TIOL-DDT 194 · the untouched capture
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<html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body bgcolor="#FFFFFF"> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT 194</font><br> 05 09 2005<br> Monday</b></font></p> <p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Disposal of confiscated vehicles – CAG objection worries Revenue</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> A Mercedes Benz car seized in November 1986 and absolutely confiscated in November 1987 could be disposed of only in 2003. Just imagine what would happen to a car lying with Customs for sixteen years? And what can be recovered by selling that junk? Obviously the Board is worried and more so because it is becoming an Audit para. So the Board wants such vehicles to be disposed of early and what little could be salvaged to be salvaged and so instructions are issued:-<br> <br> • the vehicles are to be properly garaged and particular care taken of spare parts and tools.<br> <br> • The engines of the vehicles (<b>and not the vehicles themselves</b>) should be run, if possible, twice a week to keep the parts under lubrication.<br> <br> • Where suitable garage facilities are not available, temporary sheds may be erected or the vehicles handed over to an Automobile Association<br> <br> • Heads of departments have been given the power to spend up to Rs 600 per annum to maintain the vehicles. <b>Yes that works out to a princely sum of Rs 50/- per month </b>- and this too subject to certain conditions. If necessary even a mechanic should be hired to maintain the vehicle.<br> <br> • Adjudication should be promptly done.<br> <br> • Confiscated vehicles may be used for government work but for only anti-smuggling activities.<br> <br> • Seized vehicles should not be used even for official purposes.<br> <br> • Confiscated vehicles should be sold if they cannot be used by the department, but only after taking the prior permission of the Board.<br> <br> • The vehicle should be sold at the best possible price so as to avoid any dispute with the owner regarding the adequacy of the price at which it was sold in case the party succeeds in appeal.<br> <br> Obviously, Board is not aware of a case we reported recently, </font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=52&filename=legal/cestat/2005/2005-TIOL-704-CESTAT-BANG.htm">2005-TIOL-704-CESTAT-BANG</a></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> where the Tribunal held that the confiscated car cannot be sold while the appeal is pending.<br> <br> <b>Source: CBEC’s letter F.NO.715/7/2005 -CUS(AS) dated 2nd September 2005 addressed to Chief Commissioners and Commissioners.</b></font></p> <p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"> <b>Sale of Confiscated gold</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> If sale of confiscated cars is a problem, there seems to be an equally daunting task in selling confiscated gold. And the Board has issued instructions on how to go about it.<br> <br> • The sale of seized/confiscated gold shall be routed through State Bank of India who will act essentially as consignee agents<br> <br> • Gold shall be delivered by the <b>concerned</b> Customs House to the Bank at the major centre(s), viz. Mumbai, New Delhi, Calcutta, Chennai, Ahmedabad, Jaipur,Cochin, Bangalore and Shillong for sale in the open market.<br> <br> • No commission will be levied by the Bank on the Customs Department. However, out of pocket expenses incurred by the Bank would be deductible @ 1% of the market price<br> <br> • The Bank will arrange for payment of taxes such as Sales Tax, Octroi etc. out of the sale proceeds of the gold and would submit copies thereof to the <b>concerned </b>Commissioner of Customs<br> <br> • The Bank will take physical delivery of the gold from the Customs warehouse/ office against a suitable acknowledgment<br> <br> <b>Board’s F.No.711/164/93-CUS(AS)</b></font></p> <p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Concerned Commissioner or Commissioner concerned?</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> But who is a concerned commissioner? A worried Commissioner, an alarmed Commissioner or a troubled Commissioner? What the Board means of course is the Commissioner concerned. But such niceties of language are not the acknowledged traits of the officers in the Revenue Board! Recently Petroleum Minister Mani Shankar Iyer was furious with the Finance Ministry. His proposals on oil prices were not being answered properly by Revenue Ministry. He was told that the <b>concerned</b> officers were examining his proposals. Iyer was furious not because they did not consider his proposals but because they did not know proper English. He knew that none of the Revenue officers were ‘concerned’ with the high oil prices, but he would have been happy if he had been told that the ‘officers concerned’ were sleeping over his files instead of being told that the ‘concerned officers’ were doing so. But Revenue officers did not go to Cambridge as Iyer did. No cause for concern indeed.</font></p> <p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>The C-3 phenomenon</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“Officers are petrified of taking decisions because of the tendency to score political points through the "<b><font color="#006633">C-3 phenomenon" of CBI, CVC and CAG”</font></b> – Jaswant Singh, former FM.<br> <br> <font color="#FF6666"><b>Until tomorrow with more DDT <br> Have a nice day.<br> Mail your comments to </b></font><a href="vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p> </body> </html>