TIOL-DDT 660 · 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 face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT 660</font><font size="2"><br> 19.07.2007<br> Thursday</font></b></font></p> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Tariff Value of Brass Scarp - Increased</font></b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBEC has increased the Tariff Value of imported Brass Scrap from Rs. 4385 to Rs. 4550. There is no change in the Tariff Value of other products.</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_069.htm" target="_blank">Notification Nos.<u>69/2007-Cus. (N.T.) , Dated July 18, 2007</u></a></font></p> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Sugar Export to <st1:country-region w:st="on"><st1:place w:st="on">USA</st1:place></st1:country-region> and EU - Quota enhanced</font></b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The DGFT has increased the Quota of sugar for export to <st1:country-region w:st="on"><st1:place w:st="on">USA</st1:place></st1:country-region> and EU out of the free sale portion of the 2006-2007 season's production to 32,626 MTs and 22,626 MTs respectively. This was earlier 26,000 MTs and 16,000 MTs respectively.</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=47&filename=notification/dgft/2007/dgft07pn020.htm" target="_blank">DGFT Public Notice No. 20(RE-2007)/2004-2009, Dated July 17, 2007</a></u></font></p> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Advance Authorisation - <st1:place w:st="on"><st1:PlaceName w:st="on">Indore</st1:PlaceName> <st1:PlaceType w:st="on">Airport</st1:PlaceType></st1:place> - Specified</font></b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per <st1:place w:st="on">Para</st1:place> 4.19 of the HOP, import is permitted only through certain specified Airports, Seaports and ICDs. Now <st1:place w:st="on"><st1:City w:st="on">Indore</st1:City></st1:place> is added to the list of Airports.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">Bank Realisation Certificate:</font></b> Description of Goods as given in the Commercial Invoice/Packing list is to be mentioned in the Bank Certificate of Export realisation. Appendix 22A is amended.</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=47&filename=notification/dgft/2007/dgft07pn021.htm" target="_blank">DGFT Public Notice No. 21(RE-2007)/2004-2009, Dated July 17, 2007</a></u></font></p> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">EPCG</font></b><font color="#006600"><b> - Import of Spares - Installation Certificate to be produced within three years</b></font></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Para 5.3.2 of the HOP, holders of Export Promotion Capital Goods (EPCG) Scheme have to produce an installation certificate from the Jurisdictional Central Excise Authorities or a Chartered Engineer, within six months from the date of completion of imports.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, in the case of import of spares, the installation certificate can be produced within three years from the date of import.</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=47&filename=notification/dgft/2007/dgft07pn022.htm" target="_blank">DGFT Public Notice No. 22(RE-2007)/2004-2009, Dated July 17, 2007</a></u></font></p> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">KP</font></b><font color="#006600"><b> Singh loses in CAT</b></font></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Remember the high-profile former DG, Service Tax Mr. KP. Singh, who in the normal course would have become Chairman of the CBEC, but he could not make it to the Board. Mr. Singh challenged his non-appointment as a Member of the Board when even JMKSekhar an officer two years his junior could make it to the hallowed precincts of the powerful Board. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is not for the first time that an overlooked Chief Commissioner had approached the CAT on being denied appointment as member of the CBEC. More than six years ago, Mr. SK Choudhary approached the CAT based on a report in <b><font color="#663399">TIOL</font></b> that he had missed the bus. The CAT order in his case started with,</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Applicant, S.K. Chaudhury, having known from the Website 'Tax India on Line' that he has been included in recommendations made by Committee of Secretaries (in short, C.O.S.) and subsequently learning that Appointment Committee of Cabinet (in short A.C.C.) has not included his name in the panel for appointment as Member of C.B.E.C.,</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">TheCAT made him a Member. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A year later Dr. MG Venugopalan successfully approached the CAT and became a Member. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But four years later InderRajSoni was not successful and now the CAT relying heavily on the Soni case held that the Government had every right not to make KP Singh a Member of the Board. CAT had observed that <b><font color="#663399">seniority alone cannot be the criterion - reputation about honesty and integrity is one of the relevant considerations. </font></b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We will bring you the important CAT judgement tomorrow, where there was a mention of the <b><font color="#663399">Wednesbury Principle.</font> </b>What is this?</font></p> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Wednesbury Principle </font></b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Up to 1947 the law in <st1:place w:st="on"><st1:country-region w:st="on">England</st1:country-region></st1:place> was that the courts could interfere only with judicial or quasi-judicial decisions and not with administrative decisions. This legal position changed after the famous decision of Lord Greene in Associated Provincial Picture Houses Ltd. v. Wednesbury Corpn in which it was said: </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A person entrusted with discretion must, so to speak, direct himself properly in law. He must call his attention to matters which he is bound to consider. He must exclude from his consideration matters which are irrelevant to what he has to consider. If he does not obey those rules he may truly be said to be acting unreasonably. Similarly, there may be something so absurd that no sensible person could ever dream that it lay within the powers of the authority. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The above observation incorporates what is frequently called as the Wednesbury principle. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The courts often intervene to quash as illegal the exercise of administrative discretion on the ground that it suffers from "Wednesbury unreasonableness". </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">Every Babu should have the observations of Lord Greene pasted on his bathroom mirror and read it every day before he starts for office. This may make him reasonably fair.</font></b></font></p> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">From our Legal Corner - tomorrow's cases</font></b></font></p> <p align=center><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"><strong> <font color="#FF0000">Central Excise </font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">Vice of vagueness : Department loses another shabby case</font></b></font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>What can the poor department do when the assessee does not co-operate with the investigator? I, for one, do not understand this concept of co-operation. Why should a victim co-operate with the tormentor? Is it not the department's job to investigate and prove the case? Will they accuse the lawyers of not assisting the poor prosecution in winning cases?</strong></font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Any way here was a non co-operative offender who was closely related to the Revenue - BSNL, a wholly owned company of the Government of India, on whose behalf the patriotic Revenue officials make life miserable for others. And when BSNL did not co-operate by offering data on a platter on a ring, Revenue did the next best thing, it could. Confirm a demand without mentioning what the demand was!</strong></font> </p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">IN</font> </strong>December 1994, Bharat Sanchar Nigam Limited was issued a show cause notice on the ground that they had not filed any classification list for goods manufactured and consumed captively. Interestingly, there was no quantification in the notice of the Central Excise duty proposed to be recovered from the company. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However, the original authority confirmed the demand and imposed a penalty. Incidentally, since there was no Central Excise duty demanded in the notice, he directed the Range Superintendent to work out the demand and ordered that the penalty would be 40% of the demand so calculated. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">When rate of duty was 10%, duty paid at 12% and credit taken accordingly is not correct : CESTAT </font></b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a) The rate of duty on man-made fabrics, falling under Chapter heading 5406.22 of CETA, 1985 was reduced from 12% to 10% in terms of Notification No.07/2003-CE, dt. 1.3.2003 issued subsequent to Finance Bill 2003-04.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) The notification No.6/2002-CE(NT) dt.1.3.02 provided for deemed credit @ Rs.66.67% of duty payable at the time of clearance of processed fabrics.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c) According to the appellant, there was confusion as to whether the reduced rate of duty of 10% should be applicable from 1.3.03 or 1.4.03.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF0000">Income Tax</font> </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">Once penalties are cancelled on ground that there is no concealment, quashing of prosecution u/s 276C of I-T Act is automatic : <st1:place w:st="on"><st1:City w:st="on">Delhi</st1:City></st1:place> HC </font></b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">PERSEVERANCE </font></strong>pays! An Income Tax assessee just escaped prosecution after 15 years of relentless litigation. He was charged with undisclosed income and sought to be prosecuted. He appealed in all possible forums and finally was successful in the High Court.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u><font color="#663399">See our columns tomorrow for the judgements</font></u></b></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>