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EXCISE
• • • ISSUE - VIII VOLUME - VI JUNE - 2011
CO
MM
ER
CIA
L SER
VIC
ES
STR
ATE
GIC
MA
NA
GEM
EN
T W
ITH
IN L
EG
AL
FR
AM
EW
OR
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IFRSDIRECT TAXES
EOU
FOREIGN TRADE
INFO
RM
ATI
ON
TEC
HN
OLO
GYSEZ
BUSINESS
EXPORT - IMPORT
ECONOMIC GROWTH
IND
USTR
Y W
ATC
H
STPIBTP
STRATEGY
DTCGROWTH
UPDATE
GST
CORPORATE LAWS
FEMA
COMMERCIAL LAWS
BENEFITS
www.bizsolindia.com
CUSTOMS
SERVICE TAX
We believe in C-2
This Month 4 U C-2
Editorial 1
What's New 5
Beyond the obvious 17
Did you miss this 23
Lighter Moments 24
Bizsol Services C-3
Note on Removal of Goods 2
(Inputs / Capital Goods)
Into Domestic Tariff Area (DTA)
Service Tax Exemption and 3
Tax Exemption and Exemption
by Way of Refund for Services
Provided to Special Economic Zone
Delveloper / Units
By Ashok Nawal
IN THIS ISSUE
• For important due dates please turn over
June - 2011
UPDATE
THISMONTH
4U
Payments Due Dates
Central Sales Tax –July 2011 Return-cum-Challan 21/07/2011
VAT – July 2011 Return 21/07/2011
ESI Contribution 21/07/2011
Profession Tax 31/07/2011
Excise Duties-June 2011 05/07/2011
Excise Duties- June 2011 By E-Payment 06/07/2011
Service Tax – June 2011 05/07/2011
Service Tax - June 2011–By E Payment 06/07/2011
TDS/TCS- June 2011 07/07/2011
Provident Fund- June 2011 15/07/2011
Returns
ER-1 and ER-2 Monthly return for June 2011 10/07/2011
ER-6- June 2011 10/07/2011
W E B E L I E V E I N
E D I T O R I A LWith Babas and Annas of the world busy working overtime
with fasting and fighting over a hitherto unknown animal called civil society, it is a trifle difficult to be politically correct, if one were to voice one's own opinion. In their mission they represent my cause, no doubt, but not me. Though it may look strange, that is precisely how I feel. No one would want to tolerate corruption and no one has any sympathy with the corrupt. They have to be brought to book. Though that may be the end the means by which the Bill to bring the corrupt to book leaves much to be desired. Strange though it may seem, no one wants to be seen as supporting the Government on this issue for fear of becoming unpopular. Even at the cost of looking unpatriotic, let me at least say this much. I, for one, and for once, agree with the Ministers representing the Government in the drafting committee of the Lokpal Bill. We are perhaps undermining the very foundations of the concept democracy. You need to do a fast drafting of the BIll and not drafting through fasting. Blackmail takes many forms and this is one of them. When blackmail is used against someone who does not have a personal stake in the outcome, the situation could get into dangerous territory. A politician is always concerned with the urgent and not the important. All that he is concerned is ending a fast somehow to escape opposition criticism and negative media publicity and not necessarily the long term interest of the country and its people. If the Babas and Annas hijack the stage even with all the good intentions, the day will not be far when there will be some fast of some form or other at some corner or other of this vast country not necessarily for the right reasons. The remedy will be worse than the malady! There is tragedy too. Here is an issue so important to all of us today mired in so much controversies leaving little hope of any redemption.
Among other demands Ramdev Baba wants Thousand and Five Hundred denominated Notes to be demonetised. Though there is merit in the demand I am not sure whether the Baba is aware of the ramifications of his demand. It will definitely snuff out a large quantity of black money but at the same time it will also bring the entire economy to a halt. It will be a case of throwing out the baby with the bathwater. With a small fraction of the populace enjoying the benefits of plastic money and with such a shortage of banking facilities in the rural and semi urban areas just imagine the havoc it will create in the economy. A farmer will bring one sack of currency notes in exchange for one sack of Urea! (Assuming that the RBI will be in able to print that much of Notes) The only industry which will benefit will be those auto companies making small capacity three-wheeler vehicles to transport cash. Remember, when the Hundred Rupee Note was introduced for the first time in the system the purchasing power of that Note was more than that of a Thousand Rupee Note of today. In a country where Sadhus become economists and economists become Sadhus one is not sure where one stands either on religion or on economics.
Though it may be dangerous to air seemingly contrarian views on matters of national importance I venture to express one more. The criminal justice system is fraught with inordinate delays. This has prompted many of us to feel happy to see those
against whom criminal charges are framed denied bail by the Courts. For us that short stint in time spent in jail by the Accused is punishment. However, that goes against the grain of our justice system. A man is presumed to be innocent until proven guilty. With kangaroo courts held in the studios of the TV channels we pronounce the Accused guilty even before a trial. That is unfair, however much you may argue that the person concerned is guilty in your opinion. It will take ages before the delays in the legal system are eliminated. Till such time we should have some alternatives available to us. Statutorily you make a distinction between a prisoner and a detainee. A prisoner should be the one who is convicted and is sent to jail by way punishment. A detainee should not be treated as a prisoner, for he has not been pronounced guilty by the courts yet. Even the Kalmadis and Rajas of the world ought to be treated differently today despite our mental makeup which has already pronounced them guilty. They should be treated as detainees kept behind closed doors and not bars primarily for the purpose of custodial interrogation till the charge sheet is prepared. Compare this to a person who goes to the Hospital for a medical check-up. He is not and does not want to be a patient. By no means is it justified to call him a patient, though in reality all hospitals are guilty of precisely doing this.
They say more things change the more they remain the same. This is especially true for our corporate sector. It appears that this sector has hardly changed from the good old days and bad old ways. It is no great secret that industry was known to be the greatest financier of corrupt practices in the public domain especially during the permit- licence raj. Little appears to have changed since then even in these days when companies profess that their policies are driven primarily by the principles of corporate governance. Look at the recent series of events. The media is full of stories of bureaucrat – industry nexus, influence-peddling through professional lobbyists, fudging of accounts of large companies, land – grabbing with the help of politicians, et al. The major difference between then and now is that today the corporates flaunt written certificates to proclaim that they follow corporate governance principles scrupulously. If it was licence raj before, it is licensed loot now.
As we go to press the Reserve Bank of India has just announced its monetary policy. Though on expected lines, with interest rates going up north the RBI has administered the bitter pill deciding to sacrifice growth to tame inflation. For RBI it's a Hobson's choice. Suddenly the economy looks so vulnerable to the vicissitudes of the environment.
They say the workplace is becoming more and more humane these days. Whether it is becoming humane or not it is definitely becoming more and more natural for sure. Gone are the days when employees would be told to keep their emotions at the gate and enter the workplace. There is an increasing awareness that when you recruit an employee, you recruit a whole package, emotions included. The organisational culture dominated by men is changing from a paradigm where emotions were supposed to be constrained, suppressed, denied or hidden. The success of an orgainisation depends to a large extent on its ability to manage and channelise the emotions of its employees. It is also no longer unfashionable or shameful to display one's emotions at the workplace. Even at work it is always personal – that is what Anne Kreamer who has done some seminal work on the subject says.
We at Bizsol are proud of our people, as always, who have done us proud. This time round it is the turn of Mr. Ashok Nawal and Mr. Vijay Joshi both of whom got elected to the Western Regional Council of the Institute of Cost and Works Accountants of India. On behalf of Bizsol family let me congratulate both of them and again on behalf of all of us wish them all the best on their new assignments. Let them bring more and more laurels to the profession, our company and to themselves.
Thank you.
Venkat R Venkitachalam
June - 2011
1
1. SEZ to DTA unit supplies are not treated as
imports as per import definition in SEZ Act.
However the provisions of SEZ Rules clearly
specifies such transactions will be treated as
re-import and therefore provision of
identification of the such goods is must and
such goods to be linked with documentation
and identification mark at the time of supply to
SEZ.
2. In view of the above, any goods cleared from
SEZ to DTA except for specific exemption as
mentioned below should be against Bill of Entry
for Home Consumption and in accordance with
Customs Act, 1962 and Rules made
thereunder.
3. Rule 47 is applicable to manufactured goods as
well as removal as such and rate of duty for
manufactured goods is in accordance with
Customs Act and valuation for goods cleared in
DTA (manufactured goods as well as cleared as
such or any goods cleared to DTA other than
mentioned in rule 50) to be determined in
accordance with Customs Act and Rules made
thereunder.
4. Any goods returned from SEZ to DTA either on
account of rejections, repairs, reconditioning or
any reasons, provisions w.r.t. re-import of
similar goods in India will be applicable i.e.
benefit of CUS NTF NO. 94/1996 DATE
16/12/1996 & CUS NTF NO. 158/1995 DATE
14/11/1995 as the case may be will be
applicable.
5. If inputs are used or partially processed, the
provisions of import will be applicable as if new
imports and if no substantial processing is
carried out then it will be treated as re-import.
6. However if the goods supplied to SEZ for which
no export benefits are availed and import duty
is NIL, there is no need to file any Bill of Entry
and goods can be cleared against invoice only
subject to identification. Still such permission
has to be obtained from Authorised officer
before removal
7. The valuation of used capital goods needs to be
determined as per Rule 49 by adopting the
depreciation whereas rate of duty to be
determined in accordance with above
Notifications applicable for re-import.
Depreciation rate computer and computer
peripherals
for every quarter in the first year - @ 10%
for every quarter in the second year - @ 8%
for every quarter in the third year - @ 5%
for every quarter in the fourth and fifth year - @ 1%
Depreciation rate other capital goods
for every quarter in the first year - @ 4%
for every quarter in the second year - @ 3%
for every quarter in the third year - @3%
for every quarter in the fourth and fifth year - @ 2.5 %
and thereafter for every quarter - @ 2%
8. Goods on which any export entitlements were
availed at the time of procurement of goods
may be supplied back to the Domestic Tariff
Area on payment of duty equivalent to the
export entitlements availed subject to the
condition that the identity of goods being
supplied back to the Domestic Tariff Area is
established to the satisfaction of the Specified
Officer. The amount of duty equal to export
entitlements will be over and above the duties
determined in accordance with above
mentioned Notifications for re-import.
— By CMA A. B. Nawal
June - 2011
2
NOTE ON REMOVAL OF GOODS
(INPUTS / CAPITAL GOODS)
INTO DOMESTIC TARIFF AREA (DTA)
Exemption & Exemption by way refund has been Notified in the Notification No. Notification 17/2011 dated 1st March, 2011 and further clarified in the the Board Circular No. 142/11/2011 - ST., Dated: May 18, 2011.
In accordance with Notification 17/2011 dated 1st March, 2011 ST, the explanation has been inserted for the definition of “wholly consumed”.
As per this explanation:
For the purposes of this notification, the expression “wholly consumed” refer to following taxable services, received by a Developer or Unit of a SEZ, for the authorised operations, namely
(i) services listed in clause(i) of sub-rule (1) of rule 3 of the Export of Services Rules, 2005 in relation to an immovable property situated within the SEZ
(Services related to general insurance business, mandap keeper, architect, interior decorator, real estate agent, construction of commercial complex, site preparation, dredging, survey and map making, residential complex construction, auction service, mining of mineral oil or gas, renting of immovable property, works contract and advice, consultancy or assistance in any branch of law, Services provided by builder of residential complex or a commercial complex or any person authorized by such builder for providing preferential location or development of such complex); or
(ii) services listed in clause (ii) of sub-rule (1) of rule 3 of the Export of Services Rules, 2005, as are wholly performed within the SEZ
(services related to stock broking, courier service, customs house agent, steamer agent, clearing and forwarding agent, air travel agent, tour operator, rent–a-cab operator, security agency, underwriter, photography, convention services, video tape production, sound recording, port services, authorized automobile repair and maintenance, beauty parlour, cargo handling, dry cleaning, event management, fashion designer, health club and fitness centres, rail travel agent, storage and warehousing, commercial coaching or training, erection, commissioning and installation, internet café, management, maintenance or repair, technical inspection and certification,
port other than those covered in port services, airport services, business exhibition services, outdoor catering service, survey and exploration of minerals, pandal and shamiana, travel agent, forward contract brokerage, transport through pipeline, cleaning service, clubs and associations services, packaging service, stock exchange service, services provided by a recognized / registered association (commodity exchanges) for transaction in goods or forward contracts, processing and clearing house services in relation to processing, clearing and settlement of transactions in securities, goods or forward contracts, cosmetic or plastic surgery, transport of coastal goods / goods through national waterway / goods through inland water, clinical establishment); or
(iii) services other than those falling under (i) and (ii) above, provided to a Developer or Unit of SEZ, who does not own or carry on any business other than the operations in the SEZ;
It is thus clear that w.r.t. services other than those covered in (i) and (ii) above:
1) If services are exclusive for Special Economic Zones then the same will be treated as wholly consumed only if the Unit or Developer is not carrying on any business other than the operations in the SEZ.
2) However if the Unit or Developer is carrying on any business other than the operations in the SEZ, then the services would be attracting service tax which will be charged by the Service Provider.
However it should be noted that: In respect of category (i) and (ii) services listed in paragraph 2(a), upfront exemption is made available to all SEZ Units/Developers, who fulfill the conditions of notification; only in the case of category (iii), difference is created between standalone and non-standalone SEZ Units/Developers.
Declaration in Form A-1 is required to be produced, to a service provider, to claim upfront exemption (after striking out the inapplicable portion). This is a one-time Declaration. Original Declaration can be retained with the SEZ Unit/Developer for business record or for production to the jurisdictional Central Excise/Service Tax authorities, if need be, for any verification; a copy has to be retained by SEZ
June - 2011
3
SERVICE TAX EXEMPTION AND EXEMPTION BY WAY OF REFUND FOR SERVICES PROVIDED
TO SPECIAL ECONOMIC ZONE DEVELOPER / UNITS
However, the balance amount will be available for cenvat credit either by manufacturer or by the Output Service Provider directly or through Input Service Distributor route.
If an entity is having multiple SEZ Units with a centralized service tax registration, consolidated refund claim can be filed, provided separate accounts are maintained for receipt and use of services for the authorised operations in SEZ Unit.
In terms of the notification, original invoices are needed for claiming refund; after receiving the refund, originals can be taken back on submission of copies certified by Chartered Accountant. On a single invoice, if proportionate refund (by SEZ Unit) and cenvat credit (by DTA Unit) needs to be obtained, then also similar system shall be followed.
Specified Officer; self-attested photocopies of the Declaration can be submitted to service provider to avail upfront exemption, subject to fulfillment of other conditions mentioned in the notification. Though one time declaration is required it is the duty of developer / unit to change the declaration if there is any change in business structure.
When a Developer / unit also carries on operations other than SEZ, it is important to keep the following points in mind before applying the refund under Exemption by way of refund scheme:
1. Services exclusively consumed in SEZ and for SEZ - 100% refund can be obtained under the provisions of 2(a) of the Notification 17/2011
stdated 1 March, 2011 ST which is reproduced below.
“the exemption shall be provided by way of refund of service tax paid on the specified services received for the authorised operations in a SEZ”
It has also been clarified and confirmed in the Board Circular No. 142/11/2011 - ST., Dated: May 18, 2011,
2. Shared services - For certain services like auditing, share registry, company secretary services and services used by Corporate office, the following formula will apply as per clause 2(d):
June - 2011
4
Maximum refund
Service tax paid on specified
services used for SEZ
Authorised Operations
Export turnover of SEZ Unit shared with DTA Unit for the period for
the period
X
Total turnover for the period=
What's New…!!CUSTOMS NOTIFICATIONS Ø Exemption from Basic Customs Duty has been
extended to the product namely Bevacizumab. [Custom Notification No. 39/2011 dated. 10/05/2011]
Ø Veerapandi (Tamil Nadu) CFS/ICD has been declared for clearance of import and export under duty exemption scheme, remission scheme, reward / incentive scheme, EPCG scheme etc. [Custom Notification No. 40/2011 dated. 19/05/2011]
Ø Quantity limit for import of articles of apparel and clothing accessories with exemption of customs duty had been increased to 10 million pieces from 8 million pieces. [Custom Notification No. 42/2011 dated. 25/05/2011]
Ø The benefit of duty free tariff preference for Least Developed Countries has been extended to the goods imported into India from Islamic Republic of Afghanistan [Custom Notification No. 45/2011 dated. 01/06/2011]
Ø Existing concession on customs duty has been enhanced on various goods when imported from Philippines and other ASEAN countries such as Malaysia, Singapore, Thailand, Vietnam, Myanmar, Indonesia, Brunei Darussalam, Lao People’s Democratic Republic under the Preferential Trade Agreement between the Governments of Member States of the Association of Southeast Asian Nations (ASEAN) and the Republic of India. [Custom Notification No. 46/2011 dated. 01/06/2011]
CUSTOMS NOTIFICATIONS (ANTI
DUMPING DUTY)Ø Export of Vitrified Porcelain Tiles falling under
heading 6907 or 6908 or 6914 by M/s. Jiangxi Zhengda Ceramics Co. Ltd., China PR (producer) through M/s Foshan Z&D Ceramics Co. Ltd., China PR (exporter) shall be subjected to provisional assessment till the time final review will be completed. [Custom Notification No. 41/2011 dated. 23/05/2011]
Ø Export of Acetone falling under sub-heading 29141100 by originating in, or exported from, the Chinese Taipei shall be subjected to provisional assessment till the time final review will be completed. [Custom Notification No. 44/2011 dated. 27/05/2011]
CUSTOMS NOTIFICATIONS (NT)Ø Plastic films imported prior to 12.02.2004 for
metalisation of plastic film will not be subjected for payment of differential customs duty in accordance with decision of Hon’ble Supreme Court in case of Meltex (India) Pvt. Ltd. Vs. Commissioner of Central Excise, New Delhi provided excise duty on final product has been paid and no refund of excise duty is obtained. [Custom Notification No. 35/2011 dated. 26/05/2011]
Ø Tariff value of brass scrap and poppy seeds has been revised to Rs. 4346/- Per Metric Ton and Rs. 2520/- Per Metric Ton respectively. [Custom Notification No. 37/2011dated 31/05/2011]
CUSTOMS CIRCULARSØ The adjudication powers of the officers of Customs
has been revised as follows
June - 2011
5
Demand of Customs Duty Demand of Drawback Demand against duty incentives Schemes
Level of Adjudication
officer
Nature of
cases
Amount of duty
involved
Level of Adjudication
Officer
Amount of Drawback
Level of Adjudication
officer
Duty Incentive amount
Customs Additional / Joint Commissioner of Customs
Without any limit
Commissioner of Customs.
Without any limit.
Commissioner All cases
Without limit Deputy / Assistant Commissioner of Customs
Upto Rs.5 lakhs
Additional / Joint Commissioner of Customs.
Upto Rs.50 lakhs.
ADC/JC All Cases
Upto Rs.50 lakhs
Deputy / Assistant Commissioner of Customs.
Upto Rs.5 lakhs.
AC/DC All cases Upto Rs. 5 lakhs
those services where exemption is extended to such services, the subcontractor also will be entitled for such exemption provided contractor is also exempted for such services as clarified in CIRCULAR NO
rd96/7/2007-ST, dated 23 August, 2007 [Circular No. 138/07/2011 ST dated 06.05.2011]
Ø Since the levy of service tax on the two new services relating to services provided by specified restaurants and by way of short-term hotel accommodation came into force with effect from 1st May 2011, a number of queries have been raised by the potential tax payers. These are addressed as follows:
Short Term Accommodation Service:
[Customs Circular No. 24/2011 dated 31/05/2011]
CUSTOMS INSTRUCTIONS
Ø Food Safety and Standards Authority of India (FSSAI) is required to test samples of fresh Fruits and Vegetables consignments imported from Europe into India for E.Colli bacteria and issue ‘No Objection Certificate’ to Customs. Clearance of such fresh Fruits and Vegetables imported from Europe will be allowed only after obtaining ‘No Objection Certificate’ from FSSAI. [Instruction No. F.No. 450/60/2011-Cus. IV dated 08/06/2011]
Ø Licensing Note 1 and 2 of Chapter 87 of ITC (HS) applicable on import of special purpose vehicles will not apply to goods which classifiable under Chapter 84 of the ITC (HS) as such goods are in the nature of machine and equipment. [Instruction No. F. No. 524/8/2011-STO (TU) dated 11/05/2011]
Central Excise
TariffØ No new Notification.
Non Tariff
Ø Manufacturing Units of recorded smart cards falling under sub-heading 8523 having billing and accounting system are exempted for registering for each manufacturing location they need to registered unit where from centralized billing or accounting is done.[Notification No.14/ 2011 CE (NT) dated 03.06.2011]
Circulars
Ø The exemption has been extended for pipes fittings used in distribution beyond the first stage of point for water projects therefore pipes of outer diameter 20cm (10cm w. e. f 4.12.2009) used for pipe fittings [Circular No. 945/6/2011-CX dated 16.05.2011]
Service TaxNotificationNo new Notifications
Circulars
Ø The services provided by any person in relation to works contract and may be including Architect service, Consulting Engineer service, Construction of complex, Design service, Erection Commissioning or installation, Management, maintenance or repair etc., needs to be classified under respective heading and chargeable to service tax, exemption applicable for construction of road, bridges will be applicable to
June - 2011
6
What is the relevance of declared tariff? Is the tax required to be paid on declared tariff or actual amount charged?
Is it possible to levy separate tariff for the same accommodation in respect of corporate/privileged customers and other normal customers?
Is the declared tariff supposed to include cost of meals or beverages?
What is the position relating
“Declared tariff” includes charges for all amenities prov ided in the uni t o f accommodation like furniture, air-conditioner, refrigerators etc., but does not include any discount offered on the published charges for such unit. The relevance of ‘declared tariff’ is in determining the liability to pay service tax as far as short t e rm accommodat ion i s concerned. However, the actual tax will be liable to be paid on the amount charged i.e. declared tariff minus any discount offered. Thus if the declared tariff is Rs 1100/-, but actual room rent charged is Rs 800/-, tax will be required to be paid @ 5% on Rs 800/-.
It is possible to levy separate t a r i f f f o r t h e s a m e accommodation in respect of a class of customers which can be recognized as a distinct class on an intelligible criterion. However, it is not applicable for a single or few corporate entities.
Where the declared tariff includes the cost of food or beverages, Service Tax will be charged on the total value of declared tariff. But where the bill is separately raised for food or beverages, and the amount is charged in the bill, such amount is not considered as part of declared tariff.
When the declared tariff is revised as per the tourist
Sl.
NoQueries Clarification
1
2
3
4
[Circular No. 139/8/2011-TRU dated 10.05.2011]
Ø Prosecution action will be initiated subject to permission of Chief commissioner of Central Excise and certain guideline have been issued for initiation of prosecution action on account of following:
ü Non-issuance of invoice within 14 days
ü Payment of service tax on reverse charge basis considering the provisions w.r.t. Point of Taxation Rules, 2011.
ü Collection of service tax from customers and non-payment of service tax to the Govt.
ü Availment of Cenvat Credit on fake invoice or more than the amount of service tax mentioned Invoice.
Prosecution action can be initiated on the person who is responsible for payment of service tax & availing credit of service tax.
Punishment or reduction in imprisonment period only can be on the following reasons:
ü the fact that the accused has been convicted for the first time for an offence under Finance Act, 1994;
ü the fact that in any proceeding under the said Act, other than prosecution, the accused has been ordered to pay a penalty or any other action has been taken against him for the same act which constitutes the offence;
ü the fact that the accused was not the principal offender and was acting merely as a secondary party in the commission of offence;
ü the age of the accused.
June - 2011
7
to off-season prices? Will they be considered as declared tariff?
Is the luxury tax imposed by States required to be included for the purpose of determining either the declared tariff or the actual room rent?
season, the liability to pay Service Tax shall be only on the d e c l a r e d t a r i f f f o r t h e accommodation where the published/printed tariff is above Rupees 1000/-. However, the revision in tariff should be made uniformly applicable to all customers and declared when such change takes place.
For the purpose of service tax luxury tax has to be excluded from the taxable value.
Sl.
NoQueries Clarification
5
If there are more than one restaurants belonging to the same entity in a complex, out of which only one or more satisfy both the criteria relating to air-conditioning and licence to serve liquor, will the other restaurant(s) be also liable to pay Service Tax?
Will the services provided by taxable restaurant in other parts of the hotel e.g. swimming pool, or an open area attached to a restaurant be also liable to Service Tax?
Service Tax is leviable on the service provide by a restaurant which satisfies two conditions: (i) it should have the facility of air conditioning in any part of the establishment and (ii) it should have license to serve alcoholic beverages. Within the same entity, if there are more than one restaurant, which are c lear ly demarcated and separately named, the ones which satisfy both the criteria is only liable to service tax.
The taxable services provided by a restaurant in other parts of the hotel e.g. swimming pool, or an open area attached to the restaurant are also liable to Service Tax as these areas become extensions of the restaurant.
When the food is served in the room, service tax cannot be
Sl.
NoQueries Clarification
1
2
Is the serving of food and/or beverages by way of room service liable to service tax?
Is the value added tax imposed by States required to be included
charged under the restaurant service as the service is not provided in the premises of the air-conditioned restaurant with a licence to serve liquor. Also, the same cannot be charged u n d e r t h e S h o r t Te r m Accommodation head if the bill for the food will be raised separately and it does not form part of the declared tariff.
For the purpose of service tax, State Value Added Tax (VAT) has to be excluded from the taxable value.
Sl.
NoQueries Clarification
Services Provided by Restaurants:
3
4
It has been also recommended the amount of such evasion which is more than ten lakhs, however this limit will not be applicable for repeat offender.
[Circular No. 140/8/2011-TRU dated 10.05.2011]
ü The Benefit of services availed outside India or used outside India and receipt in convertible foreign exchange will be the criteria for deciding export of service for category 3 as specified under rule 3(2)a of Export of Services Rules, 2005.[Circular No. 141/8/2011-TRU dated 13.05.2011]
ü Subsequent to the issuance of Notification 17/2011-ST dated 01. 03. 2011, clarification are issued w.r.t refund of service tax to SEZ Developer & Units.
June - 2011
8
To claim the refund arising out of service tax paid under section 66A, no proforma is prescribed in the notification; how to claim it?
(i) In the notification, what is the treatment for service tax paid on taxable services which do not fall in the category of “wholly consumed services”, and also are not ‘shared services’ ? Is refund available?
(ii) Whether in the case of category
(iii) services referred in paragraph 2(a) of the notification, ‘proportionate refund’ applies to only ‘shared services’ i.e. services that are used both for SEZ
In the notification, there is no difference in treatment of service tax paid under section 66 and section 66A of Finance Act, 1994. Where refund arises, Table – A, in Form A-2 can be used for making a refund claim.
All taxable services (under section 66 or section 66A) r e c e i v e d b y a S E Z U n i t / D e v e l o p e r f o r t h e authorised operations, have been exempted in the first paragraph of noti f ication 1 7 / 2 0 11 - S T, s u b j e c t t o conditions.
In Paragraph 2, conditions attached to this exemption are prescr ibed. In terms of paragraph 2(a), refund route is the default option for all who intend to claim the exemption granted by the notification in its first paragraph. However, an exception is provided in the form of ab initio (upfront) exemption, to the ‘wholly consumed’ services.
Services which fall outside the definition of ‘wholly consumed’ services can be categorized as t h o s e w h i c h a r e u s e d exc lus ive ly by the SEZ Un i t /Deve lope r, f o r t he authorised operations in SEZ or shared with DTA operations. Para 2(d) of the notification is applicable to refund arising
Sl.No QUESTIONS CLARIFICATIONS
1
3
(Special Economic Zone) authorised operations as well as DTA (Domestic Tariff Area) operations?
Meaning of the expression ‘who does not own or carry on any business other than the operations in the SEZ’ appearing in paragraph 2(a) (iii) of the notification, which creates a difference between ‘standalone’ and ‘non-standalone’ SEZ Unit/ Developer, may be clarified.
from ‘shared services’ only. Thus exemption to services exclusively used for the authorised operations of SEZ Unit/Developer, will continue to be available by way of refund, as specified in paragraph 2(a) i t se l f , sub jec t t o o the r conditions. To claim this refund, Table-A, provided in Form A-2 may be used.
It is clarified that only such services shall be considered as exclusively used by SEZ Un i t /Deve lope r, f o r t he authorised operations, as they satisfy the following criteria:
(i) Invoice is raised in the name of the SEZ Unit/Developer or in the invoice, it is mentioned that the taxable services are s u p p l i e d t o t h e S E Z U n i t / D e v e l o p e r f o r t h e authorised operations;
(ii) Such services are approved b y t h e ‘ U n i t A p p r o v a l Committee(UAC)’, as required for the authorised operations;
(iii) Receipt and use of such services in the authorised operations are accounted for in the books of accounts of the SEZ Unit/Developer.
The expression refers to an entity which is carrying out business operations in SEZ and also DTA. Merely having an office in the DTA for purpose of liaison/business promotion, does not restrict a SEZ Unit from availing benefit extended to a standalone unit.
Sl.No QUESTIONS CLARIFICATIONS
4
2
Yes. Unit Approval Committee (UAC) of the SEZ determines goods and services required for the authorised operations of a Unit/Developer, under the SEZ law. Hence approval of the UAC is necessary for availing the notification benefit, on the taxable services.
In respect of category (i) and (ii) services listed in paragraph 2(a), upfront exemption is made a v a i l a b l e t o a l l S E Z Units/Developers, who fulfill the conditions of notification; only in the case of category (iii), difference is created between s t a n d a l o n e a n d n o n -s t a n d a l o n e S E Z Units/Developers.
Declaration in Form A-1 is required to be produced, to a service provider, to claim upfront exemption (after striking out the inapplicable portion). This is a one-time Declaration. Original Declaration can be r e t a i n e d w i t h t h e S E Z Unit/Developer for business record or for production to the j u r i s d i c t i o n a l C e n t r a l Excise/Service Tax authorities, if need be, for any verification; a copy has to be retained by SEZ Specified Officer; self-attested photocopies of the Declaration can be submitted to service provider to avail upfront exemption, subject to fulfillment of other conditions mentioned in the notification.
Total turnover includes turnover of DTA Unit and also export turnover of SEZ Unit. This is the way to calculate proportionate refund. Table-C in Form A-2, illustrates this aspect.
CLARIFICATIONS
Whether Approval by UAC is necessary, to claim benefit under the notification?
(i) Does condition (c) prescribed in paragraph 2 of the notification, restrict the non-standalone Units/Developers, from availing upfront exemption for wholly consumed services, which fall under category (i) and (ii) of para 2(a) of the notification?
(ii) For whom and for what purpose, Declaration in A-1 is required?
Meaning of the expression “total turnover” found in paragraph 2(d) of the notification is
Sl.No QUESTIONS
5
3
6
4 not clear: whether it refers to turnover of SEZ Unit or the entity (including DTA and SEZ Unit). This may be clarified.
A Developer may not have export turnover; therefore, he cannot get refund of service tax based on the formula provided for shared services in paragraph 2(d) of the notification: therefore, it may be explained how a Developer can claim exemption under the notification?
Whether proportionate amount of service tax paid on shared services that have not been refunded after applying the formula in paragraph 2(d), shall be available to the DTA Units of the entity as cenvat credit?
Whether consolidated refund claim under 17/2011-ST can be filed by an entity having more than one SEZ unit and a
Generally, SEZ Developers will be using category (i) services listed in paragraph 2(a), relating to immovable property located within SEZ; upfront exemption is available for these services, and category (ii) services, irrespective of whether the Developer is standalone or not. As another option, refund route is also available. In the case of category ( i i i ) services i f Developer is standalone, upfront exemption is available. If Developer is not standalone, on service tax paid on category ( i i i ) services, which are exclusively used for the authorised operations in SEZ, he can avail exemption through refund route. ‘Exclusive use’ explained in clarification for question No.2. may also be referred in this connection.
Yes. Available.
If an entity is having multiple SEZ Units with a centralized serv ice tax regis t rat ion, consolidated refund claim can be filed, provided separate accounts are maintained for receipt and use of services for the authorised operations in SEZ Unit.
Sl.No QUESTIONS CLARIFICATIONS
7
8
9
June - 2011
9
Penta Chlorophenol (PCP).Now, export of Guar gum to EU would be allowed only if it does not contain Penta Chlorophenol (PCP) in any proportion. Notification No 47 (RE – 2010)/2009-2014 New Delhi, Dated :18th May, 2011
Ø Municipal Corporation of Delhi(MCD) is being added to the list of agencies/ Directorates, who have been notified to carry out Pre-shipment inspection of Meat ( of buffalo, goat or sheep) for export. Notification No 48 (RE – 2010)/2009-2014 New Delhi, Dated :18th May, 2011
Ø Notification No. 47 of 18.05.2011 stipulating export of Guar gum to EU to be allowed only if it does not contain Penta Chlorophenol (PCP) in any proportion has been rescinded. Thus, the earlier stipulation of Notification No. 50 of 06.07.2010 of allowing presence of upto 0.01 mg/Kg. of Penta Chlorophenol (PCP) in the consignments of Guar gum when exported to EU will continue to be valid. Notification No 49 (RE – 2010)/2009-2014 New Delhi, Dated : 26th May, 2011
Ø Prohibition on export of edible oils is upto 30.09.2011. But, the same will not apply to export of Organic edible oils (new addition now) in addition to other relaxations/exemption granted earlier; but with a ceiling of 10,000 MTs per annum and subject to certain conditions. Notification No 50 (RE – 2010)/2009-2014 New Delhi, Dated : 3rd June, 2011
Ø Export of Organic Pulses was earlier exempted from the ban on export of pulses with a ceiling of 10,000 tonnes upto 31.03.2012 and subject to certain conditions. Now exemption on export of organic pulses and lentils will be per annum ; but with the ceiling of 10,000 MTs and subject to conditions Notification No 51 (RE – 2010)/2009-2014 New Delhi, Dated : 3rd June, 2011
Ø Export of sugar is free subject to obtaining release order from the Chief Director(Sugar), Directorate of Sugar. But, the same is not required for export of Organic sugar with a ceiling of 10,000 MTs per annum and subject to certain conditions Notification No 52 (RE – 2010)/2009-2014 New Delhi, Dated : 3rd June, 2011
Ø The prohibition imposed on export of wheat products shall not be applicable to export of the following quantities of wheat flour to Maldives under the Bi-lateral Trade Agreement between Government of India and the Republic of Maldives, through the designated PSUs, mentioned against each year indicated below:
Item Year Quantity Name of in MTs PSU
Wheat Flour 2011-12 32,095 MMTC Ltd
2012-13 35,304 MMTC Ltd
2013-14 38,835 MMTC Ltd
Notification No. 53 (RE-2010)/2009-2014 New Delhi, the 7th June, 2011
[Circular No. 142/11/2011-TRU dated 18.05.2011]
Ø The client processing of tobacco involving threshing and drying of tobacco leaves and client processing of raw cashew involving roasting/drying, shelling and peeling of raw cashew to recover kernel, should be considered as falling within the meaning of the expression “in relation to agriculture” appearing in notification 14/2004-ST (as amended) dated 10th September, 2004. [Circular No. 143/12/2011-TRU dated 26.05.2011]
Foreign Trade Policy
DGFT Notification
Ø The prohibition imposed by Notification No. 33(RE-2007)/2004-2009, dated 08.10.2007 on export of wheat shall not be applicable to export of 2,50,000 MT of wheat to Afghanistan through Food Corporation of India. This quantity shall be exported by Food Corporation of India out of the Central Pool stock during the Financial Year 2011-12 i.e. upto 31.03.2012. Notification No. 44 (RE-2010)/2009-2014 New Delhi, the 02nd May, 2011
Ø Exporters can now take bonafide trade samples as part of their passenger baggage without an Authorisation NOTIFICATION No. 45 (RE-2010)/2009-2014 NEW DELHI, THE 3rd MAY, 2011
Ø Minimum Export Price (MEP) of Bangalore Rose Onions and Krishnapuram onions will be US$ 350 per Metric Ton F.O.B. It was US$ 600 per Metric Ton as notified on 23.03.2011. Notification No. 46(RE – 2010)/2009-2014 New Delhi, Dated : 16th May, 2011
· Earlier, consignments of Guar gum when exported to EU were allowed presence of upto 0.01 mg/Kg. of
centralized service tax registration. Whether certified copies of invoices can be used for claiming refund, if originals are needed for other statutory purpose; Whether on the basis of single invoice, one can claim proportionate refund for SEZ
In terms of the notification, original invoices are needed for claiming refund; after receiving the refund, originals can be taken back on submission of copies certified by Chartered Accountant. On a single invoice, if proportionate refund (by SEZ Unit) and cenvat credit (by DTA Unit) needs to be obtained, then also similar system shall be followed.
Sl.No QUESTIONS CLARIFICATIONS
10
June - 2011
10
Ø the Director General of Foreign Trade hereby allocates a total quantity of 10,000 MTs (Ten thousand metric tonnes) of raw/white Sugar for export of CXL Concessions Sugar to European Union (EU) for the period October, 2010 to September, 2011. Public Notice No. 49 (RE-2011)/2009-2014 New Delhi, Dated the 25th May, 2011
Ø Bonus benefit under Focus Product Scheme available to silk carpets would also include such silk carpets exported under ITC HS code 57019090 with drawback code 570102 duly endorsed on the respective shipping bills. This will be with effect from 1.4.2010. Public Notice No.50 (RE-2010)/ 2009-14 New Delhi, the 27th May, 2011
Ø Under SION C-593, till now only HR coil/plates made of non-alloy steel were permitted input at S No. 1 of the SION. Now the definition of this input is modified to permit HR coil/plates made out of Alloy steel also.Description of export product has accordingly been amended to reflect the usage of Non alloy/alloy steel in the export product. There is no other change.Public Notice No. 51 /(RE-2010)2009-2014 Dated: the 2nd June,2011
Ø A new EDI and user friendly format of ANF 3B has been introduced to facilitate easy filing of applications for grant of Served From India Scheme (SFIS) benefits. PUBLIC NOTICE No. 52 (RE2010)/ 2009-14 NEW DELHI: the 03rd June, 2011
Ø Till now Shipping Bills filed under Chapter 4 (including drawback), Chapter 5 or Chapter 6 schemes needed a “Declaration of Intent” for claiming chapter 3 benefits Now this “Declaration of Intent” is required only on Free Shipping Bills for claiming Chapter 3 benefits. Public Notice No. 53(RE-2010)/ 2009-14 New Delhi, the 03rd June, 2011
Policy Circulars
Ø Earlier, DGFT had clarified on 4.3.2010 that EOU shipments fall under the “free shipping bills” category. The trade and industry has, however, contended that the Department of Revenue does not treat EOU shipping bills as “free shipping bills”. On this issue, consultations have been held with Department of Revenue who have confirmed that EOU shipping bills are examined as per stipulated norms. Thus, the EOU shipping bills are not treated as “free shipping bills”. Hence, DGFT clarification dated 4.3.2010 is withdrawn. Further, EOUs are eligible for Chapter 3 benefits without “Declaration of Intent” on shipping bills for the period 1.4.2008 till 31.12.2010. Policy Circular No. 28 (RE-2010)/2009-14 Dated: 15 April, 2011
Ø As per Notification No. 32(RE-2010)/2009-14 dated 14.03.2011 export of 5000 bales of Assam Comilla Cotton (Tariff Code 5201 00 12) has been exempted from the ceiling of 55 lakh bales imposed on export of cotton during the Cotton Season, 2010-11 (upto 30.09.2011). Thus, export of this 5000 bales of Assam
Ø Export of the quantities of Stone Aggregate with the annual ceiling indicated below in the has been permitted for export to the Republic of Maldives under Bi-lateral Trade Agreement between Government of India and Government of the Republic of Maldives.
No Item Annual Ceiling of Quantity in MTs2011-12 2012-13 2013-14
1. Stone Aggregate 5 lakh 5.5 lakh 6 lakh
Notification No 54 (RE – 2010)/2009-2014 New Delhi, Dated:7thJune, 2011
Ø Export of the quantities of River Sand with the annual ceiling For the Financial Year 2011-12 of 1,185,455 Mts. has been permitted for export to the Republic of Maldives under Bi-lateral Trade Agreement between Government of India and Government of the Republic of Maldives. Notification No 55 (RE – 2010)/2009-2014 New Delhi, Dated: 7th June, 2011
Ø Minimum Export Price (MEP) of onions other than Bangalore Rose Onions and Krishnapuram onions will be US$ 200 per Metric Ton F.O.B. It was US$ 170 per Metric Ton as notified on 31.03.2011. There shall be no change in the MEP of Bangalore Rose Onion and Krishnapuram onion which continues to be USD 350 per Metric Ton F.O.B. Notification No 56 (RE – 2010)/2009-2014 New Delhi, Dated :8th June, 2011
Ø Cap on export of cotton during the current Cotton Season is increased to 65 lakh bales from 55 lakh bales as was notified earlier. Other conditions remain unchanged. Notification No. 57 (RE-2010)/2009-14 New Delhi, dated 9th June, 2011
Public Notices
Ø Change of name of M/s Association of Small & Medium Chemical Manufacturers to M/s ASMECHEM Chamber of Commerce & Industry of India has been incorporated.(Public Notice No. 46
th/2009-2014 (RE-2010) The 16 May, 2011
Ø Under Tariff Rate Quota Scheme, the import of Maize (Corn) ITC HS Code 100590 is allowed Duty Free, as has already been notified by Customs Notification No. 9/2007 dated 25.1.2007. With effect from the date of this Public Notice, the Actual User condition will not be mandatory under imports of all items under TRQ Scheme.(PUBLIC NOTICE NO. 47(RE-2010)/2009-2014 NEW DELHI: DATED: 18.05.2011)
Ø Earlier, Jute Manufacturers Development Council (JMDC )was issuing RCMC for exporters of jute and jute products. Henceforth, Jute Product Development and export Promotion council (JPDEPC) will issue RCMC for exporters of jute and jute products in place of JMDC. Listing of JPDEPC in Appendix 2 of the Handbook of Procedures Vol. I has been done. Public Notice No. 48 /2009-2014 (RE-2010) 25th May, 2011
June - 2011
11
Comilla Cotton, ITC(HS) Code 5201 00 12 is “Free” subject to registration of export contracts with DGFT. Failure to export the allowed quantity within the stipulated time would invite debarment from further registration. In addition, penal action as per Section 11(2) of the Foreign Trade(D&R) Act would be initiated. Policy Circular No. 29(RE-2010)/2009-14 Dated the 19th April, 2011
Ø The goods in question like Reach Stackers / Fork Lifts have been specifically covered at 8 digit level (Code : 8427 20 00) under Chapter 84 of ITC(HS), as mentioned by Customs. This is also clear from a plain reading of Chapter 84 of ITC(HS). Such goods, that are in the nature of machine and equipments and are covered under Chapter 84 of ITC(HS), cannot be classified under Chapter 87 of ITC(HS). Therefore, Import Licensing Note No. 1 and 2 of Chapter 87 of ITC(HS) are not applicable to goods covered under Chapter 84 of ITC(HS). Policy Circular No. 30 (RE-2010)/2009-14 Dated 27th April, 2011.
Ø It is clarified that “ Declaration of Intent” needs to be mentioned mandatorily on the free shipping bills for claiming Chapter 3 benefits . This declaration can be made in the product description column in the free shipping bills where sufficient space is available for this purpose. Instances have also been reported where free shipping bills bear only the name of the Chapter 3 scheme like FPS,FMS etc or the intention to claim Chapter 3 benefit has been mentioned manually on the shipping bills duly attested by customs. In such cases RA’s will accept these shipping bills for grant of Chapter 3 benefits. Policy Circular No. 32(RE-2010)/2009-14 Dated:03rd June, 2011
Special Economic ZoneInstructions:
Ø No new Instruction or Notification is issued.
Ø Director General (Systems) have accorded SEZ port codes to the following 24 SEZs which have been uploaded on DGFT’s website. Given hereunder:-
S. Name of new SEZ Port / Location Code LOCATION CODE
No (SEZ Port Codes)
1 Mundra Port SEZ INAJM6 Gujarat
2 SIPCOT SEZ Gangaikondan INTEN6 Tamilnadu
3 APIICL SEZ / Visakhapatnam INAKP6 Andhra Pradesh (M/s.Andhra Pradesh Industrial Infrastructure Corpn Ltd)
4 HIPL SEZ / Visakhapatnam(M/s.Hetro Infrastructure Pvt Ltd ) INTNI6 Andhra Pradesh
5 RPCIPL SEZ / Visakhapatnam(M/s.Ramky Pharma City India Pvt.Ltd) INAKR6 Andhra Pradesh
6 DLL SEZ / Visakhapatnam(M/. Divi’s Laboratories Ltd) INVZM6 Andhra Pradesh
7 BIACPL SEZ / Visakhapatnam(M/s.Brandix India Apparel City Pvt Ltd) INAKB6 Andhra Pradesh
8 AAL-SEZ / Visakhapatnam(M/s.Anrak Aluminium Ltd) INNRP6 Andhra Pradesh
9 VBTL SEZ / MEDAK(M/s. Vivo Biotechnology Ltd) INMOV6 Andhra Pradesh
10 RLL SEZ / Medak(M/s. Reddy Laboratories Ltd INKOH6 Andhra Pradesh
11 WFPML- SEZ / KOVVUR(M/s.Whitefield paper Mills Ltd) INKVR6 Andhra Pradesh
12 SEZ/ Kakinada (M/s.Kakinada SEZ Pvt Ltd ) INCOA6 Andhra Pradesh
13 APIIC Ltd- SEZ / Medak(M/s. APIIC Ltd) INMDE6 Andhra Pradesh
14 SEZ/ Mahaboobnagar (M/s.APIIC Ltd ) INGLY6 Andhra Pradesh
15 SEZ / Kakinada (M/s.Parry Infrastructure Co Pvt. Ltd INCOP6 Andhra Pradesh
16 SEZ/ Nellore(M/s ASDI Pvt Ltd) INSPE6 Andhra Pradesh
17 HGSEZL / Ranga Reddy(M/s. Hyderabad Gems SEZ Ltd) INFMH6 Andhra Pradesh
18 APIICL / Ranga Reddy District(Ms. APIIC Ltd INFMA6 Andhra Pradesh
19 NG REALTY –SEZ/TalukaBavla Distt.Ahmedabad INVLN6 Gujarat
State
June - 2011
12
S. Name of new SEZ Port / Location Code LOCATION CODE
No (SEZ Port Codes)
20 FAB CITY SPV-SEZ / Srinagar& Raviryal Distt.Ranga Reddy INURF6 Andhra Pradesh (M/s. Fab City SPV India Ltd )
21 APIIC –SEZ /Vill Lalgadi DisttRanga Reddy(M/s. APIIC Limited ) INMEA6 Andhra Pradesh
22 SANTA-SEZ /Vill-Muppireddipally Distt Medak INDBS6 Andhra Pradesh (M/s.Santha Biotechnics Limited)
23 GMR HYDRABAD AVIATION-SEZ / Vill Mamidipally Distt Ranga Reddy INURG6 Andhra Pradesh
24 SEZ / Satyavedu & Vardayyapalem Mandal(M/s. Sri City Pvt Ltd) INTAS6 Andhra Pradesh
State
Applicants may file applications using these codes to DGFT wherever required under the provisions of Foreign Trade
thPolicy 2009-14 / SEZ Act and Rules. Policy Circular No. 31 (RE-2011) /2009-14 Dated the, 25 May, 2011
RBI / FEMA
RBI Circulars June-2011
Circular Number Date Of
Issue Department Subject Meant For
RBI/2010-
2011/567
RPCD.CO
RRB.AML.No.
14310/03.05.28(
A)/2010-11
14.6.2011
Rural Planning
and Credit
Department
List of Terrorist Individuals /
Organisations - under
UNSCR 1267(1999) and
1822 (2008) on Taliban / Al-
Qaida Organisation
The Chairmen All
Regional Rural Banks
(RRBs)
RBI/2010-
2011/566
DNBS (PD)
CC.No.
222/03.10.001/20
10-11
14.6.2011
Department of
Non Banking
Supervision
Opening of
Branch/Subsidiary/Joint
Venture/Representative
Office or Undertaking
Investment Abroad by
NBFCs
All NBFCs
RBI/2010-
2011/565
A.P. (DIR
Series)Circular
No. 71
14.6.2011
Foreign
Exchange
Department
Exim Bank's Line of Credit of
USD 36.56 million to the
Government of the United
Republic of Tanzania
All Category - I Authorised
Dealer Banks
RBI/2010-
2011/564
DBOD.
AML.No.19262/1
4.06.001/2010-11
14.6.2011
Department of
Banking
Operations and
Development
List of Terrorist Individuals/
Organisations under UNSCR
1267(1999) and 1822(2008)
on Taliban/Al-Qaida
Organisation
The Chairmen / CEOs of
all Scheduled Commercial
Banks (Excluding RRBs)/
Local Area Banks / All
India Financial Institutions
June - 2011
13
RBI/2010-
2011/563
DPSS.CO.OSD.
No.
2764/06.11.001/2
010-2011
14.6.2011
Department of
Payment and
Settlement
System
Directions for submission of
system audit reports from
CISA qualified Auditor
All Scheduled
Commercial Banks
RBI/2010-
2011/562
DGBA. CDD. No.
H-
8545/15.15.001/2
010-11
10.6.2011
Department of
Government
and Bank
Accounts
Non-implementation of
Senior Citizens Savings
Scheme- 2004(SCSS) by
certain banks on deposit by
Army Personnel
The Managing Director/
Chief General Manager
Government Accounts
Department Government
Business
Department/Head Office
State Bank of India//State
Bank of Patiala/State
Bank of Bikaner &
Jaipur/State Bank of
Travancore/ State Bank of
Hyderabad/State Bank of
Mysore/Allahabad
Bank/Bank of
Baroda/Bank of
India/Bank of
Maharashtra/Canara
Bank/Central Bank of
India/Corporation
Bank/Dena Bank/Indian
Bank/ Indian Overseas
Bank/Punjab National
Bank/Syndicate
Bank/UCO Bank/Union
Bank of India/United Bank
RBI/2010-
2011/561
DBOD.BP.BC.No.
99
/21.04.132/2010-
11
10.6.2011
Department of
Banking
Operations and
Development
Prudential Guidelines on
Restructuring of Advances
by Banks
The Chairman and
Managing Directors/Chief
Executive Officers of All
Scheduled Commercial
Banks (excluding RRBs &
LABs)
RBI/2010-
2011/560
A.P. (DIR
Series)Circular
No. 70
9.6.2011
Foreign
Exchange
Department
Remittance of assets by
foreign nationals - Opening
of NRO Accounts
All Category - I Authorised
Dealer Banks
RBI/2010-
2011/559
DPSS (CO)
EPPD No. /2649/
9.6.2011
Department of
Payment and
Settlement
System
Retail Electronic Payment
Systems – NEFT / NECS /
RECS / ECS – Levy of
Processing Charges
The Chairman and
Managing Director / Chief
Executive Officer of
member banks
participating in NEFT /
June - 2011
14
RBI/2010-
2011/559
DPSS (CO)
EPPD No. /2649/
04.03.01/2010-11
9.6.2011
Department of
Payment and
Settlement
System
Retail Electronic Payment
Systems – NEFT / NECS /
RECS / ECS – Levy of
Processing Charges
The Chairman and
Managing Director / Chief
Executive Officer of
member banks
participating in NEFT /
NECS / RECS / ECS
RBI/2010-
2011/558
RPCD.CO.RCB.
AML.No.14003/0
7.02.12/2010-11
7.6.2011
Rural Planning
and Credit
Department
List of Terrorist
Individuals/Organisations -
under UNSCR 1267(1999)
and 1822(2008) on
Taliban/Al-Qaida
Organisation
The Chairmen / CEOs of
all State and Central Co-
operative Banks
RBI/2010-
2011/557
DBOD.
AML.No.18819/1
4.06.001/2010-11
3.6.2011
Department of
Banking
Operations and
Development
List of Terrorist Individuals/
Organisations under UNSCR
1267(1999) and 1822(2008)
on Taliban/Al-Qaida
Organisation
The Chairmen / CEOs of
all Scheduled Commercial
Banks (Excluding RRBs)/
Local Area Banks / All
India Financial Institutions
RBI/2010-
2011/556
UBD.BPD.(PCB)
CIR No.
50/13.05.000(B)/
2010-11
3.6.2011 Urban Banks
Department
Financing of Self Help
Groups (SHGs) and Joint
Liability Groups (JLGs) by
Primary (Urban) Co-
operative Banks (UCBs)
The Chief Executive
Officers All Primary
(Urban) Co-operative
Banks
RBI/2010-
2011/555
DBS.
CO.FrMC.BC.No.
10/23.04.001/201
0-11
2.6.2011
Department of
Banking
Supervision
Findings of Forensic Scrutiny
- Guidelines for prevention of
frauds
The Chairmen & Chief
Executive Officers of All
Scheduled Commercial
Banks (excluding RRBs)
and All India Select
Financial Institutions
RBI/2010-
2011/554
DBS.CO.FrMC.B
C.No.
9/23.04.001/2010
-11
2.6.2011
Department of
Banking
Supervision
Internal Vigilance in Private
Sector/foreign Banks
Chairmen/Chief Executive
Officers All Private Sector
Banks/Foreign Banks
RBI/2010-
2011/553
Ref: DBOD.
No.Ret. BC.
98/12.06.129/201
0-11
1.6.2011
Department of
Banking
Operations and
Development
Inclusion in the Second
Schedule to the Reserve
Bank of India Act, 1934 –
Sberbank
All Scheduled
Commercial Banks
RBI/2010-
2011/552 1.6.2011 Department of
Banking
Inclusion in the Second
Schedule to the Reserve All Scheduled
Ref: DBOD. No.Ret. BC. 97/12.06.128/2010-11
Operations and Development
Bank of India Act, 1934 – Credit Suisse A.G
Commercial Banks
June - 2011
15
Ø The organization CENTRE FOR SOCIAL STUDIES, Surat has been approved by the centeral government for the purpose of clause (iii) of sub section (1) of Income tax Act, 1961 w.e.f A.Y. 2010-11 onwards in the category of other institutions [Notification no. 23 dated 28/04/2011].
Ø The organizat ion INDIAN SOCIETY OF INTERNATIONAL LAW, New Delhi has been approved by the centeral government for the purpose of clause (iii) of sub section (1) of Income tax Act, 1961 w.e.f A.Y. 2010-11 onwards in the category of other institutions [Notification no. 22 dated 28/04/2011].
Maharshtra VAT
Ø VAT on liquor has been enhanced from 25% to 55% and number of provision relating to liquor has been amended however it has been further clarified that wine has been exempted for such provisions, perhaphs Govt. also realised that wine is not the liquor. [Trade Circular No. 8T /2011 dated 4..5.11]
Income Tax
Ø A new department Directorate of Income Tax (criminal Investigation) is created to look after criminal matters having financial implication punishable as an offence under direct tax law [Notification no.29 dated 30/05/2011].
Ø An agreement has been entered into between the Government of Republic of India and The Government of the Isle of Man has been entered into for the exchange of information with respect to taxes [Notification no. 26 dated 13/05/2011].
Ø An agreement has been entered into between the Government of republic of India and The Government of the common wealth of the Bahamas has been entered into for the exchange of information with respect to taxes Notification no. 25 dated 13/05/2011].
Ø 9.5% rate of interest for Employees recognized provident fund notified under rule 6(b) of Part A of fourth schedule w.e.f. 01/09/2010 – supersession of notification no. SO 2091(E) dated 26-8-2010 [Notification no. 24 dated 13/05/2011].
June - 2011
16
Central Excise
Ø No Discretion on penalty under Section 11AC - It has to be mandatorily equal to the duty: once the section is held to be applicable in a case, the authority concerned would have no discretion in quantifying the amount and penalty must be imposed equal to the duty determined under sub-section 2 of Section 11 A. On consideration of the factual position, we also hold that, in the present case, the Tribunal was not justified in reducing the quantum of penalty as penalty under the provision of the Act must be imposed equal to the duty determined under sub-section 2 of Section 11 A.: [SUPREME COURT]
Ø Two units of same company having separate Central Excise Registrations and separate registrations as per the Factories Act, 1948 and engaged in same activity cannot be treated as one manufacturing unit - respondents are eligible for exemption under Notification No.6/2000-CE - SC decision in Rollatainers 2004-TIOL-67-SC-CX and Amaravathi S V Paper Mills Ltd. 2010-TIOL-60-SC-CX relied upon - Revenue appeal rejected:[2011-TIOL-596-CESTAT-MUM ]
Ø Merely because some of the partners in the partnership firm and some of the Directors of the public limited company are relatives, it cannot be alleged that the partnership firm and the public limited company are related u/s 4(3)(b) of the CEA, 1944, because relationship as defined in the Companies Act read with Central Excise Act applies to natural persons and not to impersonal bodies like corporations - Demand set aside - There is no law that prohibits or proscribes a firm or company from changing its business practice [2011-TIOL-652-CESTAT-MUM ]
Ø Adjustment from the refund amount not allowed, Section 11 does not provide for adjustment of monies due to the assessee towards the amount due to the revenue. [2011-TIOL-325-HC-KAR-CX ]
Ø In the case of provisional assessment no interest is payable on finalization of the
assessment if the differential duty has been paid before the finalization of assessment [2011-TIOL-721-CESTAT-MUM ]
Ø Goods sold through depots and also sold at the factory gate to the independent buyers; The Demand of duty on goods cleared to depots by invoking rule 8 of the valuation rules is not correct. Assessable value to be determined under rule 4 based on the value of the goods sold to independent buyers at the factory gate [2011-TIOL-720-CESTAT-MAD]
Ø Chartered Accountant's Certificate not conclusive evidence of amortization of empty containers and its inclusion in MRP. [2011 (267) E LT 283 (Tri-Mum)]
Ø In classification of goods commercial parlance / common parlance test not applicable when words of sub-headings clear and unambiguous, admitting only one interpretation. [2011 (267) E LT 225 (Tri-Del.)]
Ø SSI unit availed Cenvat Credit on capital goods received in 2006-07 and credit to the extent of 100% utilised 2007-08 when exemption limit crossed. No credit can be denied for want of registration. [2011 (267) E LT 473 (Kar.)]
Ø Demand cum SCN issued even before finalization of assessment for classification and subsequent requirement of import licence. Demand in terms of section 28(1) of Customs Act, 1962 raised as also shown by nomenclature. No provision for SCN for finalization of assessment. no question of confiscation, penalty or interest till final assessment, SCN without jurisdiction and is quashed. [2011 (267) E LT 469 (Cal.)]
Ø Demand is confirmed on the amount of sales tax collected from customer but waived off due to pre-payment of the amount of deferred sales taxe as per the provisions of Bombay Sales Tax Act, 1959; Transaction value as per section 4 of Central Excise Act excludes sales tax actually paid or payable, but pre-deposite waived on prima facie case made as per amendment under section 38(4) of Bombay Sales Tax Act, 1959 which provides on payment of premature
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unaware of duty drawback entitlement. Conversion of free shipping bills into drawback shipping bills allowed. Matter remanded for allowing conversion of shipping bills [2011-TIOL-625-CESTAT-MAD]
Ø Revenue erroneously resorted to market enquiry instead of first determining value on the basis of contemporaneous exports. Procedure laid down in Rules 5 to 8 of Customs (Valuation) Rules, 1988 required to be followed then market enquiry be conducted as last resort. [2011 (267) E LT 3 (SC)]
Ø Enhancement of value of imported old & used goods based on data available with DOV is not appropriate as the said data do not disclose the age, residual life, physical condition of goods sought to be compared and no valid reason given to reject the value estimated by overseas Chartered Engineer hence Order of enhancement of value set aside. [2011 (267) E LT 138 (Tri-Del)]
Ø Purchaser or successor of fraudulently obtained DEPB scrip can not be allowed to retain benefit illegally obtained. Public revenue not to suffer on account of fraud committed by someone else just because scrips successfully transferred to assessee after fraudulently obtaining the same. Duty demand from appellant upheld by the Tribunal and High Court also dismissed the appeal confirming tribunal's decision. [2011 (267) E LT 57 (Tri-Del)] [2011 (267) E LT 33 (Tri-Del)]
Ø CESTAT Larger Bench holding that Customs authorities cannot challenge powers of licensing authorities to amend licence, Larger Bench also hold that licensing authorities not having power to amend licence retrospectively; CESTAT order mutually contradictory and not sustainable in respect of power to amend licence retrospectively, FTP & rules thereunder empower DGFT to do needful in deserving cases. [2011 (267) E LT 49 (BOM)]
Ø Goods imported on temporary basis (on Leased or on contractual basis) and re-exported the same goods after six months, claiming benefit under Notification No. 27/2002-Cus, then drawback claim made under Section 74 of Custom Act, 1962 shall not be denied on mere procedural infraction of circulars or Notification and shall be condoned if export really taken place. Substantive benefit cannot be denied merely for procedural lapses. Section 74 of Custom Act, 1962 does not imposes any condition as to on what rate and
liability deferred tax shall deemed to have been paid. [2011 (267) E LT 557 (Tri-Mum.)]
Ø The Commissioner not having jurisdiction to confiscate land under Excise Rule 173Q(2) by order dated 25.02.2006 when such rule omitted and substituted by Rule 28 of Central Excise Rules, 2001. [2011 (267) E LT 614 (Guj.)]
Ø Strictures against Assistant Commissioner with cost of Rs. 10,000/- for mala fide exercise of power in delaying refund despite of supreme court observations, situation on purposeless litigation not improved. [2011 (267) E LT 626 (Pat.)]
Ø Rebate claim of duty paid on imported Raw materials and on indigenous inputs used in the manufacture of resultant products (attracting NIL rate of duty) is inadmissible under Rule 18 of Central Excise Rules, 2002, if Export made under Advance license issued under Notification No. 93/2004-Cus. Amended condition (V) of Notification no.93/2004-Cus dated 10.09.04 also debars to avail rebate of duty on indigenous materials used in addition to duty free material for manufacture of product exported in discharge of EO under Notification No. 93/2004-Cus. [2011 (267)E.L.T. 429.(G.O.I.)]
Ø Scrap cleared from warehouse for home consumption, after in-bond manufacture of ships from imported steel, then according to clause (b) of sub-section 2 of section 65 of Customs Act, 1962, exporter shall liable to pay duty equal to the import duty payable on the steel contained in the scrap and not as applicable to scrap. [2011 (267) E.L.T. 387 (Tri.- Bang)]
Customs
Ø The excess quantity imported was not declared to the Custom authorities, the extended period is available to the department for computation of duty as the assessees had suppressed the excess quantity imported with intention to evade payment of duty. [2011-TIOL-714-CESTAT-MAD]
Ø The assessment of bulk liquid cargo should be based on invoice price, irrespective of the quantity ascertained through shore tank measurement or any other manner [2011-TIOL-659-CESTAT-AHM]Exporter made export under Free Shipping Bill
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registration. Tribunal held that impugned order holding that non-registration not a ground for rejecting refund, sustainable. [2011(22) STR 529(Tri-Chennai)]
Ø Fees towards reimbursement of cost of arranging placement for students passing out from institute, not taxable under manpower recruitment or supply agency. [2011(22) STR 565(Tri-Del.)]
Ø Maintenance and Repair of staff colony - Service Tax paid in respect of services received in relation to 'Repair and Maintenance' of the staff colony not eligible for CENVAT credit. However, penalty set aside. [2011-TIOL-715-CESTAT-MAD]
Ø Appellant undertaking the job of cutting and transportation of sugar cane grown by SSK Ltd. by arranging for tools and labourers – provisions of agreement have to carefully examined. No case made out against demand of Service Tax under the head 'Manpower Supply' – Pre-deposit ordered: CESTAT [2011-TIOL-658-CESTAT-MUM]
Ø The appellant has exported the services despite receiving the amount in Indian rupees. We find it so. Since the Tribunal has held that in the assessee's own case in the given circumstances that the services rendered by them has to be considered as export of services, the lower authorities' findings that they are rendering the services are not export of services seems to be incorrect [AIT-2011-222-CESTAT ]
Ø Vending of coffee is in the nature of a catering service and is very essential especially for the employees working round the clock in IT companies hence repair of the coffee vending machine is an input service 2011-TIOL-719-CESTAT-MUM
Ø Input Service Distributor can distribute the credit even to only one unit, stay granted on the demand confirmed on the ground that credit should have been distributed to all units. [2011(267) ELT 113 (Tri-Bang.)]
EOU
Ø Appellant, a EOU, sought permission to clear their goods in DTA w.e.f. April 2005. Appellant paying duty on monthly basis as per Rule 8 of CER, 2002 and filling their returns regularly. Appellant not issuing duty paid invoices and
under which notification duties must be paid on importation. Allegations of circumventing with intention to avail illegal benefit under notification must be based on or to be established by way of legally admissible evidences. [2011(267)E.L.T. 422 (G.O.I)]
Service Tax
Ø Whether appellant is required to establish integral connection between the service received and manufacture of final products for availment of CENVAT Credit or appellant is required only to show that services relate to their business to avail CENVAT Credit - Difference of opinion between Member (Judicial) and Member (Technical) on interpretation and application of ratio of Bombay High Court judgment in Coca Cola India case = 2009-TIOL-449-HC-MUM-ST and Ultratech Cement Ltd case = 2010-TIOL-745-HC-MUM-ST - Matter goes to Third Member [2011-TIOL-711-CESTAT-BANG]
Ø There is no requirement that a manufacturer who is also service provider should maintain separate CENVAT accounts for the purpose of paying central excise duty and service tax. A manufacturer of excisable goods is entitled to use the credit from a common pool and a provider of taxable service is also entitled to take credit of specified excise duty, additional duty of customs and service tax in respect of input services and utilize the credit from all these sources for the purpose of paying service tax. [2011-TIOL-700-CESTAT-MAD].
Ø Security service at Guest House - Provision of security at the guest house has no nexus or relation with the business of manufacture of the assessees. Hence, cannot be considered as an input service so as to allow credit of tax paid on such services [2011-TIOL-699-CESTAT-MAD ]
Ø After sales service charges for four years being optional not includible for valuation while determining MRP under Section 4A of Central Excise Act, 1944 [2011-TIOL-680-CESTAT-MUM]
Ø Andhra Pradesh High Court has also stayed the Centre's move to impose service tax on advocates vide order dated 18.05.2011.
Ø Refund of unutilized credit of service tax taken in relation to export of services denied on the ground that refund claim pertaining to prior to
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under the SEZ Act, 2005 and that such movement treated as exports by a legal fiction for making available export benefits to DTA unit and levy would be counter to purpose of such legal fiction. Levy of export duty can not be justified under provisions of customs Act, 1962 in absence of amendment to definition of export and India or in the charging section 12 of Customs Act. Tax not imposable by implication. [2011 (267) E LT 28 (Kar)]
Ø Goods destroyed in fire in SEZ units, duty demanded on raw material imported duty free but assessee sought remission of duty. Duty becomes payable only when goods are cleared into DTA or failure in terms of provisions of Rule 8 of SEZ Rules, 2003. Once the event is not is not covered by these provisions, goods are still in foreign territory which is the status of SEZ and it is deemed fictional status. Therefore goods which have been destroyed have to be held to have been destroyed in deemed foreign territory and no customs duty can be demanded. [2011 (267) E LT 173 (Tri-Ahmd)]
Income Tax
Ø Amount received by the members of the society in their individual capacity and offered to taxation cannot again be taxed in the hands of the society Sections 2(24) - Granting of leave and license facility cannot be treated as transfer of land.
Ø Depreciation cannot be denied on the ground
of bogus purchase of machineries when the AO himself admits that the purchase is genuine. 2011-TIOL-179-HC-DEL-IT
Ø Salary paid to one of the directors cannot be disallowed merely because he is spouse of the other director and has performed lesser role in the operation of the company. 2011-TIOL-205-ITAT-MUM
Ø Loss return is filed after the due date of filing of
return, unabsorbed depreciation can be carried forward - Section 80 will not apply to unabsorbed depreciation. 2011-TIOL-184-HC-DEL-IT
Ø When AO initiates proceedings against assessee on the cash which is requisitioned and other documents seized, the proceedings u/s 158BC are sustainable in eyes of law - The director of assessee company, who is also a partner in a firm, proceedings in respect of such partnership firm and the director in his
same has been shown in monthly returns as 'duty payable'. Only allegation is that Appellants not paying duty at the time of clearance as per Rule 17 ibid, Since there is no intention of appellants evading payment of duty the allegation of mens rea is not sustainable and in absence of mens rea, penalty under rule 25 not imposable. [2011(267)ELT 134(Tri-Mum)]
Ø Capital goods procured, installled & used in manufacture of final products exported, confiscated for failure to achieve NFE & Export Obligation. Prima facie under Notification No. 13/81 Cus. and 53/97Cus exemption availed on capital goods was not liable to be recovered if installed or put to use. - pre-deposit waived. [2011(267)ELT 499(Tri-Bang)]
SEZ
Ø All central laws apply to SEZs with modifications or exceptions, if any, as provided in the SEZ Act itself or in rules made thereunder. Maintenance, Repair and Overhauling (MRO) facilities to domestic as well as foreign aviation entities in SEZ , liable to Service Tax: MRO services in SEZ for foreign entities not export of service. Service tax will be chargeable on the services rendered within the SEZ unless specifically exempted under the SEZ Act or under the Finance Act, 1994 or any Rules or Notifications there under. There is no such exemption presently available in respect of MRO services proposed to be provided by the applicant - ADVANCE RULING.[2011-TIOL-06-ARA-ST]
Ø Revenue view is that goods cleared to SEZ developer are exempt from duty and hence 8%/10% payment is to be made by assessee in terms of rule 6(3) of CCR, 2004 - in view of Tribunal decision in Sujana Metal Products 2009-TIOL-1096-CESTAT-BANG amendment to rule 6 by notification 50/2008-CE(N.T) dated 31.12.2008 is to be considered as retrospective - Assessee eligible to avail CENVAT credit of duty paid on inputs - Stay granted: MUMBAI CESTAT []
Ø Supply of goods to SEZ by DTA units treated as exports by Department and demand raised for export duty. Levy challenged submitting that export duty presently levied on goods factually not leaving territory of India. Single Judge in impugned order held that levy of export duty neither expressly not impliedly contemplated
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individual capacity are rightly initiated u/s 158BD. 2011-TIOL-191-HC-DEL-IT
Ø Rejection of stay petition against demand by CIT(A) without assigning any valid reason is non-est. 2011-TIOL-188-HC-ALL-IT
Ø A profit-making company advances a huge amount of money as subsidy to its loss-making subsidiary. It does not fall within the four walls of Sec 37, and hence, is not allowable as business expenditure. 2011-TIOL-194-HC-P&H-IT
Ø If Tribunal fails to consider relevant decision of the Apex Court and the jurisdictional HC, it constitutes mistake apparent, and requires rectification u/s 254(2). 2011-TIOL-208-ITAT-LKW
Ø Full Bench of HC Ruling-AO added notional interest on the interest free security for arriving at annual letting value. Since that was not permissible, the effect would be that such assessment was rightly set aside by the CIT (A) and the Tribunal. AIT-2011-158-HC
Ø Notice u/s 148 is rightly issued but is not served on the assessee due to the address change, and a copy of the same is given before passing the assessment order. No objection was raised by the assessee during the reassessment proceedings regarding non-service of notice u/s 148, the assessment made u/s 147/143(3) cannot be treated as bad in law. 2011-TIOL-196-HC-DEL-IT
Ø Commission can issue SCN to the assessee after the settlement has been concluded on the ground that the AO filed an application before the commission for revoking the earlier settlement for the reason that the genuineness of the documents produced by the assessee during the course of hearing has been doubted. 2011-TIOL-202-HC-MAD-IT
Ø Income earned on sale of shares held under investment portfolio with an intention to earn dividend and most of the shares sold were received on account of bonus, is not taxable as long term capital gain but taxable as business income. 2011-TIOL-220-HC-DEL-IT
Ø CIT cannot reject the application of the assessee for waiver of interest and penalty without recording his satisfaction as required under section 273A. 2011-TIOL-228-HC-AHM-IT
Ø Excise Duty Refund, Interest Subsidy and Insurance Subsidy were announced and sanctioned by notifications issued hence are Capital Receipt, the law laid down by Hon ble Supreme Court of India in Sahney Steel and Ponni Sugars cases followed. AIT-2011-171-HC
Ø If the employer fails to deduct the tax at source while paying any income chargeable under the head “Salaries”, he would be responsible for payment of interest under Section 201(1A) of the Act. The assessee would not be liable to pay interest under Section 234B of the Act since he was not liable to pay advance tax under Section 208 of the Act. AIT-2011-173-HC
Ø Liability of the assessee to pay tax - Tax paid to the bank which is misappropriated by the employees of the approved bank with whom the amount is deposited. If payments are genuine and petitioners have made the deposit with the bank, such deposit will be treated to be discharge of the liability of the petitioner even if bank has failed to credit the payments to the Central Government Account. AIT-2011-174-HC
Ø From the capital gain, deduction is available under section 54EC, based on the law as it stood on the date of transfer of the capital asset. Assessee is entitled to deduction u/s 54EC for the investment made within six months in the eligible investment though the cheque was cleared after the six months. 2011-TIOL-247-ITAT-MUM
Ø Assuming to itself role of a supervisory authority, High Court directed the subordinate legislation to substitute wordings in a particular manner. It is not a power vested in the High Court. It is also by now settled law that so far exemption clauses are concerned, there should be strict interpretation of the same. 2011-TIOL-43-SC-CT
Ø Order passed by Assessing Officer in respect of certain issues in pursuance to the order of CIT(A) is final if no appeal is filed by the Revenue. Even if such an order is erroneous and prejudicial to the interest of revenue, CIT in the garb of revision, cannot make alive such buried issues. 2011-TIOL-259-ITAT-MUM
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hence complaint filed before State Information Commission. Writ filed before High Court as no intimation from SIC. High Court directed to SIC to deal with complaint and issue orders within 30days and held that spirit of RTI Act, 2005 provides that information should be provided to the person who seeks information, as expeditiously as possible. Appellate forums can not sleep over issue or not deal with same merely because no time frame provided under provisions.[2011 (267) E LT 43 (P & H)]
Right To Information
Ø Correspondence of junior revenue officers with their seniors on complaint by informant for its non-payment. Hierarchical relationship of officers was not in nature of fiduciary entrustment to attract exemption under section 8(e) of Right to Information Act, 2005. I n f o r m a t i o n w a s e n t i t l e d t o t h a t information.[2011(267) ELT 65 (CIC)]
Ø Appeal preferred as no information received and no further response received of appeal
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l CBDT sets up Panel to decide - what to do with untraceable
assessees
l Ex Commissioner of Customs ICD Delhi alongwith a dozen blue eyed
Officers to be chargesheeted for facilitating smuggler
l Olga case involving high profile Customs Officers remanded by Delhi
HC to CESTAT
l Pune DGCEI raids Jalna-based Steel Rolling Mill; detects duty evasion
of Rs 9.35 Crore
l Sunil Mitra appointed as Finance Secretary
l Ex-Chief Commissioner, Chandigarh Zone charge-sheeted.
l CBI raids Excise officials and steel majors.
l Rs. 5 Crore siphoned off, but Delhi ICD closes cases.
l Customs offical's wife held at IGI with pistol in bag.
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23
Love affairs:Something like cricket, where 20-20 is more popular than a five-day test. Marriage:It's an agreement in which a man loses his bachelor degree and a woman gains her master.Divorce:Future tense of marriage.Lecture:An art of transferring information from the notes of the lecturer to the notes of the students without passing through the minds of either. Conference: The confusion of one man multiplied by the number present. Compromise:The art of dividing a cake in such a way that everybody believes he got the biggest piece. Tears:The hydraulic force by which masculine will power is defeated by feminine waterpower.Dictionary:A place where divorce comes before marriage. Conference Room:A place where everybody talks, nobody listens & everybody disagrees later on. Ecstasy:A feeling when you feel you are going to feel a feeling you have never felt before. Smile:A curve that can set a lot of things straight. Office:A place where you can relax after your strenuous home life. Etc:A sign to make others believe that you know more than you actually do. Committee:Individuals who can do nothing individually and sit to decide that nothing can be done together. Experience:The name men give to their mistakes. Atom Bomb:An invention to end all inventions. Diplomat: A person who tells you to go to hell in such a way that you actually look forward to the trip. Opportunist:A person who starts taking bath if he accidentally falls into a river. Optimist:A person who while falling from Eiffel Tower says in midway See I am not injured yet. Father:A banker provided by nature. Criminal:A guy no different from the rest... except that he got caught. Boss:Someone who is early when you are late and late when you are early. Politician:One who shakes your hand before elections and your Confidence after. Doctor:A person who kills your ills by pills, and kills you with his bills
June - 2011
24
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