TIOL-DDT 2747 · the untouched capture
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<p><strong><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 2747</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
17 12 2015<br>
Thursday</font></strong></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Who can represent the Department before CESTAT? </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN </strong>the CESTAT, lawyers, CAs, consultants, employees of firms etc appear for the assessee litigants as authorised representatives. And for the department, authorised representatives of various ranks from Superintendent to Commissioner are posted in the Tribunal. Apart from this, sometimes, officers from the Commissionerates appear as authorised representatives. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Rule 2 (c)(ii) of the Customs, Excise and Service Tax Appellate Tribunal (Procedure) Rules, 1982, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Authorised representative in relation to any proceedings before the Tribunal means</em>, - "<em>a person <strong>duly appointed</strong> by the Central Government or by an officer duly authorised in this behalf as authorised representative to appear, plead and act for the Commissioner or Administrator, in such proceedings</em>" </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTMwNzY=" target="_blank"><strong>DDT 1682 - 30.08.2011</strong></a>, asked, </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#F3DBCF">But has the Government or an authorised officer ever appointed an <em>‘authorised representative'</em>? They are routinely posted by the Board in routine transfer orders. Are they really <strong>authorised</strong> representatives? </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Recently, the Board received a reference to empower the Principal Chief Commissioners of Customs, Central Excise & Service Tax / Chief Commissioners of Customs, Central Excise & Service Tax to authorize officers from their zone to appear before the Bench of CESTAT. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By a complicated and wrong reference to certain statutory provisions, the Board clarifies that: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>The provisions of the Section 35Q of the Central Excise Act and Section 146A of Customs Act entrusts the appellant Commissioner to authorize his officer to plead before any Central Excise/ Customs Officer or CESTAT on his behalf. </em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Further in terms of clause (ii) of rule 2(c) of the CESTAT Procedures Rules, a person duly appointed by the Central Government or by an officer duly authorised in this behalf as authorised representative to appear, plead and act for the Commissioner or Administrator, in adjudication as well as appeal proceedings. (</font></em><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#F3DBCF">Please note that this sentence is incomplete.) </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In view of above, Chief Commissioners are already empowered under the provisions of Section 35Q and Section 146A of Customs Act read with clause (ii) of rule 2(c) of the CESTAT (Procedures) Rules, 1982 to authorize a jurisdictional officer to appear before the CESTAT Bench for pleading a case on behalf of the department</font></em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board takes strength from some irrelevant words it has extracted from Section 35Q. </font></p>
<blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"shall be qualified to represent any person under sub-section (1), for all times in the case of a person referred to in clause (a), and for such time as the [Principal Commissioner of Central Excise or Commissioner of Central Excise] or the competent authority under the Customs Act, 1962 or the Gold (Control) Act, 1968, as the case may be, may, by order, determine in the case of a person referred to in clause (b), and for the period during which the insolvency continues in the case of a person referred to in clause (c)." </font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This refers to disqualification of certain persons like those dismissed from Government service, those convicted and those who are insolvent. Board thinks this is the provision that confers authority on the Chief Commissioners to appoint authorised representatives before the Tribunal. In extracting Section 35Q, they missed some parts perils of copy and paste! And normally there is nothing like a second check of the LAWS made by the Board. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board is totally confused about its own laws and the clarification depends on all wrong premises. Even the extract of the statutory provisions is wrong! They are not sure how to appoint authorised representatives to represent their cases before the Tribunal. It is a miracle that they still win some cases. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Before they embark on their mega adventure of GST, they should seriously consider appointing a few proof readers and English teachers in the Board. And don't copy, if you don't know how to paste. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg5MTQ=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Instruction in F. No.390/Misc./69/2015-JC., Dated: December 15, 2015 </font></strong></a></p>
<p align="center"><font size="3"><strong><em><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif">Excise Duty on Petrol hiked </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has hiked the excise duty on petrol and diesel with effect from 17th December 2015. </font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr bgcolor="#FF9966">
<td><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. </font></strong></div></td>
<td><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter or heading or sub-heading or tariff item of the First Schedule </font></strong></div></td>
<td><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of excisable goods </font></strong></div></td>
<td><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Existing Rate </font></strong></div></td>
<td><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rate w.e.f <br>
17 12 2015 </font></strong></div></td>
</tr>
<tr valign="top">
<td><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) </font></strong></div></td>
<td><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) </font></strong></div></td>
<td><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) </font></strong></div></td>
<td><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4) </font></strong></div></td>
<td><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(5) </font></strong></div></td>
</tr>
<tr valign="top">
<td rowspan="3"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">70 </font></strong><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> </font></strong><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> </font></strong></td>
<td rowspan="3"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2710 </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> </font></td>
<td colspan="3"><div align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Motor spirit commonly known as petrol,- </font></div></td>
</tr>
<tr>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) intended for sale without a brand name; </font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs. 7.06 per litre </font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs. 7.36 per litre </font></td>
</tr>
<tr>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) other than those specified at (i) </font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.8.24per litre </font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.8.54 per litre </font></td>
</tr>
<tr valign="top">
<td rowspan="3"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">71</font></strong></td>
<td rowspan="3"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2710 19 30</font></td>
<td colspan="3"><div align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">High speed diesel (HSD),- </font></div></td>
</tr>
<tr>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) intended for sale without a brand name; </font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs. 4.66 per litre </font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs. 5.83 per litre </font></td>
</tr>
<tr valign="top">
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) other than those specified at (i) </font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs. 7.02 per litre </font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs. 8.19 per litre </font></td>
</tr>
</table>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Retail prices are not going to be affected - only government wants to take advantage of the low crude price, not the refinery, not the consumer. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg5MDg=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification 46/2015-CE., Dated: December 16, 2015 </font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Hike in CE Duty on Petrol and Diesel in Parliament </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>YESTERDAY</strong>, the Government laid on the table of the Rajya Sabha the above notification and there was a short disturbed debate.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mr. Anand Sharma said, "<em>Sir, six times earlier, there has been an Excise Duty hike. When this Government assumed office, the price of crude was around 111 dollars per barrel. Yesterday, the price has fallen to 35 dollars per barrel. In the last financial year, 88 billion US dollars has been the saving on the oil import bill. Petrol was selling, in May last year, in Delhi at Rs. 71 and diesel at Rs. 63 per litre, when the international price was 110 dollars. Today, the international price is 35 dollars and you are selling the petrol at Rs. 65. You are profiteering. You have not transferred the benefits to the people. That is our charge. The Government has been profiteering. People have not been given any relief, when it comes to petrol and diesel prices. Please look at any period -- what has been the global price and what is your import price? Even if you add the refining duties, whatever may be the charges, the Government needs to explain why they are burdening the poor people. Are these the 'Ache Din' that your Government and the Prime Minister had promised? This is the question. It is also about the fiscal mismanagement. They are trying to save this money to cover up where they have failed. In this country, despite your tall claims, for 12 months, your exports have fallen. I have to say something more. You come with a Supplementary Demand to the House. We know that Rajya Sabha does not have the power to reject when it comes to the financial Bills. But you have also come with an astonishing supplementary demand to raise Rs. 2,300 crores for the Ministry of External Affairs to be spent for the foreign missions</em>." </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Finance Minister Arun Jaitley replied,"<em>Now, today what has happened is the international price of crude has fallen. The present Government has a clear policy, and let me just make it clear that that advantage by the present Government has been shared in three ways. In fact, it eventually gets shared more than three ways. One part of the fall in prices goes to the consumer. So, 20 times the price of petrol has been reduced and 16 times the price of diesel has been reduced</em>. </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sir, one part of the fall in oil prices as a part of proper economic and fiscal planning goes to the consumer; the second part is going to developmental activities, particularly national highways and rural roads because those who consume petrol and diesel drive vehicles on these roads and they must pay for it. The third part is being consumed by the States by way of VAT. Of what the Central Government gets, 42 per cent is being passed on to the States. And the fourth part, let me tell you, goes to the oil companies for the reason that when oil companies make international purchases against future purchases, they suffer a huge loss. They buy at 80 dollars; by the time they sell, the price has become 60 dollars. At one stage, the loss of the oil companies was as high as Rs.40,000 crores. So, the fourth part of it goes to that. As a part of proper fiscal planning, this reduction in oil prices is being shared for developmental activities by the Centre, by the States, by the oil companies to cover up for their losses of the past, and one part advantage significantly goes to the consumer. As a result of this, this year, we are trying to achieve the fiscal deficit target without making any cuts to the budgets of the States, whatever the grants are to be given to them, and without making any cuts to the grants to be given to various Ministries for social sector programme. Unlike the UPA kind of planning, which will achieve fiscal deficit by making large budgetary cuts in.. </font></em></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">I-T - Collegium for considering withdrawal of Appeals before High Courts </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Bombay High Court in a recent judgement observed, </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Out of 4784 appeals from the order of the Tribunal filed in this Court during the period 01/01/2014 to 01/06/2014 the appeals filed by the Revenue are 3968 and only 816 by the class of Assessee as a whole. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. The Appeal memo has been signed by a senior officer of the Revenue viz. Director of Income­tax. Either there is no application of mind to the order of the Tribunal before filing of this appeal or the Revenue is deliberately seeking to keep the pot boiling, so that uncertainty is kept alive. It shows the casual attitude of the Revenue in filing appeals. This is not the first of its kind. We had earlier also passed orders disapproving this conduct of the revenue, but there is no improvement. If filing of such appeals by the Revenue without justification is unacceptable, the counsel for the Revenue persisting in arguing those questions of law taking valuable time of Court is further objectionable. Such frivolous appeals add to the burden of the Court and thoughtless prosecution of these takes time of the Court which could be utilised for more meritorious(debatable) cases. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. We direct the Registry and also the Counsel appearing for the Revenue to forward a copy of this order to CBDT. What could possibly be done is to provide an inhouse committee of senior officers of the Revenue to review decisions taken in respect of appeals already filed and pending. If it is found that questions raised are covered by any decision of this Court or Apex Court or it relies upon an earlier decision of the Tribunal which has been accepted by the Revenue as no appeal therefrom has been filed, then they could be separately classified. On completion of the above exercise such appeals could be either withdrawn and/or dismissed as not pressed. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The good news is CBDT has positively reacted. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT has set up collegiums to review all the pending appeals. It would be the responsibility of the PCIT concerned to draw up a list of pending appeals in his Charge and present cases for review to the collegium. Preparation of an accurate list of pendency must be completed by </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#FFFF00" span="span">15.12.2015 </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">in consultation with the High Court Registry and with the assistance of standing counsels. An action taken report containing the status of the work completed/ pending as on 31.03.2016 in each CCIT Region will be submitted by the Pr. CCIT to the Zonal Member by 15.04.2016. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If the CBEC undertakes a similar exercise, many appeals in the CESTAT and High Courts can be withdrawn. But then, the Committee system has failed miserably under the CBEC; it has only created more frivolous appeals than before. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg5MDc=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Office Memorandum in F.No.279/Misc./52/2014-(ITJ), Dated: December 10, 2015 </font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Fireworks are hazardous </font></em></strong></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SECTION</strong> 110 (1A) of the Customs Act, 1962 reads </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1A) The Central Government may, having regard to the perishable or hazardous nature of any goods, depreciation in the value of the goods with the passage of time, constraints of storage space for the goods or any other relevant considerations, by notification in the Official Gazette, specify the goods or class of goods which shall, as soon as may be after its seizure under sub-section (1), be disposed of by the proper officer in such manner as the Central Government may, from time to time, determine after following the procedure hereinafter specified. </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The notification issued in this regard by the Central government almost three decades ago is 31/1986-Cus dated 05/02/1986. This notification underwent an amendment yesterday, the previous amendment being in March 2008. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Fireworks have been added to the Schedule annexed to the notification. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Presumably a lot of Chinese firecrackers have been seized this Diwali and they can make ample light and sound if they are burst welcoming the New Year. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg5MTI=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification 143/2015-Cus (NT)., Dated: December 15 2015. </font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Issue of Look Out Circulars </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>LOOK</strong> Out Circulars (LOC) can be taken by investigating agency in cognizable offences under IPC or other laws, where the accused is deliberately evading arrest or not appearing in the trial court despite Non Bailable Warrants (NBWs) and other coercive measures and there is likelihood of the accused leaving the country to evade trial / arrest. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A person can be intercepted / interrogated/ baggage examined/ searched even in the case of non cognizable offence. The only restriction is that the person can not be detained/ arrested/ prevented from leaving the country. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, CBEC feels that it is essential to have a centralized and reliable database of all LOC requests. Therefore, all field formations are directed to route their requests for issuance of LOC, if necessary, through DRI (Hqrs) in cases relating to contravention of the provisions of Customs Act and through DGCEI in cognizable offences under the Central Excise and Service Tax. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However, the practice of opening LOC in a particular Airport for short duration may continue, as in such cases LOC is required to be opened immediately on specific information / inputs. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board directs that DRI and DGCEI shall maintain a database that can be updated on real time basis whenever such requests are received and circulars are issued thereon. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg5MTU=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Instruction in F. No. 394/193/2015-Cus (AS)., Dated: December 16 2015. </font></strong></a></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><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"> <strong><a href="mailto:vijaywrite@tiol.in">vijaywrite@tiol.in</a></strong></font></p>
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