TIOL-DDT 1432 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1432 </font><br>
</strong></font><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">26.08.2010 <br>
</font></strong><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Thursday</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
</font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">List of Items Reserved for Exclusive Manufacture in Small Scale Sector - Injection Moulding Products - Excluded</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> present policy of encouraging growth of small scale industries is based on several promotional measures - one of these is reservation of products for exclusive manufacture in the small scale sector in areas where there is techno-economic justification for such an approach. Large/Medium units can, however, manufacture such reserved items provided they undertake to export 50% or more of their production. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The issue of reservation/dereservation of product is examined on a continual basis by an Advisory Committee on Reservation constituted under the I(D&R) Act 1951, which is presently headed by the Secretary (MSME) as Chairman. Other Members of the Committee are Secretary (Commerce), Secretary (IP&P), Advisor (VSI) Planning Commission with Additional Secretary & DC(MSME) as Member Secretary. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government has recently deresrved 'Injection Moulding Thermo Plastic Products – PVC Pipes including conduits up to 110 mm dia and Fittings for PVC Pipes including conduits up to 110 mm dia' from the List of Items Reserved for Exclusive Manufacture in Small Scale Sector: </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/dept_industrial_policy_promotion_notification.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Dept of Industrial Policy and Promotion Notification, Dated: July 30, 2010 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">No Excise and ST payment without Assessee Code from 1st September - RBI </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> is mandatory for all assesses to quote their assessee code in the GAR- 7 challan at the time of payment of excise duty or service tax in the authorized bank branches.But not everybody follows this. Now RBI has stipulated that after September 1, 2010, payments will be accepted only with a valid assessee code. The banks can check if the assessee code is available in the directory of NSDL EASIEST web site and use the code if available. If it is not available there, the banks should ask the assessee to take up the issue with CBEC for necessary action. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And CBEC advises:- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The assessees can themselves verify the existence of their Assessee Codes in the NSDL website <a href="http://www.cbec.nsdl.com/" target="_blank"><strong>(www.cbec.nsdl.com)</strong> </a>and if it does not exist, they can approach the jurisdictional officers. In case the registration number has not been generated by the system (erstwhile SACER /SAPS or the current ACES application), assesses have to apply afresh for a new Registration Certificate through ACES as a new assessee. Assessees may note that the assessee code is transferred to Assessee Code Directory only after the registration certificate is issued by the jurisdictional Officer. </font></p>
<p align="left"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/DGBAGAD.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI Circular in DGBA.GAD.No.H-850/41.07.003/2010-11 Dated: July 29, 2010 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Will this Stop Spot Realisation? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>OVERZEALOUS</strong> officers raiding assessees have a fancy for realising 'spot payments'. Of late, they collect post dated cheques from their victims and make a show before their commissioners that they have collected so much revenue on the spot and this adds to their spotless career graph. But now these cheques can be deposited only if there is an assessee code! </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Spot Realistaion Cheques - A fraud? </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> fine modus operandi of fraud propagated by a young Assistant Commissioner has come to our notice. This young but brash officer makes a big show of the raids conducted by him and he would coerce the victims into admitting tax liabilities and force them to issue post dated cheques. He would proudly present those cheques before his Commissioner who would invariably say, “Shabhash”. Later he would negotiate (the cheque is a negotiable instrument!) with his victims and make them ensure that the cheques are not honoured and he promises them that no action would be taken against them – for a nice consideration for himself. Everybody is happy! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is shocking that young IRS officers are indulging in this kind of fraud. A frustrated businessman asked me, “what will be the fate of this country when this young officer becomes the Chairman of the Board?” I told him there is no such danger as these brash officers will get caught on the way and their ultimate goal is the gaol (without their realizing it) </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Legislation for Whistleblowers </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Government is aware that many people are reluctant of becoming whistleblowers as they are susceptible to threats, harassment, victimization or even killed <strong>[<font color="#FF6633">and even subject to contempt petitions as the recent R K Jain case would show</font>]</strong>. The Government is ready with the Public Interest Disclosure and Protection to Persons Making the Disclosures Bill, 2010 for introduction in the Parliament. The Bill inter alia provides </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) For bringing within the scope of the Bill, public servants being the employees of the Central Government or the State Government or any corporation established by or under any Central Act or any State Act, Government Companies, Societies or local authorities owned or controlled by the Central Government or the State Government and such other categories of employees as may be notified by the Central Government or, as the case may be, the State Government, from time to time, in the Official Gazette; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii)Adequate protection to the persons reporting corruption or willful misuse of power or willful misuse of discretion which causes demonstrable loss to the Government or commission of a criminal offence by a public servant; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) A regular mechanism to encourage such person to disclose the information on corruption or willful misuse of power or willful misuse of discretion by public servants or commission of a criminal offence; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) The procedure to inquire or cause to inquire into such disclosure and to provide adequate safeguards against victimization of the whistle-blower, that is the person making such disclosure; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(v) Safeguards against victimization of the person reporting matters regarding corruption by a public servant; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(vi)Punishment for revealing the identity of a complainant, negligently or malafidely; and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(vii) Punishment for false or frivolous complaints. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This information was given by the Minister of State for Personnel, Public Grievances & Pensions, Prithviraj Chavan in written reply to a question in Lok Sabha yesterday. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Judges Caught Copying in Law Exam!!!!! </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FIVE</strong> Judges in Andhra Pradesh were caught red handed while copying in the LLM examinations. The Paper was ‘ Legal and Constitutional History of India . These judges have created history by copying in the examinations. Certainly while sitting in the bench they would have a soft corner for the copy-cats. The High Court has suspended these judges. Some lawyers were also caught copying! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Given a chance – everybody would copy – the name of the game is – 'don't get caught' </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 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"><strong><font color="#663399">Central Excise </font></strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Apex
court's ruling on “preponderance of probabilities” in D.Bhoormull
was rendered in the context of sustaining demand of duty – apart
from making a material mistake in the electricity consumption figures for
computation of demand no evidence gathered from purported suppliers of
materials and buyers – Prima facie case – Stay granted: CESTAT </font></strong></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> duty
demand of '74 lakhs and an equivalent penalty has been confirmed against
the appellant on the ground of clandestine manufacture and clearance of M.S.Ingots.
There is also a penalty of' 10 lakhs imposed on the Managing Director u/r
26 of the CER, 2002. </font></p>
<p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Sec 147 - Revenue cannot reopen assessment for second time merely on ground that subsequent judgement of Apex Court has gone in favour of Revenue: Madras High Court </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>REASSESSMENT</strong> is a very common action which is resorted by most AOs. But the interesting issue in this case is that whether an assessment can be reopened for the second time u/s 147. Can Revenue reopen an assessment which was already reassessed u/s 147, based on subsequent judgement of the Apex Court. Does it amount to change of opinion. And the answers to these questions go against the Revenue. </font></p>
<p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Penalty dies with deceased – no cause of recovery from legal heirs – As for duty liability, same is recoverable from his legal representative to extent of property of deceased coming to hands of legal representative – affidavit filed by wife that no estate was left by deceased – no counter affidavit filed by department – Stay granted: CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“<strong>GENERALLY</strong> penalty dies with the deceased. It is settled principle that penalty cannot be imposed after death and even if it was imposed but not recovered during his life time, the same cannot be recovered from the legal heirs. In other words, penalty cannot be imposed after death of the concerned person and if imposed the same cannot be recovered from the legal heir.”</font></p>
<p align="left"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow for the judgements </font></strong></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until tomorrow with more <strong>DDT</strong></font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice Day </font></p>
<p><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"><strong>vijaywrite@taxindiaonline.com </strong></a></font></p>
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