TIOL-DDT 1488 · 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 1488 </font><br> 16.11.2010 <br> Tuesday </strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">ICES 1.5 – New Customs Nightmare! </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THERE</strong> is a major switchover to a new version in the Customs software. 33 existing locations out of 41 and 47 new locations out of 78 have migrated to ICES 1.5 version. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7 major locations would be migrated by end of December 2010. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ICES 1.5 and the ICEGATE applications have stabilized in Air and ICD locations, and improvements on the Sea side are to be completed shortly. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But the migration has left many stakeholders and Customs officers in the lurch with absolutely no clue as to the solution. There is a Huge pendency in clearing the Shipping Bills due to the delays in filing of EGMs. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Transmission of data to DGFT is problematic, consequently substantial amounts of export incentives are with held. We are told that <strong>the Help desk is not helpful at all</strong>. CHA associations and the Trade bodies are complaining about the performance of the system as the clearance process has not been very smooth after migration and the method of access to import / export data is not adequately meeting the information needs. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Uncle Judge Syndrome</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Law Commission of India in their 230th Report has mentioned the matter of appointment of Uncle Judges in the High Courts, wherein it is said that the Judges, whose kith and kin are practicing in a High Court, should not be appointed in the same High Court. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The procedure for appointment of Judges, which is based on the judgement of the Supreme Court, has been debated in various fora and there have been demands to change the same. However, there is, at present, no specific proposal to bring about any change in the present system of appointment of judges in the Supreme Court and the High Courts. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This information was given by Dr. M.Veerappa Moily, Minister of Law and Justice, in the Lok Sabha in a written reply to a question. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The word <strong>Nepotism</strong> had its origins in the Pope conferring favour on his nephews. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Cadre Review - CBEC's ambitious Proposals - more than 3500 posts of Assistant Commissioners!</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IF</strong> the CBEC has its way, every officer officer in the Department from Chief Commissioner to Sepoy is likely to move up the hierarchical ladder. In <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=11656" target="_blank">DDT 1485 on 11.11.2010</a></strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=11656">,</a> we reported that the Staff Associations had threatened to go on strike, for the main reason that they were not consulted before the proposals were finalised. On 11th November itself, Board had given a copy of the proposal to each of the associations. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has admitted that there is acute stagnation in the cadre of Superintendents. Direct Recruit Inspectors get only one promotion in 35 years of service. This has created a highly demoralised and demotivated workforce. Even the IRS officers take 21 years to reach the level of Commissioner while it is around 17 years in other services. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So they all deserve more promotions. The Board has recommended 18 new posts of Principal Chief Commissioner in the grade of Secretary at Rs. 80,000/- pay! They want 30 more Chief Commissioners, 100 new Commissioner -Gr-1 and 70 more Commissioners. At present they have 593 Additional Commissioners/JCs and now they want 1026-an increase of 433. Now they have 1550 AC/DC posts which they want to increase to 4896 – an additional 3346 posts and they want 250 more Assistant Commissioners to be in reserve! </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">They want more than 35000 posts to be created and as a sacrifice to the country they are going to abolish 6906 posts. Of these abolished posts, some will be re-created. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If the cadre review gets through, a 1993 batch IRS officer will become Commissioner. All eligible Assistant Commissioners, Deputy Commissioners and Joint Commissioners will get their next promotion. 1992-93 Superintendents of central Excise and 1995-96 Customs Superintendents will get their promotion. All appraisers with three years of service will get promoted. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board proposes creation of a hundred Group -A Stenographers with All India Transfer liability. There are stenographers who have worked all their life in one Commissionerate and at the fag end of his life, if he is made a Group-A Steno, will he like to go to Timbuktu? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board has worked the additional cost of cadre review as Rs. 965 Crores only. This takes into account only the salary and not the huge wasteful expenditure each officer costs the country. Where are they going to find rooms to put all these promoted officers in? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Anyway the officers have enough material to discuss about in the next couple of years!! </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Cadre Review – The New Look Department </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DG - International Customs:</strong> They propose to create a new post of DG, International Customs in view of the increasing engagement of CBEC with WCO, WTO, etc, and Customs Departments of other countries. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>More DGs in DRI : </strong>DGRI, DGCEI, DG-Inspection and NACEN will have four DGs each in the four metros.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DG, Service Tax to shift to Delhi</strong>. The DG Service Tax will be shifted to Delhi for better coordination with the Board. There was really no logic in parking the DG Service Tax in Mumbai in the first place. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Commissionerates all over</strong>: Lucknow and Meerut Zones with 7 Commissionerates will now have three zones with 11 Commissionerates. Ranchi zone with three Commissioners will now have five with two Chief Commissioners. Mumbai will have five zones with 15 Commissioners. Three Central Excise Commissionerates in Kerala will be merged into one, but they will have an additional Customs zone with two Commissioners. Hyderabad will have a new Customs Commissioner who will report to a Chief Commissioner sitting in remote Vizag. Kakinada in AP will have a new Customs Commissioner. There will be some 65 zones and 210 Commissionerates. Then there will be 45 Audit Commissioners, 19 cadre controlling Commissioners. There will be 787 central Excise divisions for the present 460 and 3965 Ranges in place of the present 2614. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board's proposal says that with this strength they are ready to face GST. What if GST does not come at all? </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">RTI – Property Statements of Babus ordered to be given to Applicant </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> a landmark order yesterday, the Andhra Pradesh Information Commission asked the State Government to furnish details of the property statements of the IAS/IPS officers to the applicant. The commission held that with a view to maintaining the transparency not only in the administration but also in public life, there is nothing wrong if the details of assets/properties are furnished to the petitioner. “ When such details are provided as a mandatory rule to Income-Tax authorities and to the heads of departments by the same officials, the contention of the government in rejecting the plea for sharing similar information is not acceptable,” the Commission held. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">All India Jurisdiction for Customs Commissioners</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BY </strong><em><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2002/cnt15.htm" target="_blank">Notification No. 15/2002-Customs (N.T.), dated the 7th March, 2002</a></strong></em>, the Government had notified the jurisdiction of Commissioners of Customs and other officers. Now the government has stipulated that Commissioners shall have jurisdiction over the whole of India for the purpose of adjudicating the cases as assigned to them by the Board. </font></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2010/cnt10_095.htm" target="_blank">Notification No. 95/ 2010-Cus., (N.T.), Dated: November 12, 2010</a> </font></strong></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Handling of Cargo in Customs Areas Regulations, 2009 - Amendments </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has amended the Handling of Cargo in Customs Areas Regulations, 2009, to add a few conditions to be fulfilled by Customs Cargo Service provider. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">They are required to provide: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ free of cost or rent fully furnished office accommodation for Customs, Customs Electronic Data Interchange (EDI) Service Centre, with required amenities and facilities and residential accommodation and transportation facilities for customs staff; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ premises for user agencies with basic amenities and facilities; </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">They are also required to undertake to indemnify the Commissioner of Customs from any liability arising on account of damages caused or loss suffered on imported or export goods, due to accident, damage, deterioration, destruction or any other unnatural cause during their receipt, storage, delivery, dispatch or otherwise handling. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2010/cnt10_096.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 96/2010-Cus., (N.T.), Dated: November 12, 2010 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Value of Brass Scrap increased </font></strong></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 4194 to 4241 per MT. The tariff value of poppy seeds is now 3061 US Dollars. 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_097.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">NOTIFICATION NO.97/2010-CUSTOMS (N.T.) Dated: November 15, 2010 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">WCO welcomes G20 Seoul Summit Declaration </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WCO</strong> Secretary General Kunio Mikuriya said, “I am very pleased that the G20 Seoul Summit took development issues on board in an earnest manner, which is critical in reinvigorating the global economy as well as reducing global imbalances; This strong support will bolster WCO assistance to Customs administrations, increase cooperation with international and regional organizations, donors and our private sector partners” </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The WCO provides extensive capacity building assistance and supports the G20's continuous commitment to maintaining momentum for Aid for Trade. In particular, the WCO has developed a Revenue Package for the purposes of strengthening fair and efficient revenue collection in response to the global economic downturn which hurt public finances. This Package consists of two key objectives: promoting the effective use of currently available tools and instruments and upgrading this material to help WCO Members deal with the practical challenges faced, particularly in developing countries. Following consultations with its 177 Members, an Action Plan has been developed to address the main challenges identified which include the control and verification of Customs values and the implementation and verification of preferential rules of origin, against the backdrop of the recent proliferation of reciprocal free trade agreements. </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"> – Thursday's cases</font></strong></font></strong></font></p> <p><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">Service Tax</font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Credit of Service Tax paid under supplementary invoices - Prima facie view is that appellant is required to make pre-deposit of <em>CENVAT Credit</em> and interest pursuant to which matter is to be heard on merits by Commissioner(Appeals): CESTAT</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Commissioner(Appeals) without going into the merits, prima facie found that the appellants are liable to pay CENVAT credit taken by them along with interest. At this stage appellants have to pay the CENVAT credit along with interest. If the appellants make the pre-deposit of service tax along with interest within six weeks from today than the Commissioner(Appeals) will hear the matter on merits after giving an opportunity to the appellants to present their case. </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 32 - Is depreciation admissible on factory premises which were not put to use by assessee but by partnership firm to which same was contributed as per partnership deed - NO, says High Court</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue before the High Court is - Whether depreciation is admissible in respect of factory building which was not put to use by the assessee but by the partnership firm to which the same was contributed as per the terms of partnership deed. Whether the insurance premium paid for the building is allowable in the hands of the assessee against its interest income from the partnership firm on account of capital contributed. NO is the verdict from the High Court. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise </font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Law which prevailed on date of finalisation of provisional assessment should govern refund of duty, whether or not such refund is formally claimed by assessee or suo motu granted by assessing officer - such refund subsequent to 25/06/1999 should be subject to unjust enrichment: CESTAT</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ANY</strong> refund of excess duty to the respondent is subject to unjust enrichment inasmuch as it arose out of finalisation of provisional assessment made on 16/01/2006 i.e. long after the doctrine of unjust enrichment was incorporated in Rule 9B of the Central Excise Rules, 1944 and Section 11B of the Central Excise Act in relation to refunds arising out of finalisation of provisional assessments. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="3">Eid Mubarak</font></strong></font></p> <p><font size="3"><strong><font color="#FF6633" face="Verdana, Arial, Helvetica, sans-serif">Tomorrow is a holiday</font></strong></font></p> <p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Thursday for the judgements</font></strong></p> <p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Thursday 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 color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif"></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>