TIOL-DDT 646 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 646</font><br>
29.06.2007<br>
Friday</strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>ICD – Vapi replaced with Valvada </strong></font>
</p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification
No. 12/97-Cus. (N.T.), dated 2-4-1997 notifies the ICDs in the country.
Sl No. 4 (vi) of this notification designates Vapi as an ICD. Now this
is amended to “Village Valvada, Taluka Umbergaon, District Valsad”.
Maybe that’s the place where all the ICDs of Vapi are located<br>
<br>
<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2007/cnt07_065.htm" target="_blank">NOTIFICATION NO. 65/ 2007-Customs (N.T.) Dated 26th June, 2007.</a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Kollam added as a customs port but with a complicated notification. Remember
Vizag was not notified as a port?</b></font>
</p>
<p align="justify"> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"> The Vizag Customs Commissioner was very angry with us for reporting that Vizag
was not a notified port under the Customs Act! After two years of crusade
by TIOL, Vizag and some other ports which were left out of the notification,
obviously by oversight, were notified as ports. Apparently even now there
are some mistakes – and CBEC does not like to admit mistakes. And they
go about correcting their mistakes as if there was no mistake in the first
place.<br>
<br>
Look at the latest notifications. As per Notification No. 62/94 Cus NT, the
following are the notified ports in Kerala.<br>
<br>
(1) Allepey</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (2) Azhikkal</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (3) Kozhikode (at Beypore)-Kozhikode District.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (4) Cochin</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (5) <font color="#663399"><b>Omitted</b></font>.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (6) Neen-dakara</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (7) Tellichery</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (8) Vazhin-jam<br>
<br>
Now this notification is amended to make the list as</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (1) Allepey</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (2) Azhikkal</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (3) Kozhikode</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (4) Cochin</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (5) Neendakara</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (6) Tellichery</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (7) Vazhinjam</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (8) Kollam<br>
<br>
You can easily find that what they have done is add Kollam to the list of ports:
Anyway Sl. No.5 is blank – they could have easily put Kollam in Sl. No.
5.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> But do you know why Sl. No 5 is blank? This was originally <b>Minicoy
Island</b> and
this Minicoy Island was shown in the State of Kerala and it was only in 2006
that the Board realised that Minicoy Island is in the Union Territory of Lakshadweep
and not in the State of Kerala. This island was with Lakshadweep since 1956
when it was called the Territory of Laccadive, Minicoy, and Amindivi islands.<br>
<br>
Of course Revenue officers are not expected to have a command over Geography,
but when their jurisdiction is geographic, they should pick up a little geography!<br>
<br>
<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2007/cnt07_066.htm" target="_blank">NOTIFICATION NO. 66/ 2007-Customs (N.T.) Dated 27th June, 2007.</a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> <b>Risk Management System (RMS) - Charter of functions for Risk Management
Division and constitution of national/local risk management committee – CBEC
instructions</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Yesterday I was talking to a former Additional Commissioner of Central Excise
and told her that recently RMS was inaugurated in the Hyderabad Air Cargo Customs. “What!
They didn’t have RMS all these days?”, she asked me in genuine
surprise.<br>
<br>
Now the Board informs that a Risk Management Division has been created in the
Directorate of Systems.<br>
<br>
The objective of the Risk Management System (RMS) is to achieve an optimal
balance between providing appropriate levels of facilitation to the international
trading community and ensuring compliance with regulatory provisions. With
a view to streamlining the operations of the RMS, the Risk Management Division
has been created.<br>
<strong><br>
Charter of functions for the RMD.<br>
</strong><br>
++ overall responsibility for the management of the RMS which has been designed
to address risks facing Customs, i.e., the potential for non-compliance with
Customs and allied laws and security regulations, including risks associated
with the potential failure to facilitate international trade.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ RMD will be the nodal agency with the overall responsibility for designing
and implementation of Risk Management System using various risk parameters
and risk management tools. RMD will suggest assessment and examination in respect
of consignments perceived to be risky and facilitate the remaining ones.<br>
RMD will also be responsible for collecting and collating information and developing
an intelligence database with a view to effectively implement the RMS and also
carry out effective risk assessment, risk evaluation and risk mitigation techniques.
It will update and maintain risk parameters in relation to the trade, commodities
and all stakeholders associated or involved with the supply chain logistics.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ RMD will be the nodal agency for Accredited Client’s Programme (ACP).
It will maintain a list of accredited clients in the RMS and closely monitor
the compliance standards of these accredited clients.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ RMD will closely interact with all Custom Houses, Directorate of Revenue Intelligence
(DRI) and Directorate of Valuation (DOV) to enable it to effectively address
national risks.<br>
<br>
++ RMD will also review the performance of the RMS in terms of reviewing the various
targets/interventions inserted by the Local Risk Management (LRM) Committee,
make an objective assessment of the effectiveness of such insertions, and ensure
that the performance is consistent with the objective laid down.<br>
<br>
++ RMD will also coordinate and liaise with other Government Departments (OGDs),
in order to deal with risks relating to the compliance requirements under allied
Acts which the Customs department is required to administer, under the overall
direction of the D.G. (Systems).</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ RMD will work in close coordination with NACEN in developing training manuals
and other documentation necessary for the implementation of RMS. In addition
to this, it will also work out regular training schedules for training of officers
responsible for implementing the RMS in major customs locations.<br>
<br>
++ RMD shall work in close coordination with Directorate General of Audit (DG
Audit), which has the responsibility for formulating audit policies and procedures,
developing criteria and parameters for selection of cases or documents for
audit.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ DG(Systems) will submit periodic reports on the functioning of the RMS to the
Board.</font></p>
<p align="left"><font color="#000000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>
National Risk Management (NRM) Committee</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> A National Risk Management (NRM) Committee with the DG(Systems) as the head
is to be established. The RMD will be the nodal agency responsible for convening
the National Risk Management (NRM) Committee to review the functioning of the
RMS, supervise the implementation of RMS and provide feedback for improving
the effectiveness of RMS. The NRM Committee will be a standing committee and
shall include representatives of Directorate General of Revenue Intelligence
(DGRI), Directorate General of Valuation (DGOV), Directorate General of Audit
(DG Audit), Directorate General of Trade Facilitation (DGSTF) and Tax Research
Unit (TRU).<br>
<br>
<b>Is this another exercise to waste tons of paper and may be create a few
posts? Let’s wait and see. We will bring you a report after six months.<br>
</b><br>
<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2007/cuscir07_23.htm" target="_blank">CIRCULAR NO. 23/2007-Cus., Dated: June 28, 2007</a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>The drumbeats of infrastructure are getting louder and the rumble is felt and
heard</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> I am not a remarkable storyteller, but I have a remarkable story to tell. As
long as the Indian economy was growing at a miserable rate of 3.5 per cent
or a sedate pace of 5.5 per cent, the infrastructure in India was not regarded
as a major problem. We could live with low speed trains and two lane roads;
we could rely, grudgingly, on land telephone lines; we could do with a single
airline, a single telephone service provider and a single automobile company
making a single model of a car. The infrastructure was inefficient but not
inadequate; it was creaking but not cracking.<br>
<br>
A high growth rate has changed all that. Since India embarked upon economic
reforms and liberalization in 1991, we have witnessed a secular rise in the
annual rate of growth. The growth rate of GDP that we have recorded is not
an accident. It is the result of well-designed and well-articulated policies.
We remain firmly committed to fiscal prudence. Our tax rates are moderate and
stable. We actively promote investment in the private and public sectors. We
encourage both domestic and foreign investment. And above all, we value our
engagement with the countries of the world and we are determined to reap the
benefits of an open and competitive economy. We take pride in the fact that
we are the fastest growing free market democracy.<br>
<br>
I marvel at what China has accomplished in the last two decades in the infrastructure
sector and wonder if there are any lessons that India can learn from China!<br>
<br>
A country that aspires to have an economy that will be the third or the second
largest in the world must have world class infrastructure. The drumbeats of
infrastructure are getting louder in India and the rumble is felt and heard
all over the country. The desire for world class infrastructure is not driven
by government alone; increasingly it is demand-driven and community-driven.
I am confident that within the next ten years we will succeed in putting in
place infrastructure in India that is equal to the best in the world.<br>
<br>
<font color="#663399">From the FM’s speech at the London Business
School yesterday</font></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#663399"> </font>
<strong><font color="#006600">BPL Commissioners?</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Yesterday, I asked a Commissioner why he did not get a transfer. He said, “BPL
Commissioners are nowhere in the reckoning” What is BPL? Below Poverty
Line!</font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <font color="#006600"><strong>From
our Legal Corner – Monday’s cases</strong></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><b><b><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_31.gif" alt="Legal Corner Icon" width="191" height="160" hspace="5" border="0" align="left"></b></b></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <font color="#FF0000"><strong>Central Excise</strong></font><br>
<br>
<font color="#663399">Self assessment and self payment of duty are envisaged in law but not taking
self refund since if allowed, it may lead to situation like amendment of passport
by a passport holder himself and so on : Tribunal<br>
<br>
<font color="#000000">The assessee is entitled to take credit in PLA only based on deposits of cash
made by them under TR-6 challans. Similarly, the assessee is entitled to take
credit in their RG-23A accounts based on specified duty paying documents. While
the assessee is authorized to debit PLA account, RG-23 account on their own
for payment of duty, the question of their taking suo moto credit of any alleged
sum due from the Department does not arise. In other words, the self-assessment
and self-payment are envisaged. The system of taking self-refund is not authorized
by law.</font></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If above concept is to be extended, it may lead to a situation like inclusion
of a new name in the ration card automatically by the card holder, amendment
of pass-port by a passport holder himself and so on.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <font color="#FF6666">If goods are sold to related person at the same price as sold to other purchasers,
it cannot be said that there was depressed price in favour of related buyers
: Tribunal</font><br>
<br>
<font color="#FF0000"><strong>Income Tax</strong></font><br>
<br>
<font color="#663399">Interest from bank deposits cannot be treated as export income even if deposits
are a pre-condition for sanctioning limits : Madras HC</font></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"> See our columns on Monday for the judgements</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <br>
<font color="#FF6666">Until Monday with more DDT</font></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Have a nice weekend.</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="vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p>
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