DDT, no issue number · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<html>
<head>
<title>Untitled Document</title>
<meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1">
</head>
<body bgcolor="#FFFFFF">
<p> </p>
<p> </p>
<p> </p>
<p> </p>
<table width="468" border="0" cellpadding="0" cellspacing="0">
<tr>
<td width="150" rowspan="2" valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><img src="http://taxindiaonline.com/RC2/image/ddt_illus.gif" width="150" height="89" hspace="5" border="0" align="left"></b></font></td>
<td><div align="center"><b><img src="http://taxindiaonline.com/RC2/image/ddt_word.gif" width="250" height="65" hspace="0" border="0"></b></div></td>
</tr>
<tr>
<td><div align="center">
<p><font color="#FF0000" size="3" face="Verdana, Arial, Helvetica, sans-serif"><b>DAILY
DOSE OF TAXATION </b></font></p>
<p><font color="#0000FF" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>with
Vijay Kumar</b></font></p>
</div></td>
</tr>
</table>
<br>
<br>
<table width="468" border="0" cellpadding="0" cellspacing="0">
<tr>
<td><div align="left">
<p><font color="#000099" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#0000FF">01.12.2004</font></b></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
<br>
<b>Welcome to DDT, yet another experiment in TIOL's incessant
endeavour to provide you with the best.</b></font><font size="2"><b><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif"><br>
</font></b></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>DOES
THE BOARD MONITOR CASES?</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Yes,
it does as the recent Circular No. <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2004/excircular801.htm">801/34/2004-CX,
Dated : November 14, 2004</a> would show. This circular encloses a copy
of the Supreme Court judgement in Sony India Ltd. Vs. CCE, Delhi - <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=50&filename=legal/sc/2004/2004-TIOL-43-SC-CX.htm">2004-TIOL-43-SC-CX</a>,
wherein the mandatory penalty equal to duty has been upheld by the Apex
Court. The Board circular states that this is an important judgement
in favour of Revenue and should be circulated and brought to the knowledge
of the field formations. <br>
<br>
TIOL carried this judgement on 14th May 2004 and ELT carried it on 24th
May 2004. Exactly six months after we carried the judgement, the Board
is now writing to the field to take note of the case. The Board has
a judicial cell with a Joint Secretary and several under secretaries
whose job it is or should be to see what happens in the judicial field
and what remedial action can be taken. It is certainly difficult to
monitor all the cases from the tribunal benches but it should be easy
to monitor what happens in the High Courts and certainly the Supreme
Court. In some countries when a revenue case reaches the apex court,
all the members of the Board would be present in the Court to know what
is happening. <br>
<br>
If they cannot go the courts and if they cannot get the judgements,
the least they can do is go through journals like TIOL and ELT and take
action immediately. If it takes all of six months for the Board to communicate
a decision, not its own decision, but a reported decision, the fate
of departmental appeals in various forums can well be imagined. It is
sheer luck that the government does succeed in some appeals. <br>
<br>
The Board circular encloses a copy of the Supreme Court judgement. It
is sure to be photocopied and circulated by the Chief Commissioners
and Commissioners down to the Ranges. Why does the Board take so much
pleasure in wasting paper? The citation -TIOL or ELT or both could have
been mentioned and the field officers could have been asked to read
the judgement. <br>
<br>
In this age of instant communication, is it not pathetic that the Apex
Revenue Board should be communicating a judgement that was widely publicised
six months ago? All it takes is a junior officer who can be asked to
go through the judgements published in TIOL and/or ELT and the field
may be advised suitably. Any way in the field all those who are interested
in reading judgements must have already read the particular judgement.
<br>
<br>
Unfortunately, winning cases is not as much a priority with the Board
as issue of Show Cause Notices is with the field. Two days ago we carried
the interesting judgement of Kores India - <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=50&filename=legal/sc/2004/2004-TIOL-92-SC-CX.htm">2004-TIOL-92-SC-CX</a>,
which reached the Supreme Court from appeals by the department against
Delhi CESTAT and by the Company against Chennai CESTAT. The Delhi bench
gave the judgement on the issue for the same party six months after
the order from Chennai bench. And the department was blissfully ignorant
of the Chennai order while fighting it out in Delhi. The legal wing
of a litigation-prone department should be strong, truly strong. The
Board should be doing a little more than asking for reports. </font></p>
<p align="justify"><font size="2"><b><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif"><br>
</font></b><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif"><b>
Board exempts interest on certain warehoused goods imported by EOUs,
EHTP or STP units - But what's new?</b></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
There is already a notification, Notification No. 67/95 - Cus
NT, which gives exemption of interest on certain goods imported by the
EOUS, STP units and EHTP units. Now suddenly that notification is superseded
and a new <a href="http://taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2004/cnt04_132.htm">notification
(132/2004)</a> is issued granting the same exemption. Any idea, why?
Notification No 67/95 mentions several notifications like 13/81 which
no longer exist. So the notification required a redrafting and instead
of tinkering with an old notification, the Board chose the easier of
option of issuing a new notification and superseding 67/95. Not a bad
idea altogether!</font></p>
<p align="justify"><font size="2"><b><font face="Verdana, Arial, Helvetica, sans-serif"><br>
</font></b><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif"><b>Import
of new Left Hand drive vehicles for R & D purposes</b><br>
</font></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
As per para 2(II) (a) of the Import Licensing Notes to Chapter-87 of
the ITC(HS) Classification, new vehicles can be imported only if they
satisfy the conditions that:-,<br>
<br>
1. they have speedometers indicating the speed in kilometres;<br>
<br>
2. they have right hand steering and controls;<br>
<br>
3. they have photometry of the headlamps to suit "keep left"
traffic, and <br>
<br>
4. they are imported from the country of manufacture. <br>
<br>
These restrictions do not apply to vehicles imported by manufacturers
for R&D. DGFT now clarifies that import of new vehicles for R &
D purpose also do not require to fulfil the condition of Right Hand
Steering and controls, provided the importer ensures that these vehicles
are kept off the road and not registered under the Central Motor Vehicle
Rules (CMVR), 1989. - <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2004/dgft04cir010.htm">POLICY
CIRCULAR NO 10/2004-2009, Dated: November 30, 2004</a>.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
<font color="#006600"><b>How much Service Tax was collected during the
last year?<br>
</b></font><br>
Let's ask the DG, Service Tax. You don't need to ask him.
He has furnished the particulars in his Annual Performance Report available
at www.servicetax.gov.in. According to him, "Two sets of revenue
figures are available with the Directorate (a) Data compiled on the
basis of reports from Zonal Chief Commissioners/Central Excise Commissionerates
(Rs.7750.20 crores) (b) Flash figure (Rs.7889.97 crores) reported by
the Principal Chief Controller of Accounts, New Delhi" <br>
<br>
So what is the figure? Even the DG is not sure! So that's the
great Indian Reporting Service for you. <br>
<br>
And you know where does the chunk of Service Tax revenue come from?
According to the DG, 55% of the revenue comes from telecom and insurance!
All the problems are relating to the other 45%!. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
<b><font color="#006600">The Indian Reminder Service- IRS</font></b><br>
<br>
Yesterday I met a lady IRS officer who took strong objection to our
story on the Indian Reporting Service. She said it was uncharitable
to call the service as reporting service as after calling for reports
they send periodic reminders. So the service was very much the Indian
Reminder Service too. Agreed ma'am.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
<b><font color="#006600">Nil Ambani</font></b></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What will
Anil Ambani become if Mukesh Ambani gets control of the Reliance empire?
"Anil Ambani" - blatantly plagiarised from an enlightened
columnist of our site. </font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
<font color="#FF0000" size="3"><b>DDT question for you</b></font></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>When
does a notification issued under Section 5A of the Central Excise Act
or Section 25 of the Customs Act come into effect? </b></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please
send your answer to <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a>
</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow
with more of DDT<br>
<br>
Have a Nice Day </font></p>
</div></td>
</tr>
</table>
</body>
</html>