TIOL-DDT 1865 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<!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 size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=14276"><img src="http://www.taxindiaonline.com/RC2/image/ddt/ddt_1794.jpg" alt="DDT in Limca Book of Records" width="175" height="120" hspace="5" border="0" align="right"></a></font></strong></font></strong><strong><font color="#663399" size="3">TIOL-DDT 1865 </font><br>
</strong></font><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">25.05.2012 <br>
Friday </font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Date of Publication in Official Gazette? </font></strong></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/2012/cnt12_021.htm" target="_blank">NOTIFICATION </a><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2012/cnt12_021.htm">No. 21/2012-Cus(NT) dated 17.03.2012</a></strong> enhanced the baggage limit to Rs. 35,000/-. The notification mentioned that it would come into force <strong>on the date of publication in the official gazette</strong>. When was it published in the official gazette? Nobody seems to know. Overactive officers in airports interpreted this in many ways. Some said, it would come into force after the Finance Bill is enacted and some officers even asked the hapless passengers arriving from foreign countries to produce a copy of the gazette if they wanted the enhanced free baggage allowance of Rs. 35,000/-. Even after a Commissioner told us that it was effective from 17.03.2012, we found his officers flouting his directions and not allowing the enhanced allowance.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When is a notification effective from?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Section 5A(5) of the Central Excise Act stipulates, </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(5) Every notification issued under sub-section (1) or sub-section 2(A) shall, — </em></font></p>
<blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) <strong>unless otherwise provided</strong>, come into force <strong>on the date of its issue</strong> by the Central Government for publication in the Official Gazette; </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) also <strong>be published and offered for sale</strong> on the date of its issue by the Directorate of Publicity and Public Relations, Customs and Central Excise, New Delhi, under the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963 (54 of 1963). </font></em></p>
</blockquote>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Section 25(4) of the Customs Act has similar provisions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the exemption notifications, as per the above provisions, will come into force on the date of its <strong>issue for publication</strong> in the gazette, not necessarily the date of publication in the gazette. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Notifications are also to be published and offered for sale ON THE DATE OF ITS ISSUE by the Directorate of Publicity and Public Relations. Has this directorate ever published or sold a single notification in the last five years? If not, are they not violating the provisions of Section 5A(5) of the Central Excise Act and Section 25(4) of the Customs Act? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Certain notifications come into force on the date of publication in the Official Gazette. Now, how does one know when a notification is published in the gazette? Or for that matter whether it is published at all. Does the Board maintain gazetted copies of all notifications? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In <em>UOI vs Ganesh Das Bhojraj</em> - <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=26&filename=legal/sc/2002/2002-TIOL-233-SC-CUS.htm" target="_blank"><font size="1">2002-TIOL-233-SC-CUS</font></a></strong>, the Supreme Court held, <em>Notification under Section 25 of the Customs Act would come into operation as soon as it is published in the Gazette of India, i.e., the date of publication of the Gazette. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Is this confusion necessary? Further, will all the corrigenda and backdoor corrections that Board makes find their way into the gazette? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Who publishes the gazette? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Gazette is published by the Controller of Publications under the Ministry of Urban Development! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Can't the publication and effective date of notification be more simple and transparent? And shouldn't the Law need a little change? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And there are other controversies especially in respect of non-tariff notifications like retrospective validity, which should be subject for another discussion. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">The Pre 1991 Days - I was not eating lizards - It was worse</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN </strong>1983, I bought a Bajaj scooter for Rs. 14,000/-. The official price was Rs. 8,000/-. I paid a premium of Rs. 6,000/-. The Dollar was officially priced at Rs. 8/-. I asked a cousin who was abroad to give me 1000 dollars, so that I could buy this scooter under the Foreign Exchange quota at 1000 dollars. He asked me to buy the scooter at the black price of Rs. 14,000 as it was cheaper, because Dollar was selling at Rs. 16 in the black market. A friend of mine bought a plot of land for Rs. 14,000 at that time. Recently, I sold my old scooter for Rs. 1000/- and my friend sold his plot for Rs. 1.5 Crores! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An International Organisation had selected me to go to US on a Study Tour, but I could not go, as the RBI would give me only a hundred dollars and the rest I had to arrange in black or through friends in US - and there was nobody to finance me. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If I wanted to buy a TV, there were only two brands available - both manufactured by PSUs, for which one had to deposit the money in advance and wait for the TV to come. Though there was provision for a few channels, programmes used to be telecast only from one channel - Doordarshan. My favourite programme was Krishi Darshan, where I got to see big red tomatoes, the kind of which you could never see in the market. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A VCR was a great possession. With great influence and a lot of wire pulling, I could buy a VCR from the Customs at a price of Rs. 15,000. (In those days there used to be a machine called the Video Cassette Recorder/Player, through which you could play video cassettes on the TV) </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A telephone was a huge luxury. After paying Rs. 5000/- for a phone under the “Own Your Telephone” (OYT) Scheme, one had to wait for a few years to get the coveted phone connection. I know a friend who got a telephone on the recommendation of the Prime Minister of India. Bringing the ring back on a dead phone was almost impossible as, darshan of Lord Balaji would be much easier than that of the PRO. And a local call used to cost Rs. 1.20 - as much as it does now. STD was prohibitively expensive. Today 90% of the people who do not have a place to defecate have mobile phones. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If you wanted to buy a car, you had a huge choice between an Ambassador and a Maruti. In two wheelers, the choice was much wider with four brands! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There was no good quality ballpoint pen, which would not spoil the paper. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Flying was only for the super rich and there was choice of only one airline - Our own great Indian Airlines. In 1988, I flew from Delhi to Srinagar at an exorbitant price of Rs. 3000/- I had no choice - there was only one carrier - the IA. Last year I flew to Srinagar at a price of Rs. 2900/ -; the same price after 20 years! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There used to be a cap on production and clearance. During Budget day, assessees had to get permission from the Commissioner or even the Board to clear a permitted quantity of goods. A factory, which produced more than the licenced capacity, could be penalised. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There used to be a Chief Controller of imports and exports - yes, he used to control exports! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In 1991, we had no Foreign Exchange balance and we had to pawn the family gold in London to tide over the crisis. When the new Government in 1991 changed the direction, there was stiff opposition and many intellectuals in the country feared that a new invincible invisible East India Company is out to take over India, but after twenty years, we know nothing of the sort happened. In fact, most of the MNCs who came to invest in India did not take any money out of India, but they helped in providing thousands of jobs. Now, it is easy to say they came to India for business and profits and not because of any special love for India and it is true, we were not eating lizards, when they were not here and certainly, we will not eat lizards, if they are not here. But are we going back to those days? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I am not particularly fond of eating lizards - but I would certainly like to have my mobile phone, not necessarily Vodafone. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">The Fallen Rupee - Customs Exchange Rates Changed </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> has amended the Exchange rate of the rupee for the US Dollar and Hong Kong Dollar. The New rates effective today are: </font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td rowspan="2" valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Foreign Currency </font></p> <p> </p></td>
<td colspan="2" valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rate of exchange of one unit of foreign currency equivalent to Indian rupees </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(For Imported Goods) </font></p></td>
<td valign="top"><p><font face="Verdana, Arial, Helvetica, sans-serif"><font size="2"> </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(For Export Goods) </font></font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Hong Kong Dollar </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7.20 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7.10 </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">US Dollar </font></p></td>
<td valign="top"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>55.95 </strong></font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">55.15 </font></p></td>
</tr>
</table>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2012/cnt12_045.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 45/2012 - Cus(NT): Dated May 24, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Standard weight and tolerance in weight of 1 bale of cotton - DGFT Clarifies </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOTIFICATION</strong> Number 113 issued on 4th May, 2012 deals with registration of contracts for export of cotton. Para 2(iii) of this notification clearly mentioned that 1 bale = 170 kgs. [Thus, 1 standard bale would be of 170 Kg weight] </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It has been brought to the notice of DGFT that some exporters find it convenient to have bales of lesser weight, and also that various bales may contain different quantity of cotton depending on local conditions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, DGFT clarifies:- </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Presumption is that 1 bale would contain 170 Kgs. If the allotment is 10 bales, then the exporter is permitted to export a <u>maximum of 1700 Kgs or 1.7 MT</u>. But if bales are of smaller weight it may be more than 10 bales, or if they are of greater weight, it may be less than 10 bales. Thus, when the permission is for 10 bales, the implication is that there are 10 standard bales, each weighing 170 Kg. If the bales are non-standard, then it would be important to watch the weight which must not exceed 1.7 MT irrespective of the number of such non-standard bales. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) RC holders who are found to have defaulted in exporting the quantity allowed would be liable for penal action as mentioned in Policy Circular No. 51 dated 28.12.2011. Here the critical test on “quantity” would be weight (taking 1 bale = 170 Kg) and not number of bales. Any shortfall upto 5% in weight, however, will not invite penal action. </font></p>
</blockquote>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=329&filename=notification/dgft/2012/dgft_trade_notice_03_2012.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Trade Notice No. 03/2012, Dated: May 24, 2012</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"> - Monday'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">Having granted full waiver of pre-deposit while deciding Stay application, Tribunal in absence of any special circumstances ought not to have ordered pre-deposit while remanding matter to Commissioner (A): HC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BY</strong> an order dated 18/3/2004, the Tribunal by following its decision in the case of <em>Vijayata Audio World and Ors. dated 22/9/2000 </em>- </font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2002/2002-TIOL-484-CESTAT-MUM.htm"><strong><em>2002-TIOL-484-CESTAT-MUM</em></strong></a></font> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">waived
the pre-deposit. Subsequently, the Tribunal vide its order dated 01/3/2011
set aside the order of Commissioner (Appeals) and restored the matter to
the file of Commissioner (Appeals) with a direction to pass fresh order on
merits as the issue was highly debatable and highly arguable. However, the
Tribunal further directed that the order of the Tribunal in restoring the
appeal before the Commissioner (Appeals) shall be subject to the condition
that the assessee shall deposit 50% of the amount involved within the time
stipulated therein. </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 when assessee receives payments on sale of property in parts, piecemeal deposits of same under capital gains scheme disentitles assessee from Sec 54EC benefits - NO, rules ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ASSESSEE</strong> is an individual. He filed his ROI claiming exemption under section 54EC. The AO during the course of assessment proceedings examined the issue of exemption and allowed the claim of the assessee. The CIT exercising his power u/s 263 revised the order of AO and directed him to frame the assessment once again and also observed that the assessee had invested the amount in capital gain scheme in scattered manner which meant some amount invested by the assessee when he received part payment and the balance on the receipt of balance payment. The CIT was of the view that assessee ought to have deposited the entire amount in capital gain scheme and hence the order of the AO allowing the exemption in relation to piece meal investments was erroneous and prejudicial to the interest of revenue. The AO following the direction of CIT (A) disallowed the claim of the assessee. CIT (A) affirmed the order of AO. </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">Customs Notification 21/2002-Cus does not provide any condition that benefit is available subject to provisions of Exim Policy - <em>prima facie</em> benefit of notfn. 6/2006-CE cannot be denied: CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> was only a week ago that we reported the CESTAT decision in the case of <em>Crompton Greaves Ltd.</em><strong> <font size="1"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2012/2012-TIOL-574-CESTAT-MUM.htm" target="_blank">(2012-TIOL-574-CESTAT-Mum)</a></font></strong> where the Bench while waiving pre-deposit of Rs. 3.95 Crores and granting stay held that <em>prima facie</em> benefit of Notification 6/2006-CE in respect of goods supplied against International Competitive Bidding cannot be denied by invoking provisions of the EXIM policy. In the present case also, the Revenue authorities have denied the benefit of notification 6/2006-CE in respect Water Cooler chiller cleared to Koderma & Durgapur Thermal Power Station set up by Damodar Valley Corporation under international competitive bidding through M/s. ABB Ltd. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Monday for the judgements </font></strong></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more <strong>DDT</strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice Weekend</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>