TIOL-DDT 1723 · 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 1723 </font><br>
31.10.2011 <br>
Monday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">The Most Famous Indian Customs Officer Retires - Human Intelligence Network Never Fails </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ONE</strong> of the most knowledgeable, responsive and workaholic Chairman that CBEC had in recent times, Mr Dutt Majumder is retiring today after more than 37 eventful years in the Department, leaving his indelible mark in and adding value to, every post he held. He was the most popular and famous face of Indian Customs in the World Customs arena. Though very kind, responsive and concerned , he could be very firm when the need arose. He was the natural choice to head the super sleuth agency DRI. As the DRI Chief, he once told us, “ Human Intelligence Network never fails”. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When he became a Board Member, he brought to the Board over 30 years of exemplary experience in Customs and a big fat authoritative book on Customs valuation to his credit - And they made him Member, Central Excise! He had practically no experience in Central Excise when he became a Member of the CBEC. In two years time, he became an authority on Central Excise and Service Tax. It was a visual treat to see him face volleys of questions from informed assessees with great aplomb and dexterity, in our seminar in Mumbai. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He was a leader who has a great fan following. Every officer who had worked with him would fondly recall his humility, leadership and the courage to defend and protect his staff. He was a super PRO for his department all over the world. No other Chairman interacted with the Press and got as good copy as he did. Wherever he went, the Press followed him and he always answered all their questions patiently. In a CBDT function, a colleague found him surrounded by TV cameras and pressmen and wondered whether he had walked into the wrong function. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As Chairman of the Board, he was constantly trying to get several things done for the welfare of his staff and the facilitation of his assessees. He tried his best to push through promotions for his staff. Letters addressed to him were promptly replied to – with solutions and explanations. In our Mumbai Seminar, there was a request to postpone the implementation of Point of Taxation Rules, which he readily obliged. Recently there was a persistent demand through our columns to extend the last date for filing Service Tax returns, which also he obliged. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But there were certain things, which even he could not do. However much he tried, the cadre review is still an elusive oasis for his staff. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Of course, some of the changes brought in during his regime were not well received. The Self Assessment and Post Clearance Audit in Customs, which he believes are facilitatory measures are perceived as demonic. The Point of Taxation Rules have attracted pointed criticism. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But as he said in our Mumbai Seminar, “at the end of the day, we are Revenue officers” – and he was a Revenue Officer to the core. It is sad that he could not preside over the administration of GST, for which he had done so much work. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In a meeting with the CVC, when they were discussing about the list of <em>“Officers of Doubtful Integrity (ODI)”</em>, I heard him telling the CVC to maintain a list of officers of integrity - <em>officers of doubtless integrity</em>. If they had maintained such a list, his name would have been right on the top. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I am reminded of a poem </font></p>
<p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Abou Ben Adhem</font></strong></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Abou Ben Adhem (may his tribe increase!) </em></font></p>
<p align="center"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Awoke one night from a deep dream of peace, </font></em></p>
<p align="center"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And saw, within the moonlight in his room, </font></em></p>
<p align="center"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Making it rich, and like a lily in bloom, </font></em></p>
<p align="center"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An angel writing in a book of gold:-</font></em></p>
<p align="center"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Exceeding peace had made Ben Adhem bold, </font></em></p>
<p align="center"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And to the presence in the room he said, </font></em></p>
<p align="center"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"What writest thou?" - The vision raised its head, </font></em></p>
<p align="center"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And with a look made of all sweet accord, </font></em></p>
<p align="center"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Answered, "The names of those who love the Lord." </font></em></p>
<p align="center"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"And is mine one?" said Abou. "Nay, not so," </font></em></p>
<p align="center"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Replied the angel. Abou spoke more low, </font></em></p>
<p align="center"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But cheerly still; and said, "I pray thee, then, </font></em></p>
<p align="center"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Write me as one that loves his fellow men." </font></em></p>
<p align="center"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The angel wrote, and vanished. The next night </font></em></p>
<p align="center"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It came again with a great wakening light, </font></em></p>
<p align="center"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And showed the names whom love of God had blest, </font></em></p>
<p align="center"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And lo! Ben Adhem's name led all the rest. </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This
would apply to Mr Sumit Dutt Majumder <font color="#663399"><em><strong>mutatis
mutandis.</strong></em></font> (incidentally, mutatis mutandis does not mean
identical application; it actually means with necessary changes. It means "The
necessary changes having been made; having substituted new terms; with respective
differences taken into consideration"; “With the necessary changes in
points of detail; With such change as may be necessary" ) </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">TIOL wishes the outgoing Chairman all the very best. Sir, your best years are ahead! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC is to get a new Chairman today. WE wish Mr. Goel all success as the new Chief. This is the ideal time for an officer to become the Chairman, as he would be able to push his ideas through the budget in February. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Vigilance Awareness Weak - The Annual Farce From Today </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ALL</strong> Central Government offices will be celebrating the Vigilance awareness Week from 31st October to 5th November 2011. This year's theme is “participative vigilance”. This is an annual meaningless ritual where you find absolutely corrupt officers lecturing on honesty. It looks ridiculously atrocious to witness such farce in every office. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The height of ridicule is a pledge that the government servants take on this day: </font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PLEDGE</strong></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“We, the public servants of India, do hereby solemnly pledge that we shall continuously strive to bring about integrity and transparency in all spheres of our activities. We also pledge that we shall work unstintingly for <strong>eradication of corruption </strong>in all spheres of life. We shall remain vigilant and work towards the growth and reputation of our organization. Through our collective efforts, we shall bring pride to our organization and provide value-based service to our countrymen. We shall do our duty conscientiously and act without fear or favour ” </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Just imagine the mirth that would be generated by a head of an office who is known for his corruption reading out this pledge and asking his officers to follow him! And just imagine what would happen to this country if every public servant followed this pledge – it would be utopia. At least can't we avoid wasting time and money on this farce? It seems some officers collect money for meeting the expenditure for this fight against corruption. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">At least, let us hope nobody gets caught by CBI during the week. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Former IAS Officer VS Gopal, whose many cartoons have appeared in these columns, drew this more than twenty years ago. </font></p>
<p align="center"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddtcartoon.jpg" alt="Legal Corner Icon" width="295" height="420" hspace="5" border="0" align="center"></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>New Drawback Rates - Changes </strong></font></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=24&filename=notification/custom/2011/cnt11_068.htm" target="_blank">NOTIFICATION No. 68/2011 – Cus NT dated 22nd September</a></strong> had notified the new drawback rates. Government has now brought in several changes in the notification including the rates. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A new sub-para 3A is added in the Notes, </font></p>
<blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"(3A) Notwithstanding anything contained in the said Schedule, any identifiable ready to use machined part or component predominantly made of iron, steel or aluminium, made through casting or forging process, and not specifically mentioned at six digit level or more in Chapter 84 or 85 or 87, may be classified under the relevant tariff item (depending upon material composition and making process) under heading 8487 or 8548 or 8708, as the case may be, irrespective of classification of such part or component at four digit level in Chapter 84 or 85 or 87 of the said Schedule."; </font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sub para f of para 8 pertaining to bar on DEPB exports, is deleted. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2011/cnt11_075.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 75/2011-Cus NT., Dated: October 28, 2011 </font></strong></a></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"> – Tuesday'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">Customs</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">‘Sufficient cause' in section 5 of Limitation Act, 1963 should receive a liberal construction so as to advance substantial justice as held by Apex Court - Tribunal ought to have accepted the cause shown in two affidavits and condoned delay of 299 days in filing appeal: HC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> words "sufficient cause" in Section 5 of the Limitation Act, 1963 should receive a liberal construction, so as to advance substantial justice. On the facts of the case, and in the light of the judgments of the Supreme Court, the Tribunal ought to have accepted the cause shown in the two affidavits and condoned the delay in filing the appeal, particularly in view of the fact that Manager (imports & exports) of the petitioner-Company could not attend to office work till December 2005 due to the injuries suffered by him in an accident that occurred on 19.02.2005. </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">Income tax - Whether AO can brush aside actual rent received and reopen assessment on ground that sister concern earned higher rent from property located in vicinity of assessee's property - NO, rules ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE issues before the Bench are</strong> - Whether AO can brush aside actual rent received and reopen assessment on the ground that the sister concern per se earned higher rent from the property located in the vicinity of the assessee's property and whether reasons alone are to be seen while scrutinizing the jurisdiction of AO under section 147. And the ruling goes in favour of the assessee. </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">Refund of CENVAT Credit under Rule 5 - There is no stipulation under Rule to restrict refund based on SION fixed by DGFT: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> can be seen that provisions of Rule 5 of Cenvat Credit Rules, 2002 was not considered by the learned Commissioner (Appeals) or by the adjudicating authority in the proper perspective as the said Rule 5 does not contemplate the reduction of the refund claim of an amount of credit availed and lying in the balance and which could not be utilised for home clearance, subject to the conditions that the goods are exported and the appellants follows the procedure laid down. It is not disputed in this cases that the appellants herein had followed the proper procedure for filing of the refund claim. </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 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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