TIOL-DDT 2759 · 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> <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> <p><strong><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 2759</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br> 06 01 2016<br> Wednesday</font></strong></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">CESTAT Comes Down Heavily on Customs Investigation and Adjudication - Hints reference to Vigilance </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#E7EAEF" span="span"><strong><em>CHENNAI:</em></strong><em> Synthetic diamonds, popularly known as American diamonds, worth Rs.1.26 crore, sent as part of an unaccompanied baggage from Malaysia, were seized by officials of the Docks Intelligence Unit, Customs (Sea Port) here on Saturday. </em></font></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#E7EAEF" span="span">The diamonds were found by the officials when they checked the carton boxes in a container at the Chennai port. The container was despatched from Port Klang, Malaysia, said C.Rajan, Commissioner of Customs (Sea Port).</font></em></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">That is from a report in the HINDU dated 1.7.2008. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What happened to the case? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Goods were smuggled in large quantities along with baggage. The Customs Commissioner adjudicated the case confiscating the offending goods, but there was no penalty on any person. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Revenue appealed to the Tribunal pleading that penalty should be imposed on: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Carvel Shipping Services Pvt. Ltd - there was not even a notice against them. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Thameen Ansari, CHA </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Thameem Shipping Services </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Fast Forward CHA </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Smt. R. Louis Premalatha representative of Fast Forward CHA </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While there was no notice at all against Carvel Shipping, nothing was found against the others to impose penalty. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But then who smuggled the diamonds? That is what the Customs could not find out. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Tribunal noted: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- It is certainly a truth that there was a smuggling racket operated to bring cubic zirconium into India. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- It is also shocking to note that there was a total failure of investigation to conduct proper investigation in India and overseas. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Spirit and intent of section 11 of the Customs Act, 1962 was buried causing prejudice to the interest of customs without bringing the members of smuggling racket to the fold of law. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- When the investigating authority as well as adjudicating authority failed in their duty to bring necessary parties to the fold of law, it is not possible at appellate stage to implead them and press them to undergo trial. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- M/s. Caravel Shipping Services Pte. Ltd. was neither issued show cause notice nor was adjudicated. There appears lapse on the part of adjudicating authority to keep this concern out of purview of adjudication. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#FFFF00" span="span">- No efforts were made by investigation to identify the members of the smuggling racket. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#FFFF00" span="span">- It is painful to note that the manner in which investigation was made and show cause notice was issued that granted bonus to the smuggling racket. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Customs area being a sensitive place it is not expected from customs officers to act to the detriment of Revenue as well as the nation. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#FFFF00" span="span">- Investigation was conducted very casually to keep the racket away from scrutiny of law. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Authority failed to conduct overseas enquiry against the racket and no thorough investigation was made into the affairs of CHA, freight forwarder as well as the consignee and there was only pretence to justice by investigation following an empty formality to pass a superfluous adjudication order. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- No doubt there was confiscation. But that is merely a consolation to this country when the racket and mastermind behind that remained in mystery and unidentified. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#FFFF00" span="span">- Facts and circumstances of the cases suggest that there was premeditated design to cause subterfuge to Revenue. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- It is high time to arrest smuggling, without encouraging that to perpetuate. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Therefore, it is left to the Department to take up this matter with Directorate General of Vigilance to do the needful as he may consider appropriate. </font></p> </blockquote> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see Commissioner of<em> Customs Vs Smt Louis Premalatha - <strong><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTA5ODU1" target="_blank">2016-TIOL-58-CESTAT-MAD</a></strong></em> </font></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Same order of Appellate Commissioner reviewed by two Committees - Revenue seeks Condonation of delay of 947 days </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AN</strong> order was passed by a Commissioner (Appeals) on 25.09.2012. The Revenue filed an appeal against this order on 01.05.2015 with a delay of 947 days. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The order of the Commissioner (Appeals) was accepted by the Committee of Commissioners on 21.12.2012 and so it was decided not to appeal. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But strangely another Committee of Commissioners on 24.04.2015 reviewed the same order dated 25.09.2012 of the Commissioner (Appeals) again. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This time around, the new Committee of Commissioners held that Commissioner (Appeals) order is not legal and proper and reviewed the said order and recommended for filing of appeal. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This Committee did not mention or discuss about the previous Review Committee's acceptance of the order on 21.12.2012. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Revenue's reason for condoning the delay of 947 days, is review by two committees. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Tribunal was not impressed and rejected the Condonation of Delay Application and the Revenue appeal. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Tribunal brought this to the notice of CBEC [Board] and Chief Commissioner of Customs, Chennai to take necessary steps on the powers of Committee to review the orders under Section 129D and 129A (2) of Customs Act and issue necessary guidelines to the field formations as deem fit. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see<em> Commissioner of Customs Vs Alufit India Pvt Ltd </em>- <em> <strong><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTA5ODU0" target="_blank">2016-TIOL-57-CESTAT-MAD </a></strong></em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But this is not the end of the story. In almost identical case, the Madras High Court in the Madura Coats - <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTA5ODUz" target="_blank"><strong>2013-TIOL-1208-HC-MAD-CU</strong>S </a>held that there was no bar in the Act to constitute a fresh Review Committee for deciding a matter which has already been decided. The High Court had allowed condonation, but that was only 30 days and not 947 days as in this case. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Three days after the Alufit case was decided, the Mumbai Bench of the Tribunal followed the Madras High Court judgement and held that a second review by the Committee is valid in law and allowed the condonation of delay application of the department. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maybe Board should step in and clarify how many times the review order can be again reviewed. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We bring you the Mumbai order today. Please see <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=25692" target="_blank">Breaking News</a>.</strong> </font></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Major Changes in FEMA </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RESERVE</strong> Bank of India has made several changes in the Foreign Exchange Management Act regulations. </font></p> <p align="justify"><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#BB0000">Export and Import of Currency Regulations, 2015: </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">You can take out of India or bring into India Indian currency not exceeding Rs. 25,000. If you want more, you have to take RBI's permission. There is no limit for Nepal and Bhutan, except that only 25000 rupees worth currency of denomination above 100 rupees can be brought from or taken to Nepal. Foreign Exchange can be sent or brought to India without limit, but if you bring cash of over 5000 US Dollars, you have to give a declaration to the Customs, on arrival. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg5OTE=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI Notification No. 6 (R) /RB-2015, Dated: December 29, 2015 </font></strong></a></p> <p align="justify"><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#BB0000">Foreign Exchange Management (Realisation, Repatriation and Surrender of Foreign Exchange) Regulations, 2015: </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A person resident in India to whom any amount of foreign exchange is due or has accrued shall take all reasonable steps to realise and repatriate to India such foreign exchange. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg5OTI=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI Notification No. 9 (R) /RB-2015, Dated: December 29, 2015 </font></strong></a></p> <p align="justify"><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#BB0000">Foreign Exchange Management (Possession and Retention of Foreign Currency) Regulations, 2015: </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">limits for possession or retention of foreign currency or foreign coins:- </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i) Possession without limit of foreign currency and coins by an authorised person within the scope of his authority; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ii) Possession without limit of foreign coins by any person; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iii) Retention by a person resident in India of foreign currency notes, bank notes and foreign currency travellers' cheques not exceeding USD 2000 or its equivalent in aggregate, provided that such foreign exchange in the form of currency notes, bank notes and travellers cheques; </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) was acquired by him while on a visit to any place outside India by way of payment for services not arising from any business in or anything done in India;or </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) was acquired by him, from any person not resident in India and who is on a visit to India, as honorarium or gift or for services rendered or in settlement of any lawful obligation; or </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) was acquired by him by way of honorarium or gift while on a visit to any place outside India; or </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) represents unspent amount of foreign exchange acquired by him from an authorised person for travel abroad. </font></p> </blockquote> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg5OTM=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI Notification No. 11 (R) /RB-2015, Dated: December 29, 2015 </font></strong></a></p> <p align="left"><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#BB0000">Foreign Exchange Management (Insurance) Regulations, 2015. : </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) A person resident in India may take or continue to hold a health insurance policy issued by an insurer outside India provided aggregate remittance including amount of premium does not exceed limit prescribed under the Liberalised Remittance Scheme. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) No person shall take out or renew any policy of insurance in respect of any property in India or any ship or other vessel or aircraft registered in India with an insurer whose principal place of business is outside India without permission of Insurance Regulatory and Development Authority of India (IRDA). </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) A person resident in India may take or continue to hold a general insurance policy other than referred in (i) and (ii) above, issued by an insurer outside India, provided that, the policy is held, under a specific or general permission of the Central Government. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) A person resident in India may continue to hold any general insurance policy issued by an insurer outside India when such person was resident outside India. </font></p> </blockquote> <p><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg5OTQ=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI Notification No. 12 (R) /RB-2015, Dated: December 29, 2015 </font></strong></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">FTP - Implementation of Track and Trace system for export of Pharmaceuticals and drug consignments</font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT</strong> has amended Para 2.89A of Handbook of Procedure, 2015-20 for laying down the procedure for implementation of the Track and Trace system for export consignments of drug formulations. The dates for implementation of Track and Trace system for export of drug formulations along with maintaining the Parent-Child relationship in packaging have been extended to 01.04.2016 for non SSI manufactured drugs and to 01.04.2017 for SSI manufactured drugs. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTkwMDM=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Public Notice No.52/(2015-2020)., Dated: January 05, 2016 </font></strong></a></p> <p align="center"><font color="#006600" face="Georgia, Times New Roman, Times, serif"><strong><em><font size="3">FTP - Procedure for modification/change in Branch Office/Head Office/Registered Office Address in IEC </font></em></strong></font></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">WHEN</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> an IEC holder seeks modification/change of Branch Office/Head Office/Registered Office address in its IEC and which involves a shift in its jurisdictional RA, a request to that effect will have to be made to the new RA to whose jurisdiction the applicant is shifting its Office. A copy of this request with application details is to be submitted to the old RA from where the original IEC was issued. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On the basis of this request, the old RA (the custodian of the IEC file till now) will transfer the IEC file to the new RA (the new custodian) which shall make appropriate amendment based on the transferred file and fresh documents submitted to it by the applicant. The new RA shall allow the person in its new address to carry out necessary functions and also apply for eligible benefits as per FTP. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTkwMDU=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Public Notice No.53/(2015-2020)., Dated: January 05, 2016 </font></strong></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">FTP - Enlistment under Appendix 2E - Agencies Authorized to issue Certificate of Origin </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT</strong> has authorized the Indian Industries Association, having its registered office at IIA Bhawan, Vibhuti Khand, Phase - II, Gomti Nagar, Lucknow - 226010, to issue Certificate of Origin (Non-Preferential) from its branch office at New Delhi. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTkwMDQ=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Public Notice No.54/(2015-2020)., Dated: January 05, 2016 </font></strong></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">ASSOCHAM wants exemption from Service Tax for Agri Produce</font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> its pre-budget memorandum submitted to the Finance Minister, ASSOCHAM has suggested: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Keep all services provided for agricultural produce outside service tax ambit. Services like warehouse management, security, laboratory testing and others that are essential to secure storage of agri-produce should be included in the negative list or in the list of exempted services. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Exempt services like leasing of land and agricultural equipment, agri-extension services and others provided in rural areas or marketing agricultural products from service tax. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. In order to prevent misuse of exemptions, appropriate rules can be framed for certification of services provided in rural areas by governmental bodies like the gram panchayats, village post-master and others. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Levy of service tax on the processing of whole pulses into split pulses that are carried out in factories adds to the high prices of pulses, which is a staple diet for common man. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">India Inc is to meet the FM today.</font></p> <p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT</strong></font></p> <p><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"><a href="mailto:vijaywrite@tiol.in"><strong>vijaywrite@tiol.in </strong></a></font></p> </body> </html>