TIOL-DDT 1620 · 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 1620</font><br>
01.06.2011<br>
Wednesday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs - Powers of Adjudication - CBEC issues new instructions </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> has issued fresh instructions on powers of adjudication of various officers. </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I: Cases where SCNs are issued under section 28 of the Customs Act </font></strong></p>
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Level of Adjudication Officer </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nature of cases </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amount of duty involved </font></strong></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Commissioner</font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All cases </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Without limit </font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ADC/JC </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All Cases </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Upto Rs.50 lakhs </font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">AC/DC </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All cases </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Upto Rs. 5 lakhs </font></p></td>
</tr>
</table>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">II: proper officer for the issuance of Show Cause Notice and adjudication of cases under the provisions of Rule 16 of the Customs, Central Excise and Service Tax Drawback Rules: </font></strong></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) In case of simple demand of erroneously paid drawback, issuing Show Cause Notice and adjudication of case without any limit by Assistant / Deputy Commissioner of Customs. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) In cases involving collusion, wilful misstatement or suppression of facts etc., </font></p>
</blockquote>
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td width="183" valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Level of Adjudication Officer</font></strong></p></td>
<td width="249" valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Amount of Drawback</font></strong></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Additional / Joint Commissioner of Customs </font></p></td>
<td width="249" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Without any limit</font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Deputy / Assistant Commissioner of Customs</font></p></td>
<td width="249" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Upto Rs.5 lakhs</font></p></td>
</tr>
</table>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">III: In case of Export Promotion Schemes i.e. DEPB / Advance Authorization / DFIA / Reward Schemes etc.</font></strong></p>
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Level of Adjudication officer</font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Duty Incentive amount </font></strong></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Commissioner of Customs. </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Without any limit. </font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Additional / Joint Commissioner of Customs. </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Upto Rs.50 lakhs. </font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Deputy / Assistant Commissioner of Customs. </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Upto Rs.5 lakhs. </font></p></td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has clarified that in spite of the revision, in all cases where personal hearing has been completed, orders will be passed by adjudicating authority before whom the personal hearing has been held. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board wants an immediate exercise to be undertaken to take stock of the present pendency and transfer of relevant files and records to respective adjudicating authorities and the exercise of transfer of case records should be completed by 15.06.2011 under proper receipt. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Who is an Additional Commissioner</strong>? It is strange that no Additional Commissioner in the country either in Customs or Excise has an order appointing him/her as Additional Commissioner. They simply call themselves Additional Commissioner on a certain scale of pay being granted to them. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2011/cuscir11_024.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Circular No. 24/2011-Customs, Dated : May 31, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Value reduced for Brass Scrap and Poppy seeds</font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has reduced the tariff values of Brass Scrap (all grades) from USD 4408 to USD 4346 and reduced that of poppy seeds from 2633 to 2520 USD. There is no change in the value of other items. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2011/cnt11_037.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 37/2011-CUS (N.T.), Dated : May 31, 2011</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Search and <em>Thou
Shalt</em> Find - Bibles used for heroin smuggling </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THAT</strong> is exactly what the Australian Customs did! They searched and found heroin – in Bibles. An Indian National was charged yesterday in Adelaide in Australia for importing heroin into Australia.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An international mail parcel containing 29 Bibles addressed to Renmark, South Australia, was examined by Customs and Border Protection officers at the Sydney International Mail Gateway Facility. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Eight of the Bibles were found to be hollowed out and concealing packages wrapped in carbon paper and plastic. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Further investigations revealed the packages contained approximately 900 grams of a light brown granular powder which tested positive for heroin. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The heroin has an estimated street value of 1.3 million Dollars. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An Australian Federal Police (AFP) investigation then commenced in Adelaide, with officers arresting the man at Adelaide International Airport day before yesterday. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The AFP has charged the man with importing a marketable quantity of a border controlled drug, namely heroin, contrary to section 307.2(1) of the Criminal Code Act 1995 . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The maximum penalty for this offence is 25 years imprisonment and/or a USD 550,000 fine.</font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Warren
Buffet pays lower tax rate than his Secretary - How?</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>HE</strong> is one of the richest men in the world. He started it in 2006 and had been repeating it. He paid an Income Tax of 15.5% on his income of 46 Million Dollars while his Secretary paid 30% on her 60,000 dollars. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Conclusion:</strong> The US tax system allows the rich to pay less than the poor. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Actually the top income bracket is taxed at 35%. Then how did Warren Buffet pay only 15%? Most of his income comes from capital gains and corporate dividends, which are taxed at half the normal rates. His investment strategy is to invest in good companies on a long, and sometimes very-long, term basis. The richest people of the world including Bill Gates do that. Buffet who is said to be worth 50 billion dollars has an income of less than 50 million dollars, which is less than 0.1%. He obviously is not only a good investor but a master tax planner – and finally he is doing it all for charity! </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"><a></a><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"><font color="#663399"><strong>Service Tax</strong></font></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Consideration for services paid in convertible foreign exchange not liable to Service Tax - CBEC has held export of services as tax-free notwithstanding notifications - Appeal allowed: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FOREIGN</strong> parties requisitioning the services of the appellant to inspect/test/analyse samples of the goods in India and provide certificates guaranteeing import-worthiness – consideration for such services paid in convertible foreign exchange not liable to Service Tax – CBEC has held export of services as tax-free notwithstanding the notifications – Appeal allowed </font></p>
<p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax</font></strong></p>
<p><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">It's Official Now - Sachin Tendulkar is also an 'Artist'!: ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SACHIN </strong>Tendulkar, the man whose prowess with the bat has allowed him to enter history books as a cricketer, establishing world records in this game, is now officially declared to be an artist, for the purpose of paying tax. Or should we say for the purpose of claiming the deduction on his foreign income. </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">When duty paid in excess of what was payable, CENVAT Credit cannot be denied unless excess duty paid has been refunded: HC</font></strong></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">EVEN</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> if the duty has been paid in excess of the amount finally held to be payable, unless the excess duty paid has been refunded, the assessee could claim <em>CENVAT credit</em> as the department could not get the duty twice. </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><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>
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