TIOL-DDT 413 · 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
413</font><br>
25 07 2006<br>
Tuesday</b></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>New
Income tax forms notified – Post offices to collect tax – but where is the notification?</strong></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In
matters of incompetence, the CBDT is not an inch behind its counterpart the
CBEC. The CBDT yesterday notified new forms for filing returns with immediate
effect. The Boards which cook up late night notifications unfortunately have
no means of communicating them to the public for whose benefit or bane, these
notifications are manufactured. The CBDT web site depends on a private publication
to upload notifications. The CBEC web site is a strict three hour a day five
day week disciplined organisation which cannot upload anything received in the
afternoon. That sanctimonious document called Gazette of India comes after a
couple of weeks and goes straight to the raddi market, from the Government press.
Then how do they communicate? They get an acknowledgement from the press that
the notification is received and that means it is published and known to the
rest of the world! Later the Government will solemnly affirm before the Supreme
Court that the notification was published on the date shown in the notification.
And these are the very people who want to computerize the entire department!</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The
PIB press release says that the forms will be available in the site </strong><a
href="http://www.incometaxindiaefiling.gov.in">http://www.incometaxindiaefiling.gov.in</a>
. Fine, the only problem is that this site does not open. From tomorrow you
can file your income tax return in any of the 2000 designated post offices,
but the address of these post offices is a closely guarded secret, which the
department is hesitant to reveal. May be they will announce it with full page
ads in newspapers after the deadline is over. The way things are going the last
date for filing the return is bound to be extended, but don’t take any chances;
please look for those post offices – the Post Master may inform you that he
has no instructions! </font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Error
in quantity declared in cement bags – if there is excess clearance pay duty;
if there is shortage…?</strong></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board
notes that though cement is required to be packed in 50 kg bags, there is possibility
of excess or shortage but the logical Board also notices that <i>a manufacturer
cannot afford to supply excess quantity of cement in all such bags and neither
will buyers accept short quantity in all such bags. In other words, there are
likely to be only few cases wherein such excess or short quantity has been supplied.
But over a period of a time for instance one month, the total quantity supplied
after due adjustment of the excess or shortage in each bag, should be more or
less equal</i> <i>to the total quantity sold by a manufacturer.</i></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>So Board
wants to clarify that </strong></font></p>
<p> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ at the end
of the month, the manufacturer shall calculate the net variation in total quantity
actually delivered in a month and the quantity on which duty has been paid</font></p>
<p> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ if the net
quantity delivered (after adjusting the excess and shortages in each individual
bag) is more, he should then pay duty on the said excess quantity.</font></p>
<p> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Records of
actual weighment of bags such as weighment slip, production records etc. should
be maintained by the manufacturer so as to enable verification at the time of
audit or other checks.</font></p>
<p> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ if duty is
not paid on the said excess quantity along with the monthly duty liability,
then interest as applicable is liable to be paid.</font></p>
<p> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>++ </strong>
The said excess quantity on which duty is paid shall also be reflected in the
monthly returns being filed by the manufacturer.</font></p>
<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has issued
a draft circular on the above lines. The final circular is sure to come soon.
An additional para in Audit Notes will be non levy of duty on 300 grams of cement
cleared in excess of the quantities shown in the records. And what will happen
in case of shortages. Can the manufacturer take refund? Why is the Board silent
in this? Heads I win, tails you lose!</font></p>
<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/draftcircular.htm">Draft Circular
in <u>F.No. 224/39/04-CX-6</u> </a></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Promotion
to the grade of Inspectors – Board Clarifies AP High Court judgement</strong></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Inspectors of Central Excise are certainly not a happy lot. Many of them feel
that they are neither paid good salaries nor given enough perks and status,
but the ultimate goal of every other lower cadre employee in the department
is to become an Inspector. The lure of the uniform, the false prestige, the
power to deal with the mighty captains of industry make every clerk aspire for
this coveted post! In its massive computerization programme, the department
had recruited a large number of data entry operators, but as computerization
reached frenzy levels, this post of data entry operators was abolished and they
were merged with the clerical cadres. Strange are the ways of the Government!
Now where do these DEOs stand vis a vis the other clerical cadres for becoming
inspectors? Heated legal battles were fought and recently the DEOs lost the
case in the AP High Court.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now
the Board has issued clarifications on how to implement the High Court’s order.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
(i) The revised sanctioned strength of Inspector will be effective from 07.12.2002
i.e. the date from which re-structured cadre of Inspector came into existence.
Apparently vacancies in the grade of Inspector prior to 07.12.2002 will have
to be worked out on the basis of pre-revised sanctioned strength of Inspector.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
(ii) Vacancies in the old grade (i.e. as existed before cadre re-structuring)
of Inspector, Tax Assistant and UDC for the period till 31.12.2002 are to be
treated as promotion quota vacancies.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
(iii) One time relaxation granted by Cabinet / FM for filling up of all vacancies
by promotion is to be applied to all the grades existing till 31.12.2002.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
(iv) Apart from the relaxation for filling up of all vacancies by promotion,
no other qualification relaxation would be applicable till. 31.12.2002.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
(v) Vacancies in the grades of Inspector, which remain to be filled after 06.12.2002,
will be governed by the provisions of the amended recruitment Rules, 2002 of
Inspector.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now
almost all the Tax Assistants have become inspectors and the department has
no clerical strength, for which they have to depend on the frustrated DEOs.
In the name of cadre review, they seem to have destroyed the very foundations
of the department. </font></p>
<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?filename=_c40fca0da72f97_news.htm&subCatDisp_Id=70">CBEC’s F.
No. F.No. A.22022/70/2006-Ad.VIA</a></u> </font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Anything
to declare Mr. Deputy PM?</strong></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The
Deputy Prime Minister of England</st1:country-region> may end up losing his
job for not declaring some gifts like boots and belts he received. The Ministerial
code requires,</strong></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"Gifts
received overseas worth more than the normal travellers' allowances should be
declared on importation to Customs & Excise who will advise on any duty
and tax liability."</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>HMRC
[Revenue & Customs] Rules state that </strong></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“no
customs duty or tax is payable on gifts received by ministers on visits overseas,
where the gifts are retained by the relevant government department. If a minister
wishes to retain a gift, then he or she would be liable for any tax or duty,
and Customs would advise accordingly<b>.”</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Now
the allegation against the DPM is that he retained the gifts without telling
Customs! The total value of the goods is about six hundred pounds, but in England</st1:country-region>
Ministers are expected to obey the laws. </strong></font></p>
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<TD><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#0000FF"><em>non
quod dictum est</em></font><u>, seb quod factum est in jure inspicitur</u></b></font></TD>
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<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Commissioner (Appeals) examined the transaction with reference to the maxim:
<b><i>non quod dictum est, seb quod factum est in jure inspicitur</i></b> which
means that law takes note of what is done and not what is said. He proceeded
on the theory that nomenclature is not decisive. The real character of the transaction
needs to be examined. He relied upon the precedent where it is said that a party
cannot escape the consequences of law merely by describing an agreement in a
particular term, though in essence and in substance, it may be a different transaction.</font></p>
<p align="justify" ><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until
Tomorrow with more DDT </font></p>
<p align="justify" ><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have
a nice day. </font></p>
<p align="justify" ><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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