TIOL-DDT 459 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<html>
<head>
<meta http-equiv=Content-Type content="text/html; charset=windows-1252">
<title>Taxindiaonline's DDT 402</title>
</head>
<body >
<p> <b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT
459</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
28 09 2006<br>
Thursday</font></b></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CESTAT
calls for quarterly reports from Commissioners</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A
circular from the CESTAT says,</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“Under
Rule 40 of the CESTAT (Procedure) Rules, 1982, it is provided that the Tribunal
shall exercise control over the departmental authorities in relation to all
matters arising out of the exercise of the powers or of the discharge of the
functions of the Tribunal. “Departmental authorities” as defined by Rule 2(i)
would include the Customs authorities and the Central Excise authorities / Service
Tax authorities. The Tribunal exercises appellate jurisdiction over the orders
of the Jurisdictional Commissioners / Commissioners (Appeals) / Commissioners
(Adjudication), and can issue proper directions while deciding such appeals.
In many cases, remand orders are made. However, there are no norms laid down
for the exercise of the control jurisdiction over the departmental authorities
in the exercise of quasi-judicial/appellate powers by them under the relevant
indirect tax laws. In order to monitor the pendencies before such authorities
in matters from which appeals lie to the Tribunal, and to ascertain the status
of the fresh and remanded cases pending before them, it is deemed necessary
by this Appellate Tribunal to call for the periodic quarterly returns from all
the Commissionerates that are subject to the appellate powers of the Tribunal.”</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Accordingly,
the Tribunal has directed commissioners to send a quarterly report on</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Pendency of
cases before the Jurisdictional Commissioners/ Commissioners (Appeals)/ Commissioners
(Adjudication)</font></p>
<font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Pendency of cases
more than six months old</font>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Pendency of
cases remanded by the Tribunal to the Commissioner (Appeals) / the original
Adjudicating authorities</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Pendency of
remanded cases more than three months old</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Pendency of
cases requiring compliance of the directions of the Tribunal</font></p>
<font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Pendency of cases
in which proceedings have been stayed by judicial orders</font>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Tribunal has further directed the Commissioners to forward complete and duly
authenticated Appeal Paper Books (in four copies), of the record of the appellate
and original proceedings to the Tribunal, duly indexed, bound and paginated
in all appeals pending before the Tribunal, within four weeks of the receipt
of the notice intimating the filing of the appeal. The original record of the
relevant proceedings should be kept ready at the hearing of the appeal proceedings,
through the authorized representative of the department.”</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A
big job for the commissioners and they are sure to resist this. The field is
not very famous for following even Board directions. Will they follow the Tribunal’s
instructions? What are the consequences of disobedience? </font></p>
<p></p>
<p><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/cestatcir.htm"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u>CESTAT
Circular 36(1)/R/Cestat/2006 dated 07.09.2006</u></font></a></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Power
driven pumps – department to help in getting BIS certification</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=4117">TIOL-DDT
427 - 14 08 2006</a><b> </b>pointed out,<i> </i></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><i>Powerdrivenpumps
primarily designed for handlingwater which do not conform to standards specified
by BIS (Bureau of Indian Standards) for such pumps </i>were outside the purview
of Notification No.8/2003, the famous SSI notification with effect from 1.8.2006.
That is from 1.8.2006, these pumps were not eligible for SSI exemption. Why?
(Board only knows). Now this restriction is withdrawn till 31<sup>st</sup> December
2006. These pumps have an interesting history.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By
notification No. 8/2006 dated 1.3.2006, the pumps were barred from SSI exemption
but with effect from 1.4.2006.Butby Notification No. 27/2006 dated 30.3.2006,
this effective date was extended to 1st August 2006. And now this is extended
till 31<sup>st</sup> December 2006. That is till December, the pumps are exempted.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Unfortunately,
there is no exemption for the period from 1.8.2006 to 9.8.2006. Good feed for
audit objections, intelligence gathering allegation of suppression, cases, retrospective
amendments, Section 11C notifications. What is the logic in denying the exemption
for nine days? Obviously somebody forgot to carry out the amendment before 1<sup>st</sup>
August. Let us hope they will remember it before 31<sup>st</sup> December when
the next amendment is due.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board
wants the Commissioners to apprise all concerned Associations about these changes.
All small scale manufacturers of pumps falling under your jurisdiction may be
advised to get BIS certification by 31st December, 2006 for their products in
order to avail SSI exemption benefit. It should also be made clear to them that
the benefit of SSI exemption would not be available after 31.12.2006 to pumps
which do not conform to BIS standards.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On
the request of CBEC, BIS had already issued instructions to its field offices
to process applications received from pump manufactures expeditiously.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Commissioners are asked to help the SSI units in getting the BIS certification
and if there is any difficulty, to take u the matter with the BIS authorities.</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=31&filename=notification/excise/2006/TRUletter.htm">TRU
letter 352/1/2006-TRU Dated : August 14, 2006</a></u></font></p>
<font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Fraudulent
Rebate Claims – DGCEI alerts field</strong></font>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On
verification of a rebate claim, it was found that the manufacturer had not supplied
the goods to the exporter. It was also found that the shipping bills were not
entered in the records of the Custom House, which confirmed that there was no
physical exports of goods and the rebate claims were bogus.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In
another case it was found that the units where the export goods were claimed
to have been manufactured do not have adequate manufacturing facilities, the
job workers were either non existent or did not possess adequate processing
facilities, the export goods were found to have not been transported by the
vehicles mentioned in the documents. Further, on verification at the input suppliers
end, the parties issuing cenvatable documents have been found to be non existent.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGCEI
cautions the field to be careful about such frauds, but can such things happen
without the active support of the department?</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/alert.htm">ALERT
CIRCULAR NO. 1/2006-07, Dated : August 17, 2006</a></u></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Phenomenal
fiscal growth of Customs officer</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When
she joined the Customs in 1990, she had assets worth 2,61,000. Today it is around
20 Millions, despite the fact that her annual salary is around 250000. She has
a Mitsubishi Lancer sedan worth P550,000, a Toyota Innova van, a Mitsubishi
Adventure, a Hyundai Starex, an Isuzu Crosswind, a Nissan Frontier pickup, an
Isuzu Hi-Lander, a Suzuki Carry and a Honda motorcycle besides a resort in Quezon.
She had traveled abroad sixteen times with her husband. This is the story of
the wealth of the chief of the Bureau of Customs at the Manila International
Container Port as revealed by the Revenue Integrity Protection Service (RIPS).
The complaint against her says,</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"Her
brazen accumulation of wealth in the aggregate amount of P20,000,000, more or
less, is clearly disproportionate to her means, is further underscored by the
fact that she did not even include her ordinary family expenditures — including
tuition fees of her four children — which judging by her standard of living,
could not be less than substantial. Stated otherwise, and assuming that ordinary
family expenses usually account for 60 percent of earnings, she would have precious
little money, if any, to put away, let alone to spend on luxurious foreign travels,
expensive vehicles and real estate investments,".</font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until
tomorrow with more DDT </font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have
a nice day. </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>
</body>
</html>