TIOL-DDT 144 · the untouched capture
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<html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body bgcolor="#FFFFFF"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT 144</font><br> 27 06 2005<br> Monday</b></font></p> <p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"> <b>The Original garage</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Every one has heard of Bill Gates and his garage with no windows which later provided the WINDOWS to the world. But the original garage belonged to Steve Jobs, the man who gave the world the first PC – He also started from a garage. <br> <br> The PC industry started with an Apple II in 1977. What many of us now take for granted like graphical user interface, the mouse, the laser printer, colour monitor are all innovative gifts from Apple. Apple invented and others copied and made money. the new G5 desktop, the first 64-bit computer and the industry's fastest ever; a new operating system called Panther; a 15-inch laptop with an ambient-lit keyboard for working in the dark; and Apple's first wireless mouse. And can any one forget Apple’s iTunes, which Times described as the Coolest Invention of 2003?</font></p> <p align="center"><img align="middle" alt="The APPLE" border="0" height="250" width="335" src="http://www.taxindiaonline.com/RC2/image/apple_first.gif"></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">With all these, Apple is not all that successful and Jobs was himself was thrown out of the Company he built with nothing more than his dreams. Recently Jobs was invited to deliver the convocation address at Stanford and the speech is so thrilling, that when a netizen sent it us, we thought that netizens of Taxindiaonline should have the benefit of the experiences of the original Computer Guru and so Steve Jobs of Apple Computers is our Guest for the week. <br> <br> Read him in our Guest column. <br> <br> <font color="#006633"><b>Refund of Terminal excise duty – DGFT relents after 8 months of confusion<br> </b></font><br> As is well known, clearances to certain deemed exports like projects financed by International agencies, are eligible for export benefits and when excise duty exemption is not available, they are given a refund of the <b>terminal</b> excise duty. (What is terminal about excise duty?) All suppliers to these projects were happily paying excise duty in the hope of claiming refund from DGFT. But DGFT spoiled the party by clarifying in the circular No. 6/ 26.10.2004 that refund is available only in those cases where no CVD was payable on import. This circular was mischievous and patently wrong and self contradictory. If no CVD was payable, it means that no excise duty was also payable; then what refund-terminal or otherwise the DGFT was going to give? <br> <br> The situation was comical. A manufacturer supplying to these projects pays excise duty on his raw materials purchased locally and claims refund from DGFT. But DGFT would grant refund only if these goods were exempted from CVD had they been imported!. So in effect NO REFUND. The circular caused enough damage and worried manufacturers were running from pillar to post as they had priced their products assuming a refund from DGFT. Finally better counsel prevailed and DGFT now clarifies that refund will be given without correlating with CVD. Great DGFT! Making a mistake is not bad but the courage to correct it is admirable. And what more DGFT has decided to suo moto re-open the cases where refund had been rejected. This is how the Government should work and this should be a model for other agencies especially the Revenue Department. AND LEST THIS CIRCULAR CAUSE FURTHER CONFUSION WITH Revenue, DGFT has further clarified that the exemption available through Central Excise notifications will continue. <br> <br> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2005/dgft05cir010.htm">DGFT Circular. No.. 10 (RE-2005)/2004-2009, Dated: June 24, 2005<br> </a><br> <font color="#006633"><b>Anti dumping duty on Sodium cyanide – extended<br> </b></font><br> The anti dumping duty on sodium cyanide is extended till 26.12.2005 0n the recommendations of the Designated Authority. This notification has a very interesting history. You can get it in DDTs dated 31-12-2004, 3.1.2005 and 20.1.2005.<br> <br> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2005/ctariff05_056.htm">Notification No. 56 /2005-CUSTOMS, Dated: June 23, 2005 </a><br> <br> <b><font color="#006633">Mumbai High Court stays criminal proceedings against excise officers</font></b><font color="#006633"><br> </font><br> Often we hear complaints about cases booked by excise officers. Have you heard of a case <i>booked </i>by the assessee against officers? <br> <br> The excisemen raided a factory in Belapur and found evasion of more than a Crore of rupees. The assessee paid up – by post dated cheques – which promptly bounced. Department naturally threatened coercive action and the assessee promptly filed a criminal complaint of threat and assault against an Assistant Commissioner and three other officers. A magistrate’s court started proceedings. Fortunately the Mumbai High Court saw through the trick and stayed the proceedings. This is a risk the officers run against unscrupulous assessees. <br> <br> I have had a similar experience. An assessee whom we summoned for inquiry and whom we fed well and treated with all respect suspected that we were going to arrest him. At 6 pm, we asked him to go away but gave him another summons to appear the next day. He walked into a hospital, got a certificate that he had injuries, then went to a Human Rights Court and filed complaint against an Assistant Commissioner and four other officers. All these officers were known in the department as too soft and friendly to assessees and not capable to be effective preventive officers. For about a year we had to attend the court and stand in the box as <b>accused</b>. Incidentally we had a former Chairman of the Bar Council of India to defend us – for free. We won on a very technical ground, but the fact remains that the officers run the risk of such attacks and the sad part of the story is – these attacks come from the real criminals. A good genuine assessee never resorts to such tactics. When a smuggler or evader is investigated, the easiest thing for him is to file such a complaint, as this will divert the attention of the officers and they will be rattled and busy more in defending themselves than investigating the case. Interestingly, the law is, when someone accuses these officers of assault, the officers become <b>the</b> accused and the State will not come to their aid – rather the State will be with the Complainant. The Public Prosecutor will appear against the officers. <br> <br> While assault and third degree methods by officers should be condemned with all force, there should be a mechanism to protect sincere officers doing an honest job against anti social elements. It is tragic if they are exposed to criminal proceedings.<br> <br> <font color="#006633"><b>Lok Satta – the yatra continues</b></font><br> <br> Lok Satta, CVC and CBEC were in Mumbai discussing reforms in the department- Yet another meeting and resolutions, the show goes on. For recommendations, see our Breaking News. <br> <br> <font color="#FF6666"><b>Until Tomorrow with more DDT<br> <br> Have a nice day. <br> <br> Mail your comments to</b></font> <b>vijaywrite@taxindiaonline.com </b></font></p> </body> </html>