Saturday, August 30, 2014

[aaykarbhavan] Judgments anf Infomration [7 Attachments]




Notification No. 25/2014-Central Excise (N.T.) – Seeks to amend Cenvat Credit Rules, 2004

Notification No. 25/2014-Central Excise (N.T.)
New Delhi, the 25th August, 2014
G.S.R….(E).– In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944) and section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the CENVAT Credit Rules,2004, namely:-
  1. (1) These rules may be called the CENVAT Credit (Seventh Amendment) Rules, 2014.
(2) They shall come into force on the date of their publication in the Official Gazette.
  1. In the CENVAT Credit Rules, 2004, in rule 12AAA, after the words "first stage and second stage dealer", the words "provider of taxable service" shall be inserted.
[F.No. 334/15/2014-TRU]
(Akshay Joshi)
Under Secretary to the Government of India
Note.- The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), dated the 10th September, 2004, vide notification No.23/2004 – Central Excise (N.T.), dated the 10th September, 2004 vide number G.S.R. 600(E), dated the 10th September, 2004 and last amended vide notification No. 21/2014 – Central Excise (N.T.), dated 11th July, 2014 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 456 (E), dated the 11th July, 2014.
- See more at: http://taxguru.in/excise-duty/notification-252014central-excise-nt-seeks-amend-cenvat-credit-rules-2004.html#sthash.Vk5VqXCL.dpuf

CENVAT credit benefit based on STTG Certificate issued by the Indian Railways -Reg.

CENVAT Credit (Eighth Amendment) Rules, 2004 – seeks to extend CENVAT credit benefit on the basis of Service Tax Certificate for transportation of goods (STTG Certificate) issued by the Indian Railways.
Notification No. 26/2014 – Central Excise (N.T.)
Dated- 27th August, 2014
G.S.R.           (E). – In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944) and section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the CENVAT Credit Rules, 2004, namely : –
  1. (1) These rules may be called the CENVAT Credit (Eighth Amendment) Rules, 2014.
(2) They shall come into force from the date of their publication in the Official Gazette.
  1. In the CENVAT Credit Rules, 2004, in rule 9, in sub-rule (1), after clause (f), the following clause shall be inserted, namely:-
"(fa) a Service Tax Certificate for Transportation of goods by Rail (herein after referred to as STTG Certificate) issued by the Indian Railways, along with the photocopies of the railway receipts mentioned in the STTG certificate; or"
[F. No. 267/87/2013-CX.8]
(Pankaj  Jain)
Under Secretary to the Government of India
Note.-  The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3,  Sub-section (i), dated the 10th September, 2004, vide Notification  No. 23/2004 – Central Excise (N.T.) dated the 10th September, 2004, vide number G.S.R. 600(E), dated the 10th September, 2004 and last amended vide Notification No.  25/2014 – Central Excise (N.T.) dated the 25th August, 2014 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 615 (E), dated the 25th August, 2014.
- See more at: http://taxguru.in/excise-duty/seeks-extend-cenvat-credit-benefit-basis-service-tax-certificate-transportation-goods-sttg-certificate-issued-indian-railways.html#sthash.qvRp5ixw.dpuf

Seeks to levy provisional safeguard duty on imports of Saturated Fatty Alcohols

Notification No. 03/2014-Customs (SG)
New Delhi, the 28th August, 2014
G.S.R.  (E). – Whereas, in the matter of import of "Saturated Fatty Alcohols with carbon chain length of C8,C10,C12,C14,C16, and C18 including single, blends and unblended (not including branched isomers) which includes blends of a combination of carbon chain lengths, C12-C14, C12-C16, C12-C18, C16-18 and C14-C16 (commonly categorized as C12-C14)" (hereinafter referred to as the subject goods), falling under sub-heading 2905 17 or 3823 70   of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as the Customs Tariff Act), the Director General (Safeguard), in his preliminary findings, published vide number G.S.R. 357 (E), dated the 26th May, 2014, in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), dated the 26th May, 2014, has come to the conclusion that increased imports of subject goods into India has caused and threatened to cause further serious injury to the domestic producers of subject goods, necessitating the imposition of  safeguard duty on imports of  subject goods into India, and accordingly has recommended the imposition of provisional safeguard duty on imports of the subject goods into India;
            Now, therefore, in exercise of the powers conferred by sub-section (2) of section 8B of the said Customs Tariff Act, read with rules 10 and 14 of the Customs Tariff (Identification and Assessment of Safeguard Duty) Rules, 1997, the Central Government after considering the said findings of the Director General (Safeguards), hereby imposes on subject goods falling under sub-heading 2905 17 or 3823 70 of the First Schedule to the Customs Tariff Act, when imported into India, a provisional safeguard duty at the rate of twenty per cent. ad valorem.
2.         Nothing contained in this notification shall apply to imports of subject goods from countries notified as developing countries under clause (a) of sub-section (6) of section 8B of the Customs Tariff Act, other than Malaysia, Thailand and Indonesia.
3.        The safeguard duty imposed under this notification shall be effective for a period of two hundred days (unless revoked, superseded or amended earlier) from the date of publication of this notification in the Official Gazette.
[F.No.354/108/2014-TRU]
(Akshay Joshi)
Under Secretary to the Government of India
- See more at: http://taxguru.in/custom-duty/seeks-levy-provisional-safeguard-duty-imports-saturated-fatty-alcohols.html#sthash.17eMHaB2.dpuf
MUMBAI, AUG 29, 2014: THE appellant is before the High Court against an order passed by the CESTAT dismissing their appeal.
It is submitted that the appellant had before the Tribunal challenged the order-in-original on three counts - First was with regard to revenue neutrality, second was with regard to the demand and which has been confirmed by the order-in-original but was barred by limitation and thirdly, there is no basis for calculation of overhead percentages alleged in the show cause notices. It is further submitted that in thecircumstances the minimum that was expected from the Tribunal was complete application of mind to the controversy, dealing with the submissions canvassed orally and in writing and by a reasoned order either uphold or reject them. Inasmuch as it is the submission of the appellant that in a five paragraph cryptic order, out of which paragraphs 1 to 4 contain the facts and referred to the oral submissions, the Tribunal has disposed of the entire appeal and against the Assessee; that this unsatisfactory and perfunctory manner of disposal of the Appeal by the Tribunal, which is the last fact finding authority, raises a substantial question of law.
The Revenue representative submitted that if one perused the order-in-original, then, the ultimate conclusion of the Tribunal cannot be faulted; that the grievance raised pertains to the form and not the substance and had the same conclusion been reached by an elaborate process of reasoning, then, theHigh court would not have interfered with the order under challenge as no substantial question of law arises for consideration. It is submitted that the Appeal be dismissed.
The High Court, at the outset, observed that the order-in-original was not passed on 25.06.2004, but on 29.01.2004 and this would demonstrate that the Tribunal was unaware of the date of the order-in-original and throughout.
Noting that the Assessee had raised several contentions before the Tribunal, the High Court observed –
"8. To our mind, the Tribunal was required to consider the issues raised in the Appeal in depth and render a complete finding. If a particular issue was pressed or was given up that should be indicated in the order of the Tribunal. We would expect the Tribunal, which is manned by both judicial and technical experts, to be aware of the seriousness of the adjudication and not take up the assignment lightly and casually. There is no specific target which has to be achieved nor could the Tribunal be expected to decide particular number of appeals during a calendar year. Therefore, undue haste is not at all called for. That results in miscarriage of justice and in a given case would result in vital issues of both sides being concluded in most unsatisfactory manner. We would expect the Tribunal to guide the Adjudicating Authorities so that they would properly adjudicate the cases with reasoned orders and after considering the evidence on record. It is this duty of the Tribunal which has been repeatedly emphasized and to be performed to the best of its ability."
Not being satisfied with the cryptic order (in the words of the High Court) passed by the Tribunal, the High Court admitted the appeal on the substantial questions of law as framed.
Nonetheless, after finding that both sides deserve to be given an opportunity to argue their case completely before the Tribunal, the High Court opined that it is not required to decide the merits of this Appeal and answer the questions though they are substantial questions of law.
Taking a view that the requirement of the Court going into all these issues would be obviated if as requested by the parties, the Tribunal decides the matter afresh on merits and in accordance with law and uninfluenced by its earlier order and conclusions therein, the High Court remanded the case back to the Tribunal.
The High Court also observed - Ordinarily we would not have granted such request and passed a wholesale order of remand, but in the facts and circumstances where it is not possible to ascertain from the Tribunal's order as to which of the contentions have been dealt with and considered that this is a fit case for setting aside the impugned order and restoring the Appeal to the Tribunal's file in its entirety.
The order of the Tribunal was quashed and set aside and the appeal was restored to the file of the Tribunal for a decision afresh.
In passing : Incidentally, the ROM application filed by the appellant (against the final order dated 31.07.2013) on the ground that in the interest of justice on the issue of revenue neutrality the appeal should be re-heard was dismissed by the CESTAT by holding thus –
"3. We find that after hearing the ld. CA for the appellants, the order was dictated in the court in the presence of the ld. CA. All the issues raised during the arguments have been considered while passing the order. The appellants seek review of the order on the ground that they want to argue the issue which was not argued at the time of hearing of the appeal. This cannot be considered as a mistake apparent on record

NEW DELHI, AUG 29, 2014: THE question before the Bench is - Whether when the first appellate authority has simply directed the AO to pass speaking order before charging interest, such an order can be construed as restrictions being imposed on the AO from levying interest under particular Section. NO is the answer.
Facts of the case
The assessee is a company engaged in the business of financial consultancy. It had filed its return declaring loss for the A.Y 1988-89. The assessee had claimed this amount after deducting amount of Rs. 1,82,69,610 which was declared as income during A.Ys 1986-87 and 1987-88. During the course of assessment proceedings, the assessee requested that entire declared income should be taxed in the A.Y 1988-89 and no portion of the said income be assessed in the A.Y 1986-87 and 1987-88. The assessee also requested that taxes paid on 17th August, 1987, to be treated as payment of advance tax for the A.Y 1988-89. The AO however, referred to the assessment orders for the A.Y 1986-87 and 1987-88 and held that the consultancy fee/commission was taxable in the said years, but Rs. 1,82,69,610 was treated as assessee's income in the A.Y 1988-89 on protective basis. Accordingly, the AO had directed for charging of interest u/s 201 and 217. 
On appeal, the High Court held that,
++ we note the tribunal has left it open to the AO to consider levy and imposition of interest, if permissible and could have been imposed under the statute. It is clear and apparent that the tribunal had not barred or prohibited the AO from imposing interest u/s 215 or 217(1A), as per law. The Tribunal's order regarding levy and imposition has attained finality for the reason that both the application filed by assessee u/s 254(2) & 256(1) were rejected. It is, therefore, impermissible and wrong for the assessee to claim that the tribunal had prohibited the AO from examining the question of interest under other provisions of IT Act. The said discretion was granted to the AO to decide whether or not interest could be imposed under any other provision of Section 217 and after examining the said section, the AO came to the conclusion that the interest was imposable u/s 217(1A). But, in order to find out whether or not interest u/s 217(1A) can be imposed, we have to look to the original assessment order passed u/s 143(3);
++ the original assessment shows that the first appellate authority had directed the AO to pass a speaking order to charge or levy interest u/s 217, but there was no mentioning of the relevant sub-section of Section 217. The direction given by the first appellate authority against the original assessment order to pass a speaking order on levy of interest u/s 217, has attained finality. The assessee cannot now question and state that the original assessment order was defective as the sub-section to Section 217 applicable was not stated. Further the first appellate authority while directing the AO to pass a speaking order on levy of interest, had given power and authority to AO to impose interest but after giving reasons. This meant that the AO had the right to reconsider the question of levy of interest u/s 217 and also examine and state under which sub-section interest was leviable. Accordingly, we answer the question in favour of revenue.

NIL TDS – File Declaration for Non-filing of TDS statement on TRACES

Your urgent attention is invited to relevant CBDT Circulars and provisions of the Income Tax Act, mandating filing of TDS Statements and Issuance of TDS Certificates downloaded from TRACES. But If you are not required to submit  TDS statement for FY 2013-14 and not  filed any TDS Statements in FY 2013-14 , than you are required to submit a declaration by taking appropriate action as suggested under "Action to be taken" in this Article.
1. Mandatory filing of TDS Statements:  Under the provisions of section 200(3) of the Income Tax Act, 1961 read with Rule 31A, which reads as follows:
Every person responsible for deduction of tax under Chapter XVII-B, shall, in accordance with the provisions of sub-section (3) of section 200, deliver, or cause to be delivered, the following quarterly statements to the Director General of Income-tax (Systems) or the person authorised by the Director General of Income-tax (Systems), namely:
a. Statement of deduction of tax under section 192 in Form No. 24Q;
b. Statement of deduction of tax under sections 193 to 196D in-
  •  Form No. 27Q in respect of the deductee who is a non-resident not being a company or a foreign company or resident but not ordinarily resident; and
  • Form No. 26Q in respect of all other deductees.
It is, therefore, advised to file the applicable TDS Statements at the earliest to comply with the above provisions.
2. Implications of Non/ Late filing of TDS Statements:
  • For Deductors: In case of late filing of TDS Statements, a fee shall be levied on the deductor u/s 234E of the IT Act which reads as under:
    • Where a person fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues
  • For Tax payers: Non/ Late filing of TDS statements results into the TDS Credit not being available to the deductees. They, therefore, will not be able to claim the credit for tax already deducted from the payments made to them. Please note that TDS Certificates will not be available until the TDS Statements are duly filed.
3. Actions to be taken:
  • Please file the relevant TDS Statement without any further delay.
  • If you are not required to file the same, please submit a declaration for Non-filing on TRACES. For this purpose, you can login to TRACES, navigate to "Statements/ Payments" menu and submit details under "Declaration for Non-Filing of Statements".
Issue TDS certificates after generating and downloading the same from TRACES. TDS Certificates downloaded only from TRACES Portal will be valid.
- See more at: http://taxguru.in/income-tax/nil-tds-file-declaration-for-non-filing-of-tds-statement-on-traces.html#sthash.6ZA8YEgU.dpuf

No disallowance of foreign travelling exp. if details given by assessee weren't opposed either by AO or by CIT(A)

August 30, 2014[2014] 48 taxmann.com 87 (Mumbai - Trib.)/[2014] 31 ITR(T) 133 (Mumbai - Trib.)
IT/ILT : Where assessee company had already deducted tax under section 192 on entire salary including salary reimbursed to parent company, disallowance under section 40(a)(iii) was not proper
IT/ILT : Where expenses relating to sample charges, meeting expenses and hotel expenses were not covered under any of provisions of sections 192 to 194LA, there was no requirement of withholding tax under section 195 Act
IT/ILT : Where assessee had filed exhaustive details of foreign travelling expenses along with evidences on which no infirmity or discrepancy had been found either by Assessing Officer or by Commissioner (Appeals), disallowance of such expenses were not proper
IT/ILT : Where amount of TDS had been deposited in government account much prior to date of filing return of income for relevant year, disallowance under section 40(a)(i) was uncalled for

HC sets aside rectification order of ITAT as it was made without analyzing disputed issues and relevant materials

August 30, 2014[2014] 48 taxmann.com 56 (Madras)/[2014] 361 ITR 304 (Madras)
IT : Law requires Tribunal to record findings supported by reasons to sustain order
 




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Posted by: Dipak Shah <djshah1944@yahoo.com>


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