TIOL-DDT 519 · the untouched capture
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<p align="justify"><b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT
519</font></b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><br>
26.12.2006<br>
Tuesday</b></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Delayed refunds – High
Court raps Customs Commissioner – Disciplinary action ordered </font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For those overzealous Revenue officers, who
are quick to demand but slow to refund, here is bad news. The government will
end up paying interest and you will be stuck with a charge sheet. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DDT
was all praise for the Board when it issued Circular No. 802/2004 dated 8.12.2004
– please see <b><font color="#663399">Praise be to the Board</font></b> in <u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=415">DDT
12 dated 17 12 2004</a></u><b><u>.</u></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board had clearly instructed that deposits must
be returned within three months from an appellate order favourable to the assessee
unless a stay has been obtained. Board had warned that disciplinary action will
be initiated against defaulting officers and the interest payable is liable
to recovered from them. As this column has pointed out on several occasions,
obeying the Board is not exactly a favourite pastime of the Commissioners. This
is an unfortunate department in which the field has only contempt for the Board,
maybe deservedly so! But what happens to administration when the orders of the
highest authority are flouted with impunity? Board in the above circular wanted
Commissioners to monitor the issue and give proper directions to their subordinates
and keep the Board informed about the instructions issued. Obviously nobody
monitors these things. And some Commissioners are more loyal than the Board!</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Investigators have a fascination for demanding
“spot payment” of the alleged duty evaded. In a case we are reporting today,
the assessee had paid an amount of Rs. Three Crores – of course voluntarily
and without any pressure from the department, except perhaps a little threat
of arrest and attachment. The amount of duty payable was settled at Rs. 33 Lakhs.
The assessee asked for a refund of the balance of Rs. 2.67 Crores – for love,
law or the Board, the Commissioner would not grant the refund, but went in writ
to the High Court and successfully stalled the proceedings there for two years.
Government told the Court that the department was under a bona fide belief that
it is not proper to grant the refund when the department’s stay application
was pending. Is at an admission that they have not read the Board Circular or
that they don’t care for Board circulars? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court was not of course impressed with
this bona fide theory and observed that “The failure to take prompt action on
an application for refund may give rise to a legitimate apprehension that such
inaction was not bonafide.”</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court calculated the interest in this
case to be around 65.5 Lakhs and ordered its recovery from the officers concerned
if they had no plausible defence – which of course they will have! The High
Court also ordered departmental proceedings against the Commissioner and Assistant
Commissioner among other officers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Audit objection from High Court order? </b>A
copy of the High Court order is being sent to the CAG. Maybe he can make a couple
of objections. Incidentally is there any punishment for blatant disobedience
of Board instructions?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is only a government <b>servant</b> who can
have the audacity and absolute callousness in retaining 2.7 Crores of rupees
illegally and perhaps boast about it. Even for a rich company 2.7 Crores is
a lot of money and when that kind of money is illegally held by the government
for more than four years, a lot of economics is upset. There are several companies
who have closed shop because of such actions. Even the 6% interest the Government
pays is hardly any compensation for the money blocked up. Shouldn’t we have
a little consideration for other people’s money? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Any way, the message is now loud and clear –
Deny and delay refunds – you are sure to land in trouble. Will they hear it?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See
the</strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=4730">
HONDA SIEL CARS INDIA LTD</a> <strong>which we are reporting today. </strong></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Exemption to goods
imported for Delhi Metro</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Sl. No. 426A of the table in Notification
No. 21/2002-cus,<font color="#663399"> “All items of equipment including machinery
and rolling stock, procured by or on behalf of Delhi Metro Rail Corporation
Ltd. for use in the Delhi MRTS Project” are exempted.</font> Now this exemption
will be allowed for </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">“All items of equipment including
machinery and rolling stock, procured by or on behalf of Delhi Metro Rail Corporation
Ltd. for use in-</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Delhi MRTS Project Phase-I;
and</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"> (ii) Specified corridors of
Delhi MRTS Project Phase-II, comprising of the following:-</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) Vishwavidyalaya- Jahangirpuri;</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"> (b) Central Secretariat-QutabMinar
(via All India Institute of Medical Sciences);</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"> (c) Shahdara- Dilshad Garden;</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"> (d) Indraprastha-New Ashok
Nagar;</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"> (e) Yamuna Bank-Anand Vihar-Inter
State Bus Terminus; and</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"> (f) Kirti Nagar-Mundka (along
with operational Link to Shahdara- Rithala corridor).”</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_119.htm">NOTIFICATION
No.</a></u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2006/ctariff06_119.htm"><u>119/2006-Cus.,
Dated: December 21, 2006</u></a></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">And similar exemption
for excise</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A similar exemption is given for domestically
procured goods for the metro.</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=30&filename=notification/excise/2006/etariff06_047.htm">NOTIFICATION
No.</a></u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2006/etariff06_047.htm"><u>47/2006-Central
Excise, Dated: December 21, 2006</u></a></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Exemption to palm oil
- extended</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Notification No. 21/2002 – cus, the concessional
rates of duty applicable for palm oil is not available after 1.1.2007. Now the
government has extended this exemption indefinitely.</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_120.htm">NOTIFICATION
No. 120/2006-Cus., Dated: December 22, 2006</a></u></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Import of wheat – freely
allowed till February 2007.</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per the Foreign Trade Policy, import ofitems
falling at Exim Codes 1001 10 90 (Durum Wheat: Other) and 1001 90 20 (Other
Wheat) is restricted. By Notification No. 16 (RE-2006/2004-09 dated 29th June,
2006 , the DGFT had kept this restriction in abeyance till 31.12.2007, during
which period, the import was to be allowed freely. Now this free import is to
be allowed till 28.02.2007.</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=45&filename=notification/dgft/2006/dgft06not038.htm">DGFT
NOTIFICATION No. 38 (RE-2006)/2004-2009,Dated: December 22, 2006</a></u></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Retrospective amendment
to jurisdiction of CIT(appeals), <st1:City><st1:place>Bangalore</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT has notified the revised jurisdiction of
the Commissioner of Income Tax(Appeals), Bangalore V. This jurisdictional change
will apply to all the pending appeals as on date. And this shall be effective
from 27-10-2006</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=35&filename=notification/cbdt/2006/corrig.htm">CBDT
corrigendum dated December 21, 2006</a></u></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">FM falls – to Indian
paparazzo</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Presidents,
Prime Ministers and Chief Ministers have been there. So have international
dignitaries like Mrashal Tito, Nikita Krushchev and Queen Elizabeth. It
is the place where you can meet Bangalore's literati. It is the Koshy’s restaurant
in Bangalore. Our smart PC was there during the weekend to have a private
dinner with his family. While trying to avoid a press photographer who was
trying to <i>shoot</i>
him, the FM slipped on the steps and had a fracture on his toe.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is not how the FM is dressed always</font></p>
<p align="justify"><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><b><img src="http://www.taxindiaonline.com/RC2/image/stories/pc1.jpg" width="230" height="341" border="1"></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sometimes, rarely though, he is seen like this</font></p>
<p align="justify"><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><b><img src="http://www.taxindiaonline.com/RC2/image/stories/pc2.png" width="128" height="142" border="1"></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It
seems in Koshy’s he was not in his usual
attire of white dhoti and white shirt and that must have attracted the journalist’s
attention. Both the journalist and his paper have apologised to the minister.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>TIOL</strong> wishes him a speedy recovery
and hopes he will be back in action very soon.</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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