TIOL-DDT 2607 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2"><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 color="#663399" size="3"><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 size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3"><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=23157"><img src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2015_1.jpg" alt="DDT in Limca Book of Records - Third Time in a row" width="300" height="148" hspace="5" border="0" align="right" ></a></font></strong></font></strong></font></strong></font></strong></font></strong></s></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></s></font></strong></font></strong></font></strong></font></strong></font><font color="#663399" size="3">TIOL-DDT 2607 </font><br>
28 05 2015 <br>
Thursday </strong></font></p>
<p align="center"><font face="Georgia, Times New Roman, Times, serif"><strong><font color="#006600" size="3"><em>No Fear of Vigilance - CBEC Tells Adjudicators </em></font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> a recent letter to all the Chief Commissioners, the Director General Vigilance, CBEC (Who is now also a Member of CBEC)refers to instructions issued in 2010 <strong>(<a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTA3MzM=">DDT 1340</a>)</strong> in terms of which the review committees were advised to undertake scrutiny of adjudication/appellate orders from vigilance angle as per the criteria laid down by the Supreme Court in its decision in the case of K K Dhawan <strong>(<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=50&filename=legal/sc/2002/2002-TIOL-441-SC-MISC.htm" target="_blank">2002-TIOL-441-SC-MISC</a>) </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">She emphasises that: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>The adjudicating and appellate authorities are required to pass fair, judicious and legally sustainable speaking orders which can withstand judicial scrutinyat higher appellate fora. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Apprehensions have, however, been raised that the above instructions have created a 'fear of vigilance' amongst the field officers, due to which some of the adjudicating/appellate authorities are resorting to confirmation of demands through non-speaking orders/without following judicial discipline/non consideration of pleas put forth by the parties, etc. merely due to a fear of coming under vigilance scrutiny. Such unjust orders, besides attracting adversejudicial scrutiny, cause harassment to the trade and undermine the efforts of the Department inproviding a non-adversarial tax regime to taxpayers</em>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">She notes that <em>since 1997, only 18 adjudication orders have been taken up for scrutiny by the Directorate General of Vigilance. This indicates that on an average, only one case in a year i.e. 0.001% of the total quasi-judicial orders passed in the department have been taken up for vigilance scrutiny. The fear of vigilance action against adjudicating/ appellate authorities in respect of adjudication/ appeal orders, therefore, appears to be totally unfounded and misplaced. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">She clarifies: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Adjudication and Appellate Orders are examined by Review Committees of Chief Commissioners or Commissioners comprehensively, including from the angle of legality and propriety, with a view to take a decision whether the orders are acceptable or to be appealed against in higher appellate fora. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Examination of orders from vigilance angle is also a part of this exercise. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. An adjudication/ appellate order is not required to be referred by the Review Committee for further vigilance scrutiny merely on the ground of it being an anti-revenue order or having some legal infirmities (for which review and appellate remedy is available), unless there are genuine reasons to doubt the bonafides of the decision or where the order shows a conspicuous violation of the procedures involved or recklessness, etc., as per the criteria laid by Supreme Court in the <em>K K Dhawan's </em> judgment. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">She expects that senior officers in the field, given their vast experience, would be able to distinguish between the orders warranting scrutiny from vigilance angle and those which do not. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTgxMDA=" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>CBEC DG, Vigilance F.No.V.500/39/2015, Dated: April (no date) 2015 </strong></font></a></p>
<p align="center"><font face="Georgia, Times New Roman, Times, serif"><strong><font color="#006600" size="3"><em>Departmental Adjudication- a farce; Are they really afraid of Vigilance? </em></font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SPEAKING</strong> in a meeting organised by a Trade Association, CESTAT President Justice Raghuram said, </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>"This is a compulsive evidence of a deep pathology in departmental adjudication. Two interpretations are possible - one that the judges are not able to understand the law as well as the commissioners are able to - one interpretation, which is comfortable for the departmental family……..If the pro-family interpretation is to be assumed as hallucinatory, then we are left with the inescapable conclusion that <strong>something is pathologically, terminally and seriously wrong with our departmental adjudication</strong>. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Departmental adjudication is a blasphemy. If a revenue collecting Chief Commissioner is writing the confidential report of an adjudicating Commissioner or Superintendent something seriously wrong has taken place in the adjudication process of our country."</em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What makes brilliant officers, who have passed the toughest examination in the world and who are imparted the most expensive training in the world including a couple of foreign trips at State expenses, act idiotic and perverse while passing adjudication orders? There was a Commissioner who held that the Solicitor General did not explain the case properly to the Supreme Court and so the Supreme Court was not able to understand the law properly and so the law was what the Commissioner thought it to be and not what the Supreme Court interpreted. The other day a judge was heard asking in the Court, <em>"Does your Commissioner think that he knows the law better than all the judges of the Supreme Court and all the Members of his Board?"</em>. Here was a Commissioner who refused to follow both the Board and the Supreme Court. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The DG, Vigilance states that only 18 cases (that is 0.001%) have been taken for vigilance scrutiny. Madam, how many cases are decided against the revenue, for you to take up vigilance scrutiny? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It has now become a norm that all adjudicating authorities invariably pass orders in favour of revenue in at least 95% cases. Where is the question of any vigilance? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I made a small quick study from the CESTAT cases reported by us, which shows: </font></p>
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<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Year </strong></font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>No.of appeals by Commissioners (obviously against Orders not favourable to Revenue) </strong></font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>No. of appeals by assessees against orders of Commissioners </strong></font></p></td>
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<td width="0" valign="top" bgcolor="#FF9933"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>2012 </strong></font></p></td>
<td width="0" valign="top" bgcolor="#CCCCCC"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>345 </strong></font></p></td>
<td width="0" valign="top" bgcolor="#CCCCCC"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>1581 </strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong></font></p>
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<td width="0" valign="top" bgcolor="#FF9933"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>2013 </strong></font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>267 </strong></font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>1621 </strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong></font></p>
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<td width="0" valign="top" bgcolor="#FF9933"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>2014 </strong></font></p></td>
<td width="0" valign="top" bgcolor="#CCCCCC"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>396 </strong></font></p></td>
<td width="0" valign="top" bgcolor="#CCCCCC"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>2343 </strong></font></p></td>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">These are only reported decided cases and will just give an idea. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Vigilance should initiate action not for dropping cases, but for confirming silly demands on illegal grounds, with absolutely unsound reasons. These adjudicators don't bring in any revenue but cause immense damage to the system. Already people have started losing faith in the departmental adjudication and an administration that cannot command public faith loses its right to exist in a democratic system. Such a system will perish under its own illegal unbearable weight. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Vigilance should work for preventing such a calamity - there is no danger from adjudication orders against revenue - you can appeal; you have to worry about those nonsensical orders in your favour which has made you a diabolical State machinery. </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong></font></p>
<p align="center"><font face="Georgia, Times New Roman, Times, serif"><strong><font color="#006600" size="3"><em>Anti Dumping Duty on ‘Purified Terephthalic Acid' (PTA) - Resurrected </em></font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT </strong>had imposed a provisional Anti Dumping Duty on <em>‘Purified Terephthalic Acid' (PTA) including its variants - Medium Quality Terephthalic Acid (MTA) and Qualified Terephthalic Acid (QTA) falling under tariff item 2917 36 00 of the First Schedule to the Customs Tariff Act, originating in, or exported from the People's Republic of China, European Union, Korea RP and Thailand, and imported into India, </em>by Notification No. 36/2014-Cus(ADD), dated 25.07.2014. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Notification emphatically stated that the anti dumping duty imposed under this notification shall be levied for a <strong>period not exceeding six months </strong>(unless revoked, amended or superseded earlier) from the date of publication of this notification. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Reporting this, <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MjExMTE=" target="_blank"><strong>DDT 2406</strong> </a> had commented, "<em>The notification does not specify as to what happens if the Board forgets to revalidate it after six months</em>."</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And the Notification expired on 24.01.2015 and as usual, the Board forgot to extend it. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now they have imposed definitive anti dumping duty retrospectively with effect from 25.07.2014 - after four months of its demise. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What do you do when the Revenue Department has no respect for the law framed by it, the judgement of the High Court or even its own circular? Poor Mr. Jaitley seems to be unaware of this retrospective illegality right under his nose. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTgwOTk=" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 23/2015-Customs (ADD), Dated: May 27, 2015 </strong></font></a></p>
<p align="center"><font face="Georgia, Times New Roman, Times, serif"><strong><font color="#006600" size="3"><em>FTP - Updation of Importer-Exporter Profile </em></font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> new Foreign Trade Policy 2015-20 has identified trade facilitation and enhancing the ease of doing business as its major focus areas and it is Government's endeavour and commitment to move towards paperless processing. A facility has been provided to importer/ exporter to upload his basic details and documents in the Importer-Exporter Profile. Once uploaded on the Importer-Exporter Profile, the importer/ exporter will not be required to submit these documents each time he/she/it applies for authorisations/scrips under different schemes of the FTP. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT requests that Importers/Exporters may update their Importer-Exporter Profile by 15th June, 2015 by logging into the DGFT website (http://dgft.gov.in/) and clicking on the icon <em>"IEC Profile Updation"</em> and updating the requisite information with their digital signature. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT further requests all EPCs to update the details of RCMCs issued to its members on the DGFT website, for linking of the same with the Importer-Exporter Profiles latest by 15th June, 2015 so that their members can avail the benefit of paper-less submission of applications. They are also requested to exhort their members to update Importer-Exporter Profile on DGFT website by 15th June, 2015 to facilitate online submission of applications. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTgxMDE=" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT Trade Notice 02/2015., Dated: May 26, 2015 </strong></font></a></p>
<p align="center"><strong><font color="#006600" size="3" face="Verdana, Arial, Helvetica, sans-serif"><em>Companies Act Amended - 'Common Seal' goes </em></font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Seal and rubber stamp hold eminent places in our official dealings. The Common Seal of a Company was sacred for many years. The idea of a Company Seal has almost become a relic globally and this Company Seal is also removed from the Indian Companies Act. The Government has notified the amendments to the Companies Act 2013, recently passed by Parliament. The amendments pertain to removing minimum mandatory capital for starting a company, doing away with common company seal, inspection of records of companies, winding up of companies, simplifying stringent bail provisions and utilisation of unclaimed dividends. In the existing Act they had forgotten to insert provisions for punishments in cases of accepting deposits in violation of the law. So now that is included. Board resolutions are now not available for public. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/companies_act_2015.pdf" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Companies (Amendment) Act, 2015.., Dated May 25 2015</strong></font></a></p>
<p align="center"><strong><font color="#006600" size="3" face="Verdana, Arial, Helvetica, sans-serif"><em>CBI arrests ITO and three employees of Income Tax Department</em></font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBI </strong>registered a case against an ITO and OS working in the office of CIT (TDS), Kolkata on the allegation that the accused were demanding an illegal gratification from the complainant for issuing certificate for lower deduction under section 197 of the Income Tax Act, 1961 to his firm(A firm of Chartered Accountants based at Kolkata). CBI laid a trap and caught the ITO and OS red handed, while they were demanding & accepting an illegal gratification of Rs. 50,000/- and Rs.10,000/- respectively from the complainant. During the course of investigation, a Senior Tax Assistant and a Tax Assistant of the same office were also arrested for having accepted Rs. 1000/- each from the accused OS, after the acceptance of a bribe of Rs.10,000/- by the OS from the complainant. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Search was conducted in the house of the ITO which led to recovery of Rs.6,50,000/- in cash. All the four were arrested. </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"><strong><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day.</font></strong></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@tiol.in"><strong>vijaywrite@tiol.in</strong></a></font></p>
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