TIOL-DDT 474 · the untouched capture
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<p align=justify><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT
474</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"></font><br>
20 10 2006<br>
Friday</b></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Audit
and adjudication – Board dislikes Dichotomy </b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/deepwali.jpg" width="102" height="83" border="1" align="left">As
per Board’s instructions, whenever AG’s Audit raises an objection, Show Cause
Notice has to be issued to protect revenue. In all fairness, Board had never
even suggested that these Show Cause Notices are to be adjudicated in favour
of Revenue. But over enthusiastic Revenue officers who have made a profession
of pro-revenue orders go out of their way to adjudicate a case in favour of
revenue in tune with the Audit objection. However when they reply to Audit,
they strongly challenge Audit’s objection and explain in no uncertain terms
that Audit’s objection is not tenable. However Audit is informed that protective
Show Cause Notices are issued. What is more if an appellate authority quashes
the adjudication order based on the Audit objection, the department religiously
pursues the cause in further appeals. In this classic dichotomy, the department
would be pursuing two contradictory stands before the Audit and judiciary. Is
this fair and legal? Fortunately Board does not think so!</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In
a recent communication to Commissioners, Board laments that this is <b>not
only improper but does not also behove well for credibility and so such actions
are not good for a healthy, fair & credible tax administration.</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Wah
Board Wah!</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It’s
a long time since Board had issued instructions to the field to be objective,
fair and reasonable. Let’s hope this would spur the field to be fair. </font></p>
<p><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/cxinstruct09.htm">CBEC’sF.No.
232/153/2005-CX.7 Dated 18.5.2006</a></u></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Ethanol
blended petrol – retrospective exemption likely</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
exemption to ethanol and ethanol blended petrol had caused quite a confusion.
This was a notification with a sun set clause and the Board never woke up before
sunset, with the result that the exemption used to get lapsed regularly, only
to be revived later after representations and protests from the Oil companies.
Please see our stories - <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=1564">LAPSED
LAPSE RECTIFIED: ETHANOL BLENDED PETROL EXEMPTED </a> and <a
href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=83&filename=newsch/oil.htm">'Duty
Concession for ethanol mixed petrol: Lapse or lapsed'</a></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But
what happens during the period when the Board forgot to extend the exemption.
The natural process should have been to give a Section 11C notification, but
Board in its wisdom had decided that this is not a fit case for granting the
retrospective exemption – may be somebody had to explain why the exemption was
not extended on time.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But
Board is in for a reconsideration and advises the field to restrain from any
coercive action immediately. The Board letter says,</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“However,
on a representation from the Ministry of Petroleum and Natural Gas, the matter
is being re-examined, therefore, it is requested that no coercive action should
be taken for recovery of dues on demand confirmed on ethanol blended petrol
for the above mentioned period.”</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2006/cxinstruct08.htm">CBEC’sF.No.
83/7/2004 – CX.3 dated 1.8.2006</a></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Deewali
gift to <st1:City><st1:place>Hyderabad</st1:place></st1:City> Income Tax – huge
cash haul in airport</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Income
Tax sleuths seized Rs. 2.8 Crores from a passenger who landed at <st1:City>Hyderabad</st1:City>
airport yesterday from <st1:City><st1:place>Delhi</st1:place></st1:City>. The
person is reported to be the Managing Director of a <st1:City><st1:place>Delhi</st1:place></st1:City>
based Hotel group. The DG Investigation, Income Tax said that the money is obviously
unaccounted – “otherwise why will such a huge amount of cash be carried by air?”,
he wonders. </font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">"Right
guidance at right time is indeed a great mission"</font> - </b><font color="#663399">President
Kalam at the foundation laying ceremony of CAG’s building </font></font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/deepwali2.gif" width="240" height="179" border="1" align="left"></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">
</font><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>
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