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Govt orders mandatory declaration of stock position of wheatCPI gets Rs 11 Cr tax notice for using old PAN numberGST - Penalty demand of Rs.3731 crores - A person who would fall within the purview of sub-section (1-A) of s.122 should necessarily be a taxable person who retains the benefits of transactions: HCGovt issues advisory against calls impersonating DoTFATP hand-wrings over slow regulation of crypto by member-countriesGST - Threatening and pressurising petitioner who is merely an employee - Highly unconscionable and disproportionate on the part of the officer: HCECI's C-Vigil app a big hit with votersGST - Same relief was claimed in earlier petition which was withdrawn unconditionally - Fresh petition seeking same relief is barred by the estoppel principle: HCIncome tax hands over Rs 1700 Cr tax demand to Congress PartyGST - Neither SCN nor the order spell out the reasons for retrospective cancellation of registration, hence cannot be sustained: HCStage-2 of Vikram-1 orbital rocket successfully test-firedGST - Non-application of mind - If reply was unsatisfactory, details could have been sought - Record does not reflect that such exercise was done - Matter remitted: HCHouthis claim UK has not capability to intercept their hypersonic missilesGST - Merely because a taxpayer has not filed returns for some period does not mean that registration is required to be cancelled with retrospective date also covering the period when returns were filed and taxpayer was compliant: HCIsraeli forces kill 200 Palestinians at Gaza medical complex & arrest over 1000GST - Petitioner's reply, although terse, is not taken into account while passing assessment orders - Petitioner put on terms, another opportunity provided: HCUnveil One Nation; One Debt Code; One Compliance Rule for Centre & StatesChina moves WTO against US tax subsidies for EVs & renewable energyMore on non-doms - The UK Spring Budget 2024 (See TII Edit)Training Program for Cambodian civil servants commences at MussoorieCBIC revises tariff value of edible oils, gold & silverCBIC directs all Customs offices to remain open on Saturday & SundayI-T- Once the citizen deposits the tax upon coming to know of his liability, it cannot be said that he has deliberately or willfully evaded the depositing of tax and interest in terms of Section 234A can be waived: HCHouthis attack continues in Red Sea; US military shoots down 4 dronesCus - No Cess is payable when Basic Customs Duty is found to be Nil: CESTAT
 
Service Tax could not be paid yesterday - will Board extend time?

DDT in Limca Book of Records - Third Time in a rowTIOL-DDT 2570
01 04 2015
Wednesday

WE have received several messages and calls from many concerned assessees that they were not able to pay Service Tax yesterday as the website seems to have crashed. An assessee mailed in:

We have not been able to pay the service tax and central excise dues today. The website seems to have crashed. Please take up this issue with CBEC and request for extension of time for payment of the dues .

Another assessee wrote in:

We wish to bring to your kind notice that today being 31.03.2015, is last day for payment of Service Tax. All assessees are required to make payment online only.

From today afternoon, website for payment of Service tax is down and all are not able to make e payment. Now we are worried that though we are trying hard for e payment, but unsuccessful due to website; whether we will have to pay interest and is there threat of being defaulter ?

We have not gone through any circular of CBEC where they have taken note of this and no extension is given for Service Tax payers.

It looks like assessees wish to pay Service tax but CBEC is not interested to receive the same.

Our humble request to your good self that please guide us how to represent this situation to CBEC.

We look for your valuable guidance in the matter please.

Will CBEC do something?

Service Tax - Changes effective from today:

(i) AMENDMENTS to exemptions at S. Nos. 12, 14, 16, 20, 21 and 29 of notification No. 25/2012-ST (Construction, erection commissioning or Installation services for Government, Port or Airport, services by performing artists, transportation of specified goods, services provided by a mutual fund agent to a mutual fund or assets management company and distributor to a mutual fund or AMC)

(ii) Omitting the entry at S. No. 32 in notification No. 25/2012-ST (exemption to public telephone calls)

(iii) New exemptions for,-

  • Precondition, pre-cooling, ripening, waxing, retail packing, labeling of fruits and vegetables
  • Service by a Common Effluent Treatment Plant operator
  • Varistha Bima Yojana
  • Ambulance services
  • Admission to a museum, zoo, national park, wild life sanctuary, and a tiger reserve
  • Service provided by exhibitor of movie to a distributor or an AOP consisting of exhibitor as one of its member
  • Transport of export goods by road from the place of removal to a land customs station

(iv) Change in abatement rates and conditions thereof for transport of passengers and goods by train; transport of goods by road by a GTA; transport of goods by vessels; executive/business class travel by air; and withdrawal of abatement on services provided in relation to chit

(v) Amendment in reverse charge mechanism,-

  • Full reverse charge on manpower supply and security service provided by individual, HUF, partnership firm to a body corporate
  • Reverse charge on service provided by a mutual fund agent, mutual fund distributor and agents of lottery distributor

(vi) Amendment in rule 4(7) of the Cenvat Credit Rules to allow credit of service tax paid by recipient of service in partial reverse charge immediately on payment of tax.

It is reiterated that the enhanced rate of 14% is NOT applicable from today.

IT vs CBI - Income Tax Officer arrested with bribe of 2 lakhs - Tax officials attack CBI

THE Income Tax officers all over the country were busy yesterday trying to collect that extra rupee to bolster their revenue targets, but a different drama unfolded in the Income Tax Bhavan at Lucknow. The CBI laid a trap on an officer trying to collect a bribe of Rs. 2 lakhs.

This is the story we heard.

An Income Tax officer of Lucknow demanded a bribe of Rs. 10 lakhs from the director of a firm for settling his Income Tax assessment. The director alerted the CBI, which nabbed the ITO with the advance amount of Rs. 2 lakhs. Now started the drama.

The colleagues of the ITO are reported to have attacked the CBI officers and witnesses - and one of the weapons used for scaring away the CBI sleuths was the fire extinguisher. The fire in the CBI doesn't get extinguished that easily. CBI called for police help and arrested the ITO.

As this was happening in Lucknow, in Patna a CBI Inspector was sentenced to five years rigorous imprisonment with fine of Rs.20,000 under the Prevention of Corruption Act, in a bribery case, by a CBI Court. The CBI inspector was arrested by the CBI seven years ago while demanding & accepting a bribe of Rs.50,000/ from a Bank Manager for showing favour in disposal of a complaint against him.

E-filing of ST-3 Return - Utility ready

THE ACES website informs:

- Utility for e-filing Service Tax Return (ST-3) for the period October 2014 to March 2015 is now available in both offline and online version. The last date of filing the ST-3 return for the said period is 25th April, 2015. However, to avoid congestion and inconvenience in the last minute, all assesses who wish to file their ST-3 for the said period are advised to start e-filing the returns immediately and not to wait till the last date. The assesses can file return either online or use the offline utility by downloading the latest version from http://acesdownload.nic.in/ or from 'DOWNLOADS' Section of ACES website.

- Service Tax Registration will be issued within 2 days of filing ST1 application, in the case of Single Premises Registration. Prescribed documents are required to be submitted within 7 days. Verification of documents will be done post issue of Registration Certificate.

- Permanent Account Number (PAN) is mandatory for obtaining Service Tax Registration for applicants other than Government Departments. Applicants, who are not Government Departments, shall not be granted registration in the absence of PAN.

- Existing registrants, except Government departments not having PAN shall obtain PAN and apply online for conversion of temporary registration to PAN based registration by 31st May, 2015, failing which the temporary registration shall be liable for cancellation.

APA - CBDT extends deadline for filing rollback application to June 30, 2015

CBDT has decided to amend the sub-rule (5) of rule 10MA to provide that in a case where an application has been filed prior to the 31st day of March, 2015, application for roll back in Form No. 3CEDA along with proof of payment of additional fee may be filed at any time on or before the 30th day of June, 2015 or the date of entering into the agreement whichever is earlier.

Similarly, in a case where an agreement has been entered into before the 31st day of March, 2015, application for rollback in Form No. 3CEDA along with proof of payment of additional fee may be filed at any time on or before the 30th day of June, 2015.

CBDT says the 'formal' notification will follow shortly. Shouldn't the notification have been issued on or before 31st March? And since when is a notification formal?

APA - CBDT extends deadline for filing roll back application to June 30, 2015

Customs - Antiques - Exemption

AS per Sl. No. 4 of the Table in the Notification No. 26/2011-Customs, dated the 1st March, 2011, Antiques intended for public exhibition in a public museum or national institution are exempted from Customs duties.

Now it is changed to "Antiquities intended for public exhibition in a museum or art gallery"

Notification No.14/2015 - Cus., Dated: March 31, 2015

Customs - Exemption to Pulses extended

THE Customs duty exemption to pulses by sl. No. 21 and 21 A of the table to Notification No. 12/2012 was to expire today. Now the Government has extended it till 1st October 2015.

Notification No.15/2015 - Cus., Dated: March 31, 2015

ST - VCES - Order of Rejection Appealable? SC keeps issue for another day

THE Service Tax Voluntary Compliance Encouragement Scheme came to an official end on 31st December 2014, not the litigation that followed.

The CBEC in its Circular 170/5/2013-ST dated 8th August, 2013 clarified thus -

13

What is the appeal mechanism against the order of the designated authority whereby he rejects the declaration under section 106 (2) of the Finance Act, 2013?

The Scheme does not have a statutory provision for filing of appeal against the order for rejection of declaration under section 106 (2) by the designated authority.

The Punjab and Haryana High Court in the Barnala Builders case 2013-TIOL-1016-HC-P&H-ST, held, "We are unable to accept correctness of instructions issued by the Central Board of Excise and Customs, for the simple reason that after incorporation of the Service Tax Voluntary Compliance Encouragement Scheme into the Finance Act, all other provisions of the Act except to the extent specifically excluded, apply to proceedings under the scheme. The impugned order passed by the Deputy Commissioner of Central Excise and Service Tax would necessarily be appealable under Section 86 of the Indian Finance Act, 1994".

The good Board took the matter in appeal to the Supreme Court.

Now what would happen if the party had already filed the appeal and that was decided by the appellate authority, before the issue could be decided by the Supreme Court? That is exactly what happened.

When the case came up for hearing before the Supreme Court recently, the Court was informed that the appeal filed by the declarant was decided and the Revenue did not take up the matter further before the Tribunal. So as far as this assessee is concerned, the matter has attained finality and the Revenue appeal before the Supreme Court is only an academic issue.

But can an appeal be filed against an order of rejection under the VCES? The Supreme Court has left that issue open.

Please see Dy. Commissioner of Central Excise & Service Tax Vs Barnala Builders & Property Consultants - 2015-TIOL-39-SC-ST

CE - Valuation - includibility of cost of transportation - Supreme Court rejects Revenue Appeal

THE issue before the Supreme Court was the includibility of the cost of transportation charges from the factory gate to the depot in the transaction value of the goods.

The Supreme Court observed, "While allowing the appeal of the respondent herein, the Tribunal has arrived at a categorical finding that the respondent is not responsible to pay the cost of transport from the place of removal to the place of delivery i.e. from the factory gate to the depot separately. In terms of Rule 5 of the Central Excise Valuation (Determination of price of Excisable Goods) Rules, 2000, such a cost of transport which is also separately shown, is not includable in the valuation for the purpose of excise duty."

The Supreme Court did not find any error in the judgment of the Tribunal and dismissed the Revenue appeal.

Please see Commissioner of Central Excise,Nagpur Vs Ispat Industries Ltd - 2015-TIOL-40-SC-CX

Vizag CC given additional charge of Mumbai

WITH modern communication and travel facilities, geographical boundaries are getting blurred. CBEC seems to be well aware of this. They have posted the Vizag Chief Commissioner to hold the additional charge of Mumbai II Central Excise. Sitting in Vizag in the East Coast, it should not be difficult for her to administer Mumbai in the West Coast. The Board has also posted the CC Bhubaneswar to hold charge of Nagpur, CC, Mumbai to hold charge of DG, Service Tax and the DG (Export Promotion) will hold the post of DG, Safeguard.

This means that they don't have people to post in the posts of Chief Commissioners. Already about 15 posts are under additional charge and a couple of officers will retire next month. The cadre review created so many posts, but they are not able to fill them. Till date the posts of Principal Chief Commissioner is not filled. Why can't they promote officers who are ready and waiting instead of keeping posts under additional charge with absolutely no respect for geography?

Tariff Value of Gold, Silver Increased

THE Government has increased the Tariff value of Gold from 375 USD to 385 USD per 10 gms. The tariff value of Silver is also increased from 512 USD to 543 USD per kilogram.

Tariff values of all the oils, Brass Scrap and Poppy Seeds have been reduced.The Tariff value of Areca Nuts per Metric Ton continues to remain at USD 2280.

The Tariff values as on 13.03.2015 and with effect from 31.03.2015 are as under:

Table 1
S. No.
Chapter/ heading/ sub-heading/tariff item
Description of goods
Tariff value USD (Per Metric Tonne)
from 13.03.2015
Tariff value USD (Per Metric Tonne)
from 31.03.2015
(1)
(2)
(3)
(5)
(6)
1 1511 10 00 Crude Palm Oil
686
656
2 1511 90 10 RBD Palm Oil
703
665
3 1511 90 90 Others - Palm Oil
695
661
4 1511 10 00 Crude Palmolein
707
667
5 1511 90 20 RBDPalmolein
710
670
6 1511 90 90 Others -Palmolein
709
669
7 1507 10 00 Crude Soyabean Oil
800
734
8 7404 00 22 Brass Scrap (all grades)
3495
3480
9 1207 91 00 Poppy seeds
3747
2817
Table 2
S. No.
Chapter/ heading/ sub-heading/tariff item
Description of goods
Tariff value USD
from 13.03.2015
Tariff value USD
from 31.03.2015
1 71 or 98 Gold, in any form in respect of which the benefit of entries at serial number 321 and 323 of the Notification No. 12/2012-Customs dated 17.03.2012 is availed.
375 per 10 grams
385 per 10 grams
2 71 or 98 Silver, in any form in respect of which the benefit of entries at serial number 322 and 324 of the Notification No. 12/2012-Customs dated 17.03.2012 is availed.
512per kilogram
543 per kilogram
Table 3
S. No.
Chapter/ heading/ sub-heading/tariff item
Description of goods
Tariff value USD (Per Metric Tons)
from 13.03.2015
Tariff value USD (Per Metric Tons)
from 31.03.2015
1 080280 Areca nuts
2280
2280

Notification No. 34/2015-Cus.(N.T.), Dated: March 31, 2015

Long weekend for GOI - Thursday and Friday are holidays

Until Monday with more DDT

Have a nice extended weekend.

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