TIOL-DDT 205 · 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 205</font><br> 20 09 2005<br> Tuesday</b></font></p> <p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Anti-dumping duty on Aniline – extended till April 2006</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Anti-dumping duty on Aniline, originating in, or exported from Japan and the United States of America was originally imposed from 10th April 2000 by Notification No. 128/2000-Customs, dated the 6th October 2000. This would expire on 5th October 2005. Now the Government has extended this date till 9th April, 2006. DDT congratulates the Government for the timely amendment of the notification before its death.<br> <br> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2005/ctariff05_085.htm"><strong>NOTIFICATION. No.85/2005-CUSTOMS dated 19th September, 2005</strong></a></font></p> <p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"> <b>Might of the Government - against the weak</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Import of used photocopiers – back to beginning. During the last few years old and used photocopying machines were imported through several ports. These are reconditioned and sold in India at very economical rates. Most of these importers are small-time uneducated businessmen, hoping to make a small profit by selling cheap photocopiers. Even their customers are small-time businessmen hoping to eke out a living through some small business. Invariably in all the cases, these photocopiers were promptly confiscated by the Customs. These small businessmen had to pay huge redemption fine, demurrage, and other allied charges to get their goods cleared through Customs. At least in one case, where the Commissioner (Appeals) had ordered release of these goods, the Customs had the audacity to say that the order of the Commissioner (Appeals) was wrong and a poor importer had to approach the High Court for getting the orders of the Commissioner (Appeals) implemented. <br> <br> The objection of the Customs to the import of these old and used photocopiers was that they are not capital goods and so was not allowed free import under the Exim-policy/Foreign Trade Policy. <br> <br> The matter was finally settled by the Larger Bench of the Tribunal in favour of these importers. But as there is no finality in tax matters, DGFT recently reopened the issue by informing a Commissioner that these photocopiers are not capital goods. CBEC followed suit and informed the Chief Commissioners to take the matter in further appeal. Both the letters from DGFT and the Board are not in the public domain. If the DGFT and the Board were so sure and deliberately wanted to over-rule the Tribunal why could they not issue circulars publicly instead of writing letters to Commissioners and Chief Commissioners? In a couple of weeks we are going to enter the era of right to information. What is the need for so much secrecy about a public policy? <br> <br> Take a typical case. Prasad is a poor illiterate mechanic of photocopiers in a small town in Punjab. Somebody tells him that he can earn a profit of two lakhs of rupees if he imports 100 old photocopiers at a ccost of ten lakhs rupees, recondition them and sell them. Two lakhs of rupees is a lot of money for him. Lured by this big money dream, he sells his properties, borrows money and arranges the import of a hundred old and used photocopiers. He imports them through a small port because the other expenses are less there. His goods are promptly confiscated by Customs; they hike the value, demand high duties and impose a hefty redemption fine on him. He is now between Scylla and Charybdis. He can’t leave the goods nor can he redeem them. He gets a consultant and goes to Commissioner (Appeals) who orders release of his goods. But Customs does not believe in respect for appellate authorities. They take the matter to the Tribunal. He borrows more money to get his goods released. Tribunal sets aside higher value, fine and penalty. He is back to Customs with a request for refund. They will not refund as he cannot pass the test of unjust enrichment, while all through he was undergoing unjust poverty because of Customs! Encouraged by the Tribunal’s orders, he raises more money and imports another consignment hoping to make good his losses. Obeying Tribunal orders is not a hobby with Customs and his goods are again seized on the same grounds. And it’s an encore for this poor fellow. Go through the whole exercise all over again. And now at the highest level, DGFT and the Board tell their officers that CESTAT is not after all the final authority; let’s keep the great litigation alive – never mind if in the process some poor businessmen die! It is only the Indian resilience that still keeps these poor businessmen alive. Prasad had very seriously considered the option of jumping into the sea or killing a few customs officers but hope keeps him alive and he smiles sheepishly at the officers whom he would have gladly strangulated if he had a chance. He has learnt a big lesson in life. Government is there to harass him and to ensure that his quality of life is not improved one wee bit. Prasad is a fictional character, but his story is not fiction; it is absolutely true. What is the meaning of all our reforms and simplification if ultimately the chotawala has to bear the brunt of government? A consultant offered to handle Prasad’s case free, but he said free service is never good service and after all what is the fee of a consultant compared to the losses suffered by him? Incidentally the total cost of all the second-hand photocopiers imported by all the importers will be less than the value of costly cars smuggled in and distributed among top officers and politicians recently.<br> <br> Why should the might of the government be so harshly used against the small man – with so persistent vigour? Is there a hidden agenda? Is some big fish getting state support to swallow the small ones? <br> <br> For a detailed technical analysis of the issue, please see our edit today. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#FF6666">Until tomorrow with more DDT<br> <br> Have a nice day. <br> <br> Mail your comments to </font></b><a href="vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></font></p> </body> </html>