TIOL-DDT 552 · the untouched capture
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<p align="justify"><b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT
552</font></b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><br>
14.02.2007<br>
Wednesday</b></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>No more
verification of DEPBs at EDI ports</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In 2005, DGFT informed the
world that, “DEPBs issued on the basis of EDI shipping bills transmitted electronically
by Customs to DGFT and the DEPBs sent to Customs through an Electronic Message
Exchange System are not required to be verified by the Customs authorities at
the port of registration.”</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But DGFT is only an opinion
and Customs is a fact. What DGFT desires will become true only after CBEC wills
it.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now after more than a year,
Board has come up with details on how the scheme is put in place.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
theDEPBs issued by DGFT would now be received online by Customs.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Such DEPBs would be subjected to the prescribed validation checks online and
thereafter, the same would be available for use by the importers.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Details of such DEPBs would also be available on the home page of website, www.
icegate.gov.in.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
<b>However, as a purely temporary measure till the procedure gets stabilised,
it has been decided that the importers would be required to produce the hard
copies of the DEPBs issued by DGFT to the designated officer at the respective
Custom House i.e. ports of registration mentioned in the DEPBs before such DEPBs
are allowed to be utilised.</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
in respect of the DEPBs received online, the DEPB number would need to be mentioned
on the bill of entry if such DEPBs are intended to be used for payment of duty
instead of the registration number as is the practice with respect to manually
verified DEPBs.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Well if you think it is
already online, wait!, Board wants the jurisdictional Commissioners of Customs
to implement the above instructions from a specified date in consultation with
the Directorate General of Systems.</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=25&filename=notification/custom/2007/cuscir07_11.htm">CIRCULAR
NO. 11 /2007-Cus,Dated: February13,2007</a></u></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Committee
of Chief Commissioners</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Committee of Chief Commissioners to review the Customs orders in Pune, Mumbai
and Goa are reconstituted. </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=24&filename=notification/custom/2007/cnt07_010.htm">NOTIFICATION
NO. 10/2007-Cus., (N.T.) Dated: February 9, 2007</a></u></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Drugs online
– Software CEO arrested</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Indian software is again
in the news – for the wrong reasons. The CEO of Xponse Technologies Limited,
a Kolkotta based software company was sent for judicial remand after being arrested
by NCB. And the tip off came from the US Drug Enforcement Administration.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The investigations have
revealed that Sanjay Kedia along with his US associate Steven Mahana, was involved
in trafficking of psychotropic substances, mainly Phentermine, through the internet.
The <i>modus operandi</i> of Sanjay Kedia was to take online order for psychotropic
substance from the customers in US and other countries.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Kedia had his education
in IIT, Delhi and North Carolina University.</font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Hyderabad
– best place to do business in India</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Adopt Jaipur's regulations
on starting a business, Bhubaneshwar's rules on contract enforcement and taxes,
and Chennai's trade practices to your city’s style of business and see what
happens. India will jump 55 places in the ease of Doing Business rankings.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Doing business became easier
in India and Pakistan in 2005-2006, according to a new regional report released
by the World Bank, entitled Doing Business in South Asia 2007.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Hyderabad has the most business-friendly regulations. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Mumbai is in 11th place, ahead of Kolkata.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Karachi is at the top in Pakistan, while Dhaka ranks best in Bangladesh.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">India is not really the
best country to do business in. Nepal and Pakistan are better ranked. The top
ranked countries:</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Maldives (53)</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Pakistan(74)</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Bangladesh (88)</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Sri Lanka (89)</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Nepal (100)</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
India (134) </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Bhutan (138)</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++Afghanistan
(162).</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The report finds that entrepreneurs
in South Asia face large regulatory obstacles to doing business. For example,
it takes 18 months of salary, on average in the region, to dismiss a redundant
worker. More than a year (425 days) is needed to register property in Bangladesh.
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Taxes are high:</b> a
standard company in India pays 81% of commercial profits in taxes, while in
Pakistan, it takes 560 hours per year to comply with all tax regulations.</font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Annual
Confidential Reports – Customs Chief loses case in Supreme Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The only means through which
a Government boss controls his subordinates is Annual Confidential Report (ACR)
and may be an equally powerful force is transfer. Promotion is the ultimate
goal of a government servant, may be next to posting. Originally ACRs were meant
to correct and guide the subordinates, but over a period of time it turned out
to be a threatening weapon. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If your boss makes an adverse
entry in your ACR, you are entitled to know it and rebut it, but what happens
if your boss gives you just a <b>good, </b>then you are not given an opportunity
to represent that you are better than just <b>good</b>. So the sadistic bosses
don’t give you a bad report, which you will know; but if they give you just
a <b>good</b>, you wouldn’t know and it will hurt you when you need to be hurt
most. And what happens if you go down in the merit list because your ACRs were
not all that good, but were just enough to get you a promotion? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Should such ACRs be communicated
to the officer? Not necessary, says the Supreme Court of India in an appeal
filed by the Government against a Chief Commissioner.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Incidentally the Supreme
Court is pretty fast. Can you believe it? This is Civil Appeal number <b>689
of 2007 </b>decided on 12<sup>th</sup> February 2007. An appeal filed in 2007
is decided in 2007! And that too in the first fortnight of the second month
of the year. The Supreme Court has set in a great precedent for the lower courts
to follow.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">See
our<strong><u> <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=4975">Breaking
News</a> </u></strong>for more details of the case we report today. </font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Margadarsi
Financiers – in more trouble – RBI support for prosecution?</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Remember our Margadarsi
story?Margadarsi Financiers owned by media baron Ramoji Rao is said to have
collected over 3000 Crores of rupees of public money and lost most of it. The
State Government had issued two orders recently appointing N. Rangachary to
inquire into the issue and authorized an IPS officer to file complaints in the
competent courts. Ramoji Rao and Margadarsi challenged these government orders
in the High Court and prayed for suspending the operation of the two government
orders. The High Court dismissed the stay petitions and last week they had approached
the Supreme Court with the plea </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. the real motive was to
destabilize RamojiRao’s mass daily Ee Nadu and the dozen TV channels that he
runs</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. During the last 34 years,
there was not a single instance of default (This is his favorite argument everywhere)
nor was there any complaint from any depositor</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. It is an indirect attack
on the freedom of the press</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the mean time Mr. Rangachary
has asked Margadarsi to furnish relevant papers.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sources in AP’s mantralaya
inform that the State Government is closing in. And they got a boost from RBI.
RBI chief general manager, P. Krishnamurthy is reported to have written to the
State’s Special Chief Secretary that the State can go ahead with prosecuting
the group under the RBI Act and the RBI has also promised to provide a resource
person to assist the state government. It seems RBI has no documents pertaining
to Margadarsi. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is really a tight rope
walk for the state government because as of now the most important goal is to
protect the interests of the depositors, though attacking Ramoji is a politically
advantageous move. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Addressing a round table
yesterday, Indian Journalists Union President Suresh Akhouri - referring to
the issue - said the media barons should not be allowed to flout the law of
the land.</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></span></font></p>
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