TIOL-DDT 710 · 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">
<html>
<head>
<title>Untitled Document</title>
<meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1">
</head>
<body bgcolor="#FFFFFF">
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><span style='font-family:"Verdana","sans-serif"; color:#663399'><font size="3">TIOL-DDT 710</font></span></b><b><br>
01.10.2007<br>
Monday</b></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>CBEC-
Treat your retired officers with a little more respect. Civil servants - neither
civil nor servants!</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It
is really pathetic to see the Department badly losing cases in the Tribunals
and High Courts because the Departmental view is not always properly presented.
The learned Additional Solicitor General in the High Court who is paid a
pittance by the government and who is no authority on Central Excise/ Customs/Service
Tax can hardly argue a case with force. The government has hit upon the
bright idea of hiring retired senior officers to represent the Department
before judicial and quasi-judicial forums. Not every retired Chief Commissioner
or Board Member is qualified or competent to defend the Department in the
Tribunals or High Courts, but there are certainly some very good retired
officers whose services, the department can use and who would be glad to
assist the Department rather than take up the case and cause of the evaders
and smugglers. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But
this whole scheme is again yet another arrogant bureaucratic procedural nonsense.
Our civil servants who are neither civil, nor servants, have a very high opinion
of themselves. They want these retired senior experts to crawl before them for
the pittance they pay, for having the privilege of defending the department
in important cases.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">One
Commissionerate wanted these retired officers to apply to the benign Additional
Commissioner to be empanelled. He has been kind and did not insist that the
applicant should end his application with, "I shall be ever grateful to the
benign Additional Commissioner for giving me an opportunity to serve you by
being a special counsel". </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Extracted
below is a notice put by the Haldia Commissionerate:</font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u>NOTICE</u></b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Retired
officers of Indian Customs And Central Excise Service who are interested to
be engaged / empanelled as Special Counsel to represent the department before
CESTAT/Settlement Commission and other quasi-judicial authorities , may send
their applications complete with their bio-data, experience in dealing with
indirect taxation matters, his/her consent to the terms and conditions fixed
by the C.B.E.C. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Applications
may be sent to the Additional Commissioner (P/E) Central Excise, Haldia Commissionerate,
25, Prince Street, 3rd Floor, Kolkata - 72 , by 30.09.07 Contact No:-
(033) 2225 7520 </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maybe
the retired Chief Commissioners and Board Members are to stand in queue outside
the Additional Commissioner's office with applications for being allowed to
win cases for the Department. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A
very senior retired officer - highly respected - who had held some of the highest
positions in the Department, told me yesterday, in anguish rather than anger,
that he was called up by the PS to a Chief Commissioner and asked if he was
interested in taking up the job. The Chief Commissioner had no courtesy to call
him up directly and wanted the PS to do the job. This man was the Chief Commissioner
for a much larger jurisdiction, when the present Chief Commissioner was not
even an Assistant Commissioner.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If
this is the way you are going to treat your former bosses, no self respecting
retired officer is going to help you win those cases. Many of these retired
stalwarts will be happy to assist the Department, simply for the pleasure of
it rather than the money. But you have to treat them with a little respect,
which they richly deserve. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An
uncivil officer is a liability to the Service as well as society.</font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Mayavati
- Highest Tax Paying Leader</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Madam
Mayavati, the Hon'ble Chief Minister of UP is perhaps the highest tax paying
politician in the country. She has already paid Rs. 14 Crores as advance tax
for the assessment year 2008-09 and that is slightly less than the whole wealth
declared by the successful FM. India is really booming when the daughter of
a clerk, who was herself a school teacher, can pay about Rs. 14 Crores as Income
Tax. Politics is certainly a prosperous profession. </font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>No
more coolies - trucks to be allowed inside borders from today</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Pakistan
and India are set to discontinue six decades old coolie system and would allow
cross-border movement of trucks up to the designated points at Wagah and Attari
borders from today.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">According
to the agreed arrangement between the two countries, Pakistan would allow Indian
trucks to cross 200 meters inside the Wagah customs area and India would allow
Pakistani trucks to come 400 meters inside at Attari. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A
standing committee comprising Pakistani and Indian Customs officials would also
be established to resolve the issues, which need attention of both sides. This
committee would meet after two-month intervals at Wagah and Attari borders for
mutual consultation. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This
initiative of the both governments would not only reduce the cost of bilateral
trade between the countries but would also help save time in transportation
of goods between the two countries. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Both
sides would establish a telephonic link to consult each other in maters that
require immediate resolution for smooth flow of trade on a day-to-day basis
between the two countries. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In
the first stage, trucks up to ten-wheelers would be allowed to cross over to
the other side. Both the sides have also agreed to obviate the need for passports,
visas and international driving licence; a system of computerised single entry
permits would be introduced. These permits, which would be issued in triplicate
by the respective customs authorities, would contain a picture ID of the driver,
his name, address, licence number and details of the vehicle.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
drivers of these trucks would wear bright yellow jackets/vests with "Driver-Pakistan"
inscribed on the back of the Pakistani drivers and "Driver-India" inscribed
on the back of the Indian drivers. As per statement, the operation of trucks
shall take place between 0700-1400 hours PST and 0730-1430 hours IST. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In
case of force majeure, the customs authorities of the two sides at Wagah/Attari
border shall establish hotline contact to workout the modalities for further
action. Officials from both the countries also agreed that the customs authorities
of the two sides would also consult each other to resolve local issues as and
when required. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Pakistan
and Indian customs authorities agreed that the two sides shall open a dedicated
cargo gate towards South-East of the existing Pakistan customs house and South-West
of the existing Indian customs house at the Wagah/Attari border. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A
fenced path shall connect the two customs houses through this gate and upon
completion of this dedicated cargo gate, all cargo traffic shall pass through
it.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We
got this information from Pakistan Customs.</font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Tomorrow
is also Shastri jayanti </b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tomorrow
is the birthday celebration of the father of the Nation; It is also the birthday
of Lal Bahadur Shastri, one of our most humble Prime Ministers. It is rarely
that we remember him, but then humility and high office don't go together these
days. </font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>From
our Legal Corner - Wednesday's cases</b></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b></b></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><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></b></font></strong></font></b></font></strong></font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Income
Tax</b></font></p>
<p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income
from foreign commission - deduction u/s 80-O - both direct as well as indirect
expenses to be considered to work out allowable net income : ITAT</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">INCOME</font> </b>Tax allows deduction u/s 80-O in respect of convertible foreign exchange
received by an assessee. Title to Sec.80-O says 'Deduction in respect of royalties
etc. received from certain foreign enterprises' and the section lays down
that where the gross total income of an Indian Co. consists of income received
from a foreign enterprise or foreign State in consideration for use outside
India of any patent, invention, design or trade mark in convertible foreign
exchange, the same will be allowed deduction under this section at the prescribed
rates. But the moot point is, how is such income to be computed for deduction
purposes which was also the question that came up before the Delhi Bench of
the Tribunal. The bone of contention in this case was <b><font color="#663399">whether only direct
expenses were to be deducted from such income eligible for deduction u/s 80-O
or even indirect expenses</font></b><font color="#663399">?</font> And the Tribunal relying on a Delhi High Court
judgement held that both direct as well as indirect expenses are to be taken
into account for arriving at net foreign income for deduction u/s 80-O.</font></p>
<p align="justify" ><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Service
Tax </b></font></p>
<p align="justify" ><font color="#6633CC" size="2" face="Verdana, Arial, Helvetica, sans-serif">Services
used at site of windmills cannot be held as input services by unit in Jamnagar
- Cenvat Credit not available : Tribunal</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Tribunal while upholding the order of the lower appellate authority observed
- </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If
it is the case of <b><i><font color="#663399">generation of electricity </font></i></b>with the help of the
windmills <b><i><font color="#663399">within the factory premises ,</font></i></b> <font color="#663399"><b><i>there should be
no doubt about extending service tax credit claimed by them </i></b>. </font></font></p>
<p align="justify" ><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Central
Excise </b></font></p>
<p align="justify" ><font color="#6633CC" size="2" face="Verdana, Arial, Helvetica, sans-serif">Applicant
having no faith in appellate system and being mentally disturbed as Commissioner
(A) dismissed his plea for compliance with pre-deposit order knowing that he
was in penury and unit was closed - COD allowed : CESTAT</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
assessee pleaded and poured his heart - he did not have a dime and was a pauper
- there was nothing he could fall back upon, even his unit had closed - right
down to the nucleus! </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Commissioner (A) had his way and the assessee was asked to pre-deposit an amount
of Rs.5 lakhs, nothing more nothing less. The assessee could not and his appeal
was dismissed. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Distraught
he looked up to the heavens & cried. There was no one to hear him.
It seemed that even the Lords had shunned him. For him, the Commissioner(A)
had become the villain - he lost faith in the judicial system, he was mentally
disturbed for he felt that even his suffering in penury could not melt the heart
of the appellate authority.</font></p>
<p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u>See
our columns Wednesday for the judgements</u></b></font></p>
<p align="justify" ><font color="#CC0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#FF6666">Until
day after tomorrow with more DDT</font></font></p>
<p align="justify"><font color="#FF6666"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Have
a nice day.</font></font></p>
<p align="justify"><font color="#FF6666"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail
your comments to</font></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
<a
href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p>
</body>
</html>