TIOL-DDT 94 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <b><font color="#0000FF" size="3">TIOL-DDT
94</font><br>
13 04 2005<br>
Wednesday</b></font></p>
<p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif">
<b>Service Tax on GTA – DG withdraws clarification</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>WE</b>
<b>are happy to report that the DG Service Tax has withdrawn the controversial
clarification we reported yesterday.</b> On behalf of thousands of assessees
spread across this large country, we express our deep feelings of gratitude
to the DG Service Tax for the courage in withdrawing the clarification which
we pointed out was patently illegal. Any one can make a mistake; it takes
real strength to correct a mistake. A responsible and responsive tax administration
ready to admit a mistake and that too promptly before much damage could be
done is the greatest happening. Now the consignors/consignees can continue
to pay Service Tax on 25% of the value. Yesterday’s storm was only one
in the tea cup and it has blown over. All’s well that end well. Your
Taxindiaonline promises to humbly continue with its mission to constantly
watch and report such aberrations and this kind of prompt corrections boost
our morale. Thank you DG!<br>
<br>
<font color="#006633"><b>Cenvat Credit Rules amended</b></font><br>
<br>
As per Rule 6, if inputs are used in dutiable and exempted goods, either separate
accounts are to be maintained or 10% on the final products are to be paid.
However there is a third option as per Rule 6(3) in respect of certain goods
like LSHS, Naphta, Newsprint, textiles etc,. In these cases proportionate
credit can be reversed. Now the Government has added LPG for domestic consumption
and Kerosene for public distribution to the list.<br>
<br>
<b><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2005/exnt05_018.htm">Notification
No. 18 /2005-Central Excise (N.T.) dated 12.04.05</a></b><br>
<br>
<font color="#006633"><b>Duty paid on exempted goods eligible for credit</b></font><br>
<br>
That is what the Madras High Court ruled in a recent case. Remember the proposed
amendment to Section 5A of the Central Excise Act which bars the assessees
from paying duty on exempted goods. But if they still do? Allow credit? If
that is the law, what is the purpose of the amendment? – See our story
and the case in today’s ”breaking News” <br>
<br>
<font color="#006633"><b>Sale to Government/Industrial Consumers/hotels for
own consumption – retail or wholesale?</b></font><br>
<br>
There are conflicting views of the Tribunal benches on this issue. Now the
Bangalore bench of the CESTAT has referred the matter to a Larger Bench. –
SEE </font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2005/2005-TIOL-292-CESTAT-BANG.htm"><b>2005-TIOL-292-CESTAT-BANG</b></a></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
<br>
<font color="#006633"><b>PMT for Revenue officials? </b></font><br>
<br>
I am sure you know what PMT means, but I am not referring to that. This is
about a more damaging trauma called PRE MARCH TENSION for Revenue officers
to hit that much elusive target and however difficult it is, most of them
manage to do it – by hook or crook – or statistics! An ingenious
way employed by an enterprising Income Tax officer was to attach the Bank
Accounts of an assessee a day after the Commissioner (Appeals) passed an order.
The Tribunal was not amused and ordered refund. Refund comes only in April
or later but target has to be reached in March. See our <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=39&filename=legal/itat/2005/2005-TIOL-67-ITAT-DEL.htm">ITAT
case</a> today. </font></p>
<p align="center"><font color="#0000CC" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>God!
Grant me <br>
<br>
The strength to change the things I can<br>
<br>
The courage to accept the things I cannot<br>
<br>
And the serenity to know the difference</b></font></p>
<p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
<font color="#FF6666"><b>Until Tomorrow with more of DDT<br>
<br>
Have a Nice Time<br>
<br>
Mail your comments to</b></font> <b>vijaywrite@taxindiaonline.com </b><br>
</font> </p>
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