TIOL-DDT 522 · the untouched capture
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<p align="justify"><font size="3" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">TIOL-DDT
522</font></b><b></b></font><font face="Verdana, Arial, Helvetica, sans-serif"><font size="2"><b><br>
29.12.2006<br>
Friday</b></font></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Appalling appeals </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Department is a kamadhenu
for consultants. If the department were fair and reasonable, most of the consultants
would have gone out of business. We are carrying today three cases where the
departmental appeals were thrown out – these appeals only prove the department’s
urge for litigation – even when the case is hopeless. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In <b><u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=4748">Ultramine</a></u></b> , the appeal was filed with a delay of 23 days, which
normally the Tribunal would have condoned. But the reasons for delay in this
case were strange – that the commissioners were busy with other work and there were
frequent power cuts. Power cut and so no appeal! “The excuse”, noted the
Tribunal “does not augur well for the Commissioners”. And strangely in the case,
the appeal was filed by the committee of Commissioners, whose job was to review
the order, not to file an appeal. Don’t they know this elementary fact? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In <b><u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=4748">Carborundum Universal</a> </u></b>also
the appeal was filed by the Committee instead of the proper officer. The
Tribunal observed, “<i>Once the review is
done and a decision is taken to file appeal, the Committee becomes functus officio in relation to the subject-matter of review
and it is up to jurisdictional Commissioner to file appeal pursuant to the
order of review passed by the Committee”</i></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There is a delay of more than 300 days in filing
the appeal and the reason- the department was under the mistaken impression
that the assessee had paid duty! The Tribunal observed, “<b>With the expertise and experience of the departmental officers, it
should have occurred to them quickly</b> that remedial measures in accordance
with law should be taken”. Why this expertise and experience fail often?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In another strange case, <b><u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=4747">Ludhiana Beverages</a></u></b>, the Chief
Commissioner reviewed the order of the Commissioner (Appeals) and the appeal was
filed with a delay of 106 days. Was the Chief Commissioner not aware that the
decision to file appeal has to be taken by the Committee of Commissioners and
not the Chief Commissioner?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Who pays for all this mess? The poor citizen of
course!</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Drawback
rates – Changes in Customs tariff not to effect</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As
per Section 63(b) of the Finance Act 2006, the Customs Tariff is to undergo
a major change from 1.1.2007. As per the Drawback notification No. 81/2006 –Cus
NT dated 13th July, 2006,<br>
<br>
The tariff items and descriptions of goods in the Schedule are aligned with
the tariff items and descriptions of goods in the First Schedule to the Customs
Tariff Act at the four-digit level only. The descriptions of goods given
at the six digit or eight digit or modified six or eight or ten digits are
in several cases not aligned with the descriptions of goods given in the said
First Schedule to the Customs Tariff Act.<br>
<br>
Now a proviso is added that<br>
<br>
“provided that after the amendment of the First Schedule to the Customs Tariff
Act, 1975 under clause (b) of section 63 of the Finance Act, 2006 in the
manner as provided under its Fourth Schedule with effect from 1st January 2007,
the tariff items and description of goods as specified in columns 1 and 2 of
the Table
(said Schedule) of this notification shall continue to remain aligned with
the tariff items and description of goods in the First Schedule to the
Customs Tariff Act, 1975 as it existed before the 1st January,2007.”.<br>
<br>
In effect, no major upsets in the New Year!<br>
<br>
<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2006/cnt06_136.htm">Notification No. 136/2006 – cus (NT) dated 28.12.2006</a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Budget file – exempted from disclosure?</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Under the RTI Act somebody asked
for file notes regarding exemption of excise duty to certain states like Himachal
and Uttaranchal. Naturally, the department refused. The JS ,TRU who was the appellate authority also refused to
divulge the information. The matter reached the information commission.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Commission observed,</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ First and foremost, it needs to be established
whether the entire file, in which this matter has been dealt with, is given a
classification under the Official Secrets Act or it is an open file.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The AA mentioned that part of the file dealt with
request from other States and persons for exemptions as well as the implication
of such exemptions for the Union Budget.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ According to the AA, all materials which go into
making of the Union Budget or any aspect of it are barred from disclosure under
Section 8(1)(a) of the RTI
Act. He, however, agreed to examine whether it should be possible to sever
sensitive part of the information covered by exemptions from the non-sensitive
part, which could then be disclosed to the appellant.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ There is also this matter regarding the interest of
the third parties, which has not received sufficient attention. It is possible that the disclosed information, if any, may
compromise commercial interest of a third party, whether an individual or a
State.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Appellate Authority was asked to consider the matter in de-novo
examination</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="file://192.168.0.10/Editor/Sites/hrindiaonline.com/laws4u/rti/<?%20echo%20$url%20?>/laws4u/rti1.php?filename=rti/2006/2006-HRIOL-109-CIC.htm">CIC order in F.No.CIC/AT/A/2006/00444</a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Is
Amitabh Bachchan an artist as anchor to KBC?</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><i>Kaun
Banega Crorepati?</i> The Big B, Amitabh Bachchan earned Rs. 50 Crores a
year from the KBC programme. Was Amitabh Bachchan an artist while presenting
the KBC programme? And is the Versa car given to Amitabh and his son Abhishek
by Maruti liable to be taxed? These were issues before the ITAT.
For details please wait till the New Year!</font></p>
<p align="justify"><font color="#0000FF" size="6" face="Verdana, Arial, Helvetica, sans-serif"><strong><em>Happy New Year</em></strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tuesday with more DDT </font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Year end. </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></span></font></p>
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