TIOL-DDT 1736 · 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 1736 </font><br> 21.11.2011<br> </strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Monday </strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs - Educational Qualification for Importer? Harassment - Two ACs directed to pay Rs. 50,000 as cost by HC</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>OVERZEALOUS</strong> Customs Officers trying to implement a law that does not exist will now realise that there are still Courts in India, which will not support their illegal and arrogant exercise of power – that does not exist. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An importer who wanted to file a Bill of Entry himself without the assistance of a Custom House Agent (CHA) was prevented from doing so, because he did not possess the educational qualifications required for a CHA. Since when do we have educational qualifications for doing business? Are the Customs officers agents for the CHAs that they would not allow individual importers to file documents and accept them only if filed through CHAs. I know a doctor couple who went to China and brought some furniture for their house. They were respected doctors, did not want to evade a paisa of Customs duty and filed the documents themselves without the help of an agent. They were so much harassed and finally made to approach an agent who made them pay a bribe to the Customs officers. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Coming back to our not so well educated importer – he did not have the academic education recognised by law, but he was certainly better educated (in the real sense) than the highly educated IRS officers. I know this importer – he has not studied in a university and his spoken English is very bad, but his command and understanding of the Laws are simply superb. He is poor but his tenacity to fight illegal acts of the babus is exemplary. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In this case, he approached the High Court of Punjab and Haryana with the plea that the qualification meant for the agent cannot be made applicable in respect of an importer, who wishes to import goods by himself without taking assistance of any Customs House Agent. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court found that the stand of the Customs has caused harassment to the petitioner. It is unwarranted by law. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court not only directed the Customs to accept the Bill of Entry and release the goods forthwith bearing the cost of demurrage if any, but also directed two Assistant Commissioners to pay costs of Rs. 50,000/- The Assistant Commissioners are to pay the costs out of their own funds. The High Court also directed that a copy of its order should be sent to the CBEC for information and necessary action. What action will the CBEC take? Defend its officers for their illegal and untenable action? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The officers should realize that they are paid by the State to implement the laws of the State and not to harass the taxpayer. It is heartening to note that there are some High Courts, which will not tolerate such illegal acts of the babus. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court judgement was delivered on Friday the 18 th of November 2011 and we bring you this judgement today. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Power is always misused – never used. </font></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=13678" target="_blank">Breaking News</a>. </font></strong></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs - Exemption to LCD TV Panels </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Sl. No. 319A of the Table to the Notification No. 21/2002-Cus dated 01.03.2002, LCD (Liquid Crystal Display) TV panels for manufacture of LCD TVs attract a concessional Customs duty of 5 percent subject to the condition that <em>the importer follows the procedure set out in the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996. </em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the exemption will be available to “<em>LCD (Liquid Crystal Display) TV panels of 20 inches and above</em>” without the condition. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2011/ctariff11_101.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 101/2011-Cus dated November 17, 2011 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">WCO Scholarships for Masters Degree Programme in Public Finance </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> World Customs Organization has invited nominees from Developing-country Member Customs Administrations to avail Scholarship for the Masters Degree Programme in Public Finance, from September 2012 to September 2013, at the National Graduate Institute for Policy Studies (GRIPS), Tokyo, Japan. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The scholarship is aimed at promising young managers from Customs administrations who are fully proficient in English and have demonstrated potential for growth and commitment to the service of their administrations. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Candidates should be Customs officers fully proficient in English. They should have a university degree or equivalent qualification. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nominations should be sent to the JS (Customs), CBEC so as to reach early, and not later than <strong>Friday 30th December 2011</strong>. The nominations should be accompanied by the completed nomination form. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/wco_nomination.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC F. No. 17000/62/2011 - IC (ICD), Dated: 18 November 2011 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax - Government's New Negative List </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Government has come with a new concept paper about which already so much had been written. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I may luckily fall under the negative list and may not be taxed as<strong> independent</strong> journalists are in the negative list. But who are <em><strong>independent</strong></em> journalists? How do I prove my independence - that I am not in dependence? Will Justice Markendeya Kajtu have any objection? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">They are going to tinker with construction service and make it more complicated. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Point of Taxation vs Place of Taxation</strong>: As we are grappling with the problems created by the pointless “Point of Taxation”, they want to introduce “Place of Taxation” Rules. Maybe the Place is far wider than the Point . </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/revised_concept_paper.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Revised Concept Paper on Taxation of Services based on Negative List. </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mumbai Municipal Sweepers get a salary of Rs. 26,000/- pm </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> sweepers in the Municipal Corporation of Greater Mumbai are better paid than software Engineers and many Government employees – at least on paper. As per the information collected by an RTI activist, the Municipal Corporation has entered into an agreement with two firms for employing about 1500 workers as sweepers and peons in Municipal schools at a salary of – hold your breath – more than 26000 rupees per month – and this is more than what the teachers and principals of the schools get. Of course, the contractors pocket the major share and pay the sweepers and peons about Rs. 6000 per month! </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Even in our CBEC and CBDT, a large number of contract workers are hired. Perhaps those contractors are also paid such huge sums. </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"> – 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">Central Excise </font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Value of free issue materials - Commissioner to record a clear finding - matter remanded: SC</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE Commissioner has not recorded any clear finding as to whether for the tubes that were cleared by the appellant during the relevant periods in respect of which show cause notices were issued, the caps were supplied free of cost by the customers of the appellant and such caps were fitted to the tubes manufactured in the factory of the appellant. The Commissioner, therefore, will have to record a clear finding as to whether for the tubes cleared during the three relevant periods, the caps were supplied by the customers of the appellant free of cost and accordingly pass a fresh order. </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 assessee can set off interest paid on housing loan against interest earned on such sum by advancing same as loan to third party - NO, rules ITAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE issues before the Bench are - Whether when the AO has reason to believe that income had escaped assessment as the assessee made a wrong claim of payment of housing loan interest paid to Bank as allowable u/s 57(iii) of the Act, notice was correctly issued u/s 148; Whether the assessee is entitled to claim the interest paid on housing loan against the interest income earned on the loan advanced by it to some other person out of the housing loan received from the bank u/s 57(iii) or can be claimed as interest payment on housing loan u/s 24(iv) and Whether the AO can also assess or reassess any other income which has escaped assessment and comes to his notice during the course of reassessment proceedings. And the verdict goes against the assessee. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs </font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Release of seized passport - Power to impound passport vests with competent officer under Passport Act and no other authority has power to impound same as held by Apex Court in Suresh Nanda case: HC</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> the instant case, direction cannot be issued to DRI/Customs Mangalore as the passport is not in their custody but in the custody of Sessions Court, Mangalore where prosecution proceedings were initiated against petitioner – Petitioner at liberty to approach Special Court for release of passport </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> </body> </html>