TIOL-DDT 2343 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN"
"http://www.w3.org/TR/html4/loose.dtd">
<html>
<head>
<title>Untitled Document</title>
<meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1">
</head>
<body>
<p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif"><s><strong><font size="2"><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=20079"><img src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2014_1.jpg" alt="DDT in Limca Book of Records - Third Time in a row" width="250" height="123" hspace="5" border="0" align="right"></a></font></strong></font></strong></font></strong></font></strong></font></strong></s></font><font color="#663399" size="3">TIOL-DDT 2343 </font><font size="3"></font><font size="2"><br>
</font></strong><font size="2"><strong>30.04.2014 </strong><br>
<strong>Wednesday </strong></font></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CESTAT New Benches - Let us not have <em>ad-hoc </em> Benches - Have Benches only after you have infrastructure in place </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Karnataka High Court had in <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=ODc2MzA="><strong><font size="1">2013-TIOL-264-HC-KAR-CX</font> </strong></a> directed the Government to set up additional Benches of the CESTAT by 03/06/2013. Of course nothing happened by 03/06/2013. Addressing a meeting in Hyderabad on 8.6.2013, Justice Goda Raghuram, the CESTAT President said that the proposal to start a CESTAT Bench at Hyderabad is seven months pregnant but he was not sure of a safe delivery in nine months. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In October 2013, the Union Cabinet approved setting up of six additional benches of CESTAT - three at the existing locations of New Delhi, Mumbai and Chennai and three new Benches at Chandigarh, Allahabad and Hyderabad and even the notifications were issued in November 2013. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It seems they are all set to open new Benches at Hyderabad, Allahabad and Chandigarh and additional benches at Chennai, Mumbai and Delhi. But with what infrastructure? Are new Members appointed, support staff selected, buildings hired, furniture and computers bought? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We should not fall victims to the practice of opening new offices on an <em>ad-hoc </em> basis with hardly any infrastructure and with temporary staff drawn from existing offices. They will remain <em>ad-hoc </em> for the next fifty years. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We should plan at least twenty years in advance and take into consideration the technological advances and physical needs. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Today for example a Bench of the CESTAT has about 20,000 cases pending which means 40,000 sets of files in the Tribunal and 20,000 sets with the Departmental Representative. First of all they should have enough space to store all these files. When the existing benches were started, nobody thought of this possibility that they need space to store the files. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">At least now, file management should be computerised, so that files are easily traceable and retrievable. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We need better court rooms with enough space for the lawyers and litigants. The Court Rooms should have horse-shoe tables and Public Address Systems. Today the Court Rooms look like classrooms. The Court hall should be IT enabled with the entire CESTAT premises wi-fi covered. In future we may have e-courts and the court halls should have facilities for video conferences and e-hearings. In the Modi-fied e-nvironment, physical presence of lawyers may not be necessary in the courts. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We need at least 30,000 sq.ft of space for each Bench of the Tribunal. There should be a library including a digital one with facilities for fax, Xerox, printing etc,. There should be a well furnished bar room. And above all enough well furnished toilet facilities for the Members, Counsels and others. It is unfortunate that in some Benches, the Members do not have attached toilets to their office rooms. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is not a court dealing with petty criminals - this is a tribunal dealing with tax issues running into hundreds of crores - it deserves to be in better surroundings. And after all the Government collects fees for all appeals by the assessees and it should be required to provide reasonably good facilities. Our Settlement Commission has enviable infrastructure. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There is no point in running a Tribunal which has no money to pay for the postage for sending its hearing notices and orders; is in perennial debt to all service providers like cab service, telephone service, manpower etc,. What a shame it is for a taxi owner to refuse to provide a car for the Member to reach the Tribunal if his bills for the last eight months are not cleared. But this happens often and the Administration has to beg the cab operator to bear with them for a few more months. And this happens with routine regularity every year from the month of May. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If you really don't have money to run the Tribunal, please close it down rather than make it undergo this pathetic poverty. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And you know how much the Government spends on the Tribunal? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">See the figures: </font></p>
<blockquote>
<table width="90%" border="1" cellpadding="3" cellspacing="0">
<tr>
<td bgcolor="#FFFF00"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2011 -12</font></font></td>
<td bgcolor="#FFFF00"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs. 15.69 Crores</font></font></td>
</tr>
<tr>
<td bgcolor="#FFFF00"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2012-13</font></font></td>
<td bgcolor="#FFFF00"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs. 16.72 Crores</font> </font></td>
</tr>
<tr>
<td bgcolor="#FFFF00"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2013-14 </font></font></td>
<td bgcolor="#FFFF00"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs. 17.14 Crores</font></font></td>
</tr>
</table>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, the Government hardly spends a paltry sum of 20 Crores on the Tribunal and that is less than what CBEC spends on cars for its officials.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The addition of 6 more Benches will cost about Rs. 10 Crores which means the total expenditure on CESTAT will be about Rs. 30 Crores. And this is less than what a losing candidate in a Parliament election would spend. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government should allot at least Rs. 300 Crores for the CESTAT and until that happens there is no point in opening ramshackle Benches of the Tribunal in some concrete jungle. </font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Please also see</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/print_story.php?newsid=6172"><strong>Tribunalisation of justice - CESTAT -<em> Kal Aaaj Aur Kal</em>! </strong></a><strong><font color="#FF0000">and</font> <a href="http://www.taxindiaonline.com/RC2/print_story.php?newsid=6814">Strengthen the CESTAT - give their Lordships some facilities</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC to hire 764 cabs for its officers in 2014-15 </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC </strong>has sanctioned hiring of around 800 vehicles for its officers in the Board, Directorates and Commissionerates under utilization of 1% incremental revenues Scheme for the year 2014-15. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Commissioners and Commissioner level officers are allowed one mid size vehicle for a hire of Rs.35,000 pm and Divisional Assistant Commissioners are allowed to hire a small size vehicle for a rent of Rs. 30,000 pm. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the field, you see young recently recruited Assistant Commissioners roaming around in big Tata Indigo and Ford Fiesta Cars which cost anything above Rs. 45,000 pm. It seems they are making their Preventive Superintendents bear the difference expenditure. Has any Commissioner ever checked whether his Assistant Commissioners are using an Indica or an Indigo car? And all these officers get a transport allowance ranging from Rs. 1600 to Rs. 6400 per month. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nine vehicles are sanctioned at the same rate of Rs. 30,000 for transportation of dogs. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And this bill will alone take care of the entire Budget of the Tribunal - even after expansion. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We certainly have a crooked logic in spending money. There is nothing wrong in officers going round in fancy sedans, but this is a poor country and your show off of opulence at public cost does not go down well with your masters - the taxpayers. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/sernews/order/extension_hiring_one_vehicle.htm"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC F.No.D-26015/04/2013-Cus(AS) and related letters; Dated April 24 2014 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>India launches safeguard investigation on 'not-alloyed ingots of unwrought aluminium'</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ON </strong>28 April 2014, India notified the WTO's Committee on Safeguards that it initiated on 7 April 2014 a safeguard investigation on "not-alloyed ingots of unwrought aluminium". </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">PERIOD OF INVESTIGATION: 2010-11 to 2013-14 (up to December 2013). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">PRODUCT UNDER INVESTIGATION: The Product under Consideration (PUC) is "Not Alloyed Ingots of Unwrought Aluminium" and is classified under Customs sub-heading nos. 76011010 of Chapter 76 of the Customs Tariff Act, 1975. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">REASONS FOR INITIATION OF INVESTIGATION: The investigation was initiated following the examination of the safeguard petition of the domestic industry (DI) alleging serious injury and threat thereof caused by increased import of the PUC into India. Relevant factors having significant bearing on the present deteriorating domestic industry, as claimed by DI,<em> inter-alia</em>, are: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.The import of PUC has shown an increasing trend in absolute terms as well as the relative terms;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Capacity utilization of the domestic industry has declined in the most recent period;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Share of domestic industry in domestic consumption and domestic demand has fallen significantly;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Though sale of the domestic industry increased in 2012-13 as compared to the preceding year 2011-12, it declined from 461,509 MT in 2012-13 to 350,185 MT in 2013-14 (annualized); </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Profitability of the domestic industry has steeply deteriorated, leading to financial losses. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Accordingly, it has been found that prima facie increased imports of PUC have caused or threatening to cause serious injury to the domestic producers of PUC. Hence, it has been decided to initiate the investigation. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">POINT OF CONTACT: All interested parties may make their views known within a period of 30 days from the date of the notice issued by the Director General (Safeguards): </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE Director General (Safeguards), Bhai Vir Singh Sahitya Sadan: 2nd Floor, Bhai Vir Singh Marg, Gole Market, New Delhi-110 001, INDIA. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/dg_safeguards_22011_2014.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DG, Safeguards F. No. D-22011/01/2014; Dated: April 07 2014 </strong></font></a></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"> - Thursday's cases</font></strong></font></strong></font></p>
<p align="justify"><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">Central Excise </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Rebate - Restrictions in relation to period etc. imposed by CBEC Circular NO 354/1997 dated 13.11.1997 are not valid - Refund claims to be processed by ignoring Circular: HC </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>question involved in the Writ Petition is whether rebate claims on export of goods can be denied by applying the conditions / restrictions imposed vide CBEC Circular <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/1997/excircular354.htm" target="_blank">No 354/70/97-CX</a></strong> dated 13.11.1997. The petitioner has been denied rebate on export of goods by relying on restrictions relating to period etc. imposed by an executive order, i.e., Circular <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/1997/excircular354.htm" target="_blank">No. 354/70/97-CX</a> </strong>dated 13.11.1997 and it is contended that in the Statutory Order/Notification <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2004/exnt04_19.htm" target="_blank">No. 19/2004-C.E. (N.T.)</a> </strong>dated 6.9.2004, there is no such restriction of limitation and a statutory order issued in exercise of power under Rule 18 of Central Excise Rules, 2002 could not have been altered, amended, modified or efficacy thereof could not have been extended by issuing an executive order. Therefore, the respondents in proceeding to decline the claim of petitioner for rebate in Central Excise by relying on Circular dated 13.11.1997 have acted wholly illegally. It is stated that a statutory provision cannot be modified, amended or altered by an executive order. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On behalf of revenue it was contended that the Central Government possess power to issue Circulars also, which in absence of any otherwise provision, are binding. </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"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Whether quashing of proceedings by Tribunal for faulty service of notice under Ss 148, 143(2) & 142(1) amounts to allowing assessee to go scot-free even if he is liable to pay capital gains tax on compensation received for statutory acquisition of his land - YES: HC </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee Jasbir Singh received compensation amounting to Rs.1,04,54,474/- against compulsory acquisition of his land situated at village Mansoorwal Dona, District Kapurthala. The assessee had not furnished his return of income. Finding it to be a case of income having escaped assessment for the assessment year 1999-2000 by reason of failure on the part of the assessee to make a return under Section 139 of the Act, after recording reasons and obtaining necessary approval, notice under Section 148 of the Act was served on the assessee on 21.3.2006. He did not furnish his return even then. Thereafter, notice under Section 142(1) was issued along with a questionnaire. The assessee neither attended the office of the named Income Tax authority in the notice nor filed return nor made compliance of the said notice. Even on information made available, the Assessing Officer could not get current residential address of the assessee. The concerned Inspector of the revenue found that it was not possible to effect service in ordinary manner and consequently, service of the notice was effected under Section 142(1) of the Act through affixation on the last known address of the assessee. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The issues before the Bench are - Whether quashing of proceedings by the Tribunal for faulty service of notice under Ss 148, 143(2) & 142(1) amounts to allowing assessee to go scot-free even if he is liable to pay capital gains tax on compensation received for statutory acquisition of his land; Whether merely because there is an error in service of notice on the assessee, the statutory liability to pay tax on capital gains gets extinguished and Whether assessee is to be assessed at the place of its agent or the place where his land was acquired. And the Bench allows the Revenue's appeal. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Import of old and used photocopier machines - Transaction value - importer's declaration or chartered Engineer's certificate - RF and Fine of 10% and 5% - Matter referred to Third Member - CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant imported 105 pieces of assorted make old and used photocopier machines and filed a bill of entry dated 3.7.2008, claiming the classification of the same under Customs Tariff sub-heading 84433920 and declaring the value of the goods as Rs.10,13,256/-. They also produced a Chartered Engineer's certificate showing the value of the goods as Rs. 13,51,080/-. However, the Revenue did not accept the declared value and found that contemporary clearances as per NIDB data would be showing the value of around Rs.19,59,937/-. Accordingly, the consignment was taken up for further inquiries.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Revenue still insisted on another Chartered Engineer's certificate which was produced by the appellant showing the value of the goods as Rs. 16,18,920/-. The said Chartered Engineer certificate issued by M/s. Rajesh Barman & Associates was also not accepted by the Revenue who procured another Chartered Engineer's certificate from Shri Pankaj Gupta wherein, he after examining the goods opined the value of the same as Rs.20,13,120/-. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On the above basis, proceedings were initiated against the appellant which culminated into impugned order passed by the Commissioner of Customs vide which he enhanced the value of imported photocopier from Rs. 10,13,256/- to Rs.20,13,120/-. He also confiscated the goods with an option to the appellant to redeem the same on payment of redemption fine to Rs.5 lakhs. In addition, penalty of Rs.2.50 lakhs was imposed upon the appellant under Section 112 (a) of the Customs Act, 1962. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the Tribunal there was a difference of opinion. </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 color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT </strong></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>
</body>
</html>