TIOL-DDT 1124 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#660099" size="3">TIOL-DDT 1124 </font><br>
03.06.2009 <br>
Wednesday </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ITAT - The Bench shall Pronounce the Order! – Deemed Pronouncement</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Rule 34 of the Income-tax (Appellate Tribunal) Rules, 1963, </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(1) The order of the Bench shall be in writing and shall be signed and dated by the Members constituting it. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(2) The Members constituting the Bench or, in the event of their absence by retirement or otherwise, the Vice-President, Senior Vice-President or the President may mark an order as fit for publication. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(3) Where a case is referred under sub-section (4) of section 255, the order of the Member or Members to whom it is referred shall be signed and dated by him or them, as the case may be. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><em>(4) The Bench shall pronounce its orders in the Court. </em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(5) The pronouncement may be in any of the following manners : - </em></font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(</em>a<em>) The Bench may pronounce the order immediately upon the conclusion of the hearing. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(</em>b<em>) In case where the order is not pronounced immediately on the conclusion of the hearing, the Bench shall give a date for pronouncement. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(</em>c<em>) In a case where no date of pronouncement is given by the Bench, every endeavour shall be made by the Bench to pronounce the order within 60 days from the date on which the hearing of the case was concluded but, where it is not practicable so to do on the ground of exceptional and extraordinary circumstances of the case, the Bench shall fix a future day for pronouncement of the order, and such date shall not ordinarily be a day beyond a further period of 30 days and due notice of the day so fixed shall be given on the notice board. </em></font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(6) The order of the Bench shall ordinarily be pronounced by the Members who heard the appeal. However, if the said Members or any of them is or are not available for pronouncement for any reason, then the order will be pronounced by such Member or Members as may be nominated by the President, Senior Vice-President, Vice-President, or Senior Member, as the case may be. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(7) In the case where the order is ready in every respect and can be made available to the parties, the Bench may advance the date of pronouncement and put this information on the notice board and the order shall be pronounced accordingly. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(8) In a case where the order cannot be pronounced on the date given, the date of pronouncement may be deferred, subject to sub-rule (5)(</em>c<em>) above, to a further date and information thereof shall be given on the notice board. </em></font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the sub-rule (4) is amended by adding the following:- </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"However, where the Bench is not functioning or for any other good reason the pronouncement of order in the Court is not possible or practicable, a list of such order(s) shall be prepared duly signed by the Members showing the result of the appeal and the same would be put on the Notice Board of the Bench and it shall be deemed pronouncement of the order." </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/ITAT_rules20_2009.htm" target="_blank">ITAT Notification Dated June 1, 2009 </a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Anti Dumping Duty on Cold Rolled Flat Products of Stainless Steel – Notification amended </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Provisional Anti Dumping Duty on Cold Rolled Flat Products of Stainless Steel originating in, or exported from, China PR, Japan, Korea, European Union, South Africa, Taiwan (Chinese Taipei), Thailand and USA, was imposed by Notification No. 38/2009-Customs dated 22 nd April, 2009. Now the Government has amended this notification to bring in certain changes regarding the country of export. </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=wnew/ctariff.htm" target="_blank">Notification NO. 56/ 2009- Cus ., Dated: May 30, 2009 </a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Huge Seizure of Scotch and Pure Heroin by Delhi DRI </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On 2nd June, 2009, Delhi Zonal Unit of DRI unearthed the biggest fraud of its kind when it detected 501 cartons of premium brands of scotch (like Blue Label) concealed in a container declared to contain food stuff and beverages at ICD Tughlakhabad and imported from Singapore. Value of seized scotch may be worth a few Crores. Within hours of this seizure, DZU intercepted a consignment of over 26 kgs of pure heroin along with over 25000 dollars in cash in Delhi </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is perhaps the parting shot of ADG , DRI , Delhi, Dr. DD Rishi who is under orders of transfer. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Clarification on applicability of Narcotics Drug and Psychotropic Substances Act – Out of India? </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Clarifications have been sought on the applicability of Narcotics Drug and Psychotropic Substances Act in SEZs . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Department of Commerce has clarified that:- </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“Export from India” means to take out to a place outside India and “to import to India” means to bring into India from a place outside India. The DTA and SEZ both being in India itself, export authorization and import authorization from Central Bureau of Narcotics is required only for movement of Active Pharmaceutical Ingredients (API) goods from SEZ to out of India, from out of India into SEZ and for sale in DTA . </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Will this have any effect on the export duty on goods cleared to SEZ ? </strong></font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=260&filename=sez/sez_instructions/2006/sez09ins012.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Department of Commerce Instruction No. 12 Dated: June 01, 2009 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Presentation of Apparel Export Promotion Council to the FM </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In its representation before the Finance Minister yesterday, the Apparel Export Promotion Council submitted </font></p>
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> ++ This is for the first time that a face to face meeting with Finance Minister has been called by the Ministry. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> ++ Apparel export sector is the 2nd largest employment provider sector after Agriculture, which employs 39 lacs workers directly and around 31 lacs workers indirectly. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> ++ China employs 65 million people with apparel exports of around USD 23 bn. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> ++ India exports around 250 crore pieces of garments in a year. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> ++ The current global scenario is not good. US imports of RMGs decrease by 10.48% in Jan-March 09; Canada imported 1.69% less in Feb, 2009. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">++ In 2008, Estimated Global Apparel Trade – USD373 bn </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> ++ India's exports – USD10 bn (2008-09) </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> ++ %age share – 2.6% </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">++ Last year, garment exports were USD 9.67 bn which accounted for 2.8% world share. Now with export exceeding USD 10 bn , the share has gone down to 2.6% </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> ++ There is a global growth but India is lagging behind. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">++ Apparel export sector offers employment opportunities to under-privilege class. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> ++ As per approach paper for 12 Five Year Plan period, 1.7crore new jobs would be created in Textile and Clothing sector. Workers migrating from Agriculture t o non-agriculture sector would find apparel export sector, the only sector which can absorb them quickly. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> ++ In 2015, expected global apparel trade– USD692 bn </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">++ India must achieve USD18 bn to retain the share of 2.6%. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> ++ This is moderate growth scenario. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">++ There is a continuous decline of exports since September 2008. In the month of Apr, 09, the decline is around 8%. This is against 32% growth achieved in April 08 when compared to Apr 07. Therefore, the decline when compared to Apr 07 to Apr 09, is around 40%. (We lost 32% growth and slided down by 8%. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"><strong><u>++ Performance of competitors </u></strong><u>: <strong>Their exports to US</strong></u><strong> </strong>: China USD23 bn , Bangladesh USD 3.4 bn ; Indonesia USD 4 bn ; Vietnam USD5.2 bn [ India USD3.07 bn ] </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">++ Overall, Vietnam is growing @5% , Bangladesh is growing @13%. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> ++ Bangladesh achieved USD 9.22 bn in July March 2008-09 with 19.93% growth & is poised to grow beyond USD 11 bn in full year. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"><u><strong>++ Disabilities in India </strong></u> –power cost for US cents 4 per kilowatt hr whereas US cents 10 per kwh in India (250% higher than Egypt) non-refund of states taxes (6%). </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"><strong><u>++ We need to target :</u> </strong>USD18 bn exports by 2015, Investment of Rs.143000 crores , additional sewing machinery installation by 18.44 lacs and 27 lacs new jobs. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"><strong><u>++ Short term recommendations</u> </strong> (a) to increase drawback at the rate of 14.61% on f.o.b. value of exports w.e.f . Sept 08 from the current level of 8% (b) restoration of section 80 HHC of IT Act (c) removal of FBT . </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"><strong><u>++ Long term recommendations:</u></strong></font> </p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) Budgetary allocation for product development </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) 50% capital subsidy for garment machines </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) greater funds for TUF </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) additional interest subvention of 4% to apparel industry </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(e) moratorium of two years for repayment of principal amount against term loan </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(f) PLR for T&C industry should be pegged at 2% tower than PLR </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(g) exemption of CVD on garment machinery </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(h) exemption of custom duties on industrial garment machines, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Financial support for undertaking research and development activities (Pakistan had announced withdrawal of their export incentive scheme by way of R&D assistance. The R&D assistance at 6% has now been reintroduced for garments & China has increased the refund of VAT from 11 to 13% on exports; Financial support for subsidizing power and labour cost. </font></p>
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<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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">– Wednesday's cases</font></strong></font></strong></font></p>
<p align="justify"><font color="#660099" 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 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></strong></font></strong></font>Income Tax </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Laptops of Auditors seized during search of an assessee – Income Tax Department cannot force auditors to part with information of other parties stored in computers: Delhi HC </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>present writ petition has been filed by the Petitioner, S.R. Batliboi & Co., reputed Auditors and Accountants against the Department of Income Tax entreating the issuance of an appropriate writ to prevent the Respondents from forcibly gaining or securing access to the data contained in two laptops belonging to them. </font></p>
<p align="justify"><font color="#660099" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CESTAT – reference to Third Member or Larger Bench – exclusive prerogative of President – can Service tax be recovered from GTA for the period November 1997 to June 1998 by notices issued after three years? Issue referred to Larger Bench – CESTAT President. </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is obvious that it is the prerogative of the President either to refer the matter to third Member or constitute a larger Bench in case of such difference of opinion or hear the matter himself and thereafter the majority of the opinion to form the decision. </font></p>
<p align="justify"><font color="#660099" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Advance licence obtained by false statement that the importer had a factory when he had none – confiscation and penalty upheld: Madras HC </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The importer made a false statement for the purpose of securing an advance license with Actual User Condition. The fact that the time within which he had to discharge his obligation has not come to an end, does not advance the case of the importer. The basis for his discharge of the export obligation is existence of a factory. The basis does not exist, the address given is a false address, so the whole edifice falls. The fact that the importer could affect his export obligation through job workers and the existence of a factory is not a sine quo non , does not advance his case either. The importer claimed he had a factory when he had none. So, whether he could have completed the manufacture otherwise hardly matters. Having made such a false declaration and obtained a license, the importer cannot be permitted to now say that the imported material is freely importable under OGL and therefore should be allowed to be cleared on merit rate. The license having been secured by adopting fraudulent method would not confer any right on the importer and as such he cannot be allowed to plead any equity. </font></p>
<p align="justify"><strong><font color="#660099" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns tomorrow for the judgements </font></strong></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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