TIOL-DDT 2004 · the untouched capture
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<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 2004</font><br>
17.12.2012 <br>
Monday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Discharged CESTAT Member PK DAS Reinstated by SC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MEMBER</strong> (Judicial) of the CESTAT, PK Das was discharged by an order dated 20.11.2009.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He was a practicing advocate in the Calcutta High Court as well as before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) for about 20 years mainly dealing with the customs, excise and service tax matters. On 22.04.2006, he appeared for an interview before the Selection Committee for the post of Member (Judicial) in CESTAT. He was selected. On 22.11.2006, he assumed charge as Member (Judicial) in CESTAT. On 21.11.2007, he completed the mandatory period of probation of one year under Rule 8(1) of the CESTAT Members (Recruitment and Conditions of Service) Rules 1987. No order extending the period of probation was issued. He served under three Presidents, namely, Justice Abichandani, Justice S.N. Jha and Justice Khandeparkar. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">According to him, he never received any adverse comment from any of them during his tenure of service as a Member (Judicial). He was expecting that his probation period would come to an end and he would be confirmed in the post of Member (Judicial). But, he received an order dated 19.11.2009 extending his probation period first upto 21.11.2008 and then further upto 21.11.2009. Because of this, he came under great stress and tension, as a result of which, he tendered his resignation from the post of Member (Judicial) on 20.11.2009. On that very day, the order dated 20.11.2009 was issued, whereby the Hon'ble Member was discharged from service. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Before that, it seems there was an incident in his court and there was a complaint about alleged misbehaviour of the Departmental Representatives with the members of the Bar. The President in a note observed, "whenever any act of misbehaviour on the part of the parties or their representatives takes place in the Court, it is essentially for the Presiding officer to administer proper control and to try to defuse the tension, if any, caused on that count and not to retire immediately to the chamber. Abstaining from and abandoning the Court in such a situation and leaving it open and free for all could result in encouraging indiscipline in the Court". </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Discharged Member approached the CAT against his discharge, but the CAT dismissed his application. Against the CAT Order, he filed a writ in the Delhi High Court. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court set aside the order of discharge/termination on 27.07.2012. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Union of India was aggrieved by the order of the High Court and approached the Supreme Court. The Apex Court on Friday dismissed the Department's appeal. The Member, PK Das also approached the Supreme Court seeking a direction to be reinstated with back wages. The Supreme Court allowed his appeal. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the Government has no choice but to reinstate PK Das and pay him the back wages for the past three years. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CESTAT is a small Tribunal with hardly twenty Members but in the last thirty years, it has established a towering reputation as a temple of justice by the sheer hard work and dedication of the few Great members who occupied the exalted seats in the Bench in the last three decades. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As Lord Roskil said in a different context,<em> "When these ghosts of the past stand in the path of justice clanking their medieval chains, the proper course for the judge is to pass through them undeterred"</em>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But we are passing through bad times. It seems Mr PK Das had resigned, but before his resignation could be considered, he was unceremoniously sacked, sending shock waves down the line. It seems after he was discharged, his room was sealed! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The three-year ordeal is over for the Hon'ble CESTAT Member who was sent out unceremoniously. He comes back to the CESTAT with the full backing of a Supreme Court order! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And this order was given by a three judge Bench of the Supreme Court headed by the Chief justice. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Let us hope the Government shows respect for the Supreme Court judgement and that the order is carried out in letter and spirit without further dilly-dallying. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Also see:</strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>1. <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=9985" target="_blank">DDT 1243 - 24.11.2009 - CESTAT Member PK Das Discharged </a></strong></font></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=10026" target="_blank">DDT 1249 - 02.12.2009 - Can a CESTAT Member who has not completed probation be sent home just like that? </a></font></strong></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=15547" target="_blank">DDT 1911 – 30.07.2012 - Discharged CESTAT Member Gets Back His Job </a></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs - Tariff Value of RBD Palmolein, Brass Scrap, Gold and Silver </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has changed the Tariff Values as follows. </font></p>
<table border="1" align="center" cellpadding="3" cellspacing="0">
<tr bgcolor="#98C806">
<td valign="top"><p align="center"><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of the goods </font></strong></font></p></td>
<td colspan="2" valign="top"><p align="center"><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Value </font></strong></font></p></td>
</tr>
<tr>
<td valign="top"> </td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Existing </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Changed </font></strong></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBD Palmolein </font></p></td>
<td valign="top"><p><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">864 </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">USD per MT </font></p></td>
<td valign="top" bgcolor="#B0DC89"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">872 USD per MT </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Brass Scrap (all grades) </font></p></td>
<td valign="top"><p><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">4010 </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">USD per MT </font></p></td>
<td valign="top" bgcolor="#B0DC89"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4069 USD per MT </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Poppy Seeds</font></p></td>
<td valign="top"><p><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">5346</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> USD per MT </font></p></td>
<td valign="top" bgcolor="#B0DC89"><p><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">5346 </font></p>
<p><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">There is actually <strong>No Change</strong>, but this is notified again </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Gold, in any form, in respect of which the benefit of entries at serial number 321 and 323 of the Notification No. 12/2012-Customs dated 17.03.2012 is availed </font></p></td>
<td valign="top"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">561</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> USD per 10 grams </font></p></td>
<td valign="top" bgcolor="#B0DC89"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">550</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> USD per 10 grams </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Silver, in any form, in respect of which the benefit of entries at serial number 322 and 324 of the Notification No. 12/2012-Customs dated 17.03.2012 is availed </font></p></td>
<td valign="top"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">1096</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> USD per kilogram </font></p></td>
<td valign="top" bgcolor="#B0DC89"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">1062</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> USD per kilogram </font></p></td>
</tr>
</table>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2012/cnt12_109.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 109/2012-Cus.,(N.T.), Dated: December 14, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Naina Lal Kidwai is First Lady President of FICCI </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/NainaLalKidwai.jpg" alt="Legal Corner Icon" width="158" height="187" hspace="5" border="0" align="left">"<em><strong>I</strong> would also like to note that FICCI is going to have its first ever Lady President when Smt Naina Lal Kidwai takes over after this AGM. She has been an icon to many young ladies in our country and has been a role model for women to aspire to reach the top. I am sure she will steer the ship of FICCI well in the coming year"</em>, said Prime Minister Manmohan Singh while addressing the FICCI AGM on 15th December 2012. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Naina Lal Kidwai is Executive Director on the Board of Hongkong and Shanghai Banking Corporation Limited and Country Head of HSBC India. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An MBA from Harvard Business School, she has been recognised in India and abroad with several awards and listings for leadership and business. Repeatedly ranked in the Fortune global list of Top Women in Business, in the Wall Street Journal and Financial Times Global Listing of Women to Watch and listed by Time Magazine as one of their 15 Global Influentials 2002, she received the Padma Sri from the Government of India for her contribution to Trade and Industry. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FEMA - Trade Credits for Imports into India - Review of all-in-cost ceiling </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RBI</strong> has decided that the all-in-cost ceiling as specified in A.P. (DIR Series) Circular No. 44 dated November 15, 2011 will continue to be applicable till March 31, 2013 and subject to review thereafter. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By the above Circular RBI had fixed All-in-cost over 6 month LIBOR at 350bps. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">LIBOR = <strong>London Interbank Offered Rate</strong> is an interest rate at which banks can borrow funds, in marketable size, from other banks in the London interbank market. The LIBOR is fixed on a daily basis by the British Bankers' Association. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We have a similar MIBOR - <strong>Mumbai Interbank Offered Rate</strong> which is the interest rate at which banks can borrow funds, in marketable size, from other banks in the Indian interbank market. The Mumbai Interbank Offered Rate (MIBOR) is calculated everyday by the National Stock Exchange of India. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2012/rbi12cir058.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">AP (DIR SERIES) Circular No. 58/RBI., Dated: December 14, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FEMA - Trade Credits for Import into India </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per the guidelines on Trade Credit, the companies in the infrastructure sector, are allowed to avail of trade credit up to a maximum period of five years for import of capital goods as classified by DGFT subject to the condition that (i) the trade credit must be ab initio contracted for a period not less than fifteen months and should not be in the nature of short-term roll overs; and (ii) AD banks are not permitted to issue Letters of Credit/guarantees/Letter of Undertaking (LoU) /Letter of Comfort (LoC) in favour of overseas supplier, bank and financial institution for the extended period beyond three years. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, RBI has decided to further relax the condition of 'ab initio' buyers' credit for 15 (fifteen) months to 6 (six) months for existing trade credits. However, the condition regarding ' ab initio' buyers' credit for 15 months shall continue for future trade credit. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2012/rbi12cir059.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">AP (DIR SERIES) Circular No. 59/RBI., Dated: December 14, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FEMA - External Commercial Borrowings (ECB) Policy - Review of all-in-cost ceiling </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RBI</strong> has decided that the all-in-cost ceiling as specified in A.P. (DIR Series) Circular No. 99 dated March 30, 2012 will continue to be applicable till March 31, 2013 and subject to review thereafter. All other aspects of ECB policy remain unchanged. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By the above Circular, RBI had fixed the All-in-cost over 6 month LIBOR at 350 bps for maturity period up to five years and at 500 bps for period beyond five years. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2012/rbi12cir060.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">AP (DIR SERIES) Circular No. 60/RBI., Dated: December 14, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise Superintendent Sentenced to Three Years RI </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> former Central Excise Superintendent was convicted by a CBI Court on Friday, to three years Rigorous Imprisonment. The charge against the former Superintendent was that he accepted a forged monthly return from an assessee to help him file a wrong insurance claim for the goods destroyed in fire in a factory. The officer had retired two years ago as a Deputy Commissioner and now he has to spend three years in a jail wearing jail clothes and doing hard labour. And maybe the Department will retrospectively dismiss him from service. This case was registered in 2002 and it took ten years for the first court to convict the officer during which time he must have gone through hell. Hell may continue for another ten to twenty years, by which time he would be eighty years old. I am not a preacher or crusader against corruption, but realistically IS IT WORTH IT? </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"> – Tuesday'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">Service Tax </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax - Money Transfer from abroad - whether Export or Service rendered in India - It is export of service - CESTAT by Majority (Third Member) </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> term "export" has not been defined either in Article 280 (l)(b) or in any of the article of the Constitution of India. There is no question of Export of Service Rules, 2005, being in conflict with Article 286 (1) (b) of the Constitution of India. There is nothing in Export of Service Rules, 2005 which can be said to be contrary to the principle that a service not consumed in India is not be taxed in India. What constitutes export of service is to be determined strictly with reference to the provisions of Export of Service Rules, 2005. Not doing so and leaving this question to be determined by individuals tax payers or tax collectors for each service, based on their deductive ability would result only in utter confusion and chaos. Money transfer service is being provided by the Western Union from abroad to their clients who approached their offices or the offices of their Agents for remitting money from to friends/ relatives in India. The service being provided by the agents and sub-agents is delivery of money to the intended beneficiaries of the customers of WU abroad and this service is "business auxiliary service", being provided to Western Union. It is Western Union who is the recipient and consumer of this service provided by their Agents and sub-agents, not the persons receiving money in India. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The destination has to be decided on the basis of the place of consumption, not the place of performance of service. Reimbursement of advertisement and sales promotion activities received from WU is not taxable as the same are for the services provided to WU, which are export of service. </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 deeming fiction created u/s 50 with respect to depreciable assets would be confined for purpose of mode of computation of capital gains contained in Ss 48 and 49 and would not cover exemption u/s 54EC - NO: HC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FOR </strong>the AY 2003-04, the assessee had filed a return of income in which the assessee had claimed short term capital gain of Rs.40,99,947/- arising from the sale of assets included in the block of assets. With respect to such gain, assessee had claimed the exemption u/s. 54EC of the Act, for having made investment in the specified bond. The AO previously accepted the assessment u/s. 143(1) of the Act. However, subsequently on the basis that such exemption was not available to the assessee and therefore income chargeable to tax has escaped assessment, issued notice u/s. 148 of the Act of reopening of the assessment. In the assessment framed by the AO pursuant to such notice, he disallowed the claim of exemption 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">It was highly inappropriate on the part of the revenue authorities to enforce recovery by appropriating rebate sanctioned against demand confirmed when stay had been granted by Tribunal - Deputy Commissioner has shown complete disregard and contempt to orders of this Tribunal - Registry directed to forward copy of order to Chairman, CBEC for appropriate action - appeal allowed with consequential relief: CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>New Year 2013 should not be that good for the Deputy Commissioner, Central Excise, Raigad as he is in the dock - the CESTAT has sought appropriate action against him. The appellant filed 10 rebate claims totally amounting to Rs.42,34,172/-. The Deputy Commissioner, Central Excise sanctioned the same but appropriated an amount of Rs. 38,63,600/- towards confirmed demands of Rs.24,36,000/- and Rs.14,27,000/- pending against the appellants, vide order dated 27/12/2011. </font></p>
<p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow for the judgements </font></strong></p>
<p><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"> <a href="mailto:vijaywrite@taxindiaonline.com"><strong>vijaywrite@taxindiaonline.com </strong></a></font></p>
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