TIOL-DDT 1467 · 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 1467 </font><br>
15.10.2010<br>
Friday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Is Electronic Filing of Rebate Claims allowed? Has Board forgotten to amend Notification No. 19/2004 – CENT? </font></strong></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=30&filename=notification/excise/2004/exnt04_19.htm" target="_blank">NOTIFICATION No. 19/2004- C.E. (N.T.)</a></strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2004/exnt04_19.htm"><strong>, dated 6-9-2004</strong></a><a> </a>prescribes the procedure for rebate of the duty paid on exported goods. Condition 2(d) of the Notification stipulates that:- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(d) the rebate claim by filing <strong>electronic declaration</strong> shall be allowed <strong>from such place of export and such date, as may be specified by the Board</strong> in this behalf; </em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Further Condition 3(c) of the Notification prescribes the procedure for claiming rebate through electronic declaration as follows: </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) Claim of rebate by electronic declaration: - An exporter may enter the requisite information in the shipping bill filed at such place of export, as may be specified by the Board, for claiming rebate by electronic declaration on Electronic Data Inter-change system of Customs. The details of the corresponding application shall be entered in the Electronic Data Inter-change system of Customs upon arrival of the goods in the Customs area. After goods are exported or order under section 51 of the Customs Act, 1962 (52 of 1962) has been issued, the rebate of excise duty shall, if the claim is found in order, be sanctioned and disbursed by the Assistant Commissioner of Customs or the Deputy Commissioner of Customs. </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Notification also defines <strong>electronic declaration</strong> as <em>“For the purpose of this notification, the expression “electronic declaration” means the declaration of the particulars relating to the export goods, lodged in the Customs Computer System, through the data-entry facility provided at the Service Center or the data communication networking facility provided by the Indian Customs and Central Excise Gateway (called ICEGATE), from the computer of the person authorized for this purpose.” </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBEC's Manual of Instructions in para 10 of Chapter 8 Part-I, explains this as:- </font></p>
<blockquote>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">10. Filing of rebate claims by electronic declaration and sanction thereof through Electronic Data Inter-change (EDI) </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
<font color="#FF6633"><strong>10.1 The new concept of filing of rebate claim and its sanction through EDI established by the Customs formations at different ports/airports/ICDs/CFSs has been incorporated in the new procedure. However, its implementation is dependent upon development of software and formats of electronic forms, administrative set-up at the places of exports for auditing such claims and putting in place the necessary hardware. The new process will also require to be tested. This may take some time. Accordingly, the provision has been made that this facility will be available at such places and from such time as may be specified by the Board. </strong></font></font></p>
<p align="justify"><font color="#FF6633"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
10.2 For this purpose, the expression 'electronic declaration" has been defined as the declaration of the particulars relating to the export goods, lodged in the Customs Computer System, through the data-entry facility provided at the Service Center or the data communication networking facility provided by the Indian Customs and Central excise Gateway (called ICEGATE) from the computer of the person authorized for this purpose. </font></strong></font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now as per Notification No. 19/2004, the Board is to specify the place of export and the date from which the electronic declaration is to be accepted/allowed. Six years have elapsed since the notification was issued and the Board is yet to specify either the place of export or the date.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Have they forgotten about it or are they not aware of it? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Another question that arises is – whether the electronic claim, if at all allowed, is to be filed under ICEGATE or ACES ? When the Notification was issued, there was no ACES , but recently the ACES programme has made life miserable for the Central Excise and Service Tax officers and assessees and the ‘Systems Directorate' of the CBEC has declared ACES to be a great success. (Officers and assessees not thinking so is only a matter of opinion). In <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2010/excircular919.htm" target="_blank">CIRCULAR NO. 919/09/2010-CX, Dated : March 23, 2010</a></strong>, Board states, “<em>It has automated the major processes of Central Excise and Service Tax - registration, returns, accounting, <strong>refunds</strong>, dispute resolution, audit, provisional assessment, exports, <strong>claims</strong>, intimations and permissions .” </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">See the well drafted confusion? </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">According to Notification No. 19/2004, electronic declaration can be made for rebate from a date to be notified and it is to be done with ICEGATE. The date is yet to be notified. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBEC says ACES has automated everything. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What should the assessee do? Try all electronic methods, take a printout and go to the Central Excise office and satisfy the concerned officers and get your claims cleared! </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Will the concerned do something? </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Electronic Transfer of Funds - RBI Instructions </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RESERVE</strong> Bank of India has introduced various electronic payment products (RTGS, NEFT, NECS and the ECS variants) to facilitate electronic transfer of funds in a secure and efficient manner. The volume of transactions routed through these products has witnessed substantial growth, indicating the acceptance and ease of use, by bank branches and customers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The electronic payment products rely extensively on technology for origination, movement, processing and ultimate settlement of instructions. Any manual intervention not only delays completion of the instruction but also provides scope for error and fraudulent intent. Implementation of core banking solutions (CBS) in banks, software interfaces connecting the CBS platform to the payment system gateways and internet access to customers have been major enablers towards providing a straight-through-processing (STP) environment and, thus, popularising these products. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the Indian conditions matching the names with the account numbers has become a difficult task – not every Indian has a first name and last name and a surname. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI has now instructed that in the RTGS / NEFT / NECS / ECS Credit products, “While the beneficiary's name shall be compulsorily mentioned in the instruction request, and carried as part of the funds transfer message, reliance will be <strong>only on the account number</strong> for the purpose of affording credit. This is applicable both for transaction requests emanating at branches and those originated through the online / internet delivery channel. The name field in the message formats will, however, be a parameter to be used by the destination bank based on risk perception and / or use for post-credit checking or otherwise. </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/rbi_notification.htm" target="_blank">RBI/2010-11/235 DPSS (CO) EPPD No. / 863 / 04.03.01 / 2010-11 Dated October 14 2010 </a></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Judges are expected to have basic computer knowledge - Tech Savvy Supreme Court </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> an interesting judgement, the Supreme Court last week dismissed an appeal filed by a failed candidate for selection as a judge because he did not have Basic knowledge of Computer Operation . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court observed, “<em>It is also to be considered that the Indian judiciary is taking steps to apply e-governance for efficient management of courts. In the near future, all the courts in the country will be computerized. In that respect, the new judges who are being appointed are expected to have basic knowledge of the computer operation. It will be unfair to overlook basic knowledge of computer operation to be an essential condition for being a judge in view of the recent development being adopted. Therefore, we are of the considered opinion that requirement of having basic knowledge of computer operation should not be diluted</em>.” </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">You can't really stop technology and if somebody claims ignorance of technology as a right, he is sure to be dumped into the dustbin. Now that the Supreme Court has agreed that a basic knowledge is a MUST for judges, it should be made a mandatory qualification for all superior posts, including judges of Supreme Court, High Courts, Tribunals, Boards like CBEC, CBDT, Railway Board etc. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Some 26 years ago, in 1984, the Supreme Court struck down the first electronic election in India holding that ‘ ballot' does not include voting by machines. What was required was a change in Law and not machine and that is what exactly happened. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For full text of the judgement please see <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=50&filename=legal/sc/2010/2010-TIOL-80-SC-MISC.htm" target="_blank">2010-TIOL-80-SC-MISC</a></strong>. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Indigent Lawyer not able to pay fee - ITAT Not Impressed</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> poor Lawyer was raided by the Income Tax Authorities who found a huge cash of ten thousand rupees and this huge discovery resulted in assessment proceedings against which she is in appeal before the ITAT. She submitted that she does not have the means to pay the fee required for filing the appeal and pleaded that she should not be denied her justice only on the ground of her inability to pay the appeal fees. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The ITAT was not impressed and rather did not believe her as it observed, </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ During
the course of hearing before us, she stated that her annual income from
profession is Rs 70,000. Whatever be the credibility of this statement,
even going by her statement, it is not possible to infer that she did not
have the means to pay Rs 7,510 as filing fees. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Unlike
the cases of motor accident claims and railway claims, which involve even
the most underprivileged section of society, income tax litigation is generally
touching the lives of relatively affluent section of society, and there
may not be any cases in which persons defined as 'indigent persons' could
be involved in litigation before this Tribunal. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The
assessee has wasted our precious time on adjudicating upon a frivolous
plea, and now the assessee seeks an anticipatory permission, if need be,
to pay the fees and to have the appeals restored. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Tribunal incidentally found the lawyer apparently well versed with the intricacies of law. Is the lawyer poor or smart or both? </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We will bring you this case on Monday. </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"> - Monday'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">Direction of Hon'ble High Court is to decide on issue in accordance with 'law' which includes 'case law'. </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WOOLLEN</strong> Tops' [SH 55.06] entitled to exemption from duty under notification 30/2004-CE – As there is a judgment of the High Court on the applicability of the Exemption Notification to the subject-goods, the same has got to be followed by the CESTAT inasmuch as the direction is to decide on the aforesaid issue in accordance with “law” which includes “case law” - suggestion of the DR that the task of interpretation be left to the original authority would have been accepted had any question of fact been cited for better decision. </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"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Invocation of Civil Procedure Code to exempt assessee from requisite appellate fees - onus is on assessee to establish he or she has no assets and is indigent before benefits are allowed: 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 for invoking the provisions of CPC to exempt an assessee from the requisite appellate fees it is incumbent on assessee to establish that he/she has no asset and is indigent person. And the final decision has gone against the lawyer-assessee. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service
of encryption and compilation of data - 'call centre service' exempted
from service tax till 28.02.2006 - CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BUSINESS</strong> Auxiliary Service – Service of encryption and compilation of data pertaining to clients and provision of details thereof on telephone to callers/prospective customers of clients is ‘call centre service' and exempted from service tax till 28.02.2006 under category of BAS – No infirmity in impugned order of Appellate Commissioner – Revenue appeals devoid of merits. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633" size="3">H</font>APPY <font color="#FF6633" size="3">D</font>USSERAH</strong></font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Monday for the judgements</font></strong></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more <strong>DDT</strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice weekend.</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"><strong>vijaywrite@taxindiaonline.com</strong></a></font></p>
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