TIOL-DDT 307 · the untouched capture
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<strong><font color="#996699" size="3">TIOL-DDT 307</font><br>
21 02 2006<br>
Tuesday</strong></font> </div>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Guidelines
for the valuation and disposal of seized, confiscated and time - expired goods</strong>
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC
has identified that unrealistic fixation of price is the single most important
reason for the delay in the disposal of uncleared, unclaimed, seized and confiscated
goods, including time - expired warehoused goods. So Board has prescribed
the procedure for the disposal.</font></p>
<ul>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> The
disposal by sale shall take place simultaneously through public auction and
sealed tender right from the first time that the goods are offered for sale.</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> The
auction-cum-tender shall be held every month</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> In
each Customs Commissionerate there shall be a Joint Pricing Committee (JPC)
responsible for the disposal of seized and confiscated goods</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> The
JPC shall consist of Additional/Joint Commissioner in charge of Disposal,
Deputy/Assistant Commissioner in charge of Disposal, Superintendent in charge
of Disposal, Deputy/ Assistant Commissioner holding any other charge and Superintendent
holding any other charge</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> The
JPC shall determine the Fair Price of the goods to be disposed of through
auction-cum- tender. The Fair Price is the best price at which the goods can
be sold under normal conditions. It can be expected to be somewhat lower than
the price at which goods of the same kind and in the same condition could
be sold by the buyer in the wholesale market, the difference representing
the profit which the buyer at the auction expects to make.</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> The
book value of the goods shall have no bearing on the Fair Price.</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> The
CIF value and applicable rate of duty should find a place in the valuation
file only to serve as a comparison with the Fair Price arrived at with reference
solely to the wholesale market price</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> There
shall be no Reserve Price as distinct from Fair Price.</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> The
highest bid in the auction-cum-tender shall be accepted by the JPC if the
bid is more than, or equal to or close (not less than the Fair Price by 5%
to 10%) to the Fair Price</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> The
goods should not be withdrawn from auction-cum-tender on flimsy grounds,
such as the possibility that the goods may fetch a slightly higher price in
a subsequent auction</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> All
post-auction/tender offers, even if these are for amounts higher than the
successful bid, shall be strictly disregarded and not taken cognizance of
in any manner.</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> In
respect of complaints regarding determination of Fair Price and acceptance
of bids in auction-cum-tender, the Commissioner shall immediately ascertain
whether the prescribed procedure has been adhered to. The matter should not
be referred for Vigilance scrutiny in a routine manner if the prescribed procedure
has been followed</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> All
Custom Houses shall immediately introduce e-auction, and physical auction
shall be discontinued within 100 days of the issue of these instructions.</font></li>
</ul>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government
seems to have accepted reality after the seized goods godowns have become overfilled
with goods that cannot be sold in the next hundred years. The officer who seized
the goods must have overvalued them and no body is prepared to make a realistic
valuation for a variety of reasons. A prudent businessman would always think
of selling off and not just keeping goods for a better price. There are computers
available in customs warehouses which are seized ten years ago. Today nobody
would buy them even for a song and these are offered for sale at prices which
would be ten times their market price. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Let
us hope the Board's latest initiative will clear the junk in most of the Customs
warehouses.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2006/cuscir06_12.htm">CIRCULAR
NO. 12/2006 Cus., Dated: February 20, 2006</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ICD
notified at Ajivali</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
Government has notified Ajivali village in Maharashtra as an ICD.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2006/cnt06_012.htm">NOTIFICATION
NO. 12/2006-Cus., (N.T.), Dated: February 17, 2006</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs
Commissioners for specific adjudication of DRI cases</strong></font></p>
<table width="450" border="1" align="center" cellpadding="2" cellspacing="2">
<tr valign="top">
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Commissioner
of Customs </font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Appointed
as Commissioner of Customs</font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">To adjudicate
the case of</font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification
No.</font></td>
</tr>
<tr valign="top">
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(Imports),
Jawahar Custom House</font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs (Imports)
and Air Cargo</font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Karan Enterprises</font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2006/cnt06_013.htm"><strong>13/2006-Cus.,
(N.T.), Dated: February 17, 2006</strong></a></font></td>
</tr>
<tr valign="top">
<td>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(Imports),
Jawaharlal Nehru Custom House</font></p>
</td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mumbai Sea
Port</font></td>
<td>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Spectrum
Fabrics</font></p>
</td>
<td> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2006/cnt06_014.htm"><strong>14/2006-Cus.,
(N.T.), Dated: February 17, 2006</strong></a></font></td>
</tr>
<tr valign="top">
<td>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(Imports),
Indira Gandhi International Air Cargo</font></p>
</td>
<td>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Inland
Container Depot, Tughlakabad, (Import), New Custom House, Mumbai and Air
Cargo Complex, Sahar</font></p>
</td>
<td>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Aryan
Electronics</font></p>
</td>
<td>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2006/cnt06_015.htm"><strong>15/2006-Cus.,
(N.T.), Dated: February 17, 2006</strong></a></font></p>
</td>
</tr>
</table>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#006600"><strong>Target
Plus - amendments </strong></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government
has amended the Foreign Trade Policy in respect of Target Plus Scheme. </font></p>
<ul>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">Note
5 of para 3.7.3 is deleted. This read as follows - In respect of export of
Cut & Polished diamonds only those shipments would be taken into account
for computation of eligible exports under the scheme where a minimum of 10%
value addition has been achieved.</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">Supplies
to SEZ/EOU/EHTP/STPI/ BTP not to be taken into account for calculation of
export performance or for computation of entitlement under the scheme</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">Export
of Rough, uncut and semi polished diamonds and other precious stones was also
not to be taken into account. Now this is changed to 'Diamonds and other
precious, semi precious stones'</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">The
export of the following items are also not to be taken into account- Ores
and Concentrates, of all types and in all forms, Cereals, of all type, Sugar,
of all types and in all forms, Crude / Petroleum Oil & Crude / Petroleum
based Products covered under ITC HS codes 2709 to 2715, of all types and in
all forms.</font></li></ul>
<font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2005/dgft05not048.htm">NOTIFICATION
NO. 48 (RE 2005)/2004-2009 Dated: February 20, 2006</a></strong></font>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Rampant
Smuggling in Mumbai too, not in Vizag alone</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DDT
had mentioned on several occasions that import through a port other than a port
notified is an offence and falls within the definition of smuggling under the
Customs Act. As Vizag has not been notified as a port for import all imports
through Vizag amount to smuggling. Many officers of Vizag Customs are not exactly
happy with DDT for highlighting the fact that every import through Vizag is
smuggling. A very senior officer told us that this is sensational reporting,
but why can't they get a notification issued? DDT's comments yesterday
drew sharp comments from another officer of Vizag Customs. "Why can't
you write about the smuggling in Mumbai port?", he asks us in apparent anguish,
"by your logic, there is more smuggling in Mumbai - for Mumbai port is also
not declared as a port under the Act". Yes Sir, you are right. All imports in
Mumbai also fall under the category of smuggling. Strangely the Board has no
time for elementary basic concepts. Actually this is where it all started. My
Bangalore lawyer friend told me, "There is lot of smuggling in Mumbai!"</font></p>
<P align=center><B><IMG height=62 src="http://www.taxindiaonline.com/RC2/image/ddt/gnl_txt.jpg" width=375></B></P>
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<TD><IMG height=67 hspace=5 src="http://www.taxindiaonline.com/RC2/image/ddt/gnl_word.jpg" width=67 align=absMiddle vspace=5><B><I> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">per
se (purr say) by itself</font></I></B></TD>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Also
meaning "as such". I don't call him stupid, <font color="#0000FF">per
se</font>. I only say he has lots to learn.</font></p>
<p align="justify"><font color="#0000FF" size="2" face="Verdana, Arial, Helvetica, sans-serif">Precedent
- Judicial discipline - When a Larger Bench judgment holds the field, smaller
Bench of Tribunal is bound to follow it - If it expresses any doubt about correctness
of view expressed by the Larger Bench, it cannot per se or by its own take a
different view. - <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=50&filename=legal/sc/2005/2005-TIOL-07-SC-CX.htm">2005-TIOL-07-SC-CX</a></strong></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
<font color="#993300"><strong>Persecution is the first law of society because
it is always easier to suppress criticism than to meet it. - Howard Mumford
Jones</strong></font></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Until
tomorrow with more 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"><strong><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail
your comments to</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
<a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p>
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