TIOL-DDT 2966 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=26988"><img src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2016.jpg" alt="DDT in Limca Book of Records - Third Time in a row" width="252" height="220" hspace="5" border="0" align="right" ></a></font><font color="#663399" size="3">TIOL-DDT 2966</font><br>
08 11 2016<br>
Tuesday</strong></font></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><font color="#006600">'Voluntary' Statements given before Customs Officers - Not Admissible?</font></strong></em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#F3DBCF" span="span"><strong>IT </strong>is a matter of common knowledge that, on many occasions, the DRI/DGCEI resorts to compulsion in order to extract confessional statements.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Eleven years ago in <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=Mjk1MQ==" target="_blank"><strong>DDT 251 30.11.2005</strong></a>, I wrote,</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Why should any sane person give a voluntary statement to the Customs admitting his guilt? But you peruse any statement given before any Customs officer and you will find the mandatory para at the end. "I have given this statement out of my own free will without any threat or coercion". How is this uniform wording of the statement happening with all the accused persons? And how does a hard core smuggler suddenly become a repenting saint and confess before the Customs voluntarily?</em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Third degree is the trick. There is a fourth degree too. If any offender has the audacity to retract a statement within a reasonable time, he is summoned back and given a fresh coating and he gives a statement that his retraction was purely an evil act and that he stands by his first statement. Unfortunately, the courts accept these statements. The logical fact that nobody (more so a confirmed tax evader) will voluntarily confess that he is guilty, is somehow ignored. The officers should remember that even those who they think are smugglers have rights and nobody has the right to assault another human being to obtain a voluntary statement.</font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTg3OTY=" target="_blank"><strong>DDT 2206 09 10 2003</strong>,</a> I wrote,</font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For some strange reason, the Courts in this country believe that officers of Customs, Central Excise and the like are not as bad as the police officers. A statement given before a police officer is not a valid piece of evidence while the one given before a Customs or Excise officer is. The logic would be that the Police obtain statements by force and the Customs is full of clones of ahimsavadi officers and the hard core Criminal who does not succumb to third degree torture of the police will sing voluntarily before the Customs!</font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Why would anyone voluntarily confess to a crime? It is a known fact that every <strong>voluntary</strong> statement is obtained by threat and torture and if any volunteer has the audacity to retract immediately, he is further tortured to retract his retraction.</font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But the law is that a statement before these authorities is EVIDENCE.</font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Recently, the Punjab and Haryana High Court took a different view. The High Court observed, </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">- It is a matter of common knowledge that, on many occasions, the DRI/DGCEI resorts to compulsion in order to extract confessional statements. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> - It is obviously in order to neutralize this possibility that, before admitting such a statement in evidence, clause (b) of Section 9D(1) mandates that the evidence of the witness has to be recorded before the adjudicating authority, as, in such an atmosphere, there would be no occasion for any trepidation on the part of the witness concerned. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> - In view of this express stipulation in the Act, it is not open to any adjudicating authority to straightaway rely on the statement recorded during investigation/inquiry before the gazetted Central Excise officer, unless and until he can legitimately invoke clause (a) of Section 9D(1). In all other cases, if he wants to rely on the said statement as relevant, for proving the truth of the contents thereof, he has to first admit the statement in evidence in accordance with clause (b) of Section 9D(1). For this, he has to summon the person who had made the statement, examine him as witness before him in the adjudicating proceeding, and arrive at an opinion that, having regard to the circumstances of the case, the statement should be admitted in the interests of justice. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court held that: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is only </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) after the person whose statement has already been recorded before a gazetted Central Excise officer is examined as a witness before the adjudicating authority, and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) the adjudicating authority arrives at a conclusion, for reasons to be recorded in writing, </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">that the statement deserves to be admitted in evidence, that the question of offering the witness to the assessee, for cross-examination, can arise. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court further observed: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Clearly, if this procedure, which is statutorily prescribed by plenary Parliamentary legislation, is not followed, it has to be regarded, that the Revenue has given up the said witnesses, so that the reliance by the CCE, on the said statements, has to be regarded as misguided, and the said statements have to be eschewed from consideration, as they would not be relevant for proving the truth of the contents thereof. </em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Statements recorded during investigation, under Section 14 of the Act, whose makers are not examined in chief before the adjudicating authority, would have to be eschewed from evidence, and it would not be permissible for Respondent to rely on the said evidence while adjudicating the matter. Neither, needless to say, would be open to the Revenue to rely on the said statements to support the case sought to be made out in the Show Cause Notice. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Once examination-in-chief, of the makers of the statements, on whom the Revenue seeks to rely in adjudication proceedings, takes place, and a copy thereof is made available to the assessee, it would be open to the assessee to seek permission to cross-examine the persons who have made the said statements, should it choose to do so. In case any such request is made by the assessee, it would be incumbent on the adjudicating authority, to allow the said request, as it is trite and well-settled position in law that statements recorded behind the back of an assessee cannot be relied upon, in adjudication proceedings, without allowing the assessee an opportunity to test the said evidence by cross-examining the makers of the said statements.</font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For more details of this case, please see <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=28550" target="_blank">Breaking News</a></strong></font></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><font color="#006600"><a name="f1"></a>Procedure for clearance of Unaccompanied Baggage in Indian Customs - JNCH Instructions </font></strong></em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> order to <strong><em>facilitate</em></strong> the clearance at Unaccompanied Baggage Centre (Speedy CFS),it has been decided to extend the Electronic Data Interchange (EDI), ICES 1.5 System to the clearance operation of Unaccompanied Baggage, JNCH. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Commissioner has prescribed the procedure for Clearance of Unaccompanied Baggage at the UB Centre as follows:- </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Passenger or their authorized CHA shall fill up the BDF and submit to the Superintendent of Customs/ Preventive Officer In charge at the UB Centre for the scrutiny along with the following documents </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a) Duly Filled Baggage Declaration Form </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) Original Passport of the Passenger along with one photocopy </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c) Bill of Lading and Delivery Order issued by shipping lines </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">d) Authority Letter issued by Pax in absence of availability of Pax for clearance. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">e) Any Other documents in support of their contention and evidence. </font></p>
</blockquote>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Superintendent of Customs will sign the BDF after scrutiny of documents. Passenger /Authorized CHA should take the duly scrutinized BDF to the EDI Centre situated in Speedy CFS (DBC Port Logistics Ltd) for submission in Customs EDI System. EDI Service Centre will charge the prescribed fees for filing of document/Check list in Customs EDI Systems and a printout of the Check List will be given to the passenger after submission. The Passenger/Authorized CHA should verify the correctness of the details stated in the checklist and make necessary correction, if any. The passenger /Authorized CHA, if satisfied with the entries made in the check list, has to authorize the service center for submission of the same to the Customs by signing checklist. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The service centre will state in the final checklist the BDF No, Customs Counter No and the name of the Preventive Officer, who would examine the goods as generated by the system. Preventive Officer after examination will feed the Examination Report in EDI System. Superintendent of Customs (UB Centre) will verify the assessment of the goods. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the following cases, the BDF will be forwarded to the AC/DC UB Centre for assessment. </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a) When the passenger chooses to avail of the benefit of Rule 6 i.e. Transfer of Residence of the Baggage Rule 2016. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) When the value of the Baggage exceed Rs. 1 Lakh. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c) When the cargo contains any goods, the import of which is in violation of the Customs Act, 1962 or any other law for the time being in force. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In all other cases, Supdt. U B Centre will assess the BDF Form. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Superintendent of Customs,UBC will give print of duly assessed and scrutinized BDF along with challan for duty payment, if any and print out can be collected from EDI Centre. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Passenger /Authorized CHA after the payment of duty, fine and penalty, if any at the Bank, will approach the Superintendent of Customs, UBC for getting Out of charge. The Superintendent will verify the proof of payment of Customs Duty, fine and penalty, if any and grant Out of charge from the Customs side by duly endorsing the same on the Final BDF. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Any consumer goods brought by the passenger should be declared properly for e.g. in case of electronics goods the brand and Country of Origin shall be declared along with the quantity as per UQC (Unit Quantity Code), similar declaration shall also be done in case of other goods including consumer goods. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Passenger will thereafter proceed with the said out of charge printout to the CFS authority. CFS authority will prepare their own challan/gate pass for payment of demurrage/handling charges. After the necessary payment is made by the passenger or their authorized CHA to the CFS, the CFS authority duly appointed for this purpose will then issue Gate Pass for delivery of the goods. </font></p>
<p align="left"><font size="3" face="Verdana, Arial, Helvetica, sans-serif"><em><font color="#FF0000" size="2">Maybe it is not worth bringing in that unaccompanied baggage.</font></em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What is baggage? Section 2(3) of the Customs Act states, </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span"><em>"baggage"</em> includes Unaccompanied Baggage but does not include motor vehicles. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MjA3NDI=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Unaccompanied Baggage Centre JN Customs Public Notice No. 145/2016; Dated: November 04, 2016 </font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><font color="#006600"><a name="f2" id="f2"></a>Procedure for Reimbursement of Duty (RoD) in lieu of drawback for supply of goods to SEZ Developers against Indian Rupees - Amendments </font></strong></em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>INSTRUCTION</strong> No. 9 dated 18th February, 2009 of the Department of Commerce prescribed the for Reimbursement of Duty (RoD) in lieu of drawback against supply of goods to SEZ Developers:- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Para 2(iii)(e) of the procedure, the Developer was required to submit a <em>Disclaimer Certificate from DTA supplier on letter head that no CENVAT on raw material has been availed. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By Instruction No. 77 dated 06.08.2013, this was amended to read as: <em>Disclaimer Certificate from DTA supplier on letter head that no CENVAT on raw material has been availed. However, if the DTA supplier has availed of CENVAT credit on inputs to a certain extent then it shall furnish a certificate to the Developer indicating the exact amount claimed. The Developer may make a claim for Reimbursement of Duty after adjusting the CENVAT credit already availed. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now this is amended to read as: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(a) In case developer claiming drawback under All Industry Rate under Column A of Drawback schedule "when CENVAT facility has not been availed" the disclaimer certificate is required.</em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) In case developer claiming drawback under All Industry Rule under Column B of Drawback schedule "when CENVAT facility has been availed" disclaimer certificate is not required.</font></em></p>
</blockquote>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MjA3NDA=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Department of Commerce SEZ Division Instruction No. 86., Dated October 31, 2016</font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><font color="#006600"><a name="f3" id="f3"></a>Humility of Babu</font></strong></em></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/humility.jpg" alt="" width="500" height="307" hspace="5" border="0" align="center"></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>LOOK</STRONG> closely at this car. It is not decorated for a wedding; see the red beacon on top. It is a Government car and the one who is in the driver's seat is an IAS officer, a District Collector and the one sitting in the backseat in uniform is the government driver. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The District Collector of Akola, G. Sreekanth drove his driver, Digambar Thak in grand style to the office on October 31, the day of retirement of the driver. The driver had served 18 collectors in his career spanning thirty years and it was a great day for the retiring driver when the collector drove him to the office on his last working day, leaving a permanent happy moment in the life of the driver. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Just a few days ago, I was in a High Court - waiting for the lift. Outside the lift there was a board, <em>"Only for Judges"</em>. Even then, as a practice, it is used by everybody but is left free whenever a judge arrives. As I was waiting, a judge walked in with his liveried peon. As I was talking to the judge, a couple of other lawyers and a lawyer's clerk joined us. When the lift arrived, we all gave way to the judge and stayed back. But the judge invited us all in and insisted that we all go with him. When we all got in, the liftboy asked the clerk to stay back. The judge said, <em>"let him come in, we can all go."</em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I have seen in Government offices the lifts being stopped for the exclusive use of the boss and other employees and visitors are prevented from entering the lift when the boss is in. </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"><strong>Have a nice day.</strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to <strong><a href="mailto:vijaywrite@tiol.in" target="_blank">vijaywrite@tiol.in</a></strong></font></p>
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