TIOL-DDT 1446 · 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 1446 </font><br> 16.09.2010<br> Thursday</strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Online Scheduling of factory stuffing inspection by Central Excise Officer - Board Instructions</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> has been suggested to the Board that in order to reduce transaction cost involved in factory stuffing inspection by Central Excise officers scheduling factory stuffing permission should be provided on line by the department. This suggestion has been accepted by the department. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So the Board directs that: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The respective Central Excise Commissionerate would make necessary arrangement in this respect by specifying the Range-wise <em><strong>official</strong></em> e-mail id on which the trade can forward their request for such factory stuffing inspection. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The range would intimate by e-mail to the <em><strong>concerned</strong></em> assessee/party about time for examination. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The <em><strong>concerned</strong></em> Central Excise Commissionerate would also make further arrangement for monitoring of each such request and timely response. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ All the arrangement so made may also be brought to the notice of all concerned by way of issuance of suitable Public Notice / Standing Order for proper facilitation to the trade & industry. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now how many Range offices have working internet facilities? And do they all have <em><strong>official </strong></em>email ids? And if they have how many of the Range Officers know their official e mail ids? Sometime back DDT had raised the question of government officers using private e mail services and some of the officers were very angry with us. What we were trying to point out that some of the private email services are not safe and the government should have its own secure email system. Even many private companies do not allow their employees to use their private emails from their office computers. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But DDT admits it was a mistake on our part to point out this. Official email system of the government is primitive and not at all dependable. So if you really want to send or receive an email, don't use that government email id. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Coming back to our scheduling inspection through email, it's a great electronic step forward and should be extended to other fields of operation like appointments with senior officers, personal hearing, reply to SCNs, appeals etc,. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But taking a Central Excise officer for stuffing is not all that easy as sending an email. There is an elaborate system, which the Board is perhaps not aware of. But exporters have over a period realised that inspection of export consignments by Central Excise officers is a lot more <font color="#FF6633"><em><strong>economical</strong></em></font> than getting them examined at the ports by Customs officers. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2010/excircular934.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Circular No. 934/24/2010-CX., Dated: August 25, 2010 </font></strong></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Tariff Value of Brass Scrap increased </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has increased the Tariff Value of Brass Scrap from US Dollars 3924 to 3954 per MT and that of Poppy Seeds marginally by 1 Dollar from 2750 to 2751. There is no change in the tariff value of other items. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2010/cnt10_083.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">NOTIFICATION NO. 83/2010-CUSTOMS (N.T.) Dated: September 15, 2010 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Fraudulent Refund of 4% Refund of SAD - Import of Timber Logs - Several Skeletons in Customs Cupboards - Refund Files recovered from CHA Office</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHEN</strong> we carried the story yesterday, we did not realise how murky the waters are in Kandla Customs. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is how the refund claims are processed in Kandla Customs. </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Mr. AN of M/s AVJXXX (CHA) gets the refund works from the importers of timber logs.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Mr. AN hands over the refund claims files to Mr. RN of M/s KSCXXX (CHA) for submission to Customs and further processing. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Mr RN prepares the notesheet and <strong>Order in Original</strong> for sanctioning the refund and submits the original file back to the Customs where the officers sanction the refund claims. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Mr. RN was bringing the files to his business premises with the full knowledge of the official in charge of such files. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Mr. AN was collecting commission at the rate of 5% of the refunds from the importers, but only kept 0.5% and was handing the remaining amount to RN's boss. RN was getting 3% of the sanctioned refund. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It appears that the Customs Officers of Kandla were outsourcing their work to RN. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The above details are contained in a letter written by the Chief Commissioner, Ahmedabad to the Customs Commissioner, Kandla. The Chief Commissioner sadly states, “It would be expected of the Group A officers that they exercise proper control and supervision, but they have totally failed in their duty”. The CC recommended a reference to the DG, Vigilance, in respect of Group A Officers and also suspension of the CHA licences. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The DGCEI recovered eight refund files (refund had already been granted) from RN's office with note-sheets and orders signed by several Customs Officers. RN stated before DGCEI that there was not a single occasion when the note sheet or OIO prepared by him was changed by the Customs Officers. He said that the Customs officers were aware that the files were with him and he kept them with him, as they may be lost in the Customs Office. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In less than a year, RN, an employee of a CHA got about Rs. 10 Crores sanctioned and by his own admission, he got a commission of Rs. 30 Lakhs! </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And today we got another mail from a <font color="#FF6633"><strong>Concerned</strong></font> Netizen claiming to be from the trade:- </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I have read the story of refund claims of timber in Kandla in your Column . The same seems to be cooked by some enthusiastic departmental officer and having all features of politics in the department, specially on senior levels. The purpose is I want to rise and the simple way is let me down you. The story is suffering from factual infirmities also. As per my information, the investigation in the matter was initiated by the SIIB wing of Kandla Custom House in Mid of December,2009 and they raided premises of more than 50 premises including premises located at Delhi and Karnal also. They have made the recovery in the Crores. DRI seems have not taken up the issue as the same was already taken up by the one wing of the department. In the mid of January,2010 i.e. after a month of searches conducted by the SIIB, DGCEI entered in the matter in guise of intelligence ( Best known to them only as the matter was given the wide coverage by the local newspaper on regular basis before it). I think Custom House, Kandla has not sanctioned refund of 100 Crores in total in last 3 Years, whether DGCEI is covering the imaginary refunds also for the purpose of investigation. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(Perhaps this is from another Departmental officer) </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 align="justify"><strong><font color="#663399" 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">Central Excise</font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Rebate of duty paid on Polyester Yarn converted into Polyester Thread exported which is exempted from duty is not admissible – Writ Appeal of revenue allowed - Madras High Court</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Rule 12 of the Central Excise Rules, 1944 read with Notification No.197/62, the goods must be directly exported from the factory so as to be eligible for the rebate. In respect of claim of rebate, proviso (1) stipulates that the goods are exported after payment of duty in cash direct from a factory or a warehouse. Since both the conditions are not satisfied, rebate is not admissible. </font></p> <p align="justify"><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 - Whether AO can reopen assessment on basis of subsequent decision of HC ruling that depreciation to be excluded while computing deduction u/s 80IA - Does Apex Court decision in Kelvinator India come to assessee's rescue - AO's action sustainable: ITAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue before the Tribunal is - Whether AO can reopen assessment completed u/s 143(1) on the basis of subsequent decision of jurisdictional HC holding that depreciation is to be excluded while computing deduction u/s 80IA. Whether the Apex Court decision in kelvinator India is of no help to the assessee. Tribunal rules in favour of the Revenue. </font></p> <p align="justify"><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">Import without IEC number tantamount to violation of Foreign Trade (Development & Regulation) Act, 1992 - CESTAT</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per section 111(o) of the Customs Act, 1962, the goods become prohibited if there is violation of the provisions of Customs Act or any other Act in force – Commissioner(A) holding that no officer of Customs has been notified u/s 13 of the FTDR Act and hence s.11 cannot be applied is totally wrong and illegal.</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="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT</strong></font></p> <p align="justify"><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> </body> </html>