TIOL-DDT 1929 · 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 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><font color="#663399" size="3">TIOL-DDT 1929</font><br> 28.08.2012<br> Tuesday</strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Recovery of Duty from fraudulent duty credit scrips - Proper Officer Designated </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FINANCE </strong>Act 2012 inserted a new Section 28AAA in the Customs Act, which provided for <em>recovery of duties, from the person to whom the instrument such as duty credit scrips was issued, where the instrument was obtained by means of collusion or wilful mis-statement or suppression of facts by the such person without prejudice to any action that may be taken against the importer. </em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For recovery, the <strong>Proper Officer</strong> is required to serve a notice on the person to whom the instrument was issued. Now, who is the proper officer? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC has by Notification No. <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2012/cnt12_040.htm" target="_blank">40/2012-Cus NT</a></strong> dated 02.05.2012, designated several officers as proper officers and Deputy Commissioner/Assistant Commissioner of Customs and Central Excise are designated as proper officers under Section 28AAA.This includes all the officers above the rank of Assistant Commissioner/Deputy Commissioner. Now the Board has issued a notification designating the DD/AD of DRI and DGCEI also as proper officer under Section 28AAA. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2012/cnt12_076.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 76/2012 - Customs, (N T), Dated: August 27, 2012 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Adjudicating Authorities appointed for Specific DRI cases </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>CBEC has appointed the Joint Commissioner/Additional Commissioner of Customs(Import), Jawaharlal Nehru Custom House, Nhava Sheva and JC/Additional Commissioner of Customs, Custom House, Cochin to adjudicate certain specific DRI cases.</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/2012/cnt12_077.htm" target="_blank">Notification No. 77/2012 - Customs, (N T), Dated: August 27, 2012</a> and <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2012/cnt12_078.htm" target="_blank">Notification No. 78/2012 - Customs, (NT), Dated: August 27, 2012</a> </strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Board <font color="#FF0000">Imposes</font> Officers </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Do have a look at this notification <strong>[<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2012/cnt12_078.htm" target="_blank">Notification No. 78/2012 - Customs, (N T), Dated: August 27,2012</a>]</strong></font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>In exercise of the powers conferred by sub-section (1) of section 5 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise and Customs hereby <strong>imposes</strong> the Joint Commissioner or Additional Commissioner of Customs, Custom House, Cochin, to exercise the powers and discharge the duties as adjudicating authority over the powers and duties exercisable by:- </em></font></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) the Additional/Joint Commissioner of Customs, Custom House, Cochin-682009; </font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">and </font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) the Additional/Joint Commissioner of Customs (Port-Import), Custom House, 60, RajajiSalai, Chennai-600001...</font></em></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, how can they impose an Additional Commissioner to exercise the powers of another Additional Commissioner? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board had issued more than 400 such notifications appointing specific adjudication authorities and it was always "appoints" and not "imposes" till 2012. It was only this year that the word ‘appoints' got distorted as ‘imposes' and some notifications issued in 2012 are ‘imposing'. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Is it a brilliant idea that suddenly struck them because the Section 5(1) of the Customs Act (under which this notification is issued) reads as, <em>"Subject to such conditions and limitations as the Board may <strong>impose</strong>, an officer of Customs may exercise the powers and discharge the duties conferred or <strong>imposed</strong> on him under the Act." </em></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>New RTI Rules Notified </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has superseded the <em>Central Information Commission (Appeal Procedure) Rules, 2005 </em>and the<em> Right to Information (Regulation of Fee and Cost) Rules, 2005 and notified the Right to Information Rules, 2012. </em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, an application under RTI Act should not contain more than five hundred words. Of course, no application will be rejected only on the ground that it contains more than five hundred words. For information furnished on a diskette or floppy, a fee of Rs. 50 will be charged. Do they still have floppy disks? If postage charges exceed 50 rupees, it will be charged on the information seeker. A Format for appeal is provided. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Though the Rules were notified on 31 July 2012, to this date, neither the DOPT, nor the CIC carried the Rules in their websites and virtually nobody had a copy of the Notification. Is the DOPT learning from the Department of Revenue? We bring it you today. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/rti/rti_notification_12_603.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DOPT Notification GSR 603(E), Dated: July 31, 2012 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">No case against Chidambaram - Suspicion, however, strong, cannot take place of legal proof: SC </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Dr. SUBRAMANIANSWAMY had filed a petition to include Finance Minister Chidambaram as an accused along with A. Raja in the Spectrum case. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court was not impressed and observed, </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Meeting of two Ministers would not by itself be sufficient to infer the existence of a conspiracy. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Criminal conspiracy cannot be inferred on the mere fact that there were official discussions between the officers of the MoF and that of DoT and between two Ministers , which are all recorded. Suspicion, however, strong, cannot take the place of legal proof and the meeting between Shri P. Chidambaram and Shri A. Raja would not by itself be sufficient to infer the existence of a criminal conspiracy so as to indict Shri P. Chidambaram. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A wrong judgment or an inaccurate or incorrect approach or poor management by itself, even after due deliberations between Ministers or even with Prime Minister, by itself cannot be said to be a product of criminal conspiracy. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Materials on record do not show that Shri P. Chidambaram had abused his position as a Minister of Finance or conspired or colluded with A. Raja so as to fix low entry fee by non- visiting spectrum charges fixed in the year 2001. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Please see <em><font size="1">(<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=50&filename=legal/sc/2012/2012-TIOL-56-SC-MISC.htm">2012-TIOL-56-SC-MISC</a>) </font></em></strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FM to Meet Customs Chief Commissioners Today </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FINANCE</strong> Minister Mr. Chidambaram will interact with the CC/DGs of Customs, Central Excise and Service Tax, today. The conference is to focus on </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Clarity in indirect tax laws [<font color="#FF0000">He should read some of the laws churned out by his Board</font>] </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. A stable tax regime [which changes only once in a week or so] </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. A non- adversarial tax administration [<font color="#FF0000">attach the property of the assessee for a small short payment of duty - detain imported goods for years together</font>] </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. A fair mechanism for dispute resolution [<font color="#FF0000">confirm all demands against the assessee and impose the maximum possible penalty even in cases which are already decided by the Supreme Court.</font>] and </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. An independent judiciary. [<font color="#FF0000">What can the Chief Commissioners do about it?But in quasi judicial functions, the Departmental officers are highly independent - they don't follow Supreme Court and/or Board</font>] </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mr. Chidambaram, you will get your revenue even without these meetings, but do tell your officers:- </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. To be a little more careful while drafting notifications and circulars </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Not to smuggle in corrections through corrigenda and outright fraud </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Not to treat every client/assessee as a criminal </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Not to confirm all demands of duty in adjudication </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5.Not to detain imported goods and then keep adjudication pending for years </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And do promise to protect them from Audit (which is any way a bad word with the UPA Government) and vigilance for fair and honest actions. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The FM is scheduled to address the media after the conference. </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"> – Wednesday'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">Construction of elevated viaducts for Delhi Metro - classifiable under SH 73084000 and not under SH 8425 - matter remanded to decide eligibility to exemption: CESTAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> CCE, Delhi-I took the view that the pre-fabricated segments and launching trusses are classifiable under heading 68109100 and 8425 respectively liable to Central Excise duty of Rs.2.73 Crores and he accordingly confirmed the demand along with interest and imposed an equivalent penalty. A penalty of Rs.50 lakhs was also imposed on the Dy. General Manager. Confiscation of 810 prefabricated segments and 3 launching trusses totally valued at Rs. 16,55,00,000/- with option to be redeem on payment of redemption fine of rupee four crores was also ordered. </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 invests capital gains in purchase of a new house and REC bonds, there is no restriction from claiming exemption under Sections 54F as well as 54EC - YES: ITAT</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>issues before the Tribunal are - Whether when assessee invests capital gains in purchase of a new house and REC bonds, there is no restriction from claiming exemption under Sections 54F as well as 54EC and Whether, for the purpose of claiming Sec 54F benefits, adjacent residential unit purchased can be considered as a single unit. And the verdict goes in favour of the assessee. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax </font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Club or Association - treatment and recycling of effluents and solid waste - exempted - CESTAT</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOTIFICATION</strong> <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2011/stnot11_042.htm" target="_blank">42/2011-S.T</a></strong>. dated 25.07.2011 was issued which exempted club or association service provided by an association for treatment and recycling of effluents and solid waste. This notification has been given retrospective effect by Section 145 of Finance Act, 2012 from June, 2005. The appellant is registered as company under Section 25 only and the character of the company being an association does not change just because they are registered as a company. </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">There has been no loss to exchequer and on contrary excise duty paid is more than amount of differential CVD demanded - Order set aside and appeals allowed with consequential relief: CESTAT</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN </strong>this case the demand of differential duty is confirmed to Rs. 1,70,46,113/- and the total duty paid by M.s Phil Corporation Ltd is Rs. 1,81,44,323/-. it is admitted position that the goods were imported by the appellant in bulk and cleared for further process to M/s Phil Corporation Ltd who undertook the process of packing, repacking, labeling and putting stickers of MRP which is process of manufacturing as per Section 2 (f) of the Central Excise Act, 1944 and M/s Phil Corporation Ltd cleared these goods on payment of Central excise duty as per Section 4A of the Central Excise Act, 1944.</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"><strong> <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></strong></font></p> </body> </html>