TIOL-DDT 170 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font size="3"><strong><font color="#663399">TIOL-DDT
170</font></strong></font><strong><br>
02 08 2005<br>
Tuesday</strong></font></p>
<p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Any
problem in Ahmedabad Commissionerate - Carry a power of attorney</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Mushrooming</strong>
of consultants! There is simply not enough space for all of them, no not in
the court rooms but the hollowed precincts of the Central Excise Commissionerates.
The Ahmedabad II Commissionerate is really worried about this unhealthy mushrooming
growth of consultants swarming the premises. After all now a days the premises
of the Commissionerates are so cramped with commissioners that there is hardly
any place for nonsensical nuisance of consultants who are so unfair and illogical
that they ask very uncomfortable questions and these consultants for some strange
unfathomable reason do not understand that the officers of the department, as
far as an assessee is concerned, should be ranked a couple of places above God
– for God summons you but only once. </font></p>
<p></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Coming back to
the woes of Ahmedabad Commissionerate, their recent Trade Notice observes,</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> It
has been noticed that consultants appearing on behalf of manufacturing, assessee
or exporter in Central Excise offices have mushroomed in
the recent years but a limited few of them hold a legally valid power of attorney/authorization
for such representation, making it difficult for
department officers to ascertain the genuineness of such a person. <strong>This
is, therefore a matter of serious concern for the department and
calls for immediate review.</strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So the Commissioner
has decided that,</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Henceforth
only a person legally authorized by his principal can appear/approach before
a Central Excise Officer for any work.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> All
Trade Associations/Chamber of Commerce and the Member of the RAC/PGC are requested
to bring this to the notice of their members/constituents.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So if you have
any problem in the Commissionerate, don’t go there without a power of
attorney. Will this rule apply to the help centres too? </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board had by
<em>Circular No. 49/2004-Cus., dated 2-9-2004</em> barred Commissioners from
issuing trade notices. With Regard to local issues like swarming consultants,
Board had directed that Trade Notices/Public Notices <strong>should not</strong>
be issued. Communication to the trade was to be termed as “<strong>Facility</strong>”.
So the Ahmedabad Commissioner should have issued a communication called <strong>facility</strong>
that he is granting a facility that assessees will not have the facility of
consultants without power of attorney.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This Trade Notice
of the Commissionerate is signed by the Joint Commissioner. There was a
time when Commissioners used to sign all the Trade Notices. Later, as Commissioners
became too busy, the Trade Notices got to be attested by Additional Commissioners
and when they too got busy, by the Superintendents. But are Joint Commissioners
empowered to issue Trade Notices?</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">First of all, Board
says, No trade notices by even Commissioners let alone Joint Commissioners.
</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Secondly, as per
the Central Excise Rules, only the Board, the Chief Commissioner and the Commissioner
are authorized to issue instructions. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">To see the full
text of the interesting Trade Notice, <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/tradenotice.htm"><strong>click
here</strong></a>.</font></p>
<p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Jet
Airways crash lands from Enforcement Directorate to Income Tax</strong></font></p>
<p><font color="#0000FF" size="2" face="Verdana, Arial, Helvetica, sans-serif"><u>Enforcement
Directorate has begun probe into its overseas funding to ascertain whether Jet
had received any money from any underworld organisation</u></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">.
It seems that some of the funding of the airline, received from abroad, had
not been reflected in its account books.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The investigations
were being carried out under Foreign Exchange Management Act (FEMA) and Prevention
Of Money Laundering Act (POMLA) by the sleuths of the Enforcement Directorate.
</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Income Tax
department had and scrutinised the assessment up to 2002-03 and reported that
the funds received by the Jet Airways had come through various legal banking
channels. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However, after
the investigations by the Enforcement Directorate, the Income Tax Department
would have to resume action as ED had unearthed some transactions not listed
in the account books. </font></p>
<p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Revenue
Collection Up – and so is deficit.</strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Q1 results
of India Incorp are out and while the FM can smugly feel satisfied at the better
revenue collection, he should be very worried about the deficit situation. As
usual the Government is spending more than it makes and much faster and is on
a borrowing spree. </font></p>
<table width="450" align="center">
<tr>
<td width=240 colspan=2 valign=top > <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Period
April - June</b></font></td>
<td width=72 valign=top > <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>2005-06
</b></font></td>
<td width=84 valign=top > <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>2004-05</b>
</font></td>
<td width=100 valign=top > <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Percentage
change from previous<br>
year </b></font></td>
</tr>
<tr >
<td width=240 colspan=2 valign=top > </td>
<td width=72 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
Rs in Crores</font></td>
<td width=84 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
Rs in Crores</font></td>
<td width=100 valign=top > </td>
</tr>
<tr >
<td width=48 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
1.</font></td>
<td width=192 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
Revenue Receipts (2+3)</font></td>
<td width=72 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
38003</font></td>
<td width=84 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
30631</font></td>
<td width=100 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
24.07</font></td>
</tr>
<tr >
<td width=48 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
2.</font></td>
<td width=192 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
Tax Revenue (Net)</font></td>
<td width=72 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
31668</font></td>
<td width=84 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
24306</font></td>
<td width=100 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
30.29</font></td>
</tr>
<tr >
<td width=48 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
3.</font></td>
<td width=192 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
Non-Tax Revenue</font></td>
<td width=72 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
6335</font></td>
<td width=84 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
6325</font></td>
<td width=100 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
0.16</font></td>
</tr>
<tr >
<td width=48 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
4.</font></td>
<td width=192 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
Non-Debt Capital Receipts</font></td>
<td width=72 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
1064</font></td>
<td width=84 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
17379</font></td>
<td width=100 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
-93.88</font></td>
</tr>
<tr >
<td width=48 valign=top > <font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>5.</b></font></td>
<td width=192 valign=top > <font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>TOTAL
RECEIPTS</b><b>(1+4)</b></font></td>
<td width=72 valign=top > <font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>39067</b></font></td>
<td width=84 valign=top > <font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>48010</b></font></td>
<td width=100 valign=top > <font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>-18.63</b></font></td>
</tr>
<tr >
<td width=48 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
6.</font></td>
<td width=192 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
Non-Plan Expenditure</font></td>
<td width=72 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
69330</font></td>
<td width=84 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
66656</font></td>
<td width=100 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
4.01</font></td>
</tr>
<tr >
<td width=48 valign=top > <font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>7.</b></font></td>
<td width=192 valign=top > <font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Expenditure
on Capital account</b></font></td>
<td width=72 valign=top > <font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>2863</b></font></td>
<td width=84 valign=top > <font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>5674</b></font></td>
<td width=100 valign=top > <font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>-49.54</b></font></td>
</tr>
<tr >
<td width=48 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
8.</font></td>
<td width=192 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
TOTAL EXPENDITURE</font></td>
<td width=72 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
93584</font></td>
<td width=84 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
89691</font></td>
<td width=100 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
4.34</font></td>
</tr>
<tr >
<td width=48 valign=top > <font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>9</b></font></td>
<td width=192 valign=top > <font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b >Fiscal
Deficit </b></font></td>
<td width=72 valign=top > <font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>54517</b></font></td>
<td width=84 valign=top > <font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>41681</b></font></td>
<td width=100 valign=top > <font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>30.80</b></font></td>
</tr>
<tr >
<td width=48 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
10.</font></td>
<td width=192 valign=top > <font size="2" face="Verdana, Arial, Helvetica, sans-serif">Financing (11+12)</font></td>
<td width=72 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
54517</font></td>
<td width=84 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
41681</font></td>
<td width=100 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
30.80</font></td>
</tr>
<tr >
<td width=48 valign=top > <font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>11.</b></font></td>
<td width=192 valign=top > <font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b >Domestic</b></font></td>
<td width=72 valign=top > <font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>53787</b></font></td>
<td width=84 valign=top > <font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>35882</b></font></td>
<td width=100 valign=top > <font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>49.90</b></font></td>
</tr>
<tr >
<td width=48 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
12.</font></td>
<td width=192 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
External</font></td>
<td width=72 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
730</font></td>
<td width=84 valign=top ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
5799</font></td>
<td width=100 valign=top><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
-87.41</font></td>
</tr>
</table>
<p></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Look
at these alarming <font color="#FF0000"><strong>red</strong></font> signals.
While the Revenue collections have shown a 30% increase, the total receipts
are short by nearly 20% compared to the previous year, while expenditure has
gone up by 4%. Sad part of the expenditure is we are spending all the money
on consumption. There is hardly any investment. The capital expenditure up to
June last year was 5674 Crores, a very small expenditure indeed, but this year
even this token amount is not invested in capital spending. The Capital expenditure
has come down by 50% to 2863 Crores. The fiscal deficit is a huge 54517 Crores,
an increase of 31% over last year. Simply put it means that for every Rupee
that the Government gets, it spend Rs.2.40. In the case of a Government servant,
habitual indebtedness is an offence; that of course does not apply to the government.
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And
how does the Government spend more than it earns? Simple, by borrowing. The
Finance Minister told Parliament that he proposed to borrow One Lakh Ten Thousand
Crores in the year. He has already borrowed fifty five thousand crores in the
first three months; that is 50% of the budgeted estimate is already borrowed.
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
situation is not really alarming; it was always like this- we are used to this.
Only if we could spend a little more money on capital account and a little less
on revenue account!<br>
</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(Source-
Controller General of Accounts)</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF0000">Until
Tomorrow with more DDT</font></strong></font></p>
<p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Have
a nice day.<br>
<br>
Mail your comments to <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></strong></font></p>
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