TIOL-DDT 1030 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1030</font><br>
13.01.2009<br>
Tuesday</strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Is Judiciary Accountable? – Full Bench of CIC paves the way</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Full Bench of the Central Information Commission delivered a landmark decision on the issue of declaration of assets of the judges of the High Courts and the Supreme Court.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Under the Right to Information Act, the applicant Mr. S. C. Agrawal sought a copy of the resolution dated 07.05.1997 of the Full Bench of the Apex Court on declaration of assets by the Judges of the Supreme Court and the High Courts and also wanted to know whether any declarations were received in this regard from the judges of the Supreme Court by the CJI of Supreme Court and from the judges of the High Courts by the respective CJIs.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As is the usual norm with any public authority, the information sought by the applicant was denied to him by taking recourse to technicalities the notable among them being that the information is filed with the CJIs and not with the Supreme Court (or the respective High Courts). To compound matters further, the applicant was also directed to seek information pertaining to High Court Judges from the respective High Courts.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On appeal, the Full Bench of the CIC held that there cannot be a distinction between the Office of the CJI and that of the Supreme Court and directed the CPIO of the Supreme Court to provide the information sought by the applicant within ten working days. The CIC rejected the arguments that the information filed is voluntary and in private domain.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This landmark decision paves the way for more transparency in Judiciary. While the steps taken by the Chief Justice of India in rooting out corruption in higher echelons of Judiciary were indeed commendable, what is disturbing is the fact that basic information as to whether the Judges have declared their assets or not was denied on technicalities. When the contestants to Legislatures and Parliament are bound to declare their assets at the time of filing their nomination papers for contesting elections and the nature of these assets are scrutinized by the public (read media), where is the need for the Judges to gloss over this information on some pretext or the other. If there is seriousness in bringing in Judicial accountability then this is the first step in the right direction.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/cic_0.pdf" target="_blank">Full text of the Order of CIC</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Import of Restricted Items under Advance Authorization Clarified</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">After examining representations received from Trade and Industry that certain field formations of DGFT and Customs are not allowing import of restricted items against Advance Authorisations, DGFT clarifies that restricted items (unless otherwise specifically mentioned) are allowed to be imported under Advance Authorization Schemes as the said inputs always remain under actual user condition even after completion of export obligation.</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=46&filename=notification/dgft/2008/dgft08cir054.htm" target="_blank">DGFT Policy Circular No. 54 (RE-08)/2004-2009 Dated: January 9, 2009</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SION amended for Biscuits (with or without dry fruits) and</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">HBP V.2 is amended to incorporate revised Input Output norms for Biscuits (with or without dry fruits) which are as follows:</font></p>
<div align="justify">
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
<tr align="center">
<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. </font></strong></div></td>
<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Export Item </font></strong></div></td>
<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Qty. </font></strong></div></td>
<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Import Item </font></strong></div></td>
<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Qty. </font></strong></div></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">E-5 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Biscuits (with or without dry fruits) </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 kg </font></p></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Maida/Atta/Flour</font></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">0.550 Kg </font></p></td>
</tr>
<tr>
<td rowspan="11" valign="top"> </td>
<td rowspan="11" valign="top"> </td>
<td rowspan="11" valign="top"><p> </p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Sugar <br>
OR </font></p> </td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">0.210 Kg </font></p></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Liquid Sugar </font></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">0.338 Kg </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3.VegetableShortenings/Cream/Fats/ Spray Fats </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">0.180 Kg </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Skimmed Milk Powder </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">0.010 Kg </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Additives and Other bakery ingredients:- <br>
a) Invert Sugar/Liquid Glucose </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">0.040 Kg </font></p></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) Leavening Agent </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">0.015 Kg </font></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c) Emulsifier </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">0.005 Kg </font></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">d) Food Flavour </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">0.002 Kg </font></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Packing Material:- <br>
a) BOPP/HDPE/PP/LDPE </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per packing Policy </font></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) Paper and Paper Board </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per packing Policy </font></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. Relevant Dry Fruits</font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.01 Kg/Kg content in export product </font></td>
</tr>
</table>
</div>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2008/dgft08pn127.htm" target="_blank">DGFT Public Notice No. 127 (RE-2008)/2004-2009 Dated: January 7, 2009</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SION amended for Vegetable Pickles in Oil/Mixed Pickles in Oil</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">HBP V.2 is amended to incorporate revised Input Output norms for Vegetable Pickles in Oil/Mixed Pickles in Oil which are as follows:</font></p>
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td width="29" valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. </font></strong></div></td>
<td width="65" valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Export Item </font></strong></div></td>
<td width="36" valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Qty. </font></strong></div></td>
<td width="226" valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Import Item </font></strong></div></td>
<td width="52" valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Qty. </font></strong></div></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">E-126 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Vegetable Pickles in Oil/Mixed Pickles in Oil. </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 kg </font></p></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Relevant Fats and Oil namely Sesame Oil/Mustard Oil/Gingelly Oil/Salad Oil/Groundnut Oil/Palm Oil/Sunflower Oil</font></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">0.250 kgs </font></p></td>
</tr>
<tr>
<td rowspan="3"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> </font></td>
<td rowspan="3"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> </font></td>
<td rowspan="3"><p><font face="Verdana, Arial, Helvetica, sans-serif"><font size="2"></font></font></p></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Relevant Food Additives for Pickles FDA approved </font></p> </td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">0.088 kgs </font></p></td>
</tr>
<tr>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Sanitation and cleaning chemicals (Organic and Inorganic Acids and Alkali, Surfactants Biocides such as Hydrogen Peroxide, Soda Ash, Disinfectants) </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">0.02 kgs </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Fuel for Heating and Boiling (Furnace Oil) </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2% of the FOB value </font></p></td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2008/dgft08pn129.htm" target="_blank">DGFT Public Notice No. 129(RE-2008)/2004-2009 Dated: January 9, 2009</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Pithampur ( Indore ) and Ratlam notified as ICDs</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Government has notified Pithampur (near Indore ) and Ratlam in the State of Madhya Pradesh as Inland Container Depots for the purpose of unloading of imported goods and loading of export goods.</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=24&filename=notification/custom/2009/cnt09_004.htm" target="_blank">Customs Notification No. 4/2009-Cus ( NT ) Dated: January 6, 2009</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Tribunal explains ‘Explanation'</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">‘Explanation' has of late become an important tool in the hands of those who draft legislations hastily and repent at leisure for the slips that they cause. To cover up the lacuna, an amending notification is normally issued ‘explaining' the intent of the provision. The authorities latch on to this ‘explanation' and start issuing demand notices for the past period by simply interpreting that the inserted ‘explanation' has retrospective effect.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In a recent case before the Tribunal, the issue on hand was whether an ‘explanation' inserted at a later date by an amending notification is retrospective or prospective. After a thorough look at the amending notification which inserted the ‘explanation' the Tribunal held that the explanation inserted therein only has prospective effect.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=8435" target="_blank">See ‘ST se GST Tak'</a></strong></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>Income Tax</strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax - sale proceeds of special import license being in nature of business income cannot be excluded under clause (baa) of explanation to Sec 80- HHC; profit part of DEPB receipts to be excluded under clause (baa) of Explanation and not cost part of DEPB receipts</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> DEPB received by assessee is sold to manufacturer of packing material on premium. Thus the DEPB receipts consist of two parts, namely,(i) the cost; and (ii) the profit. The profit part is covered under section 28(iiid) and clause (baa) of section 80HHC of the Act will apply accordingly. There is no dispute that the entire amount of DEPB receipt is assessable to tax. The face value of DEPB is the reimbursement of import duty included in packing material purchased by the assessee and represents the benefit derived from the business of exports. Therefore, the cost of element of DEPB will be assessable as business income under section 28(iv) of the Act.</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"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax - assessee was a manufacturer, not merely carrying on repair – Deduction under 80IA eligible - Revenue could not contend that sale-tax is payable on repair or on job work</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>JUDICIAL</strong> Member was not right in putting burden of proof on the assessee in proceedings u/s 263 and in not examining profit and loss account and balance sheet of the assessee and its claim that it was involved in the manufacture of electromechanical parts. The material available on record was also not examined in the light of the claim made by the assessee. The observations of the Judicial Member in the proposed order are also not factually correct.</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Excise</strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Whether penalty under rule 26 of CER, 2002 can be imposed against persons who have not dealt with any goods - Matter referred to President on account of difference in opinion</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ACCORDING</strong> to the Supreme Court judgement, firm is a person. Once a firm is held a person, Rule 26 of the Central Excise Rules, 2002 will apply and firm will also the liable to penalty. The decisions of the Tribunal referred to above are <em>per incuriam </em> and do not have precedential value.</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Happy Sankranti</strong></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">Until tomorrow with more <strong>DDT</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>
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