News Update

Cus - s.129E - If the statute gives a right to appeal upon certain conditions, it is upon fulfilment of those conditions that the right becomes vested and exercisable to the appellant: HCGST - Issues relating to huge economic offence of stealthily procuring raw materials, clandestine manufacturing and fraudulent supply of filter cigarettes - Petitioner should have availed alternate efficacious remedy: HCGST - Where an adverse decision is contemplated, it is mandatory for the authority concerned to afford opportunity of personal hearing even if not sought: HCUS-UK coalition airstrikes at Houthis in Red Sea portGST - Since there has been a delay of one year in taking up the appeal, appellate authority could have granted one more opportunity by issuing a fresh notice of hearing: HCPMK joins NDA; to share dais with PM at SalemGST - s.83 - Extension - Mere noting in the file of the officer concerned cannot constitute an order - It cannot be considered as a fresh order u/s 83(1): HCGST - Attachment of bank account - Provisions of s.83 are to be r/w s.122(1-A) - Maharashtra GST Authorities have the jurisdiction to resort to provisions of s.83 with respect to Petitioner located in Chennai: HCEinstein’s brain was stolen by Princeton Hospital pathologist & cut into 240 pieces to study tissues, reports National GeographicCBDT explains what is 'tax effect' for purpose of filing appeal in cases beyond monetary limitsUK begins hunt for sunken ship loaded with gold worth 4 bn poundsPrivacy at Stake: Evaluating Data Principal Rights in the DPDP Act 2023Delhi regains its title as world’s most polluted cityLitigation Management: CBDT revises instructions and monetary limits prescribed for filing appeal or SLP before courtsUnsettled borders and rise of China major challenges for defence forces, says Chief Anil ChauhanI-T- Rules of natural justice are contravened where notices of hearing are not sent to valid email addresses indicated by assessee & order passed in consequence thereto is invalidated : HCAmerican IRS Chief expects workforce to surpass one-lakh-mark in next 3 yrsI-T - Provisions of Section 148A clearly require that an assessee be granted opportunity of personal hearing & an order passed in non-compliance with this requirement stands vitiated: HCDeloitte LLP goes for restructuring to tamp down costsI-T - If no error is being found by AO qua acceptance and genuineness of transaction of assessee, then AO cannot initiate reopening, and if reopening is not permitted, then CIT cannot issue notice u/s 263: ITATNvidia unfolds powerful chip to retain edge in AI marketI-T - Additions framed u/s 68 were rightly quashed where the assessee has discharged onus of identity, creditworthiness and genuineness of transaction : ITATTrump’s lawyer says Trump has not means to raise bond in USD 464 mn fraud caseI-T- Addition cannot be framed on account of unexplained cash credit, where assessee has recorded the sales in its books and there is no adverse finding qua stock and purchases: ITATFood scarcity: Gaza heading for mass deathsCX - Tax demands merits being quashed where based on oral statements but without permitting Assessee to cross examine the deponents & where also based on circumstantial statements: CESTATBJP decides to go with Chirag Paswan; trashes his uncle Pashupati Paras in BiharST - Being appellant a registered service provider and filing their Service Tax returns, demand cannot be raised on the basis of Form-26AS obtained from Income Tax Department: CESTATDubai Financial Centre frames rules to regulate digital assetsCus - Clearance of domestic household goods without proper clearance, does not warrant disproportionate penalty of Rs 50000/-, as the same is not a case of regular import by an IEC holder: CESTATCBDT directs income tax field offices to remain open on March 29, 30 & 31stCX - In so far as security services for their factory and trading premises was concerned, said services was directly connected with their business and hence, appellant was entitled for credit of service tax paid: CESTAT
 
TIOL@15 - at your service

DDT in Limca Book of Records - Third Time in a rowTIOL-DDT 2584
24 04 2015
Friday

TODAY TIOL completes 15 years of existence. Just close your eyes and imagine the year 1999, when www.taxindiaonline.com was not there. It was a humble beginning in the year 2000; your support all these years make us humbler. Our 15th birthday is no occasion for us to celebrate or blow our trumpets; it is work as usual for us to bring you the best in tax journalism. We know the expectations are very high and we promise to continue to strive to meet your expectations - it is not easy with our limited resources and unlimited demands - sky is not the limit. But we in TIOL, especially my young colleagues who smilingly bear the long hours and unending hard work, are committed to give you the best.

It is a little embarrassing to write about our glory and achievements - should I gloat over the incident of an advocate who lost a case in the morning, saw a case law flashed by us during lunch break and after lunch when the order was to be dictated, brought the TIOL Citation to the notice of the Bench and won the case; should I be proud that we have been responsible on several occasions for changes and corrections in Law; should I share the information that the National Human Rights Commission awarded a compensation of Rs. 1 lakh to the family of a dead person based on a story in TIOL? Well, it can go on and on - but the fact that TIOL is a daily habit with thousands of Netizens, is enough reward for our struggles. We are grateful to our Netizens and the Government for making this a reality. It was so succinctly stated by Mr. V. Sridhar, the then Chairman of the CBEC, five years ago - the trade, Taxindiaonline and department; we make a possible trinity.

We seek your continued support.

An editor's nostalgia: May I invite your attention to an article I wrote for the 2 nd  anniversary souvenir of TIOL, thirteen years ago in 2002? I had no idea at that time that I would be part of this great happening team. Please click here for the article.

CBEC - Please Listen; Please spare us of 'registration' - Rule 11 of CER, 2002

WE received this mail from an assessee -

By Notification No. 8/2015-C.E. (N.T.), dated 1st March 2015, the following proviso is added to Rule 11(2) of the Central Excise Rules, 2002.

"Provided also that if the goods are sent directly to any person on the direction of the Registered dealer, the invoice shall also contain the details of the registered dealer as the buyer and person as the consignee, and that person shall take Cenvat credit on the basis of the registered dealer's invoice".

It has been misinterpreted by the field formations to state that all are required to take "Dealers" Registration who ever orders goods on the manufacturer and directs the manufacturer to send the goods to ultimate user directly. We are of the opinion that this is certainly not the intention of the amendment at all.

In our type of "turnkey business", we order goods on our suppliers and the goods are directly dispatched in the name of our customer on "Sale in Transit basis". Our customer takes CENVAT credit based upon manufacturers invoice. As per our understanding, the system will continue even after the above amendment.

We are not a dealer in a literal sense like others who are authorized dealers to sell goods manufactured by the manufacturers. If we are forced to take "Dealer" Registration, we have to obtain registration throughout India only for limited purpose of issuing Cenvatable invoice, which will affect smooth flow of our business transactions and also increase transaction costs.

Any amendment in law needs to ease the doing of business and not hamper or complicate the doing of business. Infact, to remove the doubt aired earlier, when the dealer excise invoice commenced, the Board was kind enough to render the following clarifications viz. Board's Circular No. 96/7/95-CX dated 13th February, 1995 read with further circular No. 218/52/96-CX dated 4th June, 1996 that whenever "Sale in Transit" happens i.e., when an un-registered dealer" places an order on the "Manufacturer" and goods are despatched directly by the manufacturer on behalf of the un-Registered Dealer to the ultimate recipient, then the recipient is allowed to take Cenvat Credit based upon "Manufacturers" invoice, so as to rest the issue and give comfort to the trade.

Our customers are apprehensive that CENVAT credit will be denied by their jurisdictional authorities and are, therefore, pressing upon us to go in for "registration" failing which they would be cancelling our contract.

We understand that TIOL has already carried an article in its ST se GST tak column a few days ago but would like to through DDT make the Board aware the disastrous effect its notification is causing to the business community.

If the Board is sincerely interested in fulfilling the Prime Minister's vision of Ease of Doing business & Make in India, it should come out with a clarification negating the field view, which we are confident it will, since it may not wish to throttle the already nervous manufacturing sector.

Lok Sabha to Discuss GST Bill today

AS per the revised List of Business for Lok Sabha today, the Finance Minister Arun Jaitley is to move that the Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014, be taken into consideration and also move that the Bill be passed.

The Bill proposes to amend the Constitution to introduce the goods and services tax; for conferring concurrent taxing powers on the Union as well as the States including Union territory with Legislature to make laws for levying goods and services tax on every transaction of supply of goods or services or both. The goods and services tax shall replace a number of indirect taxes being levied by the Union and the State Governments and is intended to remove cascading effect of taxes and provide for a common national market for goods and services. The proposed Central and State goods and services tax will be levied on all transactions involving supply of goods and services, except those which are kept out of the purview of the goods and services tax.

The Bill inter alia, provides for-

(a) subsuming of various Central indirect taxes and levies such as Central Excise Duty, Additional Excise Duties, Excise Duty levied under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955, Service Tax, Additional Customs Duty commonly known as Countervailing Duty, Special Additional Duty of Customs, and Central Surcharges and Cesses so far as they relate to the supply of goods and services;

(b) subsuming of State Value Added Tax/Sales Tax, Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States), Octroi and Entry tax, Purchase Tax, Luxury tax, Taxes on lottery, betting and gambling; and State cesses and surcharges in so far as they relate to supply of goods and services;

(c) dispensing with the concept of 'declared goods of special importance' under the Constitution;

(d) levy of Integrated Goods and Services Tax on inter-State transactions of goods and services;

(e) levy of an additional tax on supply of goods, not exceeding one per cent. in the course of inter-State trade or commerce to be collected by the Government of India for a period of two years, and assigned to the States from where the supply originates;

(f) conferring concurrent power upon Parliament and the State Legislatures to make laws governing goods and services tax;

(g) coverage of all goods and services, except alcoholic liquor for human consumption, for the levy of goods and services tax. In case of petroleum and petroleum products, it has been provided that these goods shall not be subject to the levy of Goods and Services Tax till a date notified on the recommendation of the Goods and Services Tax Council.

(h) compensation to the States for loss of revenue arising on account of implementation of the Goods and Services Tax for a period which may extend to five years

Additional LTC Benefit for Bachelor Babus

IN relaxation to the Central Civil Services (Leave Travel Concession) Rules, 1988, special dispensation is allowed to the Government servants from time to time. Government servants can travel by air to visit North-East Region or to Jammu & Kashmir or to the Andaman & Nicobar Islands by converting one block of Home Town LTC available to them.

Unmarried Central Government employees, who have left their wholly dependent parents/sisters/minor brothers at their home town are allowed the benefit of LTC to visit their home town every year. This concession is in lieu of all other LTC facilities admissible to the Government servant himself and to his/her parents/sisters/minor brothers.

Now the question is whether unmarried Central Government employees would be allowed to convert one Home Town LTC into the Special LTC for North East, Kashmir etc.

Government has decided that the facility of conversion of Home Town LTC to allow travel to different parts of the country, under the special dispensation scheme, will also apply to an unmarried Central Government servant, who is eligible to avail the benefit of LTC to visit Home Town every year. This facility may be availed by converting one occasion of Home Town LTC out of the four Home Town LTC occasions available in a block of four years.

DoPT Office Memorandum F. No. 31011/1/2013-Estt (A.IV)., Dated: April 21, 2015

CBDT Information Technology Procurement, Obsolescence and Disposal Policy: Laptops

AS per the Policy, the Department is providing laptops to all its ITO and above level officers.

An officer will be entitled to only one laptop irrespective of the number of charges he/she holds.

The Laptop is not linked to any particular post and once issued shall continue to be in possession of the officer irrespective of transfer, deputation, foreign service, leave etc.

Income Tax Department will neither be responsible nor liable for any contractual, legal and statutory issues arising out of any laptop related act of an Officer on his own personal accord.

The laptops are expected to be used by the officers in discharging their official duties.

Limit: A combined financial limit of Rs. 1,00,000/- is stipulated for combined cost of the laptop, accessories and software.

Useful Life: Four Years from the date of Issue after which the laptop should be replaced in the fifth year.

Depreciated (Value/Residual Value: Value arrived at after considering depreciation @25% per annum on straight-line method.

CBDT F.No.DIT(Infra)/Unit-II/PM-21/2012-13/(Pt. File)/ 180., Dated: April 23, 2015

Cairn India has always been fully compliant with all Indian Income tax laws

CAIRN India in a Press Release yesterday stated,

During Q4FY15, the Company received an order from the Income Tax Department for an alleged failure to deduct withholding tax on alleged capital gains arising during 2006-07 in the hands of Cairn UK Holdings Limited (CUHL), our erstwhile parent company, a subsidiary of Cairn Energy Plc. This was in respect of the transaction of CUHL transferring the shares of Cairn India Holdings Limited (CIHL) to Cairn India Limited as part of internal group reorganisation in 2006-07 to facilitate the IPO of Cairn India Limited.

A demand of approx. INR 20,495 crore (comprising tax of approx. INR 10,248 Crore and interest of approx. INR 10,247 crore) is alleged to be payable. The Company does not agree with this alleged demand and is pursuing all possible options to protect its interest. A writ petition has been filed before Honourable Delhi High Court. Cairn India has always been fully compliant with all Indian Income tax laws. Income tax assessments including transfer pricing assessment were duly completed for FY 2006-07, earlier.

Vedanta Resources Plc has filed a Notice of Claim against the GOI under the UK-India bilateral investment treaty in order to protect its legal position and shareholder interests.

Jurisprudentiol- Recent SC Judgements

NDPS - Appellant picked up from his house and charged with carrying poppy - convicted under NDPS - more stringent the punishment, the more heavy is the burden upon the prosecution to prove the offence - Supreme Court: 120 kgs of poppy husk seized from a vehicle and appellant held guilty and sentenced to rigorous imprisonment for ten years and a fine of Rs. 1,00,000/-. In the absence of independent evidence connecting the appellant with the vehicle, mere compliance with Section 50 of the NDPS Act by itself would not be sufficient to establish the guilt of the appellant. It is a well-settled principle of the criminal jurisprudence that more stringent the punishment, the more heavy is the burden upon the prosecution to prove the offence. When the independent witnesses PW1 and DW2 have not supported the prosecution case and the recovery of the contraband has not been satisfactorily proved, the conviction of the appellant under Section 15 of the NDPS Act cannot be sustained.

The conviction of the appellant and the sentence imposed on him is set aside and this appeal is allowed. Fine amount of Rs.1,00,000/-, if paid, is ordered to be refunded to the appellant.

Please see Makhan Singh Vs State of Haryana- 2015-TIOL-84-SC-NDPS

CE - Exemption to goods supplied to Universities, National Laboratories etc. - Matter remanded to consider evidence whether the goods were used for research purposes: The respondents in these appeals have been supplying power transformers to certain institutes which are IITs, Universities, National Laboratories, etc. The question is as to whether these equipments supplied by the respondents are covered by Notification No.10/97 CE dated 1.3.1997. The said Notification exempts the supply of equipments to certain types of institutions from payment of Central Excise in case the conditions mentioned in the Notification are fulfilled. The Counsel appearing for the respondents, intends to rely upon some material, which she submits has been downloaded from the web sites of the IITs, Universities, etc. to whom the goods were supplied, in order to demonstrate that the goods supplied were meant for research. Since this material was not produced before the commissioner, he did not have any occasion to verify the same or to consider the effect thereof. Matter remanded to adjudicating authority to consider the issue afresh after giving opportunity to the respondents to place the material before him.

Please see Commissioner of Central Excise Vs Andrew Yule and Co Ltd - 2015-TIOL-83-SC-CX

Until Monday with more DDT

Have a nice weekend.

Mail your comments to vijaywrite@tiol.in


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Sub: happy celebrtions 15

It is indeed a great pleasure that TIOL has completed 15 years rendering a wonderful service. I myself experience with the updated information it provides in tax matters. Happy anniversary and wish for many many happy returns in rendering a valuable service with immense pleasure. Long Live TIOL. Jai Hind

Posted by Venkata Ramana nageswara dutt
 
Sub: Happy birthday

Heartiest congratulations to TIOL on 15th Birthday!

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Sub: Wishes for the 15 years

Wishes to TIOL for achieving this feat. Hope that the team keeps up the great work!

Posted by SUBRAMANIAN K
 
Sub: Felicitations on completion of 15 years

Indeed it is difficult to imagine the indirect tax world without TIOL ! Greetings and congratulations to TIOL on its invaluable contributions to knowledge and understanding in the field.

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Congratulations TIOL on completing successful 15 years.

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Shri M C Joshi, Former Chairman, CBDT




Address by Shri Buggana Rajendranath, Hon'ble Finance Minister of Andhra Pradesh at TIOL Awards 2023