TIOL-DDT 1021 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body bgcolor="#FFFFFF"> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1021</font><br> 30.12.2008<br> Tuesday</strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Anti-dumping duty on Sodium Hydroxide (caustic soda) - again imposed</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti-dumping duty on Sodium Hydroxide (caustic soda), originating in, or exported from, People's Republic of China and Republic of Korea, was imposed provisionally by Notification No. <a href="http://taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=ODgxMA==" target="_blank"><strong>142/2002-Customs</strong></a>, dated the 26th December, 2002. Final Anti Dumping duty was imposed by Notification No. <a href="http://taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=OTQxMQ==" target="_blank"><strong>142/2003-Cus.</strong></a>, dated 23-9-2003. This would have been valid till 25.12.2007. By Notification No. <a href="http://taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=OTEzNA==" target="_blank"><strong>121/2007- Cus.</strong></a>, dated 20-12-2007, this was extended till 25th December 2008.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the duty is again imposed with effect from 26.12.2008</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_137.htm" target="_blank">Notification NO. 137/2008 - Cus Dated: 26th December, 2008</a></strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Postings/transfers to serve the Department's need rather than the individual's desire - CBDT</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Transfer is a major commercial activity in the Government of India involving hundreds of Crores of rupees - in this multi-billion rupee business, the loser is always the Government of India and of course the poor millions of Indians.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">More than half the official time of the babu is spent either in getting a transfer, avoiding a transfer or discussing about the transfer. And the powers that be ensure that as far as possible, employees are transferred to or posted in places which are most inconvenient to them. This keeps the transfer industry flourishing! The amount of public money wasted in the name of power of transfer vested (<em><font color="#FF6633"><strong>wasted</strong></font>) </em> in some senior officers is mind boggling. A transferred employee costs the Nation at least a Lakh of rupees and just count the number of officers transferred every year and multiply it with a Lakh of rupees and you will find that our babus have just swallowed the Delhi Metro Project.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In many of the Central Excise Commissionerates, hundreds of Superintendents are routinely transferred every year for a tenure of one year to places which are not popular. After about 11 months they are brought back and another batch of a few hundred officers are transferred. The whole machinery seems to be engaged only in the business of transfers. What happens to government work or its precarious fiscal condition is nobody's bother. Why should somebody be transferred just because somebody else should be transferred? Why can't the whole business of transfers be computerised and done strictly within the norms? The Business will collapse and nobody likes it.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In such a situation the CBDT's Circular that it has now been decided that <strong>postings/transfers would have to be effected to serve the Department's need rather than the individual candidates' desire</strong>, comes as a whiff of fresh air into the polluted precincts. Let us hope CBDT will be able to live up to the lofty ideals and then maybe CBEC will follow suit.</font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/sernews/order/cbdt_transfe.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT F.No . A-12021/27/2008-Ad.VII Dated: December 23, 2008</strong></font></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBI arrests its own DSP - Fence eating the Crop?</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We have heard of the Police chasing the thieves or even the thieves chasing the Police, but have you heard of the Police chasing the Police? The last Week of this year witnessed the strange drama of a CBI DSP being arrested by the CBI on corruption charges.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A Dy Superintendent of Police (DSP), CBI Kolkata was caught red-handed in a trap while accepting a bribe amount of Rs. 50,000/- from a complainant, a truck operator based at Kolkata. The truck operator made a complaint that the DSP, CBI was harassing him and demanding a bribe of Rs. 50,000/- from him for not falsely implicating him in another case. A case was registered on 27.12.2008 against DSP under Prevention of Corruption Act, 1988.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Obviously the DSP was good at it. Later on searches at his residence revealed recovery of cash of Rs. 13,79,800; investments worth Rs. 33,18,500 in Monthly Income Scheme (MIS) in 12 post office Branches bearing 41 accounts; investments of Rs. 35,36,059 in National Saving Certificates (NSCs), Kisan Vikas Patras (KVPs) and Fixed Deposits; flat worth Rs. 10,50,000 at Ulta Danga Kolkata as per documents and jewellery for which valuation is yet to be done.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Besides, bank balances in accounts in various banks are yet to be calculated and locker in Allahabad Bank at Ulta Danga Branch is yet to be operated.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBI says, "This case is an example of the resolve of CBI to vigorously fight against corruption and also maintain <strong>highest levels of integrity within the organisation."</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">That is why CBI is respected and dreaded - even its own officers are not spared! This is not the first time the CBI is doing it - they do it once in a while and let us hope they do it more often.</font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBI files Charge-sheet against Company MD for Bank Fraud</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBI, Bank Securities & Fraud Cell (BS & FC), Bangalore, has filed a charge-sheet against Chairman and Managing Director (CMD), M/s. Fashion Syncotex Pvt. Ltd., R.S.Puram, Coimbatore, and two other private persons.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBI had taken up this case for investigation on a complaint from State Bank of India.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Charge is that Chairman and Managing Director of M/s. Fashion Syncotex Pvt. Ltd., had submitted fabricated title deeds to State Bank of India, Commercial Branch, Coimbatore during 1999-2001 to avail various credit facilities aggregating to Rs.8.53 crores. The promoters of M/s Fashion Syncotex Pvt. Ltd. had arranged for additional third party collateral security comprising of immovable property belonging to another accused valued at Rs.72 lakhs and it is alleged that the other accused has died in 1995 i.e. many years prior to the execution of the guarantee documents and creation of equitable mortgage in his name, indicating that another person had impersonated while creating the equitable mortgage of the second property. Thus, the criminal acts of both the accused caused a wrongful loss of Rs. 9.39 crores to SBI, Commercial Branch, Coimbatore and corresponding wrongful gain for themselves.</font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Jurispruden</font><font color="#FF6633" size="5">tiol</font><font color="#006600">- Tomorrow's cases</font></strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><strong><strong><strong><strong><strong><b><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_hammer.jpg" alt="Legal Corner Icon" width="100" height="84" hspace="5" border="0" align="left"></b></strong></strong></strong></strong></strong></strong></strong></font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Entry Tax</strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Entry Tax - once again stuck - Does imposition of' entry tax' violate Article 301 of the Constitution? Will the principles of <em>quid pro quo </em> relevant to a fee apply in the matter of taxes? These and several other questions referred to Larger Bench - Supreme Court</strong></font></p> <ul> <li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> <strong>WILL</strong> the principles of <em>quid pro quo </em> relevant to a fee apply in the matter of taxes imposed under Part XIII?</font></li> </ul> <ul> <li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> Whether the Entry Tax may be levied at all where the goods meant for being sold, used or consumed come to rest (standstill) after the movement of the goods ceases in the `local area'?</font></li> </ul> <ul> <li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">Whether the Entry Tax can be termed a tax on the movement of goods when there is no bar to the entry of goods at the State border or when it passes through a local area within which they are not sold, used or consumed?</font></li> </ul> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax</strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Revenue or Capital Expenditure - it is the aim and object of expenditure, which would, determine its character and not the source and manner of its payment- High Court</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> expenditure incurred towards initial outlay of business would be in the nature of capital expenditure, however, if the expenditure is incurred while the business is ongoing, it would have to be ascertained if the expenditure is made for acquiring or bringing into existence an asset or an advantage of an enduring benefit for the business, if that be so, it will be in the nature of capital expenditure. If the expenditure, on the other hand, is for running the business or working it, with a view to produce profits, it would be in the nature of revenue expenditure.</font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise</strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Appeal - appeal filed by Commissioner himself instead of authorising an officer to do so - appeal maintainable - If Commissioner can authorise, he is empowered to do it himself - High Court</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHEN</strong> a person is statutorily entitled to delegate powers to another person to file an appeal on behalf of the first named person, it goes without saying that the power which can be delegated is the power which the first named person would be entitled to exercise. Hence, until and unless the Commissioner is entitled to file an appeal, there is no question of the Commissioner authorising another officer to file appeal on behalf of the Commissioner. The language of the latter part of sub-section (2) of Section 35B of the Act itself makes this more than abundantly clear when the provision uses the phrase 'to appeal on his behalf.' Hence it is not necessary to dilate any further on this aspect of the matter.</font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our columns tomorrow for the judgements</strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Until tomorrow with the last DDT of 2008.</strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Day.</font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p> </body> </html>