TIOL-DDT 1235 · 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> <p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1235 </font><br> 12.11.2009 <br> Thursday </strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Going to Bahrain? Don't carry Pan; Display Boards at Airports indicating items banned in Middle-Eastern countries </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> a Public Interest Litigation filed in the Madras High Court in 2006, the High Court had advised the Government, in the interest of the Indian citizens going abroad especially to the Middle-East countries, to put display boards/notice boards in Airports/seaports indicating items banned in these countries like Khas Khas (Poppy seeds), to avoid criminal prosecution of Indian nationals visiting Middle-East countries.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBEC states,</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Poppy seeds (commonly known as ‘Khas Khas') is classifiable under Tariff Item 1207 91 00 of the First Schedule to the Tariff Act, 1975. Its import into the country is subjected to certain conditions imposed by the DGFT to ensure that these have been grown legally in exporting country as per requirements of International Narcotics Control Board. Further, imports are also allowed only against registration with the Narcotics Commissioner prior to import and is subject to Plant Quarantine requirements. Similarly, many countries have prohibited / restricted import of Poppy Seeds (Khas Khas) into their countries. Import of Indian Pan and derivative is prohibited for import in the Kingdom of Bahrain for the reason to preserve its environment. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So the Board has directed that at prominent places at airports/seaports where the passengers depart, to put display boards/notice boards mentioning the items that are banned in Middle-Eastern countries but are of common use which the departing passengers may carry in his baggage. The ‘Khas Khas' and ‘Indian Pan and derivative' may be specifically mentioned as these are commonly used by general public in India but are prohibited in the Middle – East countries. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board wants the Commissioners and Chief Commissioners to do the needful at the earliest.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In fact this should have been done long ago – at least when the Government got the notice from the High Court in 2006. As they say, better late than never.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In fact the Customs should be doing this for all countries. Maybe the Indian Customs officers should be for training with the Customs Departments of the top twenty countries that Indians usually go to and then they can be posted as Customs counsellors for those countries at our airports.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An innocent but indecent pan chewing Indian getting arrested in Bahrain is a national shame.</font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2009/instruction09_009.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC Letter in F.No.520/42/2009-Cus.VI Dated November 11, 2009</strong></font></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Don't post CIT(A) as DR in ITAT – CBDT tells Chief Commissioners </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There is a huge pendency of 158,031 appeals with CsIT(A) to be disposed of during the current financial year. As per Central Action Plan, each CIT(A) is required to give a monthly disposal of 60 units. The Member (A & J), vide his DO letter dated 30th September, 2009 has directed all CITs to ensure disposal of appeals as per the said norms so that it may help in facilitating the collection of taxes involved in the appeals.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has learnt that one of the constraints with CsIT(A) in discharge of their functions is frequent posting in ITAT on rotational basis. <strong><font color="#663399">In principle, it is not a correct practice since ITAT is a body deciding appeals against the orders of the CIT(A).</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So Board has requested Chief Commissioners of Income Tax that CIT(A) should not be assigned the duties of CIT(DR) in ITAT on rotational basis.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board also wants the Chief commissioners to advise their Commissioners (Appeals) not to call for remand reports from the assessing officers in routine cases as it over burdens the A.Os and delays the appellate proceedings. The remand reports should normally be called in those cases where new facts or new evidence is brought in by assessee or where the CIT(A), in view of the peculiar facts and circumstances of the case, wants a particular aspect to be examined by the A.O. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/ITAT.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT Letter in F.No. 279/Misc 65/2009-ITJ Dated October 29, 2009 </strong></font></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs - New Ports added to list of eligible ports</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Several Customs Notifications specify the ports/ICDs through which imports and exports can take place. Now Talegoan(District Pune), Dhannad Rau (District Indore), Kheda (Pithampur, District Dhar) and Patli (Gurgaon), are added to the list. 31 Notifications are amended.</font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2009/ctariff09_123.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOTIFICATION NO. 123/2009-CUSTOMS Dated: November 11, 2009</strong></font></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Common Adjudicators appointed for DRI cases </strong></font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has appointed common Adjudicating Authorities for adjudicating certain DRI cases.</font></p> <p><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_166.htm" target="_blank">NOTIFICATION NO. 166,</a> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2009/cnt09_167.htm" target="_blank">167,</a> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2009/cnt09_168.htm" target="_blank">168,</a> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2009/cnt09_169.htm" target="_blank">169,</a> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2009/cnt09_170.htm" target="_blank">170,</a> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2009/cnt09_171.htm" target="_blank">171</a> - <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2009/cnt09_172.htm" target="_blank">172/2009-CUSTOMS (N.T.) Dated: November 10, 2009</a></strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PSU Oil Companies – favourite whipping boys for Central Excise Department </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Many of the Oil Refineries are situated in small towns and they are the major source of income, litigation and facilities for the Central Excise Department. A senior officer in Cochin Commissionerate told me that the Refinery in Cochin is the only real industry in Kerala and it is the batting ground for all and sundry. If you need a case, if you need a car, if you need a guest house, if you need an audit para, if you need to meet your Revenue target – well there is the refinery at Cochin!</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In Vizag, there is the HPCL Refinery – top officers visiting Vizag stay in their Guest House and the major cases are against the Refinery. When they don't pay up the huge demands of Crores of rupees that the Demand raises, one plan of action suggested in all meetings in the Department is to seize the GM's car. An Intelligence officer who thought that all problems could be solved by seizing the car which could be worth Crores of rupees, found to his dismay that the GM was driving round in an old Ambassador car that will not fetch more than two lakhs of rupees.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There are any number of consultants who became rich representing these Oil Companies in litigation that could have been easily avoided if two Secretaries of the Government could sit together and sort out the difference.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tomorrow we bring you a case where a PSU Oil Company was stuck with a demand of over a Hundred Crores with an equal amount of penalty. Who wins in litigation between PSUs and Central Excise Department? Consultants of course!</font></p> <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"> – Friday's cases</font></strong></font></strong></font></p> <p><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" 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color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">Import Parity Price between Oil Marketing Companies only a notional price and has no relationship with actual selling price to independent buyers, not to be regarded as transaction value –mighty blow to Oil Marketing Companies – Duty demand of Rs. 119 Crores and equal mandatory penalty against BPCL upheld - CESTAT </font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Even if there was a direction from the Government, the Oil Company was required to follow Section 4 of the Central Excise Act. Penalty on PSU justified. </font></p> <p><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 – Stay of Penalty – when High Court had granted conditional stay, same proceedings cannot continue in Tribunal – Stay petition dismissed after 18 years – ITAT by majority </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The stay application was pending for 18 years and was referred to a Third Member. Even on the questions to be referred there was difference of opinion; so both the Members referred separate questions. <strong>Somewhere during the pendency of the proceedings, the Assessee applicant died. Stay application is dismissed. Appeal is still alive though appellant is dead! </strong></font></p> <p align="justify"><font color="#663399" 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>Service Tax - Tax on Services rendered as agent of RBI – prima facie, not taxable – Rs. 12 Crores Demand against Canara Bank stayed - CESTAT </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Service tax being an indirect tax, the impugned tax is a liability borne ultimately by the customers of the bank. In this case, departments of union govt are the clients of the RBI. Therefore the exemption from tax on the activity exempt when undertaken by the RBI need not be levied when the same activity is undertaken by another bank as its agent. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Tribunal found that the applicant bank has made out a strong <em>prima facie </em> case against the demand of tax, interest penalties imposed on them. So it ordered waiver of pre-deposit and stay recovery of the dues, pending decision in the appeal. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow for the judgements </font></strong></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT </strong></font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day. </font></p> <p align="justify"><font color="#FF6666" 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>