TIOL-DDT 2219 · 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><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 2219</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
29.10.2013 <br>
Tuesday </font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs takes only 4 seconds to clear BMW car </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CUSTOMS</strong> officers only spent 4 seconds on feeding in the fact sheet data - earlier it was 16 seconds. We can clear cars more quickly now, said a happy a Customs broker (<font color="#FF0000">they have it already)</font> who came to the Customs House to make declarations. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Earlier, if a Customs officer wanted to issue an endorsed "Automobile Fact Sheet", he needed to firstly enter into the computer such car information as "brand name", "type" and "color", which was time consuming. Now, the officer only needs to "scan and read" and wait in relaxation a few seconds for the automatic uploading of all the data. What's behind the magic? It is the Quick Response Barcode techniques. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs House used this amazing "trick" in the car clearance process by "storing" all the "personal information" of the cars in the bar code. When processing the declarations, Customs officers just need to use the scanner and wait for the "jump" of all the data into the computer system themselves upon a "dee" sound. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"Don't ignore these 12 seconds, as every second saved will do more good to the Customs and the Business", said the Chief of the Customs Control Section. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">According to the statistics, more than 14,000 cars have been imported during the first 7 months this year - that is 2000 cars per month - almost seventy cars a day! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We are referring to the Xinsha Customs House, the Customs administration that manages the largest port of entry for cars in Southeast China. </font></p>
<p><em><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Something for us to emulate!</font></em></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Encouraging stakeholder participation in Customs functioning </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>CBEC informs that it has a well-established practice of involving stakeholders in decision-making and resolving operational issues and which is exemplified by the Permanent Trade Facilitation Committee (PTFCs) in each Custom House, which includes local trade and logistics association as well as Customs Brokers association. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">[<strong><font color="#FF0000">DDT</font></strong><font color="#FF0000"> has been repeatedly enquiring as to whether the CHAs have been converted into Customs Brokers. We did not get any response probably because there were none. So, how come the Customs Broker Association came into being or is it that the CHA Association got rechristened into the Customs Brokers Association just like that?</font>] <strong>[See <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTcxNDI=" target="_blank">DDT 2056</a>, <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTgwNTk=" target="_blank">2134</a>, <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTgyNzI=" target="_blank">2156</a>, <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTg2MDU=" target="_blank">2188</a>, <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTg3NjM=" target="_blank">2203</a> & <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTg4Nzg=" target="_blank">2213</a>]</strong> </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Be that as it may, it is informed that these committees <em><strong>typically</strong></em> meet once a month for deliberating issues that impact day-to-day functioning and all senior departmental officers <em><strong>including</strong></em> Commissioners of Customs attend the meetings. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">After praising such initiatives already in place, the Board says that the Trade bodies should also be involved and these PTFC meetings should be held at all Customs locations, if not being done so already [<font color="#FF0000"><em>the Board is doubtful</em></font>] so as to ensure that local issues of interest to the trade would get resolved quickly thereby furthering the cause of trade facilitation. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And all this should be done so as to prevent the <em><strong>escalation of purely local issues to the Department/Board.</strong></em> [<font color="#FF0000"><em>anaspect repeatedly emphasized in the latter paragraph</em></font>] </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The sum and substance is that the apex Trade bodies should also be invited/allowed to attend these PTFC meetings along with their local constituents and these meetings should be held at least once a month with the minutes being sent to the Board. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Interestingly, in this Circular there is no mention or direction that a Trade Notice/Public Notice needs to be issued to the field formations and tax payers. </font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">So, how are they going to know about this ‘encouragement'? </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2013/cuscir13_042.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Circular 42/2013-Cus dated October 25, 2013</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Permanent Trade Facilitation Committee </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> was in the Year 2002 that the Kelkar Task Force on Indirect Taxers in its Consultation Paper recommended the constitution of a Permanent Trade Facilitation Committee. </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Constitution of multi-agency framework at ports/airports (port trust, shipping companies, custodian, etc.) is a necessary requirement for a long term solution to the day to day problems associated with the clearance of import and export goods. This is since customs clearance procedures are not the sole cause of delay in the import and export of goods - inefficient port and airport logistics play an equally important role. Since delay by any one agency is invariably viewed as a delay in clearance through customs, the multi agency framework should be placed under Commissioner of Customs. Accordingly, it is recommended that a Permanent Trade Facilitation Committee should be constituted at each Port/airport/ICD/CFS comprising senior representatives of all agencies including Custom House Agents (CHAs) under the chairmanship of the Commissioner of Customs. The Committee should meet once a month to resolve all clearance related issues. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A High level Inter-Ministerial Committee may also be set up under the Chairmanship of Chairman, CBEC to resolve inter-agency issues to ensure a steady progress of clearance of import and export goods with reference to international norms. </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">That is how the PTFC came into existence more than ten years ago and they are functioning reasonably well in many Custom Houses, while it is almost unknown in many Customs formations. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But, what about the Inter-Ministerial Committee under CBEC Chairmanship? Is it functioning? Will Board clarify? </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">LTU Kolkata inaugurated </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> fifth LTU in the country was inaugurated by the Finance Minister at Kolkata yesterday. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But there are some assessees in LTU who wish to come out of LTU for they do not want to enjoy those privileges which are purported to be existing in an LTU. They say that a Large Taxpayer Unit (LTU) welcomes you with promises of a single window of <strong><em>woes</em> </strong>instead of multiple ones. <strong>See <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTg2NzQ=" target="_blank">DDT 2195</a></strong>. And four months ago, there was a rumour that the Finmin was considering making LTU registration mandatory for large Taxpayers. Maybe that would be the only way to retain the Large Taxpayers in the LTUs. Sometime back we were told that in the Mumbai LTU, Air Conditioners were not working and there were no fans. It seems the LTU owed a rent due of over Rs. Two Crores. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Incidentally, the Central Excise notification 20/06-CE(NT) has been amended four days back to bring into the picture frame the Chief Commissioners of Income-tax , Kolkata - I, II, III and IV, Kolkata and the Commissioners of Income- tax (Central) - I, II and III, Kolkata and Director of Income-tax (International Taxation), Kolkata. <strong>See</strong> <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2013/exnt13_13.htm" target="_blank">Notification 13/2013-CE(NT)dated October 25, 2013</a></strong>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Incidentally Kolkata Conglomorate ITC will not be able to join LTU as Cigaratte manufacturers are outside the purview of LTU! What is an LTU in Kolkata without ITC? </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please also see:</font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>1. <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTE1ODM=">LTU - Degeneration? </a></strong></font></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTE1NTg=">LTUs - Has Degeneration Started? </a></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax - Educational Society - Pre-Deposit - SLP Dismissed by SC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> petitioner which is a society registered under the provisions of the Registration of Societies Act, 1860, has been operating educational institutions and imparting education through Junior Colleges and Coaching centers.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Commissioner of Service Tax, passed an Order in Original dated 11.06.2009 confirming the demand of Service Tax on the income received by the petitioner for the period 01.04.2003 to 31.03.2007 under the head of "Commercial Training or Coaching Services". The Tax demanded was over Rs. 87 Crores and the penalty imposed was Rs. 150 Crores apart from other penalties. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CESTAT by its order reported in <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=44&filename=legal/cestat/2010/2010-TIOL-1306-CESTAT-BANG.htm" target="_blank"><font size="1">2010-TIOL-1306-CESTAT-BANG</font></a> </strong>granted unconditional stay and total waiver of pre-deposit. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Against the above CESTAT order, the Revenue approached the Andhra Pradesh High Court, which in its order reported in <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=43&filename=legal/hc/2011/2011-TIOL-147-HC-AP-ST.htm" target="_blank"><font size="1">2011-TIOL-147-HC-AP-ST</font></a></strong> remanded the case back to the CESTAT. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CESTAT passed a fresh order on 18.4.2011 maintaining the full waiver of pre-deposit granted to the petitioner and staying the recovery till the disposal of the appeal. <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=44&filename=legal/cestat/2011/2011-TIOL-661-CESTAT-BANG.htm" target="_blank"><font size="1">(2011-TIOL-661-CESTAT-BANG)</font></a> </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Department again questioned this order before the High Court, which set aside the order of the CESTAT and ordered pre deposit of Rs. 80 Crores, which is about 1/3rd of the Tax and Penalty. <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=44&filename=legal/hc/2011/2011-TIOL-694-HC-AP-ST.htm" target="_blank"><font size="1">(2011-TIOL-694-HC-AP-ST) </font></a></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This time, the party went in appeal to the Supreme Court. The Supreme Court by its order dated 6.1.2012 reported in <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=42&filename=legal/sc/2012/2012-TIOL-02-SC-ST.htm" target="_blank"><font size="1">2012-TIOL-02-SC-ST</font></a></strong> reduced the pre-deposit to one third of the tax - that is about Rs. 29 Crores. The assessee complied with this order. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now comes the demand for the subsequent periods 2007-08, 2008-09, 2009-10 and 2010-11 for which two orders were passed by the Commissioner demanding a tax of Rs. 69 Crores and Rs. 13 crores. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This was also challenged before the CESTAT which by its order reported in <strong><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=ODk4NTk=" target="_blank"><font size="1">2013-TIOL-1375-CESTAT-BANG</font></a></strong> directed pre-deposit of Rs. 25 crores.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The assessee filed a modification petition against the above order which the Tribunal by its order reported in <strong><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=ODk4NjA=" target="_blank"><font size="1">2013-TIOL-1376-CESTAT-BANG</font></a></strong> rejected. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The assessee again approached the High Court, which did not consider the petition and permitted the assessee to remit the pre-deposit amount of Rs.25 Crores in two instalments, the first instalment of Rs.15 Crores payable on or before 4.10.2013 and the balance of Rs.10 Crores on or before 4.11.2013. <font size="1"><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=ODk5NDY=" target="_blank"><strong>(2013-TIOL-714-HC-AP-ST)</strong></a></font>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Against the High Court order the assessee approached the Supreme Court in SLP. The Supreme Court on Friday last dismissed the SLP No. 32537/2013, but gave time up to 31 December 2013 to make the pre-deposit.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It seems the battle for the subsequent period is now in CESTAT. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Revenue appeal below Rs.5 lakhs is rejected by CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> order to reduce Government litigation, the CBEC, in exercise of the powers conferred by Section 35R of the CEA, 1944 made applicable to Service Tax vide Section 83 of the FA, 1994 and Section 131BA of the Customs Act, 1962 fixed the following monetary limits for filing appeals by the Department before CESTAT/High Courts and Supreme court. [See Instruction <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2011/cxinstruct03.htm"><strong>CBEC Instruction in F.No.390/Misc./163/2010-JC., Dated: August 17, 2011</strong></a><strong>]</strong>: </font></p>
<div align="justify">
<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">Sl. No. </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Appellate Forum </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Monetary limit </font></strong></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. </font></p></td>
<td valign="top"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CESTAT </font></p></td>
<td valign="top"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.5,00,000/- </font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. </font></p></td>
<td valign="top"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">HIGH COURTS </font></p></td>
<td valign="top"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.10,00,000/- </font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. </font></p></td>
<td valign="top"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">SUPREME COURT </font></p></td>
<td valign="top"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.25,00,000/- </font></p></td>
</tr>
</table>
</div>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is also clarified that for ascertaining whether a matter would be covered within or without the aforementioned limits, the determinative element would be duty/tax under dispute. Nonetheless, the instruction also mentions that the revised monetary limits shall come into force from <font color="#FF0000"><strong>1.9.2011</strong></font>. </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">That coming into force date is obviously for the Departmental officials to follow. </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But what about the Revenue appeals filed before this date and which have been languishing in the Tribunal or for that matter those appeals filed before the issuance of the earlier instruction effective from <font color="#FF0000"><strong>01/11/2010</strong></font> when the monetary limits were only Rs.1 Lakh, Rs.2 lakhs and Rs.5 lakhs respectively. [<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2010/cxinstruct05.htm"><strong>CBEC Instructions in F.No.390 /Misc./163/2010- JC : dated October 20, 2010</strong></a>] </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Incidentally, on the Income Tax side, the CBDT has issued an Instruction <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=67&filename=notification/cbdt/2011/instruct1103.htm" target="_blank">No.3/2011</a></strong> dated 09.02.2011 fixing the monetary limit for filing appeals by the department as:- </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) Appeal before the Appellate Tribunal - Rs.3,00,000/- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) Appeal under Section 260A before the High Court - Rs.10,00,000/- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) Appeal before the Supreme Court - Rs.25,00,000/- </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Karnataka High Court in the case of <em>Commissioner of Income Tax, Bangalore vs. Ranka & Ranka</em> <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=38&filename=legal/hc/2012/2012-TIOL-178-HC-KAR-IT.htm" target="_blank"><font size="1">(2012-TIOL-178-HC-KAR-IT)</font></a></strong> while answering the following question "<font color="#006600"><em>Whether instruction No.3/2011 dated 09.02.2011 is prospective only or whether it applies to pending appeals before the High Court on the day the instruction was issued?</em></font>" has held - </font></p>
<blockquote>
<p align="justify"><em><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">"32. Though the circular/instruction 3/11 is issued by the Department in pursuance of the power conferred under the statutory provisions while issuing such circular/instruction, the Department has not kept in mind the object with which such circulars/instructions are issued from time to time. The object sought to be achieved by such circulars/instructions and also the law declared by the Apex Court, the National Litigation Policy 2011 as well as the various schemes introduced by the Department granting relief to persons who have not even filed returns and paid taxes, are kept in mind, to bring the circular/instruction in harmony with the National Litigation Policy, it would be appropriate to hold that the benefit of such circular/instruction also applies to the pending cases in appeal in various Courts and Tribunals on the date of the circular/instruction." </font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the present case, the <em>CCE, Aurangabad </em>had filed an appeal before the CESTAT against an order dated <strong>15/02/2008</strong> passed by the Commissioner (A) involving Service Tax matter. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Revenue appeal had come up before the CESTAT recently. The respondent chose to remain absent. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Bench observed that the amount involved in the Revenue appeal is below Rs.5 lakhs. After adverting to the Karnataka High Court decision, the CESTAT held that the appeal is not maintainable and accordingly rejected the Revenue appeal. </font></p>
<p align="justify"><em><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Quite possibly, if this exercise is conducted on a large scale, the CESTAT pendency would drop down drastically! </font></em></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">See <font size="1"><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=OTA0ODk=" target="_blank">2013-TIOL-1607 -CESTAT-MUM</a></font></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">2.5 Kgs of Gold seized in Kishanganj </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOLD</strong> Smuggling seems to be brisk with even a small unknown place like Kishanganj in Buxar District of Bihar offering an opportunity to the Customs to seize smuggled gold. The Customs Division of Forbesganj under Patna Customs Commissionerate on Friday seized 2.5 kgs of gold in 3 bars two of one kg and one of half kg on Platform No.2 of Kishanganj Railway Station from a 27 year old man. God alone knows how much gold is smuggled into this country! </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"> – Wednesday's cases</font></strong></font></strong></font></p>
<p><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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</strong></font></p>
<p align="justify"><font color="#FF6633"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Review by Committee - mere signing on draft note mechanically does not constitute sufficient compliance with requirement of application of mind by Chief Commissioners comprising Committee to twin requirements of decision making process namely, due consideration of material pertaining to adjudication/appellate order and appropriateness/desirability of preferring an appeal -: CESTAT</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> respondent raised a preliminary objection that the appeal is misconceived since there is no application of mind by the Committee of Chief Commissioners in considering the draft review order recommending filling of the appeal before the Tribunal against the adjudication order inasmuch as - </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ The Chief Commissioner of Central Excise, Delhi Zone merely signed on the draft review note, prepared by the Inspector (Review) on 11.3.2013, countersigned by the Superintendent (Review) on 11.3.2013, the deputy Commissioner in Chief Commissioner's unit on 5.4.2013, and the Additional Commissioner in C.C. unit on 11.4.2013, on 15.4.2013. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Similarly, the Chief Commissioner, Central Excise, Chandigarh Zone on 26.4.2013 merely signed on the draft review note as prepared by sub-ordinate officers of his office. </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 AO had no occasion to verify shares transactions, it can still be stated that there was change of opinion while issuing notice u/s 148 - NO: Delhi HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>AO made assessment u/s 143(3) r.w.s. 147 but did not deem it fit and appropriate to make any addition in respect of share transactions which was subject matter of second reassessment notice. Petitioner contended that it was a case of change of opinion after application of mind. The issue before the Bench is - Whether when the assessing officer did not have any occasion to verify the shares transactions, which were considered as bogus based on the information from investigation wing and for which full particulars were not furnished by the assessee in original assessment proceedings, it can still be stated that there was change of opinion while issuing notice u/s 148 of the Income tax Act. NO is the High Court's answer. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Ascertainment of damage to imported goods has been done by re-exporting same for repairs and upon re-import by paying duty on repair and freight charges - refund of duty paid second time correctly allowed by appellate authority - no merit in Revenue appeal, hence dismissed: CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> respondent imported machinery and paid duty as per the value assessed. Subsequently during examination, the goods were found to be in damaged condition. Therefore, the respondent filed a refund claim of the duty paid by them u/s 27 & 22 of the Customs Act, 1962. However, since damage could not be ascertained, no refund was granted. Subsequently, the damaged goods were sent to Germany for repair and re-import on payment of duty on the value of repair charges plus to and fro freight charges and the appellant filed a refund claim for the duty paid second time on the repair and freight charges. </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><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice Day.</font></p>
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