TIOL-DDT 962 · the untouched capture
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<!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 bgcolor="#FFFFFF"> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 962</font><br> 30.09.2008<br> Tuesday</strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise – One More Complicated Return - Annual Installed/Production Capacity</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The next month is going to be a busy one if you are an excise assessee, especially a small one. You are required to file a Statement by 31st October 2008 giving details of your production capacity for each of your excisable products and details of your plant and machinery with make, model etc, apart from details about your power connections and captive power plants. This information has to be given every year by 30th April and whenever there is a change.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A new Rule 12(2A) has been inserted into the Central Excise Rules.</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_38.htm" target="_blank">Notification NO. 38/2008- CX., (N.T)</a> <strong>and</strong> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/exnt08_39.htm" target="_blank">Notification NO. 39/2008- CX., (N.T), Dated: September 29, 2008</a></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise – Exemption from Registration – File Your New Declaration</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Notification No. No. 36/2001- Central Excise (N.T), dated the 26th June, 2001, SSI units are exempted from Registration Control as long as they are fully exempt – However they are required to file a declaration if they have crossed in the preceding year or are likely to cross in the current year the <strong>Specified Limit </strong>. This Specified Limit now, is the Full Exemption Limit minus sixty Lakhs Rupees which is 150 Lakhs minus 60 lakhs = Rs. 90 Lakhs.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now this Notification is amended to stipulate that the SSI units have to file a revised declaration for the <strong>previous year </strong> 2007-08 by 31st October, 2008. Now has the concept of <strong>‘previous year'</strong> under the Income Tax Act imported into Central Excise?</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This revised declaration to be filed by the SSI units, is as complicated or rather identical to the Annual Capacity Declaration required to be filed by all the assessees. These units are also required to furnish their PAN and VAT Registration details.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Central Excise Department should start a Declaration Preparers Scheme to assist the assessees, especially the SSI units in filing these declarations.</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_40.htm" target="_blank">Notification NO. 40/2008- CX., (N.T), Dated: September 29, 2008</a></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CENVAT Credit – Annual Declaration of Inputs – Final Products</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Rule 9A of the CENVAT Credit Rules, the Manufacturer is required to file an Annual Declaration in respect of each of the excisable goods manufactured or to be manufactured by him, the principal inputs and the quantity of such principal inputs required for use in the manufacture of unit quantity of such final products.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Under Notification No. 39/2004-Central Excise (N.T), dated the 25th November, 2004, certain manufacturers like those of textiles, steel etc, who have paid less than One Crore Rupees in <strong>PLA </strong> are exempted from filing this declaration.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now they have to file this declaration even if they pay One Crore or more from PLA and/or CENVAT Credit Account.</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_41.htm" target="_blank">Notification NO. 41/2008- CX., (N.T), Dated: September 29, 2008</a></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Annual Financial Statement – A Crore in either account is a Crore</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We are not finished with our declarations and returns – As per Rule 12(2) of the Central Excise Rules, every assessee is required to <strong>submit </strong> an Annual Financial Information Statement.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Notification No. 17/2006-Central Excise (N.T) dated the 1st August, 2006, assessees who have paid less than One Crore Rupees duty from PLA in the preceding year and Indian Ordnance Factories are exempted from filing this requirement of <strong>submitting </strong> the Annual Financial Information Statement.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now this PLA restriction is removed – whichever way you pay, if it is more than One Crore, either in PLA or Credit Account or both, you have to <strong>submit </strong> this Statement.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Incidentally why should an assessee <strong>submit</strong>; why can't he just furnish or file? In the scheme of taxation, is an assessee a submissive servant or an equal partner?</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_42.htm" target="_blank">Notification NO. 42/2008- CX., (N.T), Dated: September 29, 2008</a></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC notifies exchange rates for October 2008</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBEC has notified the Exchange Rates for Imported Goods and Export Goods with effect from 1st October 2008. Notification NO.102/2008 (NT)-CUSTOMS, Dated: 26th August, 2008, is superseded.</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=24&filename=notification/custom/2008/cnt08_111.htm" target="_blank">Notification NO.111/2008 (NT)-CUSTOMS , Dated: September 26, 2008</a></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax – Last Date for filing returns – Extended in Orissa due to floods – what about Gujarat Floods?</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBDT has under Section 119, extended the last date for obtaining tax audit report under section 44AB of the Income Tax Act, 1961 as well as for filing of returns of income required to be furnished by 30th September, 2008 to 31st October 2008, in the cases of income-tax assessees in the State of Orissa, on consideration of the reports of disruption caused due to floods in the State.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Gujarat representation seems to have gone unconsidered – maybe they can still do it today.</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/order_orrisa.htm" target="_blank">CBDT F.No.225/138/2008- ITA -II, Dated: September 29, 2008</a></font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Jurispruden</font><font color="#FF6633" size="5">tiol</font><font color="#006600">– TOMORROW's cases</font></strong></font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><strong><strong><strong><strong><strong><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></strong></strong></strong></strong></strong></strong></strong></font></strong></font>Customs</strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Refund on finalisation of provisional assessment – unjust enrichment not applicable prior to 12.7.2006 when Section 18 was amended: Gujarat High Court</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>REFUND </strong>and unjust<strong> enrichment</strong> are concepts that have seen many a litigation. It had been almost settled in Central Excise that refunds arising as a consequence of finalisation of Provisional Assessments are not subject to the principles of unjust enrichment. The Government after being severely battered amended the Central Excise Rules in 1999, while they forgot to amend the Customs provisions till 2006 – and so the legal battle continues.</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>Interest earned on FDs deposited as margin monies with banks for securing LCs for import of gold bullion - Since there is an inextricable link between margin monies and assessee's business, such interest income eligible for exemption under Sec 10B : ITAT</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A </strong>commission payment for services rendered can be allowed as a deduction only if the assessee proves to the satisfaction of the Income-tax authorities that the agent has rendered some services justifying the payment of commission.</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>Agents who undertake work of courier on behalf of Courier Company – not franchisees – Revenue loses Rs. 8 Crores case in CESTAT</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> cannot be held that any other service is involved in the transactions or that there is a different person receiving the service. "Courier Agency" means any person engaged in door-to-door transportation of time-sensitive documents, goods or articles utilizing the services of a person, either directly or indirectly.</font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise</strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Mere right to use the brand name without objection from owner does not confer ownership and accordingly benefit of SSI exemption notification is not available: Tribunal</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>There is a difference between assignment and permission to use the trade mark, though sometime the words are used synonymously. </strong>The right of use is different from the ownership, as the bar in exemption is on ownership and not mere right to use, as the wordings are carrying the brand name belonging to another person. Mere right to use the brand name without objection from the owner does not confer ownership and accordingly the benefit of exemption under Notification 1/93 and similar Notifications cannot be extended. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow for the judgements</font></strong></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more<strong> DDT</strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day.</font></p> <p align="justify"><font color="#FF6633" 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> </body> </html>