TIOL-DDT 371 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT
371</font><br>
26 05 2006<br>
Friday</b></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Draconian
Taxation laws (Amendment) Act – What the law makers said</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Though
the Bill did not attract the kind of attention that a fall in stock market does,
it will be interesting to know that our parliamentarians are quite well informed
about our taxes and taxmen. Of course in his usual cool style, the FM was able
to breeze past both the houses. A member suggested that officers should be friendly-
after all assessees are customers, but he said the general attitude was to scare
the assessee. He mentioned an example where the first adjudication demands an
amount of Rs. 1 Lakh but after several levels of appeals it comes down to Rs.
5000/-. He asks whether the original officer did not know that the demand should
have been only for Rs. 5000/-? It was doubted whether the amendments are to
simplify or confuse. A member said that <b>it appears that the</b> <b>laws are
made to help the tax consultants, and, not the assessees.</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
FM paid a left handed compliment to the assessees when he said that <b>assessee
is one step ahead of the Government. </b>He also clarified that<b>Provisional
attachment does not mean that possession will be taken, unless there is an attempt
to fraudulently alienate the property or dissipate the property or allow the
property to deteriorate. If such conditions don't apply, then, provisional attachment
will simply be a provisional attachment under which the person holding the property
is prohibited from alienating or dissipating the property.</b>Regarding publication
of names, the FM said, <b>If somebody is a chronic defaulter, then, clearly,
his name should be known to everyone.</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Today
we bring you excerpts from the debates in Parliament on the Bill. Please see<a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=3765">
<u>Breaking News</u></a></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Cenvat
Credit – Reasonable steps – Board invites suggestions</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As
per Rule ((3) of the Cenvat Credit Rules, <i>“The manufacturer or producer of
excisable goods or provider of output service taking CENVAT credit on input
or capital goods or input service, or the input service distributor distributing
CENVAT credit on input service shall take all <b>reasonable steps</b> to ensure
that the input or capital goods or input service in respect of which he has
taken the CENVAT credit are goods or services on which the appropriate duty
of excise or service tax as indicated in the documents accompanying the goods
or relating to input service, has been paid”.</i></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In
English, what this means is when you take credit, you should also take all <i>reasonable
steps</i> to ensure that duty/tax is paid on the inputs/input services. <b>But
how? </b>How can you ensure that your supplier has paid duty? And what are the
reasonable steps? Well, the laws are not all that harsh. According to the Rule</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><i>Explanation.</i>-
The manufacturer or producer of excisable goods or provider of output service
taking CENVAT credit on input or capital goods or input service or the input
service distributor distributing CENVAT credit on input service on the basis
of, invoice, bill or, as the case may be, challan received by him for distribution
of input service credit shall be <b>deemed to have taken reasonable steps</b>
if he satisfies himself about the identity and address of the manufacturer or
supplier or provider of input service, as the case may be, issuing the documents
specified in sub-rule (1), evidencing the payment of excise duty or the additional
duty of customs or service tax, as the case may be, either- </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a)
from his personal knowledge; or </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b)
on the basis of a certificate given by a person with whose handwriting or signature
he is familiar; or</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c)
on the basis of a certificate issued to the manufacturer or the supplier or,
as the case may be, the provider of input service by the Superintendent of Central
Excise within whose jurisdiction such manufacturer has his factory or such supplier
or provider of output service has his place of business or where the provider
of input service has paid the service tax, </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">and
where the identity and address of the manufacturer or the supplier or the provider
of input service is satisfied on the basis of a certificate, the manufacturer
or producer or provider of output service taking the CENVAT credit or input
service distributor distributing CENVAT credit shall retain such certificate
for production before the Central Excise Officer on demand.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But
Board has found that the <i>reasonable steps</i> as envisaged in the rule are
not practical or easy of compliance. So they are considering the proposal to
redraft the rule so that the conditions imposed on such purchaser/receiver are
practicable and easy of compliance.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A
suggestion has been submitted before the Board that instead of amending rule
9(3) to lay down reasonable steps for the purchaser/receiver of taxable goods/
services, rule 9(2) may be amended by placing the responsibility on the purchaser/receiver
of taxable goods/services of the input or capital goods or input service in
respect of which he has taken the CENVAT credit to ensure that the critical
details relating duty or service tax paid or payable, description and value
of the goods or taxable service, name and address of the factory or warehouse
or provider of input service, and the name of the purchaser/receiver of the
goods/taxable service are available on the document on which credit is taken.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board invites your
suggestions – </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/cx_draft_cir.htm">F.No.
267/18/2006-CX-8 Dated: May 23, 2006</a></u></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Anti
Dumping</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti
dumping duty is imposed on viscose rayon filament yarn upto 150 deniers including
monofilament yarn of less than 67 decitex falling under chapter heading 5403
originating in or exported from the People's Republic of China </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2006/ctariff06_045.htm">NOTIFICATION
NO. 45/2006-Cus., Dated: May 24, 2006 </a></u></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>National
Automotive Testing and Research and Development Infrastructure Project (NATRIP)
– eligible for Project Imports</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
National Automotive Testing and Research and Development Infrastructure Project
(NATRIP) has been added to the list projects eligible as project imports and
all items of equipment imported for the project has been exempted’</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2006/ctariff06_046.htm">NOTIFICATION
NO. 46</a></u><b><u> and </u></b><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2006/ctariff06_047.htm">47/2006-Cus.,
Dated: May 24, 2006</a></u><b><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2006/ctariff06_047.htm">
</a></u></b></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Data
Structure for TDS Quarterly Returns</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
DIT(Systems) has notified that the data structure for preparation of returns
of tax deducted at source from “Salaries” in Form No. 24Q, as amended by notification
S.O. 704 (E) dated 12th may, 2006, is as per Annexure “A”. This data structure
is to be provided by the e-filing Administrator in accordance with clause (i)
of sub-rule (3) of rule 31A of the Income-tax Rules, 1962. All statements of
tax deducted at source from “Salaries” in Form No. 24Q to be prepared in computer
media for the last quarter of the financial year, i.e., quarter ended 31st March.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/cbdt_noti_24q.htm">DIT
Notification in F. No. SW/9/3/2003-04-DIT(S) TIN (Ph. II) dated May 22, 2006
</a></u><b><u>and </u></b><u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/cbdt_corrig_may23.htm">corrigendum
dated May 23, 2006</a></u></font></p>
<p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
<b><font color="#006600">DGFT amends HOP – technical corrections</font></b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
DGFT has amended para 5.7.5 of the Handbook of Procedures, Vol. I , to make
some technical corrections to include the new schemes and change the para numbers.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2006/dgft06pn011.htm">PUBLIC
NOTICE NO. 11 (RE-2006) /2004-2009, Dated: May 24, 2006</a></u></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Customs
vs Security</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There
was a time when the men in white – the Customs officers used to lord it
over the airports – all over the world. These officers used to think that
the entire airport including the precincts thereof, was under their control
and not a thing should move in or out without their permission. But terrorism
taking over, has changed all that. Today the primary concern in an airport
is security. Tension runs very high when a CISF jawan would not allow a
Customs Commissioner to enter the airport. Some such thing happened in
Sri Lanka’s Bandaranaike International
Airport at Colombo a couple of days ago. A security officer is said to have
attacked a Customs officer. Obviously the Sri Lankan Customs officer is
not as soft as his Indian counterpart – The Customs department went on
a two day strike. Result - Around 3000 containers held up in Colombo harbour;
price hikes on some essential food items in the Colombo wholesale market.</font></p>
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<TD><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><i><font color="#0000FF">audi
alteram partem</font> - </i>hear the other side,; hear both sides.</b></font></TD>
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<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
principle is that no one should be condemned without a hearing in which they
are given the opportunity to respond to the accusations against them.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
maxim <i>audi alteram partem </i>would have to be read into the provisions of
Regulations 20(2) of the Custom House Agents Licensing Regulations, 2004 (hereinafter
referred to as ‘the Regulations’), its violation vitiate the order;</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
adherence to principle of natural justice as recognised by all civilised states
is of supreme importance when a <i>quasi juridical </i>body embarks on determining
disputes between the parties. These principles are well-settled. The first and
foremost principle is what is commonly known as <i>audi alteram partem </i>rule.
It says that none should be condemned unheard. Notice is the first limb of this
principle. It must be precise and unambiguous. It should appraise the party
determinatively the case he has to meet. Time given for the purpose should be
adequate so as to enable him to make his representation. In the absence of a
notice of the kind and such reasonable opportunity, the order passed against
the person <i>in absentia</i> becomes wholly vitiated. Thus it is but essential
that a party should be put on notice of the case before any adverse order is
passed against him. This is one of the most important principles of natural
justice. It is after all an approval rule of fair play.</font></p>
<p ><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until
Monday with more DDT </font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have
a nice weekend. </font></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@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p>
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