TIOL-DDT 1429 · the untouched capture
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<strong><font color="#663399">TIOL-DDT 1429 </font><br>
</strong></font><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">23.08.2010<br>
</font></strong><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Monday</font></strong></div>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CUSTOMS
- Accredited Clients Programme – 'STATUS HOLDERS' included</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Representations
have been received in the Board from Trade and Industry Associations requesting
to extend the benefit of ACP scheme to the category of status holders like Export
Houses, Star Export Houses, Star Trading Houses etc. Requests have also been
made to relax the criteria prescribed vide Board's Circular No.42/2005-Customs
dated 24.11.2005 regarding eligibility for grant of ACP status in cases booked
in respect of Customs, Central Excise and Service Tax issues so that purely
technical cases should not become a disqualification.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board
has reacted favourably and amended Circular No.42/2005-Cus dated 24.11.2005
and now stipulates that:</font></p>
<blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">1.
status holders' recognised so under the Foreign Trade Policy.” are eligible
for the ACP.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">2.
status holders under the FTP shall have to fulfill the other criteria laid
down in Paras 7(ii) to 7(vii) of the Circular No.42/2005-Cus dated 24.11.2005
along with other conditions of the said Circular in order to become eligible
for grant of ACP status.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Regarding
the cases, Board stipulates that they should have no cases of Customs, Central
Excise or Service Tax, as detailed below, booked against them in the previous
three financial years.</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a)
Cases of duty evasion involving mis-declaration / mis-statement/collusion
/ willful suppression / fraudulent intent whether or not extended period for
issue of SCN has been invoked.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b)
Cases of mis-declaration and/or clandestine/unauthorized removal of excisable
/ import / export goods warranting confiscation of said goods.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c)
Cases of mis-declaration / mis-statement / collusion / willful suppression
/ fraudulent intent aimed at availing CENVAT credit, rebate, refund, drawback,
benefits under export promotion/reward schemes.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d)
Cases wherein Customs/Excise duties and Service Tax has been collected but
not deposited with the exchequer.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(e)
Cases of non-registration with the Department with intent to evade payment
of duty/tax”.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Chief Commissioners of Customs / Central Excise are empowered to report to Risk
Management Division (RMD), Mumbai, cases meeting the identified criteria as
per the above exclusion from the ACP even though Show Cause Notice has not been
issued.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2010/cuscir10_029.htm" target="_blank">CBEC
Circular No.29/2010-Customs, Dated : August 20, 2010</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>No
Contempt Proceedings against Non-implementation of Tribunal Orders: High
Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In
a recent case before the Punjab and Haryana High Court, the grievance of the
petitioner was that the Assessing Officer while making assessment proceedings
is deviating from the issues culled down by the Tribunal and asking for information
which is outside the domain of the issues. Thus, the action of the Assessing
Officer is in contravention of the orders passed by the Tribunal. Therefore,
it is violation of the order passed by the Tribunal and, thus, a civil contempt.
The petitioner was asked to clarify as to whether, the Income Tax Appellate
Tribunal, Chandigarh is a Court within the meaning of Section 2(b) of the Contempt
of Courts Act, 1971. In response to the said query, the petitioner pointed out
that the Income Tax Appellate Tribunal, Chandigarh is an authority acting judicially,
therefore, in terms of Section 16 of the Act and Rule 82 of Schedule II of the
Income Tax Act, 1961, the ‘Chief Commissioner or Commissioner’,
Tax Recovery Officer or other officer acting under this Schedule are deemed
to be acting judicially within the meaning of the Judicial Officers Protection
Act, 1850.”</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
High Court was unable to accept the argument and held that there is no violation
of any direction of the Tribunal by the Assessing Officer, which will disclose
any civil contempt, the cognizance of which can be taken by this Court.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=38&filename=legal/hc/2010/2010-TIOL-577-HC-P-H-IT.htm" target="_blank">Click
here for the High Court Order.</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>But
the Supreme Court held otherwise....</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Supreme Court had in ITAT THROUGH PRESIDENT Vs V K AGARWAL AND ANOTHER - <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>
had held that the ITAT is a Court and that the Supreme Court had the jurisdiction
to punish for contempt of the Income Tax Appellate Tribunal. The Supreme Court
held that either the High Court or the Supreme Court can take suo motu action
and the party which brings such conduct to the notice of the Court, whether
a private person or the subordinate court is only an informant and does not
have the status of a litigant in a contempt of court case. Whenever an Act adversely
affects the administration of justice or tends to impede its course, or shake
public confidence in a judicial institution, the power can be exercised to uphold
the dignity of the court of law and protect its proper functioning.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In
fact in this particular case, the Supreme Court actually punished the Union
Law Secretary for Contempt of the ITAT.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Apparently
these facts were not brought to the notice of the High Court in the above case.
Browsing TIOL would help.</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"> – Tuesday'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>Central
Excise </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Skip
Loader for collection and carrying city garbage stored in specially designed
containers placed on road is a Special purpose vehicle classifiable under heading
87.05 and entitled for benefit of exemption notification 6/2000-CE – Revenue
appeal rejected: CESTAT</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Holding
that the vehicle in question is a Special Purpose Vehicle classifiable under
Chapter heading 87.05 of the Central Excise Tariff Act, 1985 and is eligible
for the benefit of exemption notification 6/2000-CE, the Revenue appeal was
rejected.</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>Sections
245C, 245D - Whether an application u/s 245C of the Act before the Settlement
Commission can be allowed when the assessee has previously failed to make a
true and fair disclosure of the income - Whether the High Court has jurisdiction
to quash the order of the Settlement Commission which had wrongly entertained
an application of the assessee.</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A
"full and true" disclosure of income, which had not been previously
disclosed by the assessee, is a pre-condition for a valid application u/s 245C
(1). Moreover the scheme of Chapter XIX-A does not contemplate revision of the
income so disclosed in the application. In the scheme of Chapter XIX-A, there
is no stipulation for revision of an application filed u/s 245C(1) and thus
the natural corollary is that determination of income by the Commission has
necessarily to be with reference to the income disclosed in the application
filed under the said Section in the prescribed form;?</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>Import
of Hard Disc Drives - Decision of the Apex Court which is later in point of
time would prevail according to the established canons of judicial precedent
and consequently the respondent seems to have a prima facie case for the benefit
of the notification 6/2006-CE – Stay application filed by Revenue dismissed:
CESTAT</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Each
side is supported by decisions of this Tribunal upheld by the Apex Court. That
decision of the apex court which is later in point of time would prevail according
to the established canons of judicial precedent and consequently the respondent
seems to have a prima facie case for the benefit of the notification. In this
scenario, we are unable to stay the operation of the appellate Commissioner's
order granting such benefit to the respondent. This application is dismissed.</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="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until
tomorrow with more DDT </font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have
a Nice Day</font></p>
<p align="justify"><font color="#FF6633" 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" target="_blank">vijaywrite@taxindiaonline.com
</a></font></p>
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