TIOL-DDT 1023 · the untouched capture
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<font color="#660099" size="3"><strong>TIOL-DDT 1023</strong></font><strong><br>
01.01.2009<br>
Thursday </strong></font></div>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">HAPPY
NEW YEAR FROM DDT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT</strong>
including Team TIOL wishes all our Netizens a wonderful New Year ahead. We promise
to keep you more informed and updated in the year ahead so that your life is
less than taxing! </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Excise
Exemption for cement and Steel for Houses in Tsunami Affected Areas</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As
per Notification No. 37/2005-C.E dated 17.08.2005, Cement and Steel used in
construction of houses, in tsunami affected districts of States of Tamil Nadu,
Andhra Pradesh, Kerala and Union Territories of Pondicherry and Andaman and
Nicobar Islands are exempted from excise duty.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
exemption works in a complex manner as given below.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a)
The manufacturer of the said goods shall pay duties as applicable at the time
of clearance and shall not be eligible for the refund of said duties;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b)
The approved construction agency shall submit a statement of quantity and value
of the said goods used in construction of such houses along with documents evidencing
payment of duty on the said goods to the Deputy Commissioner of Central Excise
or the Assistant Commissioner of Central Excise, as the case may be, (hereinafter
referred to as jurisdictional excise officer), in whose jurisdiction the area
where such houses are being constructed is situated;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c)
The approved construction agency shall file a claim for refund of the said duties
paid on the said goods procured and utilised in construction of such houses
by it along with a self certified consumption certificate of the said goods
to the jurisdictional excise officer, on a quarterly basis, within sixty days
from the end of the relevant quarter and such period may be extended by the
jurisdictional excise officer by another sixty days; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ca)
The approved construction agency, on completion of such houses, shall submit
a completion certificate from the District Collector along with consolidated
consumption certificate covering all the earlier refund claims, duly certified
by a Chartered Engineer and countersigned by the concerned District Collector
or Sub-Divisional Magistrate, to the jurisdictional excise officer:</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d)
The jurisdictional excise officer shall, after satisfying himself that the
said goods have been used for the specified purposes, and on production
of documentary evidence about the duty paid on the said goods, and the completion
certificate and the consolidated consumption certificate as specified in
clause (ca) above, by the approved construction agency, sanction the refund
claim, at the rate of 6% of the cost of construction of such house or houses,
as the case may be, subject to a maximum of<font color="#FF3300"> <strong><font color="#663399">Rs
9000 per house constructed</font>;</strong></font>
and</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(e)
The refund under clause (d) shall be given only to the concerned approved construction
agency.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4.
The amount of refund shall not exceed 6% of the cost of construction or <font color="#663399"><strong>Rs 9000
per house constructed</strong></font>, whichever is less, in any case</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5.
The exemption contained in this notification shall only be in respect of said
duties paid on the said goods, which have been used in such houses constructed
on or after the 1st April, 2005 and on or before <font color="#663399"><strong>31st
March, 2008.</strong></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now
this limit of Rs. 9000/- is made Rs. 21,500/- in respect of houses constructed
by the approved agency in Andaman and Nicobar Islands and the last date for
construction of houses is extended from 31st march 2008 to 31st December 2008.
</font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_60.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification
No. 60/2008-CX., Dated: December 24, 2008</strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC
notifies exchange rates for January 2009</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
CBEC has notified the Exchange Rates for Imported Goods and Export Goods with
effect from 1st December 2008. Notification No. 130/2008 (NT)-CUSTOMS, Dated:
November 25, 2008, is superseded.</font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2008/cnt08_140.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification
NO. 140/2008 -CUSTOMS(NT), Dated: December 29, 2008</strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Tariff
Value of Brass Scrap and Poppy Seeds Reduced – Government responds to
trade’s request. </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Government has decreased the Tariff Value of Brass Scrap from 4082 US Dollars
to 3252 and reduced the Tariff Value of Poppy Seeds from 4360 Dollars to 4238
Dollars. There is no change in the Tariff Values of other items.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In
<strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=8320" target="_blank">TIOL-DDT 1015 - 19.12.2008</a> </strong>– we had mentioned,</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Jamnagar Chamber of commerce and Industry has submitted a representation to
the Prime Minister that “internationally the price of brass scrap is approximately
1800 USD even though till 15/12/2008 the import duty was payable on import of
brass scrap is at 3525 USD per MT with effect from 17.11.2008. However surprisingly
and shockingly CBEC has revised the rates upward from 3525 USD to 4082 USD per
MT as per non tariff notification dated 15.12.2008.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government
seems to have responded and has reduced the tariff value back to 3252 US Dollars.
A responsive government indeed! This is exactly how government should work and
we are happy to report this New Year Gift from the Government. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2008/cnt08_141.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification
NO. 141/2008–Cus(NT) Dated: December 31, 2008</strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Duties,
functions and responsibilities of Inspectors and Superintendents in the Central
Excise Range Offices – Board is still in the Tobacco Era!</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
CBEC has now issued a detailed list of Duties, functions and responsibilities
of Range Officers and Sector Officers.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Some
of the duties are:- To maintain</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.
Unconfirmed Demands Register and <strong>335 J</strong> Register on regular
basis. Registers must be updated without any delay.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2.
Record of Misc. Information regarding Jurisdiction <strong>(335-C) </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3.
List of Registered assesses <strong>(335-D Register) </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4.
Records of Inspection <strong>(335-O Register) </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5.
Records of Files, manual and other documents<strong> (335-N Register)</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6.
Record of Bonds and Power of Attorney<strong> (335-P Register)</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now
what are these <strong>335</strong> series registers?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Long
long ago there used to be excise duty on tobacco and there used to be a “tobacco
excise manual”, popularly known as TEM. This TEM like the Railway Manual
was an ‘all in one guide’ which had an answer for every doubt. But
then somewhere down the lane, there came a Finance Minister who simply abolished
excise duty on tobacco in 1979. Though the duty was gone, the Manual remained
in force and record maintenance had some semblance of order. But in 1989, the
Board issued a new Basic Manual of Departmental Instructions on manufactured
Products, popularly known as BEM, in which it was clearly mentioned that the
relevant portions of the Tobacco Excise Manual (TEM) were incorporated in the
new manual and hence the TEM will be no more in force. So the TEM had its official
death in 1989, with the Board publicly issuing the Death Certificate. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now
these records mentioned above – 335 J, C, D, O, N, P etc, refer to para
335 of the TEM, which expired in 1989. But not many in the Department were aware
of the death of TEM for two reasons.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.
The new BEM was not well circulated</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2.
Whoever got copies had no time or inclination to read them.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So
you had the farce for the last 20 years when Assistant Commissioners/ Deputy
Commissioners/ JCs/Additional Commissioners/Commissioners inspecting Range officers
noting in their Inspection Reports that 335 C,D,N,J,P,O,R etc are maintained
in the offices. There are even Commissionerates maintaining these records in
their headquarters – without knowing why these are maintained. Oh Lord
forgive them for they know not what they are expected to know!</font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now
the joke is taken to the highest level – the Board. The CBEC is asking
its officers to maintain records which it abolished twenty years ago!</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If
an Inspector asks the Board what this 335 J Register is and what the authority
is for maintaining this register, does the Board have an answer?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This
is not a very serious matter with which the assessees have nothing to do, but
is a pathetic situation – What kind of respect the field will have for
the Board when the Board tells them that it is not aware of changes made twenty
years ago?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By
the way, it is not a bad idea to bring back the Tobacco Excise Manual (TEM)
– it was a master piece and with very little changes could be used for
all times to come.</font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2008/instruct224.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC
F.No. 224/ 37/2005-CX-6 Dated: December 24, 2008</strong></font></a></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><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"></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>Central
Excise </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Appeal
- Department's appeal in a case where party’s appeal already decided –
Doctrine of Merger not applicable if the issues are different: Bombay HC</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
doctrine of merger is neither a doctrine of Constitutional law nor a doctrine
statutorily recognised. It is a common law doctrine founded on the principles
of propriety in the hierarchy of justice delivery system. The logic underlying
the doctrine of merger is that there cannot be more than one decree or operative
orders governing the same subject-matter at a given point of time. When a decree
or order passed by inferior court, tribunal or authority was subjected to a
remedy available under the law before a superior forum, then though the decree
or order under challenge continues to be effective and binding, nevertheless
its finality is put in jeopardy. Once the superior court has disposed of the
lis before it either way - whether the decree or order under appeal is set aside
or modified or simply confirmed, it is the decree or order of the superior court,
tribunal or authority which is the final, binding and operative decree or order
wherein merges the decree or order passed by the court, tribunal or the authority
below. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income
Tax</strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Assessee
entitled to deduction of current year depreciation from net profit to arrive
at book profit even though it is not charged to profit and loss account, though
disclosed in notes appended to accounts - notes to accounts form part of accounts:
Delhi High Court</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Except
where the context otherwise requires any reference to a balance sheet or profit
and loss account shall include the notes thereon or documents annexed thereto,
giving information required to be given and/or allowed to be given in the form
of notes or documents by the Companies Act. The High Court held that, once this
information is disclosed in the notes to the account it would clearly fall within
the ambit of the explanation to Section 115J of the Act which defines book profit
to mean net profit as shown in the profit and loss account for the relevant
assessment year.</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Services</strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">IRS
officer's transfer order passed on material which was not-existent - suffers
from total non-application of mind and from malice in law - wholly unwarranted
and reprehensible conduct on part of authorities - absence of officer to be
treated as leave - costs awarded: Supreme Court </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THIS</strong>
is the story of an officer of Customs and Excise about whom, the Member, CBRC
had noted in file, <strong>“Sh. Tiwari is an honest and well intentioned
officer...........” </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He
is before the Supreme Court praying for salary during the period of absence
between an illegal transfer and a legal one. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Appellant
is an officer of Indian Revenue Service. He was posted as a Deputy Commissioner
of Central Excise at Bhopal. An order of transfer was passed against him on
or about 22nd August, 2005. </font></p>
<p align="justify"><font color="#660099" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See
our columns tomorrow for the judgements</strong></font></p>
<p align="justify"><font color="#FF3333" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until
tomorrow with more DDT </font></p>
<p align="justify"><font color="#FF3333" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have
a nice Day.</font></p>
<p align="justify"><font color="#FF3333" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail
your comments to <a href="mailto:vijaywrite@taxindiaonline.com" target="_blank">vijaywrite@taxindiaonline.com</a></font></p>
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