TIOL-DDT 988 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 988 </font><br>
10.11.2008 <br>
Monday </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Iron Ore Fines to attract 8% Export Duty</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Export Duty on Iron Ore Fines was fixed at Rs. 200/- per tonne from 31st October 2008 by Notification No. 116/2008 – cus dated 31.10.2008. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now it is fixed at 8% adv. </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_121.htm" target="_blank">Notification NO. 121/2008 – Cus Dated: November 07, 2008</a> </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Handling of Cargo in Customs Areas – Proposed Regulations </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What is a Customs Area? </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“customs area” means the area of a <strong>customs station </strong> and includes any area in which imported goods or export goods are ordinarily kept before clearance by Customs Authorities; - <em>Sec 2(11) of the Customs Act. </em></font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Then what is a <strong>Customs Station </strong>? </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“ customs station” means any <strong>customs port, customs airport or land customs station </strong>; - <em>Sec 2(13) of the Customs Act. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“customs port” means any port appointed under clause (a) of section 7 to be a customs port and includes a place appointed under clause ( aa ) of that section to be an inland container depot; - <em> Sec 2(12) of the Customs Act. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“ customs airport” means any airport appointed under clause (a) of section 7 to be a customs airport; - <em>Sec 2(10) of the Customs Act. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>“ land customs station” means any place appointed under clause (b) of section 7 to be a land customs station; - Sec 2(29) of the Customs Act. </em></font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBEC is planning to issue <strong>Handling of Cargo in Customs Areas Regulations, 2008, </strong>on the basis of the recommendations of the Public Accounts Committee (PAC). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The scope of the regulations cover the manner in which imported or export goods may be received, stored, delivered, dispatched or otherwise handled in customs area and the responsibilities of the persons engaged in such activities. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The draft of the Regulations has been published for Public Opinion. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBEC solicits views, comments and suggestions on the draft regulation from the trade and industry associations, departmental officers and from all other concerned. The views, comments and suggestions to the draft regulations may please be sent to Dir ector at <a href="mailto:dircus@nic.in">dircus@nic.in </a>latest by 17.11.2008. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">That is next Monday – hurry up - you have such 4 working days. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/handling%20_cargo.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC Notice in F.No.450 /55/2008- Cus.IV Dated: November 07, 2008 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Right to Information Act - Public Authority is not required to do research on behalf of the Citizen - DOPT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It seems that some people under the Right to Information Act request the Public Information Officers ( PIO ) to cull out Information from some document(s) and give such extracted information to them. In some cases, the applicants expect the PIO to give information in some particular Proforma devised by them on the plea that sub-section (9) of Section 7 provides that information shall ordinarily be provided in the form in which it is sought. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Department of Personnel & Training has clarified that the sub-section simply means that if the information is sought in the form of photocopy, it shall be provided in the form of photocopy and if it is sought in the form of a floppy, it shall be provided in that form subject to the conditions given in the Act etc. It does not mean that the PIO shall re-shape the information. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DOPT further clarifies that a citizen, under the Act, has a right to get ‘material' from a public authority which is held by or under the control of that public authority. The right includes inspection of work, documents, records; taking notes, extracts or certified copies of documents or records; taking certified samples of material; taking information in the form of diskettes, floppies, tapes video cassettes or in any other electronic mode or through printouts where such information is stored in a computer or in any other device. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Act, however, does not require the Public Information Officer to deduce some conclusion from the ‘material' and supply the ‘conclusion' so deduced to the applicant. The PIO is required to supply the ‘material' in the form as held by the public authority and is not required to do research on behalf of the citizen to deduce anything from the material and then supply it to him. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Right to Information Act – No Passing the Buck please </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government is all about passing the buck – Sub-sections (4) and (5) of section 5 of the Right to Information Act, 2005 provide that a Public Information Officer ( PIO ) may seek the assistance of any other officer for proper discharge of his/her duties. The officer, whose assistance is so sought, shall render all assistance to the PIO and shall be treated as a PIO for the purpose of contravention of the provisions of the Act. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It has been brought to the notice of DOPT that some PIOs , using the above provision of the Act, transfer the RTI applications received by them to other officers and direct them to send information to the applicants as deemed PIO . Thus, they use the above referred provision to designate other officers as PIO . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The DOPT clarifies that “The Act enables the PIO to seek assistance of any other officer to enable him to provide information to the information seeker, but it does not give him authority to designate any other officer as PIO and direct him to send reply to the applicant. The import of sub-section (5) of section 5 is that, if the officer whose assistance is sought by the PIO , does not render necessary help to him, the Information Commission may impose penalty on such officer or recommend disciplinary action against him the same way as the Commission may impose penalty on or recommend disciplinary action against the PIO .”</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax – Valuation - Photography Service is Works Contract </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Photography is one service which has attracted huge litigation, next only to, perhaps, GTA . These small time photographers have tenacity and some good lawyers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CESTAT recently held that <strong>it involves both sale and service, and the sale portion cannot be included in the taxable value of service: </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The decision in <em>BSNL </em> case lays down the law that works contract (and also catering contract) involves the element of both sale and service contract and that the service and sale elements can be split up. That being so, the Tribunal did not find any merit in the submission of the Revenue that the decision in <em>BSNL </em> case cannot be treated as an authority on the issue of service tax. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If the photography service is a 'works contract', it would follow that it involves the element of both sale and service, and the sale portion of the activity or transaction cannot be included in the taxable value of service. There cannot be any doubt, in view of sub-clause (b) of clause (29-A) of Article 366, that deemed sale of the materials takes place in the rendering of photography service and, therefore, the value of the materials cannot be included while computing the value of the service. 'Sale' and 'Service' cannot stand in the same box. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Sale cannot be treated as service and vice versa. </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">See
the detailed analysis and the case in our <strong>ST <em>se </em>GST <em>tak </em></strong>tomorrow. </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="#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><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>Whether Interest is payable under Section 11 AB on the differential amounts received on supplementary invoices - Matter goes to five member Bench </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Close on the heels of the Larger Bench ruling that interest is payable on
finalisation of provisional assessments even in cases where the duty was paid
before the finalisation of the assessments by the assessee on his own, here
is yet another decision by Larger Bench on the issue whether interest is payable
on the duty paid on supplementary invoices. The Bench held:</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"Between
the assessee and the buyer, the differential price was deemed to have been
paid at the time of removal of the goods itself. If that be so, between the
assessee and the department also, the differential price should be deemed
to have been paid at the time of removal of goods."</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However,
since this view was in conflict with the decision of the Larger Bench in
case of M/s Arvind Mills Ltd, the Bench recommended constitution of Five
member Bench to resolve the issue</font>.</p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Any Law </strong></font></p>
<p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NDPS – Bail - A person's liberty is protected in terms of Article 21 of the Constitution of India. When two views are possible, the view which leans in favour of an accused must be favoured. It is easier to reject a bail application in a non-bailable case than to cancel a bail granted in such a case – Supreme Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Decisions on bail are intrinsically within the domain of the judiciary. At the very least that means that historically decisions on bail were regarded as judicial. Rejection of bail when bail is applied for is one thing; cancellation of bail already granted is quite another. It is easier to reject a bail application in a non-bailable case than to cancel a bail granted in such a case. Cancellation of bail necessarily involves the review of a decision already made and can by and large be permitted only if, by reason of supervening circumstances, it would be no longer conducive to a fair trial to allow the accused to retain his freedom during the trial. The fact that prosecution witnesses have turned hostile cannot by itself justify the inference that the accused has won them over. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">[Though this decision is in connection with an NDPS case, it is equally applicable to other laws] </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>Appeal by Revenue when no appeal had been filed in another case - If assessee takes stand that Revenue acted mala fide in not preferring appeal in one case and filing appeal in other case, it has to establish <em>mala fides </em>: Supreme Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>basic question before the Supreme Court in this appeal by the Commissioner of Income Tax, is whether the revenue can be precluded from filing an appeal even though in respect of some other years involving identical dispute no appeal is filed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">[Though this is an Income Tax case, it has application in Customs, excise Service Tax and other tax laws] </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Sales Tax </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Sales Tax - non filling of vital entries in Form 18A - Penalty justified - Penalty is attracted as soon as there is contravention of statutory obligations - Intention is wholly irrelevant: Apex Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Default or failure to comply with Section 78(2) is the failure/default of statutory civil obligation and proceedings under Section 78(5) is neither criminal nor quasi-criminal in nature. The penalty is for statutory offence. Therefore, there is no question of proving of intention or of mens rea as the same is excluded from the category of essential element for imposing penalty. Penalty under Section 78(5) is attracted as soon as there is contravention of statutory obligations. Intention of parties committing such violation is wholly irrelevant. Moreover, in the present case, the modus operandi adopted by the assessees itself indicates <em>mens rea . </em></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="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until tomorrow with more <strong>DDT</strong> </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">vijaywrite@taxindiaonline.com </a></font></p>
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