TIOL-DDT 445 · 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
445</font><br>
08 09 2006<br>
Friday</b></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Palm
oil – no exemption beyond 31<sup>st</sup> October?- Board forgets its own notifications!</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification
No. 221/2002 – cus is amended to add after clause<strong> (h)</strong>, the
following clause, namely:-</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>“(i)
the goods specified against serial Nos.34 and 434 of the said Table on or after
the 1st day of November, 2006.”.</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But
it is really pathetic that the Board has no updated copy of its own notifications.
Clause (i) has been added to Notification No. 21/2002 by Notification No. 71/2006
- Customs dated 6th July 2006.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So
the present amendment should actually add a new clause <strong>(j)</strong>.
But the Board says add clause <b>(i). </b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This
is because Board has no idea of the amendments carried out to its notifications.
What will happen to the Clause (i) already added by Notification No. 71/2006?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Any
way the net effect is that the exemption available for palm oil will not be
available after 1.11.2006. </font></p>
<p align="justify"><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_092.htm">NOTIFICATION
NO. 92/2006-Cus., Dated: September 6, 2006</a></u></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Can
DRI adjudicate?</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“Can
DRI adjudicate?-the emphatic answer is -A big NO. With reference to the
2003 Circular, you may note that till 1999, all DRI SCNs were approved by
the jurisdictional Commissioners. However, the power to issue SCNs was vested
with the DGAE and DRI vide a speicific Circular, and if I remember right,
a notification was issued when the SCNs of more than 1 crore were to be
approved by the Chief Commissioners giving this power to the DGRI. A little
more homework is required to look into the past instructions before jumping
on to write a story on such legally ticklish issues.”</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This
is a message we got from a netizen, apparently a DRI officer. Our question
was exactly that. A DRI officer is a Customs officer – notified to that
effect. And so should be eligible to adjudicate cases. If he is competent
to issue Show Cause Notices, he should be competent to adjudicate too.
The moot question is why does DRI stop with Show Cause Notices? Why do
they shy away from adjudications?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
notification the netizen refers to must be actually Circular No 534/2000
dated 30.05.2000 dealing with the procedure to approve SCNs. With or without
homework, the question is “do they have the power only to issue SCNs and
not to adjudicate? On this there seems to be no clarification. </font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Export
of legal services – Is India ready? </font></strong></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Import
of legal services – can we prevent?</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In
an excise case, the High Court observed, <b>“Legal ingenuity knows no bounds.
It baffles an ordinary person whether the pleas such as those put forward in
the present case could be available at all.”</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">With
so many legal brains crowding our court halls, can we think of earning some
money by exporting some of our lawyers? Foreign Law Consultancy (FLC) is a vital
service of the future. If our lawyers are not so capable that they cannot be
exported, can we prevent import of capable foreign lawyers? The liberalization
of the economy has not touched two important and powerful sectors – Law and
press. Indian lawyers do not exactly welcome the import of lawyers – one good
reason may be fear of the import quality. Actually there is no need for ant
fear. The best of the barristers of England or the products of Harvard <st1:PlaceType>school</st1:PlaceType>
of <st1:PlaceName>Law</st1:PlaceName> cannot get a favorable order from our
Revenue officers.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Commerce ministry has prepared a<b> Consultation Paper On Legal Services Under
GATS. </b>GATS stands for General Agreement on Trade in Services. The paper
draws attention to the following important issues.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.
Whether we are currently exporting enough legal services and what e the destinations
of these service exports? Should we increase our trade in legal services so
that Indian legal services professionals will get a pie of the US$ 20 billion
world trade in legal services annually? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2.
What is the potential for the Indian lawyers if they want to expand their activities
to get market access in other countries? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3.
What are the areas of potential for the kind of legal services in India with
our globalization efforts? Are we in a position to meet these demands internally?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4.
What are the constraints that Indian legal professionals are facing in providing
their services to the WTO member countries of their interests? What are the
most important methods by which our legal professionals want to reach out to
their foreign clients? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5.
In the future, which countries will be important export destinations for legal
services? What type of legal services can be anticipated for exporting in the
future?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6.
Can our Legal professionals anticipate that method of delivering services internationally
will change?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7.
Is partnering with foreign firms is an effective way to deliver services?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8.
What do Legal Professionals consider as priority concerns with respect to the
liberalization of trade in legal services?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i)
"Buy-local" preferences, and /or 2) Investment limits or restrictions,
and /or 3) Immigration/temporary entry restrictions, and /or 4) Limitations
on the number of service providers in the market (i.e. quotas, exclusive rights,
etc.), and/or 5) Non-recognition of professional credentials, and /or 6) Lack
of transparency of local practising/licensing regime, and /or 7) Restrictions
on access to government procurement projects , and /or 8) Subsidies and tax
incentives, and/or, 9) Licensing requirements, and /or 10) Qualification requirements,
and /or 11) Restriction on the use of company names, and/or 12) Language requirements,
and /or 13) Residency/citizenship requirements, and /or 14) Restrictions on
fee-setting, and /or 15) Unfair bidding practices, and / or 16) Currency controls
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9.
Whether it is imperative to first create a liberalized regime domestically for
the Indian Lawyers / Advocates before considering any form of liberalization?
This would in effect allow consolidation in the legal profession, which allows
Indian Advocates to attain global standards and would allow them to compete
with the best of the best. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10.
Whether India should allow FLCs (Foreign Legal Consultant) or foreign firms
in a phased manner, after domestic reforms are in place or not at all?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11.
what should be the structure of their presence: a joint venture or a staged
liberalisation? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12.
What would be the areas in which foreign lawyers can advise, while strictly
excluding court advocacy? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">13.
What would be the role of the Bar Councils and that of the regulatory body in
the home country of the foreign lawyer? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">14.
How would issue of liability and consumer welfare be handled in case involving
foreign lawyers? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
15. Are there certain areas where internationally liberalized market access
in India will have a significant impact on Indian firms? What will be this impact
and how large will it be? </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 week end. </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></span></font></p>
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