TIOL-DDT 1746 · the untouched capture
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<p align="justify"><font size="2"><strong><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 1746 </font><font size="3" face="Verdana, Arial, Helvetica, sans-serif"></font><font face="Verdana, Arial, Helvetica, sans-serif"><br>
</font></strong><font face="Verdana, Arial, Helvetica, sans-serif"><strong>05.12.2011 <br>
Monday </strong></font></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Anti Dumping - Changing Face of Domestic Industry </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> the <em>Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 </em>, notified by <em>Notification No. 2/95-Cus. (N.T.), dated 1st January, 1995, "<strong>domestic industry</strong>"</em> was defined under Rule 2b as: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>The domestic producers as a whole engaged in the manufacture of the like article and any activity connected therewith or those whose collective output of the said article constitutes a major proportion of the total domestic production of that article except when such producers are related to the exporters or importers of the alleged dumped article or are themselves importers thereof in which case <strong>such producers <font color="#FF6633">shall</font> be deemed </strong> not to form part of domestic industry : </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By Notification No. 44/99-cus NT dated 15.07.2006, this was changed as, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><em>such producers may be deemed. </em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So the last part of the sentence became, <font color="#FF6633"><strong>"<em>in which case such producers may be deemed not to form part of domestic industry"</em></strong></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This was again amended by Notification No. 18/2010 dated 27.02.2010, whereby the above sentence became, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"<em>in such case the term ‘domestic industry' may be construed as referring to the rest of the producers <strong>only</strong></em>"</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now in the latest amendment, the word, "only"in the above sentence has been deleted. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Let us hope all the importers, Designated Authorities, customs officers and learned counsels and courts are aware of these <strong>important </strong> changes. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2011/cnt11_086.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 86/2011 - Cus., (NT.), Dated: December 01, 2011 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Classification of Chloroparaffins/Chlorinated Paraffins - Board Clarifies </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BOARD</strong> had received references regarding divergent practices being followed by field formations regarding classification of Chlorinated Paraffins/Chloroparaffins. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC clarifies that: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) Chlorinated Paraffin Waxes (in solid form) are classifiable under sub-heading 340490 of Customs Tariff Act, 1975 after the budget, 2010. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) Chlorinated Paraffins/Chloroparaffins (in liquid form) are classifiable under subheading 382490 of Customs Tariff Act 1975; </font></p>
<p align="left"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2011/cuscir11_053.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC Circular No. 53/2011-Cus , Dated: December 02, 2011 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Excise
Duty - Pile Liners - Retrospective Exemption </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> duty of excise on pile liners fabricated at the site of construction for use at the marine site, falling under heading 7305 of Schedule to the Central Excise Tariff Act, 1985 was not being levied during the period commencing on the 1st day of April, 2005 and ending with 17 th day of November, 2011; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, under Section 11C of the Central Excise Act, the Government directs that the whole of the duty of excise payable on the said goods but for the said practice, shall not be required to be paid in respect of said goods on which the said duty of excise were not levied during the period. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em> However </em> the benefit under this notification shall not be admissible unless the unit claiming benefits in terms of this notification reverses the input credit, if any, taken in respect of inputs used in the manufacture of said goods on which the duty of excise was not levied during the aforesaid period in accordance with the said practice. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The prospective exemption was given by Notification No. 41/2011-CE dated 18.11.2011. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2011/exnt11_23.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 23/2011 -CENT Dated: December 01, 2011 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ITAT President cannot write ACRs of Members - Who will Judge Judges? </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IS </strong>the ITAT President the boss of the Members and can he write their annual confidential reports? This was a question answered by the Madras High Court last week. The question is not exactly new. Exactly five years ago, the Madras High Court decided the same issue in respect of the CESTAT. And it was the same judge of the High Court who wrote both the orders. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In <em>Revenue Secretary vs Shri Syed Liaquath Peeran, Member (J) </em>- <strong><em><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2006/2006-TIOL-413-CESTAT-DEL.htm" target="_blank"><font size="1">2006-TIOL-413-HC-MAD-CESTAT</font></a></em>, </strong>the High Court observed, "<em>there is no provision of law enabling the President to write ACRs in respect of other Members of the Tribunal </em>". </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the present case before the High Court, a Member of the ITAT had challenged the selection of a vice president of the ITAT who was junior to the petitioner. His grouse is that he was not selected because of the adverse remarks in his confidential reports by the President who had no power to write the confidential reports. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Following its earlier order in the <em>Peeran </em> case, the High Court held that the President of the ITAT has no power or authority to write the ACRs of the Members. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=4696">Tribunal President- not a boss to the members! Who will judge the judges? DDT 514-18.12.2006 </a></strong></font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We bring you the Madras High Court today. Please <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=38&filename=legal/hc/2011/2011-TIOL-792-HC-MAD-IT.htm" target="_blank">Click Here </a></font></strong></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>My Lords; No Arrogance Please </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> High Court, in the above case, was pained to see that the material would depict a gloomy picture about the petitioner that he is arrogant and would always throw to winds the well-established judicial conventions. Instances of keeping the matters for writing dissenting orders for months together and fighting with the other Members on silly aspects are some of them. The High Court observed, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>It is the bounden duty of the Judges to maintain utmost decorum on and off the dais. Deviations in this regard by the Judges would result in loss of confidence about the entire judiciary by the Public and the Bar. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>The allegations made against the petitioner by the respondents that he sans such decorum are quite alarming. It is also to be mentioned that there is no allegation made against the petitioner touching his integrity. Therefore, what comes to be known is that the petitioner is rigid even to his colleagues - whether junior or senior - and behaves in a harsh manner with them and he seems to have not maintaining any cordial relation with any of his colleagues or for that matter with the Bar also, further throwing to winds the judicial conventions. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><em>No institution could survive in a democracy unless it earns public esteem; and it can earn the public esteem only by discharging its duties impartially and expeditiously. Judiciary is no exception for this principle.</em></strong><em> </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>The impartiality of the Judges has to be not only actual but also manifest and apparent. This is in conformity with the oft-repeated maxim-"Justice must not only be done but also appear to be done.' </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>The well-established precepts of public trust and public accountability are fully applicable to the functions, which emerge, from the public servants or even the persons holding public office. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>People occupying higher positions in the society and enjoying the respect and benefits attached to such exalted positions at the cost of the taxpayer's money, must adorn the positions in a responsive manner and to be role models for others to follow. Nobody has raised his little finger against the petitioner about his honesty and integrity, but all the allegations are pinpointed towards his arrogant behaviour and ignoring the judicial conventions. All these would force us to direct the petitioner to mend his ways, conduct himself in a dignified manner, and follow the established judicial conventions, so as to maintain the decorum on and off the dais.</em> </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Can't the Judges be a little less rude? </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> observations of the Madras High Court could not have come a day earlier. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Everybody in the Court bows to the bench and are all always submissive and extremely polite and almost every sentence is followed and preceded by "my Lords". But many of their lordships on the Bench are often rude and arrogant and lose their temper (with no attempt to regain it). It does not mean that all judges are rude and arrogant. Many of them are extremely courteous, smiling and encourage the junior lawyers. Some of the Supreme Court judges are so kind and humble that one would be baffled at the arrogance of some junior judges in some lower courts. Of course, rude and arrogant behaviour is not limited to the lower courts, but can be seen even in the highest courts. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Courtesy and good behaviour can go together, as is being proved by many a judge. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And usually arrogance and outbursts are the highest when ignorance is also highest. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Recently Justice Ruma Pal remarked, arrogance as one of the seven sins - <em>judges often "misconstrue"independence as judicial and administrative indiscipline. "Both of these in fact stem from judicial arrogance as to one's intellectual ability and status.</em> <strong><em>Intellectual arrogance or what some may call intellectual dishonesty </em></strong><em> is manifest when judges decide without being bound by principles of stare decisis or precedent.</em> </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chief justice Kapadia recently remarked, "<em>Judicial accountability, is a facet of judicial independence. The legislature is accountable to the electorate. The executive is indirectly accountable to the people through the elected legislature. There is no reason why the judiciary should not be accountable to the community for its due performance of the functions vested in it. Power is given on trust and judicial power is no exception. Like other public institutions, the judiciary must be subject to a fair criticism.</em>"</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Be Courteous to Public and Legislators - Government Directs Babus </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per the Conduct Rules, Government servants shall in the discharge of his duties act in a courteous manner and shall not adopt dilatory tactics in his dealings with the public or otherwise. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government has reiterated and strengthened the instructions and directs:- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Government servants should show courtesy and consideration to Members of Parliament and State Legislatures; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) while the Government servants should consider carefully or listen patiently to what the Members of Parliament and of the State Legislatures may have to say, the Government servant should always act according to his own best judgment and as per the rules; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) Any deviation from an appointment made with a Member of Parliament/State Legislature must be promptly explained to him to avoid any possible inconvenience. Fresh appointment should be fixed in consultation with him; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) An officer should be meticulously correct and courteous and rise to receive and see off a Member of Parliament/State Legislature visiting him.; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(v) Members of Parliament of the area should invariably be invited to public functions organized by a Government office. Proper and comfortable seating arrangements at public functions and proper order of seating on the dais should be made for Members keeping in view the fact that they appear above officers of the rank of Secretaries to Government of India in the Warrant of Precedence; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(vi) Where any meeting convened by the Government is to be attended by Members of Parliament, special care should be taken to see that notice is given to them in good time regarding the date, time, venue etc. of the meeting. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(vii) Letters from Members of Parliament and Members of State Legislatures must be promptly acknowledged, and a reply sent at an appropriate level expeditiously as per the relevant provisions of the Central Secretariat Manual of Office Procedure; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(viii) Information or statistics relating to matters of local importance must be furnished to the MPs and MLAs when asked for. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ix) If the information sought by a Member of Parliament cannot be given and is to be refused, instructions from a higher authority should be taken and the reasons for not furnishing the information should be given in the reply; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(x) Wherever any letter from a Member of Parliament is in English and the reply is required to be given in Hindi in terms of the Official Languages Act, 1963 and the rules framed there under, an English translation should also be sent along with the reply for the convenience of such Members of Parliament from non Hindi speaking areas; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(xi) References from the Committees of Parliament must be attended to promptly; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(xii) The officers should not ignore telephonic messages left for them by the Members of Parliament/State Legislatures in their absence and should try to contact at the earliest the Member of Parliament/State Legislature concerned. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(xiii) All Ministries/Departments may ensure that the powers of Members of Parliament/State Legislatures as Chairpersons/ Members of committees under various Centrally Sponsored/Central Sector government schemes are clearly and adequately defined; and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(xiv) A Government servant should not approach MPs/MLAs for sponsoring his individual case. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/office_memorandum11013.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DOPT No. 11013/4/2011-Estt.( A) Dated: December 01, 2011 </strong></font></a></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><font color="#006600">Jurispruden</font><font color="#FF6633" size="5">tiol</font><font color="#006600"> - Wednesday's cases</font></strong></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><font color="#663399"><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></strong><font color="#663399">Central Excise </font></strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CENVAT Credit taken, utilized, availed - Or is not And - Ind-Swift Laboratories distinguished - Taking of Credit redefined - No interest if wrong credit reversed: High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee uses the credit to make payment of excise duty on excisable product. Instead of paying excise duty, the CENVAT credit is utilized, thereby it is adjusted or set off against the duty payable and a debit entry is made in the register. Therefore, this is a procedure whereby the manufacturers can utilize the credit to make payment of duty to discharge his liability. Before utilization of such credit, the entry has been reversed, it amounts to not taking credit. Reversal of cenvat credit amounts to non-taking of credit on the inputs. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Whether when assessee leases out factory and does not intent to re-start own business, rental income can still be treated as business income - NO, rules Madras HC </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT </strong>was found that the assessee had let out its factory w.e.f. 8.9.1993 with all machinery and credited the same as other income in profit and loss account and claimed the same as business income and adjusted the business losses against it. Assessee claimed that it was their practice and in the earlier assessment years 1990-91 and 1992-93 the claim of the assessee was allowed. AO assessed the income as income from other sources. CIT (A) allowed the appeal of the assessee partly holding that the lease rental income should be treated as business income and not under "other sources". ITAT also confirmed the order of the CIT (A) </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Attachment and sale of property for recovery of dues - Pendency of appeal before CESTAT or High Court no bar: High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SECTION</strong> 87 of the Act in plain terms empowers the Central Excise Officer to proceed to recover the amount of demand by one or more modes mentioned therein. Section 87 (c) empowers the Central Excise Officer to distrain any movable and immovable property until the amount payable is paid. The power is not circumscribed by any condition. The condition precedent is that the amount of service tax levied remains payable when the power is exercised. The pendency of an appeal before the CESTAT or the Commissioner (Appeals) or before this Court does not in any manner whittle down the power under Section 87(c) of the Act. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6666">Tomorrow is a holiday </font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">See our columns Wednesday for the judgements </font></strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until then with more DDT </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">vijaywrite@taxindiaonline.com </a></font></p>
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