in the year 2001, w.e.f 11.05.2001 to be precise, the Central Government made an important substitution in Section 35A of the Central Excise Act, 1944 [parallel s.128A of Customs Act, 1962] and that concerned sub-section (3). It reads : <em>“The Commissioner(Appeals) shall, after making such further inquiry as may be necessary, pass such order, as he thinks just and proper, confirming, modifying or annulling the decision or order appealed against:”</em> </font></p>
<p style='text-align:justify'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Earlier, sub-section (3) read – <em>“The Commissioner(Appeals) may, after making such further inquiry as may be necessary, pass such order as he thinks fit confirming, modifying or annulling the decision or order appealed against, </em><strong><i>or may refer the case back to the adjudicating authority </i></strong><em>with such directions as he may think fit for a fresh adjudication or decision, as the case may be, after taking additional evidence, if necessary:”</em> </font></p>
<p style='text-align:justify'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Department was of the strong view that this substitution took away the power of remand which was earlier available to the Commissioner (Appeals). </font></p>
<p style='text-align:justify'><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">Income Tax </font> </b></font></p>
<p style='text-align:justify'><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Sale and Lease Back – depreciation eligible - tax planning can be tolerated whereas tax evasion by dubious means cannot be countenanced - theory of sale and lease back had not been invented by assessee: ITAT</b></font></p>
<p class=MsoNormal style='text-align:justify'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The asset was valued by the independent valuer and certified by the Chartered Accountant and after completion of the lease period, the asset is to be re-delivered to the lessor. The essential characteristic of a sale is that the propriety in the goods passes to the buyer and it is not necessary that the assets should physically move to the buyer in order to constitute a valid sale. It is purely a business decision of the assessee to earn income by way of lease rentals. The decision to purchase and lease it back to the seller is therefore business decision of the assessee on which the department cannot sit in and decide the way the business could be done. It is the assessee's arm chair exclusively.</font></p>
<p style='text-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 style='text-align:justify'><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#FF6666">Until Tomorrow with more <strong>DDT</strong></font></font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Day.</font></p>
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