TIOL-DDT 558 · the untouched capture
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<p align="justify"><b><font color="#663366" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT
558</font></b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><br>
23.02.2007<br>
Friday </b></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>EASIEST
Service Tax – RBI Notification</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If you remember,
EASIEST stands for <b>Electronic Accounting System in Central Excise & Service
Tax. </b>Now RBI informs the banks,</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As you are
aware Electronic Accounting System in Excise and Service Tax is operational
as a pilot in Chennai since 2005. Further it has been extended to other parts
of the country. However, only Excise challans were covered under the system
so far. Central Board of Excise and Customs has now decided to include Service
Tax also in EASIEST from March 1, 2007 so that service tax challan data also
will be captured through EASIEST package. The Accounting procedure for Service
Tax will be similar to that for Excise till further instructions. For including
Service Tax in EASIEST all relevant Directories and Assessee profiles should
be updated at your end as an advance preparation. You are advised to initiate
the necessary steps for smooth inclusion of service tax under EASIEST.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/rbinot.htm">RBI/2006-2007/263
Dated: February 22, 2007</a></u></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u>
</u><font color="#006600">Margadarsi can at best pay 49 ps to a rupee – Rangachary
Committee</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Here is
a company in which the owner has no equity or capital investment. The company
has an impeccable record of paying back debtors. How did they do it? Simple!
borrow more to pay the debtors. Of course the bubble had to burst some day.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Rangachary
Committee appointed to inquire into the affairs of Margadarsi Financiers is
understood to have submitted its report with a copy to media baron and Margadarsi
chief Ramoji Rao. The Committee’s findings:-</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
deposits raised by Margadarsi were used to make investments in group concerns
and to finance the periodical losses.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
a major part of deposits raised every year was going towards meeting the current
losses and investments, thus reducing its ability to repay the deposits.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
fresh borrowings were made to meet current losses. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Margadarsi survived because of the cycle of borrowings.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Balance sheets did not show any own equity or capital of its own invested in
the business.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
the only route to meet capital requirements was to raise public deposits.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Margadarsi invested in dormant companies. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Assets shown by the company is Rs. 1300 Crores while debts were to the tune
of Rs. 2700 Crores. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Meanwhile
support is pouring in for Ramoji Rao from all sides ranging from the CPM to
the B<st1:PersonName>JP</st1:PersonName>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And RamojiRao’s
petition is to come up before the Chief Justice of the Supreme Court today.
Ramoji’s petition before the <st1:Street>Apex Court</st1:Street> says that the
State Government action was to financially destabilise the media enterprise
from running the daily <i>Eenadu</i> and 12 television channels. It also submits
that in the guise of executing the warrant, the police let loose terror and
various unrelated and unconnected documents were seized in an attempt to create
panic among the depositors. "The freedom of the press and the right to
free speech enshrined in the Constitution are in grave danger and the impugned
GOs are part of the attempts of the State government to silence <i>Eenadu</i>.",
the affidavit added.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Interestingly,
N. Ram, Editor-in-Chief of <b>The Hindu</b>has filed an application to impleadhimself
in the SLP. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Cause List for the Chief Justice’s Court for today shows</font></p>
<table width="450" border="0" align="center" cellpadding="3" cellspacing="0">
<tr>
<td bgcolor="#FFCC33"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">18.
SLP(C)No.2847/2007XIIA FRESH-H S.( 812)(09/02/2007)1ST LISTING </font></td>
<td bgcolor="#FFCC33"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MARGADARSI
FINANCIERS & ORS.Vs. GOVT.OF A.P.& ANR. (WITH APPLN.(S) FOR EXEMPTION
FROMFILING C/C OF THE IMPUGNED<br>
JUDGMENT AND EXEMPTION FROM FILING O.T. AND PERMISSION TO FILE LENGTHY LIST
OF DATES AND WITH PRAYER FOR INTERIM RELIEF)<br>
<br>
<br>
</font></td>
</tr>
<tr>
<td bgcolor="#FFCC33"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
WITH T.P.(C)No.123/2007XVIA FRESH-H S.(1801)(13/02/2007)1ST LISTING </font></td>
<td bgcolor="#FFCC33"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MARGADARSI
FINANCIERS & ORS.Vs. GOVT. OF A.P. & ANR.(WITH APPLN.(S) FOR EX-PARTE
STAY <br>
AND OFFICE REPORT)</font></td>
</tr>
<tr>
<td bgcolor="#FFCC33"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">T.P.(C)No.124/2007
XVIA FRESH-H S.(1801)(13/02/2007)1ST LISTING</font></td>
<td bgcolor="#FFCC33"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MARGADARSI
FINANCIERS & ANR.Vs. GOVT. OF A.P. & ANR.(WITH APPLN.(S) FOR EX-PARTE
STAYAND OFFICE REPORT)<br>
<br>
</font></td>
</tr>
</table>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Reporting
and accounting of taxes - Special Arrangements - Financial Year 2006-2007 –
RBI instructions</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For the
Financial Year 2006-07 the date of closure of Residual Transactions for the
month of March 2007 be fixed as April 16, 2007 (Monday) and the Banks are instructed
to </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. introduce
special messenger arrangements at local receiving branches from the second fortnight
of March 2007.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. ensure
that collections made on behalf of Government towards the end of March are accounted
for in the same financial year.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. ensure
that arrears, if any, are cleared before 15 March 2007.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Further
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
the Nodal/Focal Point branches will be required to prepare separate sets of
scrolls, one pertaining to March Residual Transactions and another for April
transactions during the first 16 days of April 2007. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
The Nodal/Focal Point branches should also ensure that the accounts for all
transactions (revenues/tax collections/payments) are effected at the receiving
branches upto 31st March 2007 in the accounts for the current financial year
itself and are not mixed up with the transactions of April 2007. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Also, while reporting transactions upto 16th April 2007, the transactions of
April 2007 should not be mixed up with ' Residual March transactions. '</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Can the
RBI or the Finance Minister do something about the accounting gimmicks perpetuated
by the Commissionerates in showing next year’s revenue in the current year?
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/rbinot.htm">RBI/2006-2007/264
Dated: February 22, 2007</a></u></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>CESTAT –
Hearing Notice by e mail – East Zonal Bench initiative </b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The East
Zonal Bench of the CESTAT will send hearing intimation by e mail to appellants/advocates.
They have also asked the appellants to furnish certain additional information
along with the appeals.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/publicnotice1.htm">East
Zonal Bench PUBLIC NOTICE NO 1/2007 Dated : February 22, 2007</a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Red
Light for the President’s car - President and PM under RTI Act</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Shri VeereshMalik
of Defence Colony, <st1:City><st1:place>New Delhi</st1:place></st1:City> wanted
to know from the PMO and the President’s office</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. The number
of motor vehicles, fitted with red lights/beacons or other coloured lights/beacons
used by the President and PM</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. The number
of motor vehicles, fitted with sirens and/or klaxons and/or other/similar sound
emitting devices.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Whether
any permission was taken from the registering authorities for such lights and
sirens.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RashtrapatiBhavan
refused to part with the information on security grounds. But the PMO answered
the questions as follows:-</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1)
Three</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
2) Nil</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
3) The three vehicles which are fitted with red lights are covered under Gazette
Notification No. S.O. 52 (E) dated 11th January 2002 issued by the Ministry
of Road Transport and Highways, Government of India.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mr. Malik
is before the CIC. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CIC
first observed that there are a number of appeals filed by Shri VeereshMalik
involving various public authorities at the level of Government of India. Whereas
the public authorities have generally been responsive to appeal notices and
appear before the Commission, Shri VeereshMalik’s presence is the exception
rather than rule.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Commission
noted that no permission is required for the President’s car to have a beacon
and dismissed the appeal.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But what
about the red light you see on the cars of officials like Chief Commissioners
and Commissioners and more so junior state government officers. A red light
on the car is a status symbol, but certainly the President and the PM are too
big to use a red light for status.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="file://192.168.0.10/Editor/Sites/hrindiaonline.com/laws4u/rti/<?%20echo%20$url%20?>/laws4u/rti1.php?filename=rti/2007/2007-HRIOL-02-CIC.htm">CIC</a></u><a href="file://192.168.0.10/Editor/Sites/hrindiaonline.com/laws4u/rti/<?%20echo%20$url%20?>/laws4u/rti1.php?filename=rti/2007/2007-HRIOL-02-CIC.htm"><u>Appeal
No.CIC/WB/A/2006/00442 & 443 dated 17/7/’06 Dated: February 19, 2007</u></a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Budget
Run up concluded</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">With today’s
edition, we conclude our series of Budget suggestions. We are grateful to the
large number of netizens who have contributed brilliant ideas for the FM’s consideration
and we are sure many of them would be seriously considered. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We now invite
you to send in your incisive post budget comments immediately after the budget.</font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Tomorrow
is Central Excise Day or is today?</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">February
24<sup>th</sup> is Central Excise Day, but this year it falls on a Saturday,
a closed holiday for the department and people are not ready to celebrate the
day on a holiday. So in many parts of the country, the day is being celebrated
today. Will they celebrate Independence Day and Republic Day on the previous
days, if those days fall on holidays? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">May be they
should declare that Central Excise Day is the first working day before 24<sup>th</sup>
February. </font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">DDT
wishes all the members of the Central Excise family</font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">a
happy</font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">central
excise day</font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until
Monday 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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