TIOL-DDT 2257 · the untouched capture
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<p align="justify"><font 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 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><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><font color="#006600"><strong><strong><strong><strong><strong><strong><strong><strong><strong><img width="115" height="125" border="0" align="right" src="http://www.taxindiaonline.com/RC2/image/stories/10yearsDDT.jpg" alt="" /></strong></strong></strong></strong></strong></strong></strong></strong></strong></font></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><font color="#006600"><strong><strong><strong><strong><strong><strong><strong><strong><strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=17063"><img width="175" hspace="5" height="120" border="0" align="right" src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2013.jpg" alt="DDT in Limca Book of Records" /></a></strong></strong></strong></strong></strong></strong></strong></strong></strong></font></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></font><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 2257 </font><font size="3"></font><font size="2"><br>
</font></strong><font size="2"><strong>23.12.2013 <br>
Monday </strong></font></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">ADG vs DG DRI - High Court Orders probe - </font></strong></font><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Department bound to protect honest officers from harassment </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>REMEMBER</strong> the Chennai DRI ADG, C. Rajan who was arrested by CBI on 7.3.2012 allegedly caught red-handed with two lakhs cash and i-pad.. But the facts as per the CBI mahazar are that the cash was given to his driver outside a church when Rajan was not present anywhere near the church. The driver is said to have taken Mrs.Rajan to her house from the church and then proceeded to Rajan's office. Rajan got into the car and reached his home and only then the CBI arrived to catch him <font color="#FF0000">red-handed</font>. Between the church and the home, the tainted money was inside the car with passengers changing. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">After his release, Rajan sent representations to the Prime Minister, Finance Minister, Revenue Secretary and DG, DRI. He complained that he issued a Show Cause Notice to JSW Steels Ltd on 22.2.2012 alleging evasion of duty of Rs. 302 Crores; that he received a telephone call from the Director General of Revenue Intelligence on 23.2.2012, instructing him not to issue the show cause notice; that the Director General told him that he was in distress due to the initiation of show cause notice to JSW Steels and that one Ms.Omita Paul, working in the Ministry of Finance was intermeddling and pressurising him to withdraw the show cause notice; and that he made it clear to the Director General on 23-2-2012, that he could not withdraw the show cause notice, the Directorate of Revenue Intelligence issued a letter dated 24.2.2012, directing the show cause notice to be kept in abeyance. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Getting no response, he filed writ petitions in the Madras High Court seeking a direction to probe the matter. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Madras High Court observed that this cannot be brushed aside wholly as the products of a figment of imagination. <strong><em>These averments are specific, with reference to dates, events and persons concerned. </em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Honest and Committed Officer </strong>: The former ADG submitted that his name was recommended by the Chief Commissioner of Customs, in the year 2007 for the award of Padmashree. His name was again recommended for presidential award on the occasion of the Republic Day in the year 2012 for specially distinguished record of service. Therefore, it is his case that he has been fixed, for stalling the enquiry initiated by him against two companies. His grievance is that he, who was virtually a celebrity in the Department till the other day, with his name being recommended for a National Honour, suddenly fell out of grace, after the issue of a show cause notice to a leading Industrial House. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court observed, "the <strong><em>desired object of the Prevention of Corruption Act, is not only to prevent corruption among the public servants, but also to prevent the harassment of the honest among them. </em>The Court is duty bound to see that the machinery under the Prevention of Corruption Act is not misused to harass an honest public servant, by or at the instance of persons against whom he takes action in the course of his official duties."</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court judge further observed, "<strong>If the petitioner is really honest, as he proclaims to be </strong>, but about which I am not competent to pronounce an opinion, <strong>the Department is duty bound to protect him from harassment</strong>." </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, the High Court directed the Revenue Secretary either to inquire by himself, into the representation of the petitioner about the circumstances under which the ADG was allegedly fixed or in the alternative, to forward a copy of his representation to the Director of the Central Bureau of Investigation, for a detailed inquiry into the same. In either case, the result of such inquiry shall be communicated to the petitioner <strong>within a period of 8 weeks </strong>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is sensational - Can you imagine a senior officer like the ADG of the dreaded investigative agency like the DRI being fixed and sent to jail, just because he issues a high value Show Cause Notice to a trader? If the allegation is true, DRI officers should think a hundred times before they book powerful offenders, for they may be attacked not by the smugglers and offenders, but by their own Department. By sheer hard work, discipline and a little of third degree, the DRI has earned the reputation as a premier investigating agency (not in India alone) and if the officers are under threat of arrest and torture for doing their duty -this is an alarming situation.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is no plea on behalf of the accused ADG, but as the High Court judge observed, “ <em>what bothers me is that this kind of a trap can be organised even against anyone, including an honest Officer, without such honest Officer having a scent of what is happening behind his back. If an honest Officer is to be fixed, it can be done by the very same procedure that the CBI had followed in this case. I make it clear that I am not giving a certificate of good character to the writ petitioner. All that I am trying to point out is that if people want to fix somebody, they can easily do it in this manner</em>.” </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We bring you today this High Court order delivered on Friday. Please see <strong>Breaking News</strong>.</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Import duty on ‘Natural rubber in other forms' increased </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN </strong>recent months, the prices of rubber in the domestic market have fallen considerably. The fall in prices is stated to be due to increased imports. To protect the interest of rubber growers, the basic customs duty on natural rubber has been increased from <font color="#FF0000">20% or Rs 20 per kg</font>, whichever is lower, to <font color="#FF0000">20% or Rs 30 per kg</font>, whichever is lower, vide notification No. 51/2013-Customs dated 20-12-2013. Over 12 lakh farmers, who are dependent on this crop for their livelihood, are to be benefitted. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2012/ctariff12_012.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Serial no. 252 of Notification 12/2012-Cus, dated 17th March, 2012 reads thus - </font></strong></a></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">252. </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4001 21, 4001 22, 4001 29 </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Goods up to an aggregate quantity of forty thousand metric tonnes of total imports of such goods in the remaining part of the financial year 2011-12. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Explanation. - </em>For removal of doubts, it is clarified that the quantity of goods already cleared under <strong>S. No. 491A of notification No. 21/2002-Customs dated the 1st March, 2012 </strong>, up to the date of its supersession, shall be included in computing the aggregate quantity. </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7.5% </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>1 </strong></font></p></td>
</tr>
<tr>
<td valign="top"> </td>
<td valign="top"> </td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FFCC" span="span">(ii) All goods other than at (i) </font> </p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">20% or Rs. <font color="#FF0000">20/-</font> per kg, whichever is lower </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- </font></p></td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The duty rate against Sr.no. (ii) has been substituted to read as below - </font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">252. </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4001 21, 4001 22, 4001 29 </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Goods up to an aggregate quantity of forty thousand metric tonnes of total imports of such goods in the remaining part of the financial year 2011-12. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Explanation. - </em>For removal of doubts, it is clarified that the quantity of goods already cleared under <strong>S. No. 491A of notification No. 21/2002-Customs dated the 1st March, 2012 </strong>, up to the date of its supersession, shall be included in computing the aggregate quantity. </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7.5% </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>1 </strong></font></p></td>
</tr>
<tr>
<td valign="top"> </td>
<td valign="top"> </td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FFCC" span="span">(ii) All goods other than at (i) </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">20% or Rs. </font><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">30/-</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> per kg, whichever is lower </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- </font></p></td>
</tr>
</table>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2013/ctariff13_051.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification 51/2013-Cus, dated December 20, 2013.</strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>New Customs Declaration form to be filled from January 1, 2014 </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>YESTERDAY</strong>, <strong>PTI </strong> carried the following news item -</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>New customs form for Indians, foreigners from Jan 1 </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">New Delhi: All passengers coming to India will be filling up an ''Indian Customs Declaration Form'' seek details that will be different from the detachable perforated strip which is part of the immigration card at the moment. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And all the news portals started flashing the same and the newspapers followed suit today. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DDT too received a few calls and mails asking as to why we had not reported this important news. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DDT would like to inform that the PTI news item is only a <strong><font color="#FF0000">reminder</font> </strong> to "<em>all the passengers coming to India"</em> that the new Customs Declaration form would be required to be filled from January, 1, 2014. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In fact, this is warranted in terms of the Customs Notification <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2013/cnt13_090.htm" target="_blank">90/2013-Cus(NT)</a> </strong>dated August 29, 2013 by which the Customs Baggage Declaration Regulations, 2013 have been framed and which regulations are to come into effect from January 1, 2014. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please visit <strong><a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTg1NDc=" target="_blank">DDT 2181</a> </strong>dated 03.09.2013 wherein we had carried a detailed mention of the same. </font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Service Tax VCES 2013 - Nine Days to Nirvana - </font></strong></font><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Departmental Officers Still Against </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THERE </strong>seems to be no indication of any extension for the VCES and the Scheme will most probably come to an end by 31st. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While we are happy that we got the following mail from a Netizen, </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>To popularize the amnesty scheme VCES,2013 announced by Central Government, you at Taxindiaonline have done all out efforts to so that the scheme should reach to probable declarant. Because of your efforts, the scheme when entering in to last phase, has gathered momentum and will fetch maximum declaration under the scheme and end in success. Keep it up. </em></font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">the fact remains that the Scheme is a failure -mainly because of the stiff opposition from the staff. Many of the prospective declarants have been driven away with threats of investigation, penalty and even arrest. This was a good money-making scheme for several officers who scared away the declarants and pocketed their own VCES collections. This was used as Intelligence/Information/Data by several officers to fix the assessees. The alacrity with which they issued Adjudication Orders, Show Cause Notices, Summons, letters seeking information from those who came to file declarations was alarmingly mind-boggling. How promptly can they act -to defeat a Government Scheme! When the brave among the declarants suggested to the Departmental officers that they have filed declarations/will file declarations under VCES, they are shouted down with, “Does the VCES bar any preventive enquiry?” </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Department has a scheme of giving 20 percent reward to informers. When they book cases based on the information filed by VCES declarants, they should give a 20 percent discount to the declarants. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We are told in one Commissionerate, they closed down the entire office (except VCES Section)on Friday and deployed all the officers for VCES campaign. Maybe this should be tried on a national level -at least prospective declarants will not be driven away by overzealous officers. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Thou shalt not lie</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>"<strong>IN </strong>our adversarial system, one or the other side will probably be lying, if only to exaggerate their position and hence perjury is likely to be far more common place than we would choose to admit. In either case and especially in the case of the Revenue, apparently when swearing falsely or referring to wrong facts, the concerned officers may be under the belief that he or she is doing so in a good cause that is "protecting the interest of revenue." </em>In the MAs filed by the Department/assessee, the party may be required to support the same by an affidavit and both our system of justice and the position of the Court/Tribunal are dependent on treating as much of the pleadings on affidavit and verifications etc. as possible as truthful and deponents as having been respectful of their oaths and affirmations. Judges and judicial authorities are not so unrealistic that they do not recognize that a substantive portion of the population displays a lack of respect for or otherwise merely pays lip service on oath to tell the truth. But unlike in the Courts having "lay litigants", the litigants in tax matters are invariably of a class which recognize the solemnity of the occasion and understand the consequences of swearing to an affidavit or affirmation as a serious act outside the course of their everyday lives and it is hoped that the deponents understand the sanction for breach of such oath and the seriousness with which such a breach will be normally regarded by adjudicating authorities. In the present case, the acts of malfeasance by pleading apparent ignorance or acting in a subterfuge and underhand manner in apparently trying to achieve their objectives and targets of higher tax collection are required to be understood and addressed by the appropriate authorities.” -<em>from a recent ITAT decision. </em></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 align="justify"><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">Board Circular extended: CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> is submitted as since they were in bonafide belief that the reimbursable expenses are not to be included in the assessable value, the larger period cannot be invoked and, therefore, the demand is not sustainable. </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 exclusion of income from property occupied by firm - NO: ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee files salary income stated to have been received from five partnership firms. The </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">firm he is right in pleading for exclusion of the income from the property occupied by the firm. And the verdict goes in favour of the Revenue. </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"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Stay/ </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Taking note of the </strong></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our Columns Tomorrow for the judgements </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <font color="#FF6666">Until Tomorrow with more <strong>DDT</strong></font></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day. </font></p>
<p align="justify"><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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