TIOL-DDT 1114 · 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 1114</font><br>
20.05.2009<br>
Wednesday</strong></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Pune </font></strong><font color="#006600"><strong> – II Central Excise Commissionerate is now Kolhapur Commissionerate – for Customs too, but one more notification needs amendment</strong></font></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=8920" target="_blank">DDT 1093 21.04.2009</a> </strong>reported</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6600">CBEC </font></strong><font color="#FF6600"> has amended Notification No. 14/2002 – Central Excise NT which specifies the jurisdiction of Chief Commissioners, Commissioners and Commissioners (Appeals). <strong>Pune II </strong>is now to be read as Kolhapur.</font></font></p>
<p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">But there are other notifications;</font></p>
<p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Notification No. 24/2005-CENTRAL EXCISE (N.T.), Dated: May 13, 2005, which specifies the Committees of Chief Commissioners of Central Excise.</font></p>
<p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Notification No. 25/2005-CENTRAL EXCISE (N.T), Dated: May 13, 2005, which specifies the Committees of Commissioners of Central Excise.</font></p>
<p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Notification No. 14/2002-Customs (N.T), DATED: March 7, 2002, which appoints Chief Commissioners of Customs.</font></p>
<p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Notification No. 39/2005-Customs (NT), DATED: May 13, 2005, which specifies the Committees of Chief Commissioners of Customs.</font></p>
<p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Notification No. 49/2005-Customs (N.T), Dated: June 17, 2005 which specifies the Committees of Commissioners of Customs.</font></p>
<p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">All the above notifications mention <strong>Pune II </strong>Commissionerate. But only one notification namely 14/2002 – CE NT has been amended. The Board needs to substitute <strong>Kolhapur </strong>for <strong>Pune II </strong>in all the above notifications.</font></p>
<p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Hopefully they will do it soon, before some Tribunal throws out their cases for lack of jurisdiction. Or perhaps they have already done it and are keeping it a secret for some strange reason and will reveal it in a couple of days.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">After nearly a month, CBEC has now amended almost all the above notifications to substitute Kolhapur for Pune -II. It is almost – even now they have left out Notification No. 14/2002-Customs (N.T), DATED : March 7, 2002. Now for one Notification, Pune –II was changed to Kolhapur on 17.4.2009 and for four notifications on 19.5.2009 and for yet another it is not yet changed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In this quixotic situation, Pune – II is Kolhapur under certain situations and remains Pune – II under certain other situations. Some Tribunal Bench is sure to dismiss some Revenue appeals. Law making should be a little more serious business.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2009/cnt09_052.htm" target="_blank">Notification No. 52/2009- Customs ( N.T. )</a></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2009/cnt09_053.htm" target="_blank">Notification No. 53/2009- Customs (N.T.)</a></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2009/exnt09_11.htm" target="_blank">Notification No. 11/2009 Central Excise ( N.T. )</a></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2009/exnt09_12.htm" target="_blank">Notification No. 12 /2009 - Central Excise (N.T)</a></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>All dated May 19, 2009</strong></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">DDT's Dream Cabinet</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now that elections are over, Prime Minister Manmohan Singh and Sonia Gandhi have a tough time in forming the cabinet. For about sixty berths, there are about 275 aspirants. Fortunately MPs from the BJP and the Left are not in the fray. It is going to be really difficult for the duo to make a cabinet satisfying all sections of selfless leaders who are more than willing to shoulder the responsibility to serve the country. Here is DDT's DREAM CABINET for the major portfolios.</font></p>
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<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Pranab Mukherjee </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Deputy Prime Minister – he has no ambition except to become Prime Minister. No ministry would be attractive to him – at least make him Deputy PM. </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sharad Pawar </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sports – was very sportive in realising that the Congress had far too many seats to deny him the Prime Minister ship. And had been the President of the world's richest Sports Body. </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">P. Chidambaram </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Defence – was able to defend his seat in far away Sivaganga against all odds </font></p></td>
</tr>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Kamal Nath </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Finance – should be allowed to implement some of the promises he made as Commerce Minister which Chidambaram had brushed aside with contempt. It will be interesting to see if his views as Commerce Minister will remain intact as Finance Minister. </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Lalu Prasad Yadav </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Commerce – If he could turn round the Railways, maybe he should do it in Commerce too – and his oratory skills in Hindi will go down well with WTO and other international bodies. </font></p></td>
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<td valign="top" width="37"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6 </font></p></td>
<td valign="top" width="161"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Kapil Sibal </font></p></td>
<td valign="top" width="461"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Information and Broadcasting – anyway he had been spending most of his time in TV studios. </font></p></td>
</tr>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Shibu Soren </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Jail Reforms – a new department created to ensure the comforts of the honourable politicians, most of whom will have to spend some time in jails. </font></p></td>
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<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Arjun Singh </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Home – If he is not prepared to leave the cabinet, at least make life a little difficult for him. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Kanimozhi </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">External Affairs – she is Karunanidhi's daughter – let them solve the LTTE issue. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Dayanidhi Maran </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Minister without Portfolio – must be ready to resign whenever Karunanidhi is angry with him. </font></p></td>
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<td valign="top" width="37"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11 </font></p></td>
<td valign="top" width="161"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rahul Gandhi </font></p></td>
<td valign="top" width="461"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If at all he joins the cabinet – Family Welfare </font></p></td>
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<td valign="top" width="37"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12 </font></p></td>
<td valign="top" width="161"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mamta Banerjee </font></p></td>
<td valign="top" width="461"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Industry – rather closing them down – she has vast experience </font></p></td>
</tr>
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<td valign="top" width="37"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">13 </font></p></td>
<td valign="top" width="161"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">AK Antony </font></p></td>
<td valign="top" width="461"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Parliamentary Affairs – This is the only portfolio open for an honest minister. </font></p></td>
</tr>
</table>
</div>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Share your password and get dismissed from service - Frauds resulting from failure to maintain password security – CBEC Instructions</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC sadly notes that on a number of occasions, there have been frauds reported in the various Customs EDI locations involving compromise of password by officers. Such frauds have led to revenue loss of Crores of rupees.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board sadly states:-</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. It is dismaying to notice that instances of password compromise continue to recur with unfailing regularity. It is evident that officers are not taking these instructions seriously, and there is also a failure on part of supervisory officers to effectively monitor the performance of their subordinates.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. The biggest threat to security of an electronic system comes from password compromise and sharing of password.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. In effect, when an officer shares his password with anybody, he has to, without doubt, be regarded as being in collusion in the fraud that results.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. The fact that only a few officers have been punished, and that too, not adequately, for password breach may be an important reason why such breaches continue to recur.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So the Board wants the Chief Commissioners and Commissioners to ensure that all the security related instructions issued by the Directorate of Systems are complied with by all officers including supervising officers, and those violating them are brought to account without loss of time. Further, whenever any case of password compromise comes to the notice, it has to be thoroughly investigated and proceedings for inflicting exemplary punishment under Central Civil Services (Classification, Control and Appeal) Rules, 1965 [CCS (CCA) )Rules] should be undertaken and concluded expeditiously.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board wants it to be made clear that maintenance of password security is the sole and individual responsibility of each officer and any breach will make them liable to disciplinary action resulting even in <strong>dismissal from the Government service</strong>.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/instruction09_004.pdfhttp://www.taxindiaonline.com/RC2/pdfdocs/wnew/instruction09_004.pdf" target="_blank">CBEC Instructions in F.No.401 /77/2009-Cus.III Dated May 15 2009</a></strong></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Enhance exemption Limit by Rs. 50,000/- CII</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The leaders of Confederation of Indian Industries (CII), met the Revenue Secretary and submitted their Budget suggestions.</font></p>
<ul>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">Reintroduction of investment allowance and infrastructure bonds.</font></li>
</ul>
<ul>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">Speedy implementation of the proposed goods and services tax (GST) and rationalisation of other indirect taxes.</font></li>
</ul>
<ul>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> Enhance IT exemption limit to Rs. 2 Lakhs.</font></li>
</ul>
<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">–</font></strong></font><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Thursday's cases</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font><font color="#663399">Central Excise</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6600">CENVAT Credit – Garden Maintenance Service has no nexus, even remotely, to manufacture or clearance of excisable goods, hence cannot be called Input Service – Tribunal</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em><strong>ANY</strong> manufacturer can manufacture excisable goods and clear the same from his factory without maintaining any garden. For this simple reason, it has to be held that garden maintenance services has no nexus, even remotely, to manufacture or clearance of excisable goods. In other words, the above service was not used, directly or indirectly, in relation to the manufacture or clearance of excisable goods.</em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">Income Tax </font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6600">IT – Deduction
under Section 115 JB for MAT companies – 80% deduction under Section
80HHC correct - <em>SYNCOME FORMULATIONS Ltd </em></font></strong><font color="#FF6600"><strong> overruled – High
Court </strong></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> language used in section 115JB is deduction available under section 80 HHC. It is difficult to conceive of any rational reason as to why the legislature should have thought to give MAT companies additional benefits than the other companies who are paying tax on total income and not the tax based on book profit as calculated under section 115JB. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">Customs </font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6600">Confiscation of Gold – Adjudication order not received by the petitioner – appeals dismissed on limitation – Department has not proved that the order was properly served – directed to adjudicate the case on merits – High Court </font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FROM</strong> a reading of Section 27 of the General Clauses Act, 1897, it is clear that the service shall be deemed to be effected, with regard to any document to be served by post, as provided by a Central Act or regulation, by properly addressing, pre-paying and posting by registered post, a letter containing the document. However, nothing has been placed before the Court to show that all the necessary ingredients, as stated above, had been complied with.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">See our columns tomorrow for the judgements</font></strong></font></p>
<p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until tomorrow with more <strong>DDT</strong></font></p>
<p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Day. </font></p>
<p align="justify"><font color="#FF6600" 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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