TIOL-DDT 1241 · 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 1241 </font><br> 20.11.2009 <br> Friday </strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Import of Metallic Waste and Scrap – DGFT makes minor amendments</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> DGFT had made some minor amendments in the Handbook of Procedures – para 2.32. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">One of the conditions was that the importer shall produce, </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Pre-shipment inspection certificate as per the format in Annexure I to Appendix 5 from any of the Inspection & Certification agencies given in Appendix-5 to the effect<font color="#FF6633"> <strong>that the consignment does not contain radioactive contaminated material in any form;</strong></font><strong> </strong></em></font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now this is changed to: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Pre-shipment inspection certificate as per the format in Annexure-I to Appendix 5, from any of the Inspection & Certification agencies given in Appendix-5, to the effect<font color="#FF6633"> <strong>that the consignment was checked for radiation level and scrap does not contain radiation level (gamma and neutron) in excess of natural background. The certificate shall give the value of background radiation level at that place as also the maximum radiation level on the scrap; </strong></font></em></font></p> </blockquote> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2009/dgft09pn017.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT Public Notice No. 17/2009-2014, Dated: November 12, 2009 </strong></font></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Prof. Kaushik Basu appointed Chief Economic Advisor </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Kaushik Basu, Professor of Economics, Cornell University, USA, has been appointed as Chief Economic Advisor in the Finance Ministry in the rank of Secretary and will report to the FM. Prof. Basu is likely to join mid December taking a two year leave from Cornell University. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Prof. Basu has an impressive CV, with a PhD from the London School of Economics and having been a visiting Professor at MIT, Harvard and Princeton apart from working in Delhi School of Economics and Indian Statistical Institute. Basu was awarded the coveted Padma Bhushan in 2008, at the same time that our Finance Minister Pranab Babu was awarded the Padma Vibhushan. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Basu has absolutely no experience in babudom, but with a leading economist leading the country, Basu can certainly feel comfortable – at least let us hope so. Let us also hope Prof. Basu advises the Government only in matters relating to the Economy and not promotion of Chief Commissioners. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Prof Basu will play a key role in the next ‘economic survey' and Budget 2010 and perhaps the GST. </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Dui-Doku – Two-player variant of Sudoku </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Apart from being a brilliant Economics Professor, Kaushik Basu is credited with creating a game called Dui-doku. The reason for this he says is, “I have wasted a lot of time on Sudoku and so developed the game of Dui-doku to help double the wastage of time by drawing two persons at a time into it.” </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Why the name - Dui-doku? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Basu says, “because this is a two-player game, <em>‘dui' or ‘dvi'</em> in Sanskrit means two, and all such games are considered to be of no value unless they have a mysterious oriental name.” </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He said that it clearly falls in the category of games for which <em>Zermelo's theorem </em> applies. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In <strong><font color="#663399">game theory</font></strong>, Zermelo's theorem , named after Ernst Zermelo, says that in any finite two-person game of perfect information in which the players move alternatively and in which chance does not affect the decision making process, if the game cannot end in a draw, then one of the two players must have a winning strategy. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So it must be that in a Dui-doku one of the following is true: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) The first-mover can always ensure a win, </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) the second-mover can always ensure a win, and </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) both players can always ensure a draw. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But which of these is true? Prof. Basu has no answer. He wants the players to find out. One thing is sure – babus in North Block cannot play games with Basu – except of course <strong>DUI-DOKU! </strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>State of Civil Services Report : Online Survey</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Department of Administrative Reforms and Public Grievances, Government of India, have commissioned an on line survey of officers belonging to ten civil services including those from the IRS. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While such surveys of civil servants take place periodically in some countries viz. Australia, U.K. and the USA, this is the first time that such a survey of civil servants is taking place in India. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The purpose of the Survey is to obtain data on the structural and personnel aspects of the civil services in general and also each of the specified services which would <em>enable the government and the policy makers to assess the enabling factors with respect to personnel policies and work environment in meeting the objectives of the civil services </em>. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Survey is being conducted by the Centre for Good Governance (CGG), Hyderabad, an autonomous body established by the Government of Andhra Pradesh in 2003 to further the governance reform process. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CGG has been selected by the DARPG for carrying out this survey that includes Income Tax and Customs & Central Excise Departments. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This survey is very important as it would provide valuable feedback on various issues affecting the Service and would also provide Government an opportunity to improve the conditions of Service taking the feedback into consideration. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBDT has requested its officers to fill in the questionnaire as soon as possible, in any case before 30 th November 2009. What about CBEC? </font></p> <p><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/onlinesurvey.pdf" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT F.No. HRD/CM/SCSR/DARPG/2009-10/1041 Dated: November 19, 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"> – Monday'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" 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="#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, 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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>When Show Cause Notice does not allege suppression, imposition of penalty u/s 11AC of the CEA, 1944 is ruled out – CESTAT </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The short facts are that the assessee who is engaged in the manufacture of BOPP films and had exported some consignments had to import the same due to rejection by the consignee. They followed the provisions of Rule 16 of CER, 2002 inasmuch as the CVD paid on import was taken as Cenvat credit. These goods were later cleared to the domestic market after subjecting them to the process of slitting lengthwise/widthwise and the waste generated was also used for manufacture of finished goods. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The long and short of the story is that the entire process resulted in short payment of Central Excise duty to the extent of Rs.3.82 lakhs vis-à-vis the credit of CVD availed on the re-imported BOPP films. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When this fact was made known to the assessee they promptly agreed to the lapse and paid the amount of Rs.3.82 lakhs. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However, the Revenue viewed this as a serious affair and in a show cause notice after pointing out the violations of rule 6 and rule 16 of the CER, 2002 invoked the provisions of section 11A of the CEA, 1944 for recovery and adjustment of the amount already paid. Nonetheless, interest provisions under section 11AB, penal provisions under section 11AC of the CEA, 1944 read with rule 25 of CER, 2002 and rule 15 of the CCR, 2002 were also brought into the picture. </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>The prescription of sec.43B (<em>Certain deductions to be only on actual payment</em>.) can be invoked only if assessee claims deduction from taxable income. – ITAT by majority </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Since the assessee has not reduced its profits by making deduction/allowance of the customs duty from the taxable profits, the provisions of sec.43B cannot be applied. The basic fact that entire amount was not claimed as deduction, was not considered by the Assessing Officer. When the amount is not claimed, there is no question of applying the prescription of sec.43B. </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>Offence – Bail - an order granting bail cannot be disturbed except for compelling reasons– High Court </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A bail would normally be cancelled if the accused tries to interfere with the course of justice by influencing the witnesses or he evades the process of the Court by remaining absent during investigation or otherwise tries to abuse the concession of bail granted to him. But, an order granting bail cannot be disturbed except for compelling reasons and the superior Court ought to interfere only in a case where gross injustice has been done on account of grant of bail. The superior Court will not be justified in setting aside an order of bail merely because had it been the Court concerned, it would not have granted bail in the case before it. The petitioner seeking cancellation of bail or setting aside of an order granting bail must make out a strong case and must show that the order granting bail was manifestly illegal, unjust or improper. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Monday for the judgements </font></strong></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more <strong>DDT</strong> </font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Weekend. </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>