TIOL-DDT 595 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<!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="3"><b><font color="#663399" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 595</font></b><font face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399"></font></b></font></font><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399"><br>
</font>18.04.2007<br>
Wednesday</b></font></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Anti-Dumping duty on
Dry Cell Batteries – Re-imposed – Gapping holes?</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti-Dumping duty on Dry Cell Batteries originating in or
exported from Chinawas imposed vide Notification No. 84/2001-Customs, dated 2<sup>nd</sup>August, 2001. This was to expire on 6<sup>th</sup> February
2006. By Notification No. 8/2006-Customs, dated 16<sup>th</sup> February, 2006
this was extended up to 5<sup>th</sup> February 2007. The extension was ten
days after the Notification lapsed. <b>DDT</b>
had pointed out in <u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=3311" target="_blank">DDT 306, dated 20<sup>th</sup>February,
2006</a></u> that a dead Notification was resurrected. Even this
resurrected Notification lapsed on 6<sup>th</sup> February, 2007. This time
around there was no re-resurrection but a new Notification is issued imposing
the Anti-dumping duty with effect from 13<sup>th</sup> April, 2007. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Now what
happens to the Dry Cell Batteries imported during the period 6<sup>th</sup>
February, 2007 to 12<sup>th</sup> April, 2007? Obviously there was no
anti-dumping duty on this product during that period. Why? Was it because it
was the Government’s policy decision not to levy anti-dumping duty during these
two months or was it because somebody forgot to issue a Notification?</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=23&filename=notification/custom/2007/ctariff07_057.htm" target="_blank">Notification No. 57/2007-Cus.,
Dated 13<sup>th</sup> April, 2007</a></u></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Import of Metallic
scrap – DGFT yet to put System in place</font></b></font></p>
<div>
<div>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per the New Foreign Trade
Policy effective from 1<sup>st</sup> April, 2006, import of metallic scrap was
to be allowed only under certain conditions like Registration of Suppliers,
Direct Imports, Import only through certain <st1:PlaceName
w:st="on">DesignatedPorts</st1:PlaceType>
<st1:PlaceName w:st="on">etc., This new system was
to come into effect from 1<sup>st</sup> April, 2006 but obviously the DGFT was
not ready. In October, 2006 the DGFT issued a Public Notice that the new system
will come into force only from April, 2007. Come April, 2007 and the Ministry
is yet to announce its policy. Now finally DGFT has decided that the new system
will come into force from 1<sup>st</sup> October, 2007. Obviously these
measures are put in place to ensure the security of the Nation and may be to
prevent imported consignments blasting away at various points in the Country.
But can National Security be postponed so many times and for a year and half.
Please <u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=3653" target="_blank">See
DDT 352 dated 1<sup>st</sup>May, 2006</a></u>and <u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=4438" target="_blank">DDT 477,
dated 26<sup>th</sup> October, 2006</a></u><b><u>.</u></b></font></p>
</div>
</div>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2006/dgft06pn094.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u>DGFT Public Notice No. 94 (RE-2006)/2004-2009,
Dated: 16<sup>th</sup> April, 2007</u></font></a></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Exim Bank’s Credit of 11
Million US Dollars to Senegal for Exports from India</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Exim Bank has cleared a
credit of 11 Million US Dollars for financing Indian Exports to support the
Women Poverty Alleviation Programme and acquisition
of 400 vehicles from India.
No Agency Commission shall be payable for Exports Financed under the Scheme.
However exporters can use their own funds to pay commission.</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=49&filename=notification/rbi/2006/rbi06cir039.htm" target="_blank">RBI Circular No. 39/RBI., Dated 16<sup>th</sup> April, 2007</a></u></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Profile of Fraudster –
Who cheats the Company – Top Managers of course – Private corruption?</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Profile of a typical Fraudster </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1)
He is a male aged between 36 and 55 </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2)
Works in the
Finance Department for about six years</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3)
Commits a crime alone with a desire for money and
having opportunity</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4)
Is a top Manager, repeated offender and the offence
is over a period of time</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(5)
Corruption, Theft and Kickbacks are the most common
frauds</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(6)
Fraud is possible because of Weak internal controls</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(7)
Detection most often is through anonymous tip off,
rarely through internal controls.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(8)
Companies are sensitive about image and so fraud
cases never go to the Police or the Press</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(9)
Fraudsters rarely undergo criminal investigation</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(10)
Damage to the Company is severe and rarely there is
a recovery</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(11)
Prevention is always a more efficient and cost
effective</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There
are the revelations from the <b>Profile of a Fraudster Survey, 2007</b>
conducted by KPMG in Europe, the Middle East, India and Africa.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">More
than ten years ago, the profile had been drawn up by an expert as</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Male </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Intelligent </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Egotistical </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Inquisitive </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Risk taker </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Rule breaker </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Hard worker </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Under stress </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Greedy </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Financial need </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Disgruntled or a complainer </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Big spender </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Overwhelming desire for personal gain </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Pressured to perform </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Close relationship with vendors/suppliers </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Another
expert in 1997 profiled the fraudster as</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
They are male. 3/4th of all frauds are committed by men. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
They are intelligent. Many times, they commit fraud
for the challenge because they are bored with their job.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
They are very egotistical. They
feel they are worth more than they may be, pertaining to their job classification.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
They are risk takers. They
are not afraid to fail.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ They are rule
breakers, like to take shortcuts, and they justify the breaking of the rules. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
They are hard workers, usually arriving early for
work, leaving later at night and never taking vacations.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
This makes them seem like an unlikely candidate to
management, since they are putting in more time. But, this is the time in which
many of their fraudulent activities are occurring.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Many are married. Married employees commit the
greatest number of frauds and cause the highest median losses.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Many are members of management.
Management are sixteen times more likely to
commit fraud than non-managerial employees.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Median loss is higher for males than females:
$185,000 for males, $48,000 for females.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
People that commit fraud think the same way. One
fraud leads to another, and a pattern is begun.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So the
KPMG survey does not really reveal anything new. Nothing has changed over the
last decade.</font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Can the Tribunal
rectify a rectified order?</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Under Section 254 (1) of the
Income Tax Act, the Tribunal passes an order. Under Section 254 (2), the
Tribunal can, on an application for Rectification Of
Mistake (ROM), to rectify a mistake apparent on record, amend any Order passed
under Section 254 (1). There are identical provisions in the Central Excise Act
and the Customs Act. Now what happens if the Tribunal realizes that the order
passed under Section 254 (2) is also wrong. Can this order be further amended?
The Income Tax Appellate Tribunal felt that it had inherent powers to rectify a
rectified order and it can rectify even without an application from either of
the parties. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If that be so, can the
re-rectified order be rectified again and if so how many times. Any way the
High Court has saved the trouble of such repeated rectifications by holding
that the Tribunal can rectify only an order passed under Section 254 (1) and
not under Section 254 (2). Read this interesting order in our <u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=5339" target="_blank">Breaking News</a></u> story today.</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=38&filename=legal/hc/2007/2007-TIOL-193-HC-ALL-IT.htm" target="_blank">2007-TIOL-193-HC-ALL-IT </a> </font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Consistent judicial
indiscipline by Commissioner (Appeals) </font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CESTAT has observed that it
is seen that a Commissioner (Appeals) is time and again not giving any respect
to the orders of the Tribunal or even the Supreme Court. Obviously this
Commissioner is consistent in his disobedience of the Tribunal and the Supreme
Court. Most of these Commissioners have only contempt fort the wisdom of the
higher judicial seats, though many of them don’t express the contempt openly.
In private conversation, they are willing to show their contempt even for the
highest judicial seat in the country. In a case we are reporting today, the
Tribunal, even though noticed that the Commissioner is consistently
disobedient, chose to send a copy of the order to the Commissioner himself
hoping he would take notice of the situation. We follow the Supreme Court orders not because they are right, but
because the Supreme Court is the highest judicial authority. Judicial
discipline requires that you follow the orders of the higher authority. How
would the Commissioner (Appeals) feel if an Assistant Commissioner passes an
order stating that the Commissioner (Appeals) is patently wrong? It is not that
these officers do not know these elementary principles; Administrative
arrogance makes them believe that they are above the law. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">See our <u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=5337" target="_blank">Breaking News</a></u> for more details. </font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">The Transfer syndrome?</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A netizen wrote in:-</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">With reference to yourmusings
on transfers, you areright. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">April is
wasted waitingfor transfers</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">May is
spentreceiving or representingagainst transfer orders,</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">June isconsumed
in readying for theposting, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">and work barely beginsfrom July.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It’s a
mindlesspastime of babus and withoutany Modern Management, as weknow
it.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It’s a
veritable jungleof bureaucratic Darwinism.</font></p>
</blockquote>
<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"><u1:p></u1:p>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>