TIOL-DDT 911 · the untouched capture
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<p><font size="3"><strong><font color="#663399" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 911 </font></strong><font face="Verdana, Arial, Helvetica, sans-serif"><strong></strong></font></font><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif"><strong><br>
18.07.2008 <br>
Friday </strong></font></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax – No exemption to free computer training provided by Bharatiya Vidya Bhavan to economically weaker sections - FM </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mr. Murli Deora had written a letter to the Hon'ble FM forwarding a representation from Bhartiya Vidya Bhavan regarding exemption from the levy of service tax on the free computer training provided to the economically weaker section of the society. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Bharatiya Vidya Bhavan has hired the services of M/s ESSGEE Educational Services, Chennai for providing computer training. For providing this service, M/s ESSGEE Educational Services receives payments from Bhartiya Vidya Bhavan . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Hon'ble FM has informed Mr. Deora that:- </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. The service provided by M/s ESSGEE Educational Services falls under the category of "commercial training or coaching service" and service tax would be applicable on the considerations received by it from Bharatiya Vidya Bhavan . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. As regards applicability of Notification No. 10/2003-ST, this notification exempts any service provided by a commercial training or coaching centre, which forms essential part of the course or curriculum of any other Institute or establishment, leading to the issuance of certificate, diploma, degree or educational qualification recognised by law. As the service provided by M/s ESSGEE Educational Services, Chennai does not form part of the course or curriculum which leads to issuance of any educational qualification recognised by law, benefit of the said notification would not be available to them. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. As regards the request for exemption from service tax, it is the conscious policy of the Government to keep exemptions to the minimum, particularly, end use based exemptions, as these are difficult to administer. Further, ad-hoc exemption is considered only in circumstances of exceptional nature. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. As no such circumstances of exceptional nature exist in this case, it would not be feasible to accede to the request made by Bharatiya Vidya Bhavan . </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the field can attack Bharatiya Vidya Bhavan and allege suppression, evasion, collusion and can demand penalty and interest. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Remember the clarification given by the FM to the Madhya Pradesh CM regarding Service Tax on road repair? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Moral of the story </strong>: Don't ask the FM for any clarification or exemption – you will end up losing! </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>No
anti-dumping duty on vitrified and porcelain tiles from a specific exporter </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Notification No. 73/2003- Customs, dated the 1st May, 2003, anti dumping duty was imposed on vitrified and porcelain tiles, other than vitrified industrial tiles originating in, or exported from, the People's Republic of China and United Arab Emirates . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now notwithstanding the notification, the Government has notified that no anti-dumping duty shall be imposed during the period from the 9th March, 2007 up to and inclusive of the 1st May, 2008, on the imports into India of the subject goods produced by M/s Foshan Nanhai Jing Yu Ceramics Ltd. Foshan China (also known as Bioma Ceramics), People's Republic of China and exported by M/s Shye International, Hong Kong. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Provisional assessment of duty was directed in respect of this exporter vide Notification No. 39/2007- CUSTOMS, Dated : March 9, 2007 . This Notification is now rescinded. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_087.htm" target="_blank">NOTIFICATION NO No . 87/2008 - Cus., Dated: July 16, 2008</a> </strong> and <strong> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_088.htm" target="_blank">NOTIFICATION NO. 88/2008 - Cus., Dated: July 16, 2008</a> </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Compounded levy on pan masala – an old notification withdrawn </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Notification No. 38/2007, the optional rate based on production was prescribed. Now that a new scheme is in operation, this notification is rescinded. Thank God they remembered about this. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_088.htm" target="_blank">NOTIFI CATION NO. 88/2008</a> - <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_44.htm" target="_blank">44/2008- CX ., Dated: July 16, 2008 </a></strong></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"> – Monday's cases</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"><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 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></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></font><font color="#663399">Income Tax</font></strong></font></p>
<p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Jewellery seized during search - onus on assessee to prove that he is not the owner: ITAT by majority </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Assessing Officer has rightly assessed the investment in jewellery as unexplained income of the assessee. Section 110 of the Evidence Act, 1872, embodies a salutary principle of common law jurisprudence that where a person was found in possession anything, the onus of proving that he was not its owner was on that person and this principle could be attracted to a set of circumstances that satisfy its conditions and was applicable to taxation proceedings. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Refund of pre-deposit: No limitation as it is not duty: Madras HC </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Bank guarantee cannot be regarded as equivalent to payment of duty and it is only furnished to safeguard the interest of the revenue in case of non-fulfilment of export obligation. Section 27 which speaks about the refund of the duty cannot be pressed into service to deny refund of the amount covered under the bank guarantee which has been negotiated by the department. </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"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Recipient of the 'consulting engineer' service from outside India , not liable to pay service tax prior to 1.1.2005 – CESTAT - LB </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Taxable service provided by a non-resident or from outside India, who does not have any office in India, having been specified as 'taxable service' with effect from 1.1.2005, under notification No.36 /2004, recipient of such service could not be held liable for paying service tax prior to 1.1.2005 notwithstanding the amendment in rule 2(1)( d) of the Service Tax Rules under notification no. 12/2004.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Person liable to pay tax: </strong>the person liable to pay the tax is a component of the tax scheme. Since the liability to pay service tax generally is on the provider of service, where liability is to be fastened on any other person, the service (s) in relation to which liability is to be so fastened, has also to be identified and specified. It is relevant to mention that services had been specified in the erstwhile sub-section (1A) of Section 68, itself, - corresponding to present sub-section (2) in which it has now been left to the Central Government to do so by a notification. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our columns Monday for the judgements </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#FF6666">Until Monday with more <strong>DDT </strong></font></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Weekend.</font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></font></p>
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