TIOL-DDT 567 · the untouched capture
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<html> <head> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <title>Taxindiaonline's DDT 402</title> </head> <body > <p align="justify"><b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 567</font></b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><br> 07.03.2007<br> Wednesday</b></font></p> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Service Tax – no indiscriminate summons</font></b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has noticed that on many occasions, merely for obtaining information or documents pertaining to service tax cases/ matters, officers of field formations or intelligence agencies resort to issuance of summons (U/s 14 of the Central Excise Act, 1944 as is made applicable in service tax cases U/s 83 of the Finance Act, 1994) to either service taxpayers or to persons who are not registered with the department.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has further noticed that:- </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">From the nature of information / documents called for, it is clear that many times such information / documents can easily be obtained by making a telephonic request or writing a simple letter to the person concerned. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Instead summons are issued in a routine manner, under the signature of superintendent or the senior intelligence officers. (SIOs). The harsh and legal language of the summons not only causes unnecessary mental stress & embarrassment and instills fear in the minds of the receiver but may also become a source of harassment or even unethical practices. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has taken a serious note of this practice.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So the Board directs that:-</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a) For calling for information / documents, normally the mode of communication should be either in the form of a telephone call or by way of sending a simple letter;</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) Issuance of summons should be resorted to, only when the above mentioned modes of communications are found to be ineffective or are likely to jeopardize revenue interest or when it is essential to ensure personal presence of the person concerned to tender evidence or record statement in connection with a service tax evasion case;</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c) In cases mentioned under (b) above, the summons should be issued after obtaining prior written permission from an officer not below the rank of Deputy Commissioner with reasons for issuance of summons to be recorded in writing;</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">d) In case, for unavoidable operational reasons it is not possible to obtain such prior written permission, oral / telephonic permission from such officer must be obtained and the same should be reduced to writing and intimated to the officer according such permission at the earliest opportunity;</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">e) In all cases, where summons are issued, the officer issuing summons must submit a report on proceeding that took place during the presence of the taxpayer/person summoned, and the officer authorizing issuance of summons must satisfy himself that no harassment has been caused during the visit of the person summoned to the office.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Wonderful Board!. The so called <b>power</b> under Section 14 to <b>summon</b> people has never been used and always misused. DDT knows of a world renowned professor being summoned just to get the balance sheet figures who was thoroughly humiliated in the Central Excise office. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There is no pint in summoning people when you can get the information with just a phone call. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is great that Board has realized the damage being caused to its reputation by overzealous field officers with summons. Now Board says that <b>Non-observance</b> of these instructions would be viewed seriously. Board should do something more than viewing seriously.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><br> </b><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=41&filename=notification/servicetax/2007/instruct02.htm">CBEC’s F No. 137/39/2007-CX-4 Dated : February 26, 2007</a></u></font></p> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Tariff value for brass scrap reduced</font></b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Tariff value for imported brass scrap has been reduced from US Dollars 4524 to 4327. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2007/cnt07_020.htm">NOTIFICATION No. 20/2007-CUSTOMS (N.T.) Dated : March 5 ,2007</a><b><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2007/cnt07_020.htm"> </a></b></font></p> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Filing of application under E-Com and Physical Format </font></b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT has clarified that</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ an application filed through E-com by the last date of application shall be considered as an application on time.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ However, the applicant is required to submit application in Physical Format along with relevant documents after filing of application in E-Com within 7 working days to the concerned Regional Authority. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ the applications received by Regional Authorities for benefit after last date but within six months from the last date of the application shall be processed by imposing 10% late cut in entitlement in tune with Para 9.3 of Hand Book of Procedure. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2006/dgft06cir020.htm">CIRCULAR NO . 20, (Re-2006)/2004-09,Dated : March 5, 2007 </a></font></p> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Service Tax – Sahara, Indian and IBM under DGCEI scanner</font></b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sahara and Indian Airlines as well as software giant IBM are among nine companies booked for service tax evasion of about Rs 300 crore this fiscal, the RajyaSabha was informed on Tuesday. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Directorate General of Central Excise Intelligence (DGCEI) has booked Lucknow-based Sahara India and Sahara Airlines for evading service tax amounting to Rs 89.07 crore and Rs 10 crore, respectively. Sahara India was collecting public deposits for Sahara Financial Services— a Sahara Group company— for which it was required to pay service tax.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Is this applicable to Ramoji Rao’s Margadarsi? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The DGCEI has also booked IBM India for tax evasion amounting to Rs 72.25 crore and SAP India for Rs 38.43 crore. Public sector carrier Indian Airlines has also been involved in service tax evasion amounting to Rs 27.30 crore.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Meanwhile, seven non-banking finance companies including India Bulls and Securities Ltd and HDFCCHUPP General Insurance have also been booked for service tax evasion.</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> </body> </html>