TIOL-DDT 1564 · 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 1564 </font><br> 09.03.2011 <br> Wednesday</strong> </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Big Win for revenue in Mumbai CESTAT - Gets pre-deposit of 156 crores!</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Jt CDR's Office in Mumbai CESTAT is celebrating a great victory - they got a pre-deposit order of Rs. 156 Crores from manufacturers of MS Ingots. What clinched the issue in favour of the Revenue was the excessive consumption of electricity. The Tribunal observed, “when the department discharged their initial burden of proof by showing excess consumption of electricity (a major input) by the appellants, the latter did not have any valid explanation to offer. Hence the Revenue cannot be faulted for demanding duty on the steel ingots which could have been manufactured by consuming the excess quantity of electricity. ” So the Tribunal ordered pre-deposit of 50% of the duty demanded and 25% of the penalty imposed. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Incidentally two of the parties in this case are SRJ Peety Steels and Om Sairam Steel . Does that ring a bell?</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Remember in January 2011, the CBI arrested a Central Excise officer in Pune allegedly receiving a bribe of Rs. 1.09 Crores from one Surendra Peety of SRJ Peety Steels and Dinnesh Bharuka of Om Sairam Steel? </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We have already carried this order in <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2011/2011-TIOL-288-CESTAT-MUM.htm" target="_blank"><font size="1"><em>2011-TIOL-288-CESTAT-MUM</em></font></a></strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">But Can such Large Scale evasion take place without the Knowledge/Connivance of the Department?</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ADDRESSING</strong> the Chief Commissioners' conference on 1.6.2008, the then Finance Minister Chidambaram said that, “Under a thana (police station), no crime can take place without the knowledge or connivance of at least one officer.” </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Can such large scale evasion take place without the knowledge and tacit support of the officers of the Department? A steel manufacturer told DDT that he was resorting to evasion only to feed the Central Excise officers and of course in the process, he has gained immensely. He said that the Department will not allow him to work honestly. The whole Department was angry with him when he turned honest and started doing only job work for a major integrated steel plant and there was no scope for evasion. It is not as if there is some speed money collected by the lower level staff – the cut goes right up to the Chief Commissioner. The 1.09 Crores collected by the Superintendent certainly cannot be for him alone! An assesse told us that the Departmental officers do not understand economics. When the Finance Minister reduced the rates of duty, they refused to reduce their bribes. Only if the rate of duty is high, the fruits of evasion would be high! </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Minimum Export Price of Onions reduced</font></strong></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT</strong> has reduced the Minimum Export Price of Onions other than Bangalore Rose Onions and Krishnapuram onions from USD 450 to USD 350. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not030.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 30( RE_2010 )/2009-2014; Dated: March 08, 2011. </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Minimum Export Price of Sona Masuri and Ponni Samba Rice</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT</strong> has prescribed the Minimum Export Price of USD 850 for Sona Masuri rice and Ponni -Samba rice. No MEP is being prescribed for Matta rice. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2010/dgft10pn037.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Public Notice No. 37( RE - 2010 )/2009-2014; Dated: March 08, 2011</font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Duplication of Sl Numbers in Notification - CBEC Corrects</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=12182" target="_blank">DDT 1560 - 03.03.2011</a></strong>, we had pointed out, “Existing Serial Numbers duplicated: By notification No. 21/2011 - Cus dated 01.03.2011, Notification No. 21/2002 - Cus has been amended and among others, in the table, new serial numbers 164A and 491A are added. These numbers already exist. So now they are duplicated. This notification has 613 items – how can anyone possibly monitor this notification? ” </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the Board has issued a corrigendum correcting this mistake as far as Sl. No. 491A is concerned. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2011/corrigendum_cnt11_021.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Corrigendum to Notification No. 21/2011 - Cus; Dated: March 03, 2011. </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Appoints adjudicating officers for DRI cases</font></strong></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> has appointed adjudicating officers for certain specified DRI Cases. </font></p> <p><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/2011/cnt11_020.htm" target="_blank">CBEC Notification No. 20/2011 - Cus. NT</a> and <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2011/cnt11_021.htm" target="_blank">No. 21/2011 – Cus NT ; Dated: March 08, 2011. </a></font></strong></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC notifies ICD Gandhinagar</font></strong></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC </strong>has notified ICD, Gandhinagar for Unloading of imported goods and the loading of export goods. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2011/cnt11_022.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Notification No. 22/2011 – Cus NT ; Dated: March 08, 2011. </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Payment of Commission to whole time Directors - No permission required</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has decided that a Company shall not require the approval of the Central Government for making payment of remuneration by way of commission to its non-whole time directors in addition to the sitting fee if the total commission does not exceed 1% of the net profit. This archaic requirement was made in 1966 and continued till now. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">No more 80IA</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THERE</strong> was a request from the Deputy Chief Minister of Maharashtra, “Considering the needs to attract investments in Industrial Parks, the sunset clause of Section 80-IA should be extended for all Industrial Parks coming into operation until March 31, 2014”.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> As a matter of policy, it has been decided not to extend the scope, area of operation or the sunset date of any profit-linked incentive, like the one available under section 80-IA(4)(iii) of the Income Tax Act, 1961 for manufacturing activities in industrial parks. Profit-linked tax incentives are gradually being phased out from the direct taxes legislations. This policy is further reflected in the Direct Taxes Code, 2010 Bill introduced in Parliament in August, 2010. The sunset clause for industrial parks under section 80-IA(4)(iii) was extended vide the Finance (No. 2) Act, 2009 from 31.3.2009 to 31.3.2011 for the last time and it has been decided not to give any further extension to the aforesaid deduction. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> This information was given by the Minister of State for Finance, Namo Narain Meena in written reply to a question raised in Rajya Sabha yesterday. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Sidhu bats for Shawl Industry against Excise</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NAVJOT</strong> Singh Siddhu, BJP MP and former cricketer protested against the 10% excise duty on the shawl Industry. He said this duty would ruin the industry and would take up the matter in Parliament. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Punjab Chief Minister Prakash Singh Badal blamed the organised sector in the garment industry for the imposition of 10 per cent central excise duty on apparels. Apparently there is widespread protest against this apparel duty. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Roti, kapda aur makaan are now good items to be taxed. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">If You Want to Go to Hell</font></strong></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If you produce, you pay excise duty, <br> If you import you pay customs duty, <br> If you serve, you pay service Tax, <br> If you earn, you pay Income Tax, <br> If you spend you pay sales tax <br> If you work, you pay professional tax, <br> If you accumulate, you pay wealth tax, <br> If you are frustrated and hit the bottle, you pay a huge excise, <br> If you want to go to hell, don't do anything – you are already there. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs Inspector Tries to Burn Cash as CBI Raids</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBI</strong> booked cases against 7 Customs officers of the rank of Superintendent and Inspector and three employees of a freight forwarder company. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Charge: The freight company was obliging many Customs officials and paying regular bribes to various Customs officials in connection with the export-import activities in Custom Department in Gujarat. It has been gathered that a deep rooted corruption network exists wherein some Custom House Agents/private persons pay regular bribe to many officials on clearance basis, as per the rates already negotiated by them. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">One of the Inspectors of Customs at Surat tried to burn the huge cash available with him before allowing the CBI team to enter his residence for conducting search. </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><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">Customs</font></strong> </font></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">DFRC - fact that an input was not notified under SION on date of export cannot be a ground to deny duty free import of that input under DFRC: High Court </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ONCE</strong> the DGFT notifies an input under the SION as an input used in the export product, then there is no reason as to why DFRC cannot be issued in respect of that input, even if the product was exported prior to the issuance of the public notice by the DGFT. In other words, for issuing DFRC what is relevant is that the inputs must be notified under the SION and not the date on which it is notified. </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">Whether when assessee who deals in shares, sublets property taken on lease, income from same is to be treated as business income and not income from house property - Assessee's appeal partly 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 when assessee sublets a property taken on lease from the lessor, the income from the same cannot be considered as income from house property – Whether where the sub-letting of property is not the business of the assessee, the income will be taxable on such income under the head income from other sources instead of business income. Assessee's appeal partly allowed.= </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">Modvat - Time Limit to File Declaration - limit under Rule 57G cannot be applied to 57H ( 1B ): High Court </font></strong></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ANY</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> law or stipulation prescribing a period of limitation to do or not to do a thing after the expiry of period so stipulated has the consequence of creation and destruction of rights, and therefore, must be specifically enacted and prescribed therefor. It is not for the Courts to import any specific period of limitation or implication where there is really none, though Courts may always hold when any such exercise of power had the effect of disturbing rights of a citizen that it should be exercised within a reasonable period . </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 Time.</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> </body> </html>