TIOL-DDT 1429 · 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="justify"><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1429 </font><font size="3"></font><font size="2"><br> </font></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>24.08.2010 <br> </strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Tuesday </strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Definitive Anti Dumping Duty on Coumarin </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PROVISIONAL</strong> Anti Dumping Duty was imposed on Coumarin originating in, or exported from, People's Republic of China, vide Notification No. 38/2010 – Cus dated 23.03.2010. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Designated Authority in his final findings had recommended the imposition of definitive anti-dumping duty on imports of the subject goods. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Therefore the Government has now imposed anti dumping duty on the goods for a period of five years from the date of imposition of the provisional anti-dumping duty, that is, 23 rd March, 2010. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Provisional Anti Dumping Duty would have lapsed on 23.09.2010 and for a change the Government has woken up well within time to impose the definitive anti dumping duty without waiting for the provisional duty to lapse. We heartily congratulate them for this. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Consequently No. 38/2010-Customs, dated the 23 rd March, 2010, is rescinded. </font></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_082.htm" target="_blank">Notification No.82/2010-Cus., Dated: August 20, 2010</a> and <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_083.htm" target="_blank">Notification No.83/2010-Cus., Dated: August 20, 2010 </a></font></strong></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Joint Monitoring of EOUs </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>a)<strong> THE </strong>p</em>erformance of EOUs would be reviewed by on six monthly basis. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) Review of NFE of EOUs would be conducted by the Unit Approval Committee. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c) For publicizing the scheme, advertisement in the local papers may be arranged before the date of such meetings. Promotion programmes may be organized in collaboration with local industry, Association or any other organization, which has good presence in the area. General Manager of District Industries Center may be associated. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">d) For each existing unit, review should be done at length to understand their problems and their possible resolution. Efforts should be made to identify the reasons for shortfall/poor performance and unit-wise action plan should be prepared for removal of bottlenecks. It should be ensured that the unit should have an export promotion strategy as well tentative targets for next few years, so that it has an idea as to what is to be achieved by them. Effective action should be taken against erring units to discourage any misuse of the scheme. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">e) For units under implementation, separate review be held so that their issues could be resolved. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">f) At such places, if any infrastructure gaps are noticed, District Administration may be advised to prepare projects, which can be routed through State Government to the Ministry for approval under Scheme for central Assistance for Developing export infrastructure and other allied activities (ASIDE). </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">g) Based on the joint review Development commissioner concerned would prepare a report for information of the Department of Commerce and CBEC and suggest corrective measures to enable the de<em>faulting units to fulfill their obligation as per EOU Scheme/Customs Notification. </em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT has amended the Handbook of Procedures to stipulate the above. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2010/dgft10pn004.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT Public Notice No. 4/(RE2010)/2009-14, Dated: August 23, 2010 </strong> </font></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Annual Supplement to FTP 2009-14 </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>COMMERCE </strong>Minister, Anand Sharma yesterday released the first annual supplement to the Foreign Trade Policy. The Minister said that the immediate objective of the FTP 09-14, was to arrest and reverse the declining trend of exports and he happily adds, “We can look back with a sense of satisfaction and now claim with humility that the immediate objectives of the policy were realized. The decline in exports was arrested. And, the trend was reversed. Clearly, our steps were in the right direction.” </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Contempt For Tribunal </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THIS </strong>is what most of the Commissioners in the field have – yes, undiluted contempt for the Tribunals. One good reason for this callous contempt might be the knowledge that they will not be hauled up for contempt. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Some years ago, the CESTAT in frustration suggested closure of the Tribunal if its orders are not to be implemented.</font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><em>[<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=28&filename=legal/cestat/2006/2006-TIOL-784-CESTAT-KOL.htm" target="_blank"> <strong>2006-TIOL-784-CESTAT-KOL</strong></a><strong> and<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=28&filename=legal/cestat/2006/2006-TIOL-785-CESTAT-MUM.htm" target="_blank"> 2006-TIOL-785-CESTAT-MUM</a></strong>]</em></font> </p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Judicial discipline, as reiterated by the highest courts of the land, requires unquestioned obedience of the higher authorities, but this principle does not find favour with our bureaucrats and they have been flouting the orders of the Tribunal with impunity. And most often with the helpless Tribunal watching in glorious isolation! </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Within two years of the establishment of the CESTAT, the Tribunal was confronted with this problem of disobedience of its orders when it had to consider the case of an Assistant Collector who did not release the goods as ordered by the Tribunal. In an affidavit filed with the Tribunal, the AC, stated, “My action in not releasing the goods was totally due to my bona fide understanding of the correct legal position…” </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Tribunal considered the following questions. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Whether the Assistant collector disobeyed the order of the Tribunal? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. If so, was there justification for disobeying the order? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Can justification be pleaded as defence? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Is disobedience if any wanton and deliberate? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. To what action is the Assistant Collector liable? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And the Tribunal came to the conclusion that </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Disobedience is established. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. There was no justification </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Even if there was justification, it can not be a defence. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Disobedience is not casual or unintentional. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Proper course is to <strong><font color="#FF6633">initiate contempt proceedings </font></strong>, but it is refrained as “immaturity, lack of experience and non realisation of the consequences of disobedience could have been the reason rather than arrogance and power drunkenness.” </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Tribunal in that case observed, <strong><font color="#FF6633">" </font></strong><strong><font color="#FF6633">When sanctity is attached to established Courts and Tribunals it follows as a corollary that all orders emanating from these Public Institutions should be respected and strictly complied with. The order must be implicitly observed, every diligence must be exercised to obey. The welfare of the people can be attained only when there is justice administered lawfully, judicially without fear or favour and those that are responsible for administration of such justice, and those seek justice as parties and those who help in the administration of justice have to be protected from insults, annoyance or even obstructions. Administration of justice can not be effective unless respect for it is fostered and maintained. Interference with it shakes the very pillar of the administration of justice and the confidence of the people in courts, which is of a prime importance to the litigants in their struggle for the protection of their rights and liberties. No Tribunal can function properly unless it is allowed to keep its dignity, and unless it has power to enforce discipline and respect in its administration of justice. ... The Assistant Collector would do well to remember that in disobeying the order of the Tribunal, she has not only attempted to undermine the authority of the institution established by law but has brought disrepute to the department." </font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Words with so much of sound and fury apparently signifying nothing for the disobedient officers! The young AC who had the audacity to overrule the Tribunal has <strong><font color="#FF6633">matured </font></strong> into a senior Commissioner and so must have contempt for the Tribunal. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For the last more than two decades there have been several occasions when the Tribunal threatened officers with contempt proceedings, but there was hardly any occasion when the threat became real. Commissioners are routinely warned that if they do not implement, contempt proceedings will be initiated, but they know only too well that nothing is going to happen. So when a Commissioner is asked to personally appear before the Tribunal and explain why he disobeyed the Tribunal, he just does not bother to attend, but the same Commissioner would use all the force at his command to ensure the attendance of someone whom he summons. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We have to obey the Tribunals not because they are right but because they are a higher appellate authority and if every one has the option to obey or not to obey, the very existence of the Tribunals will become futile. As the tribunal held long ago, <strong><font color="#FF6633">justification is no ground for disobedience</font>. </strong>The Tribunal's order may be wrong; it might have been passed by somebody whose knowledge you personally know to be poor; it may lead to undesirable consequences; it may result in revenue loss, but, but the Tribunal is constituted under the law for a specific purpose and you have no business to sit in judgement over the Tribunal's judgement – you are bound by it and obey, you shall without any reservations. You have options like appeal but disobedience is not an option. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is not as if the Board wants commissioners to disobey the tribunal orders. It is only the overzealous commissioners, who on their own flout the orders of the Tribunal. In Circular No. 53/90 Board told the Commissioners, <em>Where such refunds are ordered by courts and CEGAT, they may be allowed to avoid <strong><font color="#FF6633">contempt</font> </strong>proceedings in cases where no stay order could be obtained from appellate courts. </em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is not as if the Tribunal is totally helpless and the officers can have a nice time flouting its orders. They <strong><font color="#FF6633">can</font> </strong>be hauled up for contempt. No less an officer than the mighty Law Secretary of India had been charged with contempt of the ITAT. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Law Secretary had written a couple of letters to the President of the ITAT about an order passed by a bench. The President took it as contempt and filed a contempt petition in the Supreme Court. During the proceedings, the Law Secretary apologised, but the Supreme Court was not impressed when it remarked, </font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>He has travelled far beyond exercising administrative control over the Tribunal. He has tried to influence or question the decision-making process of the Tribunal. An apology, in these circumstances, cannot be accepted. We, therefore, hold the first respondent guilty of contempt of court. </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By the time the judgement was delivered, the Law Secretary had retired and since was not in a position to inflict further damage, the Supreme Court awarded a light punishment of fine of Rs. 2000/-. You can see the details of this in <em><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=50&filename=legal/sc/2002/2002-TIOL-163-SC-CONTEMPT.htm" target="_blank"><font size="1">2002-TIOL-163-SC-CONTEMPT </font></a></strong></em></font></p> <p align="left"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>“ <strong>Be you ever so high, the law is above you” </strong></em></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"> – Wednesday's cases</font></strong></font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><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"></font><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>SEIZURE of imported goods – appeal pending in CESTAT – Goods ordered to be released on payment of duty and 50% of RF: High Court </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>respondents shall release the goods subject to the petitioner paying the entire duty as per re-determined value at US Dollars 69395 C&F equivalent to Rs.34,15,893/- and paying 50% of the redemption fine imposed in the order dated 26.08.2009. However, the penalty imposed in the order dated 26.08.2009, shall remain stayed till a final decision is taken by the second respondent -Tribunal in the pending appeal. </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>TDS - Payments made for leaseline charges, VSAT charges, transaction charges and stock exchange expenses are not towards any technical services but for use of facilities - No TDS: ITAT </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>issue before the Tribunal is - Whether the payments made by the assessee on account of ISDN / Leaseline charges, Stock Exchange expenses, Transaction charges and VSAT charges to the stock exchanges amount to fees for technical services and the assessee ought to have deducted tax u/s 194J – Whether the payments to the jobbers and arbitragers be said to be for the purpose of carrying out a work in pursuance of a contract liable to TDS u/s 194C. </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>CONSULTING Engineer Service by Foreign Service Provider – not taxable prior to 18.4.2006 – High Court </strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN </strong>view of the admitted facts that the respondent herein is a foreign company who is a service provider and only from the date of the aforesaid amendments, the service receiver would be liable to pay the service tax and that the respondent/assessee is not liable to pay any tax prior to amendment i.e., for the period in question 1/4/1999 to 31/3/2001. </font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our columns Tomorrow for the judgements </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#FF6666">Until tomorrow with more DDT </font></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>