TIOL-DDT 1972 · 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> </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 1972</font><br> 30.10.2012<br> Tuesday</strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC - Please Take Care of Olympian Leslie Claudius </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FOUR</strong> Olympic Medals (three gold and one silver), a Padmasri, a retired Assistant Collector of Customs - unmatched by any other Indian, the most decorated hockey player in history - that is Leslie Claudius for you. For the last one week, 85 year old Leslie is in a hospital in Kolkata. The West Bengal Sports Minister has announced financial assistance. God knows whether it will really reach him. </font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_1972.jpg" alt="" width="400" height="265" hspace="5" border="0" align="center"></font></p> <blockquote> <p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">The then Finance Minister Pranab Mukherjee unveiling the plaque to inaugurate the Customs Club's renovated Maidan Tent, named after Leslie Claudius, in Kolkata on May 20, 2012. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A Former Member of CBEC SK Choudhury has written a letter to the Chairman and Member (P&V) of CBEC; </font></p> <blockquote> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On watching a Kolkata based Television channel showing our legendary Leslie Claudius now in his mid eighties lying in a local hospital bed with the state minister for sports announcing the grant of Rs.one lakh for his treatment, I thought that it would only be befitting that our own department too, which he served for decades with unfailing dedication and loyalty, must come forward with the offer of bearing all his medical expenses as a token of appreciation of his outstanding contributions in the field of sports. Those, likeme, who have had the privilege of working with Leslie, know him as an affable human being ever willing to help others in whatever way he could. Unlike his peers who left the country for greener pastures elsewhere, Leslie chose to live in Kolkata and visit more than a century old ‘CUSTOMS TENT" (sports club) as often as his health permitted. </font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Let Leslie not feel that in the twilight of his illustrious life with the inevitable aging process taking its toll, he has been deserted by the very family of which he was such a proud member! I, therefore, appeal to you as the head of the service for taking initiative in organising immediate grant of sufficient fund from the Welfare Fund for his treatment. This is the least, the department can do for the man who not only brought laurels to the country but inspired many generations of youngsters to excel in sports. I have no doubt that every member of the service -retired or serving would share my sentiment. </font></em></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=15530" target="_blank">DDT 1910 - 27.07.2012</a></strong> commented, <em>"Leslie is 85 years old - he brought laurels to the Country and Customs - He may live for another few years. Shouldn't the Customs Department take care of him and honour him in the December of his life. There is lot of money in the Welfare Fund; can't they buy a house for him from the fund?; can't they give him a good allowance for the rest of his life? Any celebration is shameful when we have a legendary hero of our family in penury." </em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please also see <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=15547" target="_blank">DDT 1911 - 30.07.2012</a></strong>, </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBEC should act immediately, while Leslie is still alive. Madam Chairman - this is a great opportunity for you to prove that Customs is <strong>concerned</strong>. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Clearance of Containers with Forged Signatures of Customs Officers </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>INSTANCES</strong> have come to notice of the Board that clearance of some containers were allowed without filing of Bill of Entry and payment of Customs duty by using forged signatures of Customs officials on manual Out of Charge orders (gate passes) leading to substantial loss of revenue to the Government exchequer. These cases highlight the high propensity to commit fraud and duty evasion. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board had decided that:- </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Commissioners concerned <em>(for a change, the correct usage of concerned)</em> shall develop a proper gate management system where Deputy / Assistant Commissioner of Customs, Docks / Import Shed and Deputy / Assistant Commissioner of Customs, Special Intelligence & Investigation Branch (SIIB) would carry out surprise checks at out gate and verify authenticity of the gate passes issued by the custodian. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Out of Charge orders must be computerized and manual Out of Charge orders should be allowed only in the rarest of rare and genuine cases. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Specimen signature of the officers posted in Docks / Import Shed should be made available at the out gate for verification. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Manual Out of Charge orders (gate passes) booklets, official stationery, stamp etc. should be kept in safe custody. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Due care should also be taken to verify the particulars in the Bill of Entry and other important documents. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board wants these instructions to be complied with strictly and special care to be taken by field formation to avoid any cases of misuse in future. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board adds that any failure in complying with the instructions will have a revenue angle, and hence inevitable consequences including fixing accountability on erring officer(s). </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2012/instruction12_009.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC F.No.450/24/2012-Cus.IV,Dated: October 29, 2012 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mounting Appeals Before CIT(A) - CBDT Concerned </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MOUNTING </strong>pendency of appeals before CIT(A) and huge amounts disputed therein has been a matter of serious concern for the Department. The C&AG, Standing Committee on Finance, PAC have been adversely commenting upon this issue and calling upon the department to take up the issue on priority to clear the pendency and liquidate the demand locked up in the appeals, urgently. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CAG in its report No. 20 of 2009-10 on 'The Appeal Process' recommended steps for managing inventory of appeals (Please see <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=11285" target="_blank">DDT 1426 - 18.08.2010</a></strong>). </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An analysis of the disposal of appeals by CsIT(A) for FY 2011-12 shows that the average disposal per CIT(A) was 312. However, 99 CsIT(A) could not reach the average disposal of 312. 64 CsIT(A) disposed of appeals in the range of 300-400 and an equal number of CsIT(A) disposed of appeals in the range of 400-500. 14 CsIT(A) disposed of more than 500 appeals and 3 of them disposed of more than 600 appeals in the year.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Taking note of the situation, CBDT has decided that the CCsIT may hold quarterly, reviews in October 2012, January 2013 and April 2013 to review the work of CsIT(A) functioning under them and bring the fact of shortfall in the disposals, lack of quality in the orders etc. to the notice of the officer(s) concerned with a copy to the Zonal Member. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It has been further decided that the CCsIT while recording the APAR should consider inter-alia, the disposal of appeals from the perspective of the All India average number of appeals disposed of. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=67&filename=notification/cbdt/2012/letter12_279.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT LETTER [F.NO. 279/M - 73/2012-ITJ], Dated: October 25, 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"> - 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">Customs</font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Applicant, retired Supdt.of CE, imposed with penalty of Rs. 25 lakhs by adjudicating authority u/s 114(i) of Customs Act - considering facts and circumstances and financial hardship pleaded, pre-deposit ordered of Rs.50 thousand for obtaining Stay: CESTAT</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>APPLICANT</strong> who was Superintendent of Central Excise gave a false certificate that the goods in question were stuffed in his presence. The evidence on record shows that containers were not at the given place at the time when the applicant gave certificate in respect of the goods export. The exports were made on the basis of certificate given by the applicant, and the exporters were entitled for the export benefit of approximately Rs. 4 Crores. Therefore, prima facie it is not a case for total waiver. However, taking into consideration the facts and circumstances of the case and the financial hardship as pleaded, the applicant is directed to deposit Rs.50,000/-within eight weeks. </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 cost indexation for computing capital gains can be applied by a charitable institution for purpose of Sec 11(1A) - YES: ITAT</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee is a charitable trust carrying on the charitable activity of providing education. For AY 2006-07, the assessee filed return of income declaring a net deficit of Rs.3,61,77,979. During the previous year (PY), the assessee sold land belonging to it and earned capital gains for investing the proceeds in Capital Asset to be held as corpus of Trust. The assessee declared taxable long term capital gains on sale of one of its property for Rs.3,41,169. The return was processed u/s 143(1). Later on the AO issued a notice u/s 148 for the reason that the net consideration received on sale of the property had not been invested in capital assets by the assessee and therefore, the assessee is not entitled for exemption of the entire capital gains u/s 11(1A). The DIT(E) in exercise of powers u/s 263 was of the view that the aforesaid computation of capital gains done by the AO was erroneous and prejudicial to the interest of revenue. Accordingly, the DIT(E) issued a show cause notice proposing to recompute the capital gains. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The<strong> </strong>issue before the Bench is - Whether cost indexation for computing capital gains can be applied to a charitable institution for the purpose of section 11(1A). And the answer goes in favour of the assessee. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise </font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Brass scrap generated out of CENVATTED inputs during manufacturing of zip fasteners sent to job work - there is prima facie merit in contention that the entire exercise is revenue neutral, pre-deposit waived and stay application allowed: CESTAT</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant is engaged in manufacture of Slide fasteners, Chain and Sliders and availing CENVAT credit of the duty paid on inputs. During the period April to December, 2009, the appellant removed the waste and scrap i.e. cutting and drilling scrap of brass generated during the manufacture of the zip fasteners to the job worker without payment of duty under the job work challans. The job worker, in turn, processed the same and after converting the same into brass wire returned it to the appellant who re-used the brass wire for manufacture of the zip fasteners. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The department is of the view that since the material removed from the factory of the appellant to the job worker was waste and scrap, the benefit of Rule 4(5)(a) of the CENVAT Credit Rules, 2004 was not available to the appellant and the appellant was required to pay duty at the time of removal of aforesaid scrap and waste. </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 align="justify"><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>