TIOL-DDT 2170 · the untouched capture
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<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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=17063"><img src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2013.jpg" alt="DDT in Limca Book of Records" width="175" height="120" hspace="5" border="0" align="right"></a></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong><font color="#663399" size="3">TIOL-DDT 2170</font><br>
16.08.2013 <br>
Friday </font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Encounters with Corruption and Harassment in Income-tax of an IRS Officer </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>TARSEM</strong> Chand Gupta is an IRS Officer - a Deputy Commissioner in the Income Tax Department. He has written a 400+ pages book entitled,<font color="#FF0000"><strong> Encounters with Corruption and Harassment in Income-tax of an IRS Officer</strong></font>. He says for his honesty and dedication to duty, he suffered a lot during his service career from the hands of corrupt, stubborn and egoistic officers. Due to honesty and non-compromising attitude his name was referred to the CBI in agreed list for intensive surveillance and inquiry, his integrity was written as doubtful, his Annual Confidential Reports were spoiled, he was transferred again and again and his promotion was withheld. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He has narrated his experiences regarding rampant corruption in the Income-tax Department. <em>For the greed of money and to satisfy their false ego, how the officers, shamelessly, at every level, act, behave and cause loss to the Exchequer and harass their subordinates and the public, alike</em>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He thinks it his fundamental right as well as duty to bring the truth before the public at the earliest. He says that after having suffered so much he was ready to face any further adverse situation. “Let it come”, he says stoically. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We bring you excerpts from the chapter on Restructuring 2001.</font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax Department - the 2001 Cadre Restructuring - A fraud? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RESTRUCTURING</strong> of the Income-tax Department in 2001 was a wonderful episode. Much of the elite people were wondering, as to how the top officers of the Department succeeded in making a fool of the Political Masters and IAS Secretaries in getting their approval and sanction for the restructuring. In reality the restructuring was a one-point program of granting early promotions to all cadres of the Income-tax Dept. Some of them got two or three promotions in a sequence. The Department had assured the Cabinet that in three years the revenue collection would be increased by six folds. They gave a ready formula that after restructuring, they would recover all the pending arrear demand, which was almost equal to the one year's collection; and that they would brought all the non-filers, which were about 30% of total assesses, on record, which would further yield revenue of about equal to one year's, and further, by computerization and more skilled techniques of investigation and information collection, they would increase budget multifold. That was the time of downsizing of the Government staff in every department. Senior officers prepared chart of staff, after restructuring, in such a way that the number of CCITs increased from 35 to 116, the CITs increased more than double. At other side the cadre of Group D staff was almost abolished and Group C staff substantially reduced. The overall number/strength of the department was reduced, which pleased the political bosses. Just before the final orders of the restructuring, the Chairman, CBDT, A. Balasubramanian was required to sign an MOU, Memorandum of Understanding with the Govt., regarding fulfillment of the undertaking of increasing the budget collection many folds. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Chairman was due to retire in next month on 31.07.2001. He knew well that he would be signing only a false MOU; therefore, he was reluctant to sign it. The pressure from field was mounting on him. The officers talked that the Chairman would retire next month, therefore no one would ask him for the collection after retirement. Therefore, he should immediately sign the MOU. Ultimately under pressure and realizing his <a></a>non-accountability after retirement, he signed the MOU and opened the gates of restructuring for every employee of the Dept. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">After restructuring, everyone got fast and premature promotions. The sense of responsibility eroded rapidly. Everyone was jubilant and no one was bothered about work and output. The worst ever effected was the position of maintenance of records. New Charges, Ranges and Wards were created, the old ones deleted or merged. The old records of assesses' did not reach the new offices. Most of the old records relating to assessment as well as general establishment was weeded out and disposed off without keeping any details. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The DCRs of arrear demand were got lost or the demands were not properly carried forward to new Wards. After restructuring audit studies were made to study the effect of restructuring on different areas of work. It was found that the average scrutiny disposal per Assessing Officer (AO) which was 82 in 1999-2000 was reduced to 38 in 2002-03 and 44 in 2003-04. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As promised at the time of restructuring, the saving in salaries of Rs. 3.05 crore was never achieved, rather it increased heavily. For recovery of arrear demand the number of Tax Recovery Officers was increased from 204 to 472 but there was no reduction of the arrear demand. The number of average monthly disposal of appeals per CIT (A) which was 43 in 1999-2000, was reduced to 28 in 2003-04. Interest on refunds was expected to be reduced by Rs.350crore per year with reduction in time taken in issue of refunds. Neither the amount of interest paid nor the delay in payment of refunds decreased, as promised in proposal for restructuring. The delay in issue of refunds became the biggest cause of public grievance. Proposed revenue collection of Rs.6000crore from more and speedy disposal of assessments also could not be achieved. Rather the average disposal of scrutiny assessments was reduced substantially. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Promised chain system of audit also did not work much and did not yield much result. After restructuring the role of the Jt./Addl. CITs was increased in the assessments. They were expected to monitor every case of assessment to be made by the AOs, so that by the involvement of senior officers the quality and productivity of scrutiny assessments could improve. But this scheme did not work. This became a scheme of money earning for most the Jt./Addl. CITs. In making assessments the signing authority was AO hence he was responsible for the assessment. On the other hand Jt./Addl. CITs being senior officers called every file along-with assessees and took heavy amounts from assessees and only thereafter issued verbal directions to the AOs. Ultimately, there was no quality improvement. On restructuring, by a single order of the CBDT on 23.6.2001, 375 Addl. CITs were promoted as CITs. On promotion the CITs were posted and transferred on new posts at different stations. First time in the history of Income-tax, most of the CITs joined their new assignments at new stations, telegraphically or by fax. From old stations and from the posts of Addl.CITs, they sent fax or telegrams at new station and assumed charge of CIT of new station. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">At new stations they submitted their TA bills at the rates application to CITs. They got their pay fixed from the date when they assumed charge by fax, without physically joining at new station. This was not allowable under any Rule of the Govt. of India. The additional charge of a post can be assumed or taken by fax from old station but on promotion, as per rules one can join duty only on physically going at new station. All of them as Addl.CITs were not entitled for air journey, but as they joined as CIT at old stations and got their pay fixed from that very date, they assumed the entitlement of air journey and performed journey by air and submitted their TA bills claiming air fare and higher rate of TA/DA, that of the CIT. There were audit objections by the ZAO in many cases in the matter, but none of these officers refunded the excess claims made. Rather being CITs they directed and threatened their staff not to take any action on the ZAO objections. Ultimately, all objections got lost in the files. On promotion to higher post, the responsibility is increased but on restructuring morale and official responsibility got deteriorated. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the last week of May, 2013 the Cabinet has approved new restructuring of the department. Let us hope that this restructuring would not create chaos as earlier but will cultivate a sense of honesty, dedication to duty, responsibility and public service.</font></p>
<p align="justify"><em><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">This time around they have promised to collect an additional amount of Rs. 25,756 crores - not a rupee less! </font></em></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">New Exchange Rates</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has notified new exchange rates effective from <strong> 15.08.2013</strong> for export and imported goods. The earlier notification <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2013/cnt13_081.htm" target="_blank">81/2013-Cus (NT) dated 01.08.2013</a></strong> could hold fort for only 13 days. <font color="#FF0000">The dollar value is now 61.90 and is slowly inching its way to what the global investment bank <em><strong>Goldman Sachs</strong></em> predicted - that rupee can hit Rs.65 to a dollar.</font> </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2013/cnt13_083.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 83/2013 - Cus., (N.T.), Dated: August 14, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Values for Gold, Silver & Areca Nuts increased </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Central Government has increased the Tariff Value of Gold & Silver and which is nothing new. The Tariff value of Areca Nuts has increased for the first time after they were notified on 25th June, 2013. The Tariff values of various Palm oils, Palmolein, Crude Soyabean oil and Brass Scrap have been reduced. Poppy seeds manage to stay put after the drastic fall it had suffered on 31 st July, 2013. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The rates as on <strong>31.07.2013</strong> and with effect from <strong>14.08.2013</strong> are as under: </font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Table 1 </strong></font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S. No. </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter/ heading/ sub-heading/tariff item </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of goods </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD(Per Metric Tonne) <br>
from 31.7.2013 </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD(Per Metric Tonne) <br>
from 14.8.2013 </font></strong></p></td>
</tr>
<tr bgcolor="#F0A4B1">
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) </font></strong></p></td>
<td valign="top" bgcolor="#F0A4B1"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4) </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(5) </font></strong></p></td>
</tr>
<tr>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 10 00</font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude Palm Oil </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">820 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">808 </font></p></td>
</tr>
<tr>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2 </font></strong></p></td>
<td valign="top" bgcolor="#F0A4B1"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 10</font></p></td>
<td valign="top" bgcolor="#F0A4B1"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBD Palm Oil </font></p></td>
<td valign="top" bgcolor="#F0A4B1"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">855 </font></p></td>
<td valign="top" bgcolor="#F0A4B1"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">851 </font></p></td>
</tr>
<tr>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 90 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Others - Palm Oil </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">838 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">830 </font></p></td>
</tr>
<tr bgcolor="#F0A4B1">
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 10 00 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude Palmolein </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">868 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">854 </font></p></td>
</tr>
<tr>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 20 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBDPalmolein </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">871 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">857 </font></p></td>
</tr>
<tr bgcolor="#F0A4B1">
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 90 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Others - Palmolein </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">870 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">856 </font></p></td>
</tr>
<tr>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1507 10 00 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude Soyabean Oil </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">952 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">928 </font></p></td>
</tr>
<tr bgcolor="#F0A4B1">
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7404 00 22 </font></p></td>
<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 size="2" face="Verdana, Arial, Helvetica, sans-serif">3828 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3743 </font></p></td>
</tr>
<tr>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1207 91 00 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Poppy seeds </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2648 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2648 </font></p></td>
</tr>
</table>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Table 2 </strong></font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr bgcolor="#FFFF00">
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S. No. </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter/ heading/ sub-heading/tariff item </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of goods </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value <br>
(USD) from 31.7.2013 </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value <br>
(USD) from 14.8.2013 </font></strong></p></td>
</tr>
<tr bgcolor="#FFFF00">
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4) </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(5) </font></strong></p></td>
</tr>
<tr bgcolor="#FFFF00">
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">71 or 98 </font></p></td>
<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 size="2" face="Verdana, Arial, Helvetica, sans-serif">430 per 10 grams </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">432 per 10 grams </font></p></td>
</tr>
<tr bgcolor="#FFFF00">
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">71 or 98 </font></p></td>
<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 size="2" face="Verdana, Arial, Helvetica, sans-serif">639 per kilogram </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">697 per kilogram </font></p></td>
</tr>
</table>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Table 3</strong></font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr bgcolor="#FFFF00">
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S. No. </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter/ heading/ sub-heading/tariff item </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of goods </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Value (USD Per Metric Tons) from 31.7.2013 </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Value (USD Per Metric Tons) from 14.8.2013 </font></strong></p></td>
</tr>
<tr bgcolor="#FFFF00">
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4) </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(5) </font></strong></p></td>
</tr>
<tr bgcolor="#FFFF00">
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">080280 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Areca nuts </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1613 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1683 </font></p></td>
</tr>
</table>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2013/cnt13_082.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 82/2013-Cus (NT), Dated: August, 14, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Import of Ammonium Nitrate - Licence Required</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT has stipulated that Import of Ammonium Nitrate having the chemical formula NH4NO3 or any combination containing more than 45% of Ammonium Nitrate by weight including emulsions, suspensions, melts or gels (with or without inorganic nitrates), and classified as explosive under Explosives Act, 1884, is <em>subject to licence from Chief Controller of Explosives under the Ammonium Nitrate Rules, 2012. </em></font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2013/dgft13not034.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 34/(RE-2013)/2009-2014, Dated: August 14, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Onions - Export Policy </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT</strong> stipulates that Export of onions will be subject to a Minimum Export Price (MEP) of USD 650 per MT F.O.B. or as notified by DGFT from time-to-time. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2013/dgft13not035.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 35/(RE-2013)/2009-2014, Dated: August 14, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP
- Norms for Spices under Advance Authorization</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> norms for the spices are being fixed on the basis of Sample Analysis Report (SAR) furnished by the Spices Board of the samples drawn by the Customs. Norms in respect of applications under Para 4.7 of HBP (where SION not fixed) are fixed by the Norms Committee solely on the basis of SARs being furnished by the Spices Board, Cochin. It has been felt that this procedure takes considerable time in ratification of norms leading to delays in redemption of licences. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In order to cut short the delays, it has been decided that Regional Authorities (RAs) concerned may redeem the Advance Authorisations (whether issued under Para 4.7 of HBP or otherwise) based on the SARs furnished by Spices Board, Cochin. This Policy Circular will be applicable in respect of all the pending cases before the Norms Committee as well as in respect of future Advance Authorizations. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2013/dgft13cir005.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Policy Circular No. 5/(RE-2013)/2009-2014, Dated: August 14, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Import of Gold by Nominated Banks - RBI Clarifies </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Circular No. 15 dated July 22, 2013 <strong><a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTgyNTg=" target="_blank">(DDT 2154 - 23.07.2013)</a></strong>, certain restrictions were imposed on the import of various forms of gold by nominated banks/nominated agencies/ premier or star trading houses/SEZ units/EoUs which have been permitted to import gold for use in the domestic sector. Government of India and the Reserve Bank of India have been receiving several requests for clarifications on the operational aspects of the scheme. RBI now clarifies: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a) Import of gold in the form of coins and medallions is now prohibited. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) It shall be incumbent on all nominated banks/nominated agencies and other entities to ensure that at least one fifth, i.e., 20%, of every lot of import of gold imported to the country is exclusively made available for the purpose of exports and the balance for domestic use. A working example of the operations of the 20/80 scheme envisaged in terms of the present instructions is given in the Annex. This shall be monitored by customs authorities, and will be implemented port-wise only. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c) Further, nominated banks/ nominated agencies and other entities shall make available gold for domestic use only to the entities engaged in jewellery business/bullion dealers and to banks authorised to administer the Gold Deposit Scheme against full upfront payment. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">e) The 20/80 principle would also apply for the henceforth import of gold in any form/purity including gold dore, whereby 20 per cent of the gold imported shall be provided to the exporters. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">f) Any authorisation such as Advance Authorisation/Duty Free Import Authorization (DFIA) is to be utilised for import of gold meant for export purposes only and no diversion for domestic use shall be permitted. </font></p>
</blockquote>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2013/rbi13cir025.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI AP(DIR Series) Circular No. 25, Dated: August 14, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FEMA - Liberalised Remittance Scheme for Resident Individuals - Reduction of limit from USD 200,000 to USD 75,000 </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ON</strong> a review of the Liberalised Remittance Scheme (LRS) for Resident Individuals, RBI has decided to reduce the existing limit of USD 200,000 per financial year to USD 75,000 per financial year (April - March) with immediate effect. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The scheme should no longer be used for acquisition of immovable property, directly or indirectly, outside India; the scheme should not be used for making remittances for any prohibited or illegal activities such as margin trading, lottery etc.; Resident individuals have now been allowed to set up Joint Ventures (JV) / Wholly Owned Subsidiaries (WOS) outside India for<em> bonafide</em> business activities outside India within the limit of USD 75,000. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The limit for gift in Rupees by Resident Individuals to NRI close relatives and loans in Rupees by resident individuals to NRI close relatives shall stand modified to USD 75,000 per financial year. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2013/rbi13cir024.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI AP (DIR Series) Circular No. 24, Dated: August 14, 2013 </font></strong></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT cartoon </strong></font></p>
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<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"> - Monday'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">Central Excise </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Appellant cannot be considered as manufacturer since activity undertaken does not amount to manufacture and, therefore, not eligible to take CENVAT Credit under Rule 3 of CCR, 2004 - nonetheless, there is no dispute that duty on ‘final product' has been paid by appellants by utilizing <em>CENVAT Credit</em> being demanded and department has not disputed payment of duty on vehicles: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> main ground for denial of the credit is that there is no factory at the premises and it is only a parking slot/warehouse/godown. There are no plants, machinery, not even industrial power connection. Only activities that is being carried out in the said godown is receipt of the duty paid imported chassis, sending the same to job workers, receiving fully manufactured motor vehicle in all respect and fixing some minor accessories to meet the mandatory requirement as per the Central Motor Vehicle Rules, 1989. Appellant has no approvals from Maharashtra Pollution Control Board, MIDC, Factory Inspector, Forest department etc. and other statutory bodies etc. which are normally needed in a factory/manufacturing unit. Since there is no factory, no manufacturing activity is carried out and appellants cannot be considered as manufacturer and are therefore not entitled to the CENVAT Credit. </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 when assessee's return was not yet due on date of search conducted on premises of its partner, Revenue is justified to initiate penalty proceedings as assessee's return was filed subsequent to search - NO: Madras HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issues before the Bench are - Whether when the assessee's return was not yet due on the date of the search conducted on the premises of its partner, the Revenue is justified to initiate penalty proceedings as assessee's return was filed subsequent to the search and Whether when penalty proceedings were initiated against the assessee firm, Explanation 5 to section 271(1)(c) was applicable when there were no materials seized during the search indicating deemed concealment of income by the assessee. And the verdict goes in favour of the assessee. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Shifting of raw material or cleaning factory premises, by no stretch of imagination, can be considered as job work, so as to be eligible for benefit of Notfn. No. 08/2005-ST - appellant's submission lacks merit - Pre-deposit ordered of adjudged tax: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> regards the claim of the appellant that they are eligible for the benefit of Notification No. 08/2005-ST, as per appellant's own version the activity undertaken by them involved shifting of raw materials and housekeeping activities. Notification No. 08/2005-ST grants exemption on job work carried out by service provider on the materials supplied by the clients. Such job work envisages processing of material supplied by the clients. Shifting of raw material or cleaning factory premises, by no stretch of imagination, can be considered as job work, so as to be eligible for the benefit of Notification No. 08/2005-ST. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our Columns Monday for the judgements </font></strong></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday 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"> <strong><a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></strong></font></p>
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