News Update

FM reviews CAPEX of CPSEsGovt writes to over 2800 corporates to clear MSME duesGovt carrying out reforms in every sector of economy to prop up growth: PMIgnoring limitation proves costlyInverted duty structure - A Case study (See 'TOG Insight' in Taxongo.com)CBIC promotes four officers as Pr Commissioner of Customs & Central Excise + posts Sameer Pandey as DS in GST Council SecretariatSC cannot be a place for Govts to walk in when they choose, ignoring period of limitation prescribed - Petition dismissed as time barred; costs imposed on State for wasting judicial time - amount to be recovered from officers responsible: SCIs penalty compulsorily attracted on late payment of GST?No mutation of COVID-19 detected in India: Health MinisterCus - Goods re-imported for repair and re-exported - Merely because Assessee could claim duty drawback later on and it may give rise to a revenue neutral situation, it cannot be said that period of one year prescribed in 158/95-Cus is without any meaning: HCST - Payment of mobilization advance is a separate financial transaction within contract for providing of service & so is not to be included in gross taxable value as per Section 67 of Finance Act 1994 - duty demand cannot be raised thereon when there is no allegation of any part of contracted value having evaded taxation: CESTATBSVI introduction a revolutionary step: JavadekarCX - It is settled position in law that an assessee is entitled to interest on delayed disbursal of refund after three months from date of filing of refund claim till date of its realisation: CESTATCus - Drawback - After turning down request for taking test samples, Revenue cannot brush aside report given by an expert Committee simply for the reason that sample was not drawn and referred by Department: CESTATPayment made to a trust formed for the benefit of employees of the company, of which the assessee was a shareholder & whose shares the assessee had sold, does not qualify as expenditure incurred wholly in connection with transfer of asset: HCBogus purchases - only the profit element embedded therein is to be disallowed, rather than the entire quantum of purchases made: ITATSearch assessment is invalid where it is completed even before search operations are conducted or where any material incriminating the assessee has not yet been found: ITATWhere assessee did not claim exemption in respect of one residential property, the assessee can avail such benefit in respect of a second house or plot of land: ITATIndia successfully test-fires cruise missile from Indian Navy’s destroyer INS ChennaiCOVID-19: Global tally goes past FOUR Crore with 11.15 lakh deaths; America has close to 27 lakh active cases against 8 lakh in IndiaCOVID-19 - Almost 80% new cases coming from 10 StatesCountrywide S&T infrastructure facilities to be accessible to industry & startups: GovtPM calls for speedy access to vaccines once readyNew Zealand PM earns second term for managing COVID-19 wellDigital Media - Govt to extend all benefits available to othersGovt not considering any DA for Govt employees: GangwarCBDT issues transfer order of 395 Addl / JCITs on All India basisSBI given nod for sale of electoral bonds for 10 daysEducation CESS - the spoilt fruit
 
Service Tax on GTA : DG withdraws clarification

TIOL-DDT 94
13 04 2005
Wednesday

Service Tax on GTA – DG withdraws clarification

WE are happy to report that the DG Service Tax has withdrawn the controversial clarification we reported yesterday. On behalf of thousands of assessees spread across this large country, we express our deep feelings of gratitude to the DG Service Tax for the courage in withdrawing the clarification which we pointed out was patently illegal. Any one can make a mistake; it takes real strength to correct a mistake. A responsible and responsive tax administration ready to admit a mistake and that too promptly before much damage could be done is the greatest happening. Now the consignors/consignees can continue to pay Service Tax on 25% of the value. Yesterday’s storm was only one in the tea cup and it has blown over. All’s well that end well. Your Taxindiaonline promises to humbly continue with its mission to constantly watch and report such aberrations and this kind of prompt corrections boost our morale. Thank you DG!

Cenvat Credit Rules amended

As per Rule 6, if inputs are used in dutiable and exempted goods, either separate accounts are to be maintained or 10% on the final products are to be paid. However there is a third option as per Rule 6(3) in respect of certain goods like LSHS, Naphta, Newsprint, textiles etc,. In these cases proportionate credit can be reversed. Now the Government has added LPG for domestic consumption and Kerosene for public distribution to the list.

Notification No. 18 /2005-Central Excise (N.T.) dated 12.04.05

Duty paid on exempted goods eligible for credit

That is what the Madras High Court ruled in a recent case. Remember the proposed amendment to Section 5A of the Central Excise Act which bars the assessees from paying duty on exempted goods. But if they still do? Allow credit? If that is the law, what is the purpose of the amendment? – See our story and the case in today’s ”breaking News”

Sale to Government/Industrial Consumers/hotels for own consumption – retail or wholesale?

There are conflicting views of the Tribunal benches on this issue. Now the Bangalore bench of the CESTAT has referred the matter to a Larger Bench. – SEE
2005-TIOL-292-CESTAT-BANG

PMT for Revenue officials?

I am sure you know what PMT means, but I am not referring to that. This is about a more damaging trauma called PRE MARCH TENSION for Revenue officers to hit that much elusive target and however difficult it is, most of them manage to do it – by hook or crook – or statistics! An ingenious way employed by an enterprising Income Tax officer was to attach the Bank Accounts of an assessee a day after the Commissioner (Appeals) passed an order. The Tribunal was not amused and ordered refund. Refund comes only in April or later but target has to be reached in March. See our ITAT case today.

God! Grant me

The strength to change the things I can

The courage to accept the things I cannot

And the serenity to know the difference

Until Tomorrow with more of DDT

Have a Nice Time

Mail your comments to
vijaywrite@taxindiaonline.com


 RECENT DISCUSSION(S) POST YOUR COMMENTS
   
 
Sub: Proporationate credit reversed in textiles

we are textile processor had avialed option for dutiable as well as exempted goods can v allowed under rule reversed credit proporationately if yes then when this rule come in to force our email id is ashoksalecha@rediffmail.com

please reply as early as possible.

Posted by ashokkumar ashokkumar
 
Sub: Pull downs and praise

Only a day before your reported Article has condemned the DGST and termed it as eligible for museum. Now the said Circular on GTA has been withdrawn, you shower with him all praise and what not.
ANY WAY THANKS FOR SAVING LAKHS OF ASSESSES FROM CONFUSION AND UN WANTED SCNs.
by,
M.RAM KUMAR,
INSPECTOR OF CE,
BANGALORE

Posted by ramkumar ramkumar