TIOL-DDT 586 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT 586</font><br> 04.04.2007<br> Wednesday</b></font></p> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Repeated appeal on a dismissed case - Supreme Court suggests that the officer should have been more careful</font></b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A Revenue appeal was dismissed for an inordinate delay of 645 days! After some time the Revenue files another appeal in the same case. Obviously there were two orders passed by the Tribunal one dated 16th April 2004 which we will call case No. 1 and another dated 20th April, 2004, which we call case No. 2. The appeal against case No. 1 was filed and dismissed by the Supreme Court on 3rd July, 2006. There is now another appeal filed against the same order. Obviously the Supreme Court wanted to know how the Revenue could file an appeal when its appeal was already dismissed. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The affidavit filed by the CBEC explains it. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Actually this appeal was to be against case No. 2, but, inadvertently, the approved draft civil appeal petition against the case No. 1, was annexed.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court was magnanimously mild on the callous department and observed that the </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Department and the officer ought to have been careful. He ought to have known that the appeal had already been filed against order dated 16th April, 2004.</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court permitted this faulty appeal to be withdrawn but left it open to the department to take such action against the officer and/or such steps against order dated 20th April, 2004, as it may be advised.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What a sad state of affairs in the premier Revenue collecting department of the government! They simply don't know what order they are appealing against - and at the highest judicial forum in the country. If this is the respect they have for the Supreme Court, you can imagine the contempt with which they would be treating other judicial forums. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If at all there is any useful work, they can perform, it is defending the cases in the courts, and they miserably fail in this responsibility. While the champagne flowing after the 'targets' are met, by means fair or foul, they should start seriously planning to take the courts seriously.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">See </font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=32&filename=legal/sc/2007/2007-TIOL-48-SC-CX-LB.htm">2007-TIOL-48-SC-CX-LB</a></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong></strong></font></p> <p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Imports of <st1:City w:st="on"><st1:place w:st="on">Portland</st1:place></st1:City> cements exempted from CVD and SAD- CBEC issues press release but shies away from notification</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A PIB press release says that, With a view to increase availability of cement at moderate prices, the Government has exempted imports of Portland Cements (other than white cements) from countervailing duty (in lieu of excise duty) and the special additional duty of customs of 4% vide notification no.53/2007-Customs dated 3.4.2007 with immediate effect. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But where is the notification? Obviously it is not published and will be made available tomorrow! </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The press note adds that </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Cement prices have been rising in the course of last one year. The average price of cement has risen from Rs.165 per 50 Kg. bag in January 2006 to Rs.209 per 50 Kg. Bag in February 2007 and to Rs.220 per 50 Kg. Bag in March 2007. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The Government, with a view to keep prices of cement in check, had fully exempted basic customs duty on <st1:City w:st="on"><st1:place w:st="on">Portland</st1:place></st1:City> cements in January 2007. However, cement prices continue to be high. The cement industry was requested to moderate prices in the interest of the consumer. However, The industry is of the view that prevailing high prices are a consequence of a demand-supply mismatch. It is expected that the present move will improve supply situation in the country. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Government has already invited cement manufacturers to come forward with proposals to moderate the price of cement. Government expects that the cement manufacturers, in the larger interests of consumers and for checking inflation, will take appropriate measures for moderating cement prices. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Will exemption from import duties reduce prices or is it a threat to the cement manufacturers who greeted the FM's budget with an increase in prices? </font></p> <p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Telangana effect in Central Excise </b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A brief peep into the problem: Telangana region consists of predominantly backward areas of Andhra Pradesh, but includes the hi-tech capital city <st1:City w:st="on"><st1:place w:st="on">Hyderabad</st1:place></st1:City>. For the last forty years, there have been periodical agitations demanding a separate state of Telangana. But over the years, the rich farmers from Andhra area have invested heavily in <st1:City w:st="on">Hyderabad</st1:City> and made the price of land in <st1:City w:st="on">Hyderabad</st1:City> costlier than in <st1:State w:st="on"><st1:place w:st="on">New York</st1:place></st1:State> and they are not ready to part with the happening city. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A former Telugu Desam leader K. Chandra Sekhar some time back floated a new party, Telangana RashtraSamiti to create a new state of Telangana. In the last general elections, he aligned with the Congress and was rewarded with a few seats including four in the LokSabha, which enabled him to become a union cabinet minister. When every one was prepared to write him off as a spent force, Chandra Sekhar resigned from the union cabinet and LokSabha and sought re election. He was recently re elected with a thumping majority, proving that Telangana sentiment is intact. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Incidentally there is a state government order by which state government employees have to be posted within their regions. In violation of this, many Andhra officers are working in Telangana and the agitators want them to be sent back.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What has all this to do with DDT? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Well, in Andhra Pradesh Customs and Excise, there are two Chief Commissioners, one in <st1:City w:st="on"><st1:place w:st="on">Hyderabad</st1:place></st1:City> and the other in Vizag. The Hyderabad Chief Commissioner has jurisdiction in the Telangana districts and the Vizag Chief Commissioner is for the rest of the state. While Vizag has more Commissionerates and Revenue, it is short of officers as most of the officers want to work in <st1:City w:st="on"><st1:place w:st="on">Hyderabad</st1:place></st1:City> only. Officers are by force sent to Vizag with a promise to be brought back within a year and for the last 15 years or so there is an annual transfer of hundreds of officers to and from <st1:City w:st="on"><st1:place w:st="on">Hyderabad</st1:place></st1:City>.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This year, the Administration transferred about seventy Inspectors to Vizag and this is the point at which the Telangana leader entered the scene. It seems Mr. Chandra Sekhar has written a letter to minister of State for finance (revenue) S.S. Palanimanickam to stop the transfer of 70-odd officers of Central Excise and Customs from the Telangana region to <st1:place w:st="on"><st1:City w:st="on">Visakhapatnam</st1:City></st1:place>. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He didn't stop there but also demanded the repatriation of about 1,200 Andhra officers working in Telangana region. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It seems the transfer order is in hold. </font></p> <p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Evolution of on-line non-intrusive e-Audit - President's advice to CAG</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Addressing the Audit Advisory Board, President Kalam said,</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. The audit teams can work with Programme Chiefs or Executives of national programmes or projects from the inception of the project and participate in the evolution of the PERT of the Project. You will find that there may be ten to fifteen critical paths for a ten year programme and for five year projects it may be more. The Critical paths in the project PERT will be the CAGs Audit area and points.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. The aim of the audit should be to detect the deviations in near real time when the project is in progress and provide constructive solutions so that the objective of the project is met well in time.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. CAG may consider incorporating a mutually agreed online audit system for high value schemes of national importance such as rural employment scheme, golden quadrilateral, large power plants so that maximum value for money is realized in a time bound manner.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Audit should be sensitive to the fact that E-commerce and a borderless world (Internet) would soon be a reality. You have to evolve a policy statement for e-Audit based on the e-Commerce and e-Governance standards.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. e-Audit is essential to be proactive enabler of missions facilitating the programme or project outcome as envisaged.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Forecasting of challenges for effective fiscal utilization and providing useful inputs for maintaining the momentum of the project should also become a part of the audit.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. Reengineering systems and procedures to avoid mistakes. Audit can provide do's and don'ts to the executives based on past experience and the practicability of field level implementation.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. Continuous training of audit personnel on modern trends of audit for carrying out specialized audit on development projects with a clear understanding of projects and programmes.</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> </body> </html>