TIOL-DDT 1239 · 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><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1239 </font><br> 18.11.2009 <br> Wednesday </strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise and Income Tax Inspectors to get higher pay from 1.1.2006 </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> VI Pay Commission had created several anomalies in the status and pay structures. The Inspectors of Central Excise and Income Tax, Administrative Officers, Private Secretaries and Tax Assistants were all bunched into one scale - PB2 with a grade pay of Rs. 4200/-. The Inspectors have already given a Strike Notice on 26/11/2009. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the Government has decided to rectify this anomaly by giving them a Grade pay of Rs. 4600/- with effect from 1.1.2006 corresponding to the old scale of 7450 – 11500. Inspectors can celebrate for they are going to get the entire arrears in one go immediately. A cool Rs. 25,000 at least. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=pitara/6th_pay_commission/office_memorandum_41.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Department of Expenditure OM in F. No. 1/1/2008-IC Dated: November 13, 2009 </strong></font></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>But They are Going on Strike</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Income Tax Employees Federation, All India Central Excise Inspectors' Association and All India Customs Preventive Services Federation have given notice to the Government that they will go on a one day strike on 26/11/2009 – any significance for the day? </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Their Demands include: </font></p> <blockquote> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Grade pay of Rs. 4600/- to Inspectors, Private Secretaries and Administrative Officers. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Reimbursement of Mobile phone charges. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Laptops for all Gazetted Officers. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Fill up the vacant posts. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Desktop computers to all Group C employees. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Stop vindictive actions. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The demands seem to be genuine and will not really cost the government much and will certainly enhance quality, having already granted the main demand of pay hike. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBDT has written a letter to all Chief Commissioners and DGs about the strike. Board has brought to their notice that as a result of constant follow-up, the pay hike was granted to the Inspectors. The Board has always considered the genuine demands of the employees quite sympathetically and have endeavoured to take sincere steps to address their grievances. While that being so, the Board does not want to tolerate indiscipline in the form of strike. So Board wants the Chief Commissioners and DGs to deal with the situation firmly and effectively and to ensure discipline in the offices. Board also wants them to work out suitable contingency plan to carry out essential and urgent functions. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maybe the officers should be happy with the pay hike and call off the strike and pursue the other demands without resorting to strike. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/notice_strike.pdf" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT Letter F No. B-12020/10/2009 – AdIX Dated: November 17, 2009 </strong></font></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Austerity Measure of Government – Parliament Question</strong></font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An Hon'ble MP had asked a question:- </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Will the Minister of Finance be pleased to state: </font></p> <blockquote> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a. Whether the Government has started any austerity drive and fixed target to reduce their expenditure; </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b. If so, the details thereof; </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c. The amount of money saved as a result so far. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">d. Whether Government departments including Ministry of Finance are purchasing stationery and general use items at higher rates and even higher than MRP causing avoidable financial loss to the government </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">e. Whether Government/ Central Vigilance Commission has received complaints in this regard and if so, the details thereof and the action taken thereon, and </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">f. Whether stationery and general use items are available in Kendriya Bhandar at cheaper rates than the market rates and if so, steps taken to direct Government departments to procure their requirement from them to bring austerity in Government expenditure? </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now this question is admitted for reply on 20.11.2009. The CBDT has written a letter to all the Chief Commissioners and DGs yesterday asking for a reply yesterday itself. You can guess what kind of replies the Chief Commissioners must have sent in the few hours they had for sending their replies. To be fair to CBDT, it appears that they got the questions only on 16.11.2009! </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RTGS System - Government Receipts </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Reserve Bank of India has taken a series of initiatives in the recent past to facilitate electronic mode of funds transfers as a result of which the volume processed in RTGS and NEFT systems have grown substantially. It is observed that of late, certain banks have been accepting receipts to Government accounts through RTGS. However, banks are not following a uniform practice while facilitating such transactions. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI instructs: </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per the extant Government rules, only accredited banks are permitted to receive payments to Government and every credit to the Government account needs to be supported by a Challan. The RTGS message transfer platform is designed to carry only funds transfer messages and not challan. The receiving bank therefore is not in a position to afford credit to the Government account in the absence of the challan accompanying the message in RTGS. This often results in transactions getting returned. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In order to facilitate Government receipts through RTGS it has been decided that participants originating Government transactions in RTGS can do so only when the receiving bank is in agreement with the sending bank to receive funds. In case it is bilaterally decided to undertake such a funds transfer in RTGS, banks have to use the interbank mode R 42 for such transfers. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RTGS participants may note that this is an interim arrangement and would continue till such time the procedure followed for Government receipts is fine tuned with RTGS frame work. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The bank originating the transaction must capture complete information of the sender and receiver in the message format in conformity with Wire Transfer guidelines. The message may carry additional information if required by the receiving bank in field tag 7495. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise, Service Tax, Income tax Departments – are you aware of this? </font></p> <p><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/rbi_notification.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RBI/2009-10/226 DPSS (CO) RTGS No. 991 / 04.04.002 / 2009 – 2010 November 17, 2009 </strong></font></a></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"> – Thursday's cases</font></strong></font></strong></font></p> <p><font color="#660099" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" 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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="#660099" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font 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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>Common cenvatted inputs used for job work – no cause for payment of any amount under rule 6(3)(b) of CCR, 2004 – LB decision in Sterlite Industries clearly applies – job worked goods cleared to 100% EOU – rule 6(3)(b) of CCR, 2004 not applicable – CESTAT </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">IF you want to know as to how high Revenue cases are booked and confirmed and also dropped only to be appealed against by the Department, here is a classic case. The show cause notice also merrily shuttles between two diagonally opposite arguments but in the end demands Central Excise duty. <em>Sadly enough for the Revenue, the end result is a big Zero in their accounts. </em></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>When opinion of AO was plausible, merely because the CIT was of different opinion could not be a ground to pass an order under Section 263 of Act – AO had passed rectification order even before CIT's Revision order – Revenue takes frivolous appeal to High Court - ends up paying costs of Rs. 25,000: </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the facts of the present appeal, it is not even necessary to into this question inasmuch as even as per the revisional order passed by the CIT under Section 263 of the Act, the benefit under Section 80-IA should have been restricted to Rs. 1962.55 lacs, which had been done by the AO by passing rectification order under Section 154 of the Act. Appeal dismissed with costs quantified at Rs.25,000 </font></p> <p align="justify"><font color="#663399" 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>Attachment of property – At the time of receipt of advance for property, even Department not aware of fraud – Property not attachable – High Court </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If the money cannot be attached, the property which belongs to the respondent who is not a defaulter cannot be attached. The matter is self-evident. The issue has been pending in this Court since 2003. The property admittedly belongs to the respondent and would not be the subject matter of attachment under section 142(1)(c)(ii) on that. </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>