TIOL-DDT 2680 · the untouched capture
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<!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 size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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 color="#663399" size="3">TIOL-DDT 2680 </font><br> 08 09 2015 <br> Tuesday </strong></font></p> <p align="center"><font color="#006600"><strong><em><font size="3" face="Georgia, Times New Roman, Times, serif">Compounding of Offences - CBDT Issues Guidelines - No Compounding for Foreign Black Money </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SECTION</strong> 279(2) of the Income Tax Act provides that any offence under chapter XXII of the Act may, either before or after the institution of proceedings, be compounded by the CCIT/DGIT. The CBDT vide letter in <a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTczODE=">F.No. 285/35/2013 IT(Inv.V)/108 </a>, dated 23.12.2014 issued detailed guidelines on compounding of offences. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, a doubt has been expressed whether offences relating to undisclosed foreign bank accounts/assets could be compounded as per the guidelines of the Board dated 23.12.2014. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has consulted with the Special Investigation Team (SIT) and clarifies: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Such cases can be compounded only after filing the Prosecution complaint(s) and shall not be compounded at the stage of show cause notice and/or without filing the complaint in the court. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) The cases in which the assessee has not admitted the foreign bank account(s)/assets and/or has not cooperated with the Department in the assessment, penalty & recovery proceedings shall not be compounded. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) The cases in which the assessee has admitted accounts/assets either fully (all accounts with which he is associated) or partially (only a few accounts out of all accounts with which he is associated), paid taxes and penalty and cooperated with the Department may be considered for compounding as per the guidelines dated 23.12.2014, only after filing the complaints. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has specifically clarified </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FFFF" span="span"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">that there is no provision for compounding of offences under the newly enacted Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. Consequently, the above clarifications will not apply to cases coming under the purview of this Act. </font></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg0OTM=" target="_blank">CBDT Letter in F.No. 285/90/2013 IT(Inv.V)/212., Dated September 04, 2015 </a></strong></font></p> <p align="center"><font color="#006600" size="3" face="Georgia, Times New Roman, Times, serif"><strong><em>High Level 'Customs Clearance Facilitation Committee' (CCFC) becomes Low Level </em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> in Circular No. 13/2015, dated 13.04.2015, mentioned: </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>The Government has in recent times taken a number of measures to create an environment for ease of doing business and trade facilitation. The measures include the simplification of Customs procedures, reduction of documents, message exchange between Government agencies engaged in Customs clearance, and use of digital signature for electronic submission of Customs process documents. Continuing in this direction, it has now been decided with the approval of the Cabinet Secretary to establish a high-level administrative body at each seaport and airport with the responsibility of ensuring expeditious Customs clearance of imported and export goods. </em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Accordingly, the Board has decided to set up a Customs Clearance Facilitation Committee (CCFC) at every major Customs seaport and airport with immediate effect. The Chief Commissioner of Customs/Commissioner of Customs in charge of the seaport and airport concerned would head the CCFC. Its membership would include <strong>the senior-most functionary </strong> of the following departments/agencies/stakeholder at the particular seaport/airport: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Food Safety Standards Authority of India/Port Health Officer (PHO) </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Plant Quarantine Authorities </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) Animal Quarantine Authorities </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) Drug Controller of India (CDSO) </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(v) Textile Committee </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(vi) Port Trust/Airport Authority of India/Custodians </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(vii) Wild Life Authorities </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(viii) Railways/CONCOR </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ix) Pollution Control Board </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(x) Any other Department/Agency/stakeholder to be co-opted on need basis. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Committee is to meet once a week or more frequently. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This weekly meeting was a tall call and Chief Commissioners simply ignored the Board instructions. Now the meetings are not held even once in a month. The senior-most functionaries of the various departments are supposed to be Members of the Committee. Already senior functionaries have lost interest and junior functionaries are now attending these meetings. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The last meeting of the Mumbai -I and II zones was jointly held on 10.07.2015 under the Chairmanship of Mr. AK Kaushal Member (Customs), CBEC & Chief Commissioner, Zone-I and III. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The representatives of various departments who attended the meeting were: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. MIAL - Vice President, Cargo </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Textile Committee - Authorized Officer </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Mumbai Port Trust - Deputy Traffic manager </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. FSSAI - Authorized Officer </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Plant Quarantine - Deputy Director </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Pollution Control Board - Authorized Officer </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. Indian Railways - Authorized Officer </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. CONCOR - Sr. Manager </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9. Drug Controller - Assistant Drug Controller. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The minutes of the meeting records that <em>the other points were not taken up because, as required, there </em></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>has been total disregard of the mandate of this forum as to the level of participants</em>. </font></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Similar was the situation in the meeting held in JN Customs on 09.07.2015. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While reporting the creation of CCFC in <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MjM0MTU="><strong>DDT 2581- 21 04 2015</strong></a>, I asked, </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#D2FFDE" span="span"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Is it feasible for such a high power committee to meet once a week? Can you expect the Chairman of a Port Trust to come to the Custom House every week to attend a meeting chaired by the Customs Commissioner? </font></font></p> <p align="center"><font face="Georgia, Times New Roman, Times, serif"><strong><font color="#006600" size="3"><em>FTP - Export of Sugar - Registration Dispensed With </em></font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has amended the export policy of sugar to dispense with requirement of registration of quantity with DGFT for export of sugar. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg0OTY=" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT Notification No. 20/2015-2020, Dated: September 07, 2015 </strong></font></a></p> <p align="center"><font color="#006600" size="3" face="Georgia, Times New Roman, Times, serif"><strong><em>Vacancies in Customs Settlement Commission</em> </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FOUR </strong>to five vacancies are likely to occur in the Customs and Central Excise Settlement Commission. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Serving Principal Chief Commissioner, Chief Commissioners, Principal Commissioners are eligible to apply. Applications are to be sent to Department of Revenue latest by 06.10.2015. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg0OTc=" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MoF Dept. of Revenue Office memorandum in F. No. A-12026/18/2015-Adj.1, Dated: September 07, 2015 </strong></font></a></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em> </em></font><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><font color="#006600"><em>Can Tribunal Dismiss an Appeal for Non-Compliance of Pre-Deposit? </em></font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THIS </strong>was the question before the Bombay High Court recently. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As against a demand of over Rs. 4 crores, the Tribunal ordered a deposit of one-third of the demand. The appellants did not comply and the Tribunal dismissed the appeal. The appellant filed a restoration petition which was also dismissed by the Tribunal. So, the assessee-appellant is before the High Court. They took strength from the Supreme Court order in <em>Balaji Steel ReRolling Mills vs. Commissioner of Central Excise and Customs reported in <strong> </strong></em><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=OTc0MDA="><strong><em>2014-TIOL-92-SC-CX-LB </em></strong></a>wherein the Supreme Court had held that <em>the Tribunal could not have dismissed the appeal filed by the appellant for want of prosecution and it ought to have decided the appeal on merits even if the appellant or its counsel was not present when the appeal was taken up for hearing </em>. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court was not impressed and observed, </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Now by taking assistance of the law laid down by the Hon'ble Supreme Court of India the defaulting parties raise the issue of the Tribunal's lack of power to dismiss a statutory appeal for want of prosecution in order to get over their lapses and defaults. They do not question the initial conditional order. After the time is over, they make an application for restoration and if that is also disposed of resulting in a conditional order against them, they challenge this order on the restoration application and raise the issue of the Tribunal's lack of power to dismiss the Appeal without any adjudication on merits. We do not think that such litigants deserve sympathy or there should be a premium on their lapses and deficiencies by an order from higher Court granting unconditional restoration of the Appeal and directing the Tribunal to decide the same on merits. It would be a travesty of justice if such an approach is adopted in all cases of this nature. We are therefore of the view that the Tribunal's order in the peculiar circumstances of this case is fully justified and no fault can be found therewith. The discretion to restore the matter has been exercised judiciously </em>. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However the High Court granted one more opportunity to the appellant to make the pre-deposit along with a cost of Rs.25,000, within three months. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Please see <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTA2Mzcy" target="_blank">2015-TIOL-2059-HC-MUM-ST</a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong></font></p> <p align="center"><font color="#006600" face="Georgia, Times New Roman, Times, serif"><strong><font size="3"><em>Global Economic Scenario - PM's Meeting today </em></font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PRIME MINISTER</STRONG> Narendra Modi, will be holding a high level consultative meeting on 'Recent Global Events: Opportunities for India,' in New Delhi today morning. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The meeting will be attended by over 40 delegates, including Cabinet Ministers, top officials of the Government and RBI, industry representatives, top bankers and leading economists and sectoral experts. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A wide-ranging discussion is expected on the impact of recent economic events, and how best India can take advantage of them. </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> </body> </html>