TIOL-DDT 740 · 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 class=MsoNormal><font face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT 740</font><font size="2"><br> 14.11.2007<br> Wednesday</font></b> </font></p> <p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">New CT-3 form – old wine in old bottle, but why? </font></b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2007/excircular851.htm" target="_blank">CIRCULAR NO. 851/9/2007-CX., Dated: <st1:date ls="trans" Month="5" Day="3" Year="2007" w:st="on">May 3</a>, 2007, the Board had made life miserable for the EOUs procuring raw materials from the domestic market. Please see DDT 606 - 04.05.2007<b>. </b>Now the Board has amended the circular to prescribe a new CT-3 as annexure A to the Circular instead of as Annexure VI to the notification. </font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Does it serve any purpose other than confusing your stakeholders? </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=31&filename=notification/excise/2007/excircular859.htm" target="_blank">CBEC <u>CIRCULAR NO. 859/17/2007-CX., dated <st1:date ls="trans" Month="11" Day="13" Year="2007" w:st="on">November 13, 2007</u></a></font></p> <p align="center" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Export of pulses – bar not to apply to Nepal</font></b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The DGFT has notified that the prohibition of exports of spices will not apply to export of 178.70 tonnes of pulses to <st1:country-region w:st="on"><st1:place w:st="on">Nepal</st1:country-region> by MMTC </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=45&filename=notification/dgft/2007/dgft07not047.htm" target="_blank">NOTIFICATION NO. 47 (RE-07)/2004-2009 dated <st1:date ls="trans" Month="11" Day="12" Year="2007" w:st="on">November 12, 2007</a></font></p> <p align="center" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Export – personal baggage – Now Government servants can carry their pickle or namkeen, but don't share it</font></b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per para 2.31 of the Foreign Trade Policy,</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Bonafide personal baggage may be exported either along with passenger or, if unaccompanied, within one year before or after passenger's departure from <st1:country-region w:st="on"><st1:place w:st="on">India</st1:country-region>. However, items mentioned as restricted in ITC (HS) shall require an Authorisation.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the DGFT has added that “Government of India officials proceeding abroad on official postings shall, however, be permitted to carry along with their personal baggage, food items (free, restricted or prohibited) strictly for their personal consumption.”</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What happens if they share the pickle with a foreign friend? Are they required to give a certificate that the food items have been strictly and totally consumed by them and not shared with any one else, Indian or foreign?</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=45&filename=notification/dgft/2007/dgft07not048.htm" target="_blank">NOTIFICATION NO. 48 (RE-2007)/2004-2009 dated the 12th November, 2007</a></font></p> <p align="center" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">SEVOTTAM IN THE INCOME TAX DEPARTMENT</font></b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Scheme of Sevottam has three modules :</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Implementation, monitoring and review of Citizens Charter;</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Creation of effective Grievance redressal mechanism; and</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) Capacity building for excellence in Service Delivery.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Keeping in view the various requirements for achieving service delivery excellence as per <st1:stockticker w:st="on">ISO:15700/2006 standards the ‘Blueprint' for implementation of Sevottam in Income Tax Department was formulated.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As regards requirement of implementation and review of Citizens Charter, the CBDT had constituted a Citizens Charter review committee headed by Member(R). The Charter was developed after involving different stake holders. With a view to elicit the response from stake holders, representatives from ASSOCHAM, FICCI, ICAI, CII and Bar Council and employee unions were associated in the process. Their inputs were also incorporated in the revised Citizens Charter. The Citizens' Charter has since been finalized.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In order to effectively implement the Grievance redressal mechanism it had been decided to establish a Centralised Dak Receipt system in each building. </font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This dak receipt counter will be on networked computers. This will capture the filing of the papers electronically and provide real-time information to the officers, and a tracking mechanism for supervisory authorities.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All the offices located in a particular building will receive their dak centrally and thereafter the dak will be electronically and physically transferred in the building.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This dak receipt system will also provide for classification of petitions filed by the taxpayers into different categories in accordance with the Charter commitments, grievances etc. The petitions filed by the tax payers will be disposed of within the time lines indicated in the Citizens Charter.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In order to implement the scheme, a detailed process report was prepared and the same was approved by the Board . Steps were also initiated for development of the software for the purpose.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In view of the large geographical and numerical spread of offices throughout <st1:country-region w:st="on">India</st1:country-region>, the Blueprint for implementation of Sevottam also suggested a pilot run at <st1:PersonName w:st="on"><st2:GivenName w:st="on">Aayakar</st2:GivenName> <st2:Sn w:st="on">Bhavan</st2:Sn>, Mumbai and <st1:City w:st="on"><st1:place w:st="on">Udaipur. These two stations were selected with a view to test the system in a metro and a non-metro city. It was decided that after the pilot run is successfully commissioned, the system will be replicated throughout the country.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This module would also work as an effective Grievance Redressal Mechanism.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In order to effectively implement Sevottam Scheme in the Income Tax Dept., and to create awareness in this regard throughout the country, the Blueprint was circulated to all the CCsIT. For the purpose of capacity building for excellence in Service Delivery, the CCsIT have been requested to identify suitable locations for the centralised dak counter which have been named as Tax Payers Service Centres. These will have proper waiting place, furniture, drinking water facility etc.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">These dak counters will be equipped with adequate number of <st1:stockticker w:st="on">LAN enabled PCs. It is also proposed to provide suitable training to the staff who will be manning the Tax Payer Service Centres. The CCsIT have also been requested to identify and locally implement other capacity building measures to enable excellence in Service Delivery.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Pilot run for validating the software and systems issues for running the Tax Payer Service Centres at Mumbai and <st1:City w:st="on"><st1:place w:st="on">Udaipur has already commenced after software development, installation of hardware, networking and training of the personnel and concerned officers. Subsequent to the Pilot run, the system would be replicated in all the buildings of the Income-tax Department. Phased preparatory activity for setting of Taxpayer Service Centres and sensitization of the personnel to Sevottam at other centres has also commenced.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">90% of the problems of the Department – and this includes CBEC – can be solved if there is a proper tracking of the Dak. In most of the offices, the correspondence section is headed by an almost illiterate peon promoted clerk!</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Isn't it time that all correspondence is only through e-mails?</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><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><strong><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></strong></b></font></b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#FF3366">Customs</font></b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#FF9966">Assessee from <st1:City w:st="on">Chandigarh - Original order passed by Customs Commissioner, Mumbai – appellate order passed by CESTAT, <st1:City w:st="on"><st1:place w:st="on">Delhi – which High Court has jurisdiction? no person should be left without a remedy- Supreme Court</font></b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The adjudication orde was passed by the Commissioner of Customs (<st1:PersonName w:st="on"><st2:GivenName w:st="on">EP</st2:GivenName> <st2:Sn w:st="on">Mumbai</st2:Sn>) and the appeal against that order was adjudicated by CESTAT. Against the order of CESTAT, Appeal was filed before the Delhi High Court. Prima facie, the High Court was of the view that the appeal was not maintainable before it and, therefore, the appellant withdrew the said appeal to file it before the appropriate High Court. Since the cause of action arose at <st1:City w:st="on">Chandigarh it was submitted that the <st1:place w:st="on">Punjab and Haryana High Court has jurisdiction. The P&H High Court held that it had no jurisdiction to deal with the matter as the original order was passed by Adjudicating authority at Mumbai and the appellate order was passed at <st1:place w:st="on"><st1:City w:st="on">Delhi by the CESTAT.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now where does the assessee go? There has to be a remedy, but please wait till tomorrow to know what it is. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><st1:stockticker w:st="on"><b><font color="#FF9966">DRI</font></b><font color="#FF9966"><b> files complaint in wrong court - Customs offence case filed in wrong court can continue in right court : Delhi HC</b></font></font></p> <p align="justify" ><font color="#FF9966" size="2" face="Verdana, Arial, Helvetica, sans-serif"><st1:stockticker w:st="on"><strong>DRI intercepted vehicles outside <st1:City w:st="on">Delhi, brought the vehicles and goods and the accused to its <st1:Street w:st="on"><st1:address w:st="on">Lodhi Road office and filed complaints against them before the Metropolitan magistrate at <st1:City w:st="on"><st1:place w:st="on">Delhi. After ten years of trial, a plea was raised that the <st1:City w:st="on">Delhi magistrate has no jurisdiction to try the cases as no part of cause of action accrued at <st1:City w:st="on"><st1:place w:st="on">Delhi. The magistrate agreed and returned the complaints to the <st1:stockticker w:st="on">DRI to file it in the competent court.</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#FF3366">Income Tax</font></b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#FF9966">Can Tribunal re-hear a matter on which oral orders have already been pronounced? - loss in trading of shares was a speculation loss : ITAT</font></b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Tribunal noted the decisions of the Supreme Court had held that unless the order of the Bench was signed by all Members constituting it and was dated, it was not an order of the Tribunal. It was also observed that the signed and dated order had to be communicated both to the assessee and to the Commissioner.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#FF3366">Central Excise </font></b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#FF9966">Exporter gets garments manufactured on job work - entitled to CENVAT credit and as goods exported are entitled to refund of unutilized credit</font></b></font></p> <p align="justify" ><font color="#FF9966" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>THE </b></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">appellants are engaged in the manufacture and export of garments, which became dutiable with effect from 01.04.2003. They had got certain quantity of garments manufactured at the premises of M/s. Celebrity Fashions Ltd. (CFL, for short) by supplying the raw material (fabric) to them during the period August, 2003 to March, 2004 when the garments were dutiable. The appellants and M/s. CFL are family concerns. The practice which was prevalent during the material period was that M/s. CFL would procure raw material in the name of their sister units including the appellants and allocate these goods to such units depending upon their export quota as determined by the Textile Committee. In the case of the appellants, a major part of the quantity of fabric procured by M/s. CFL in the name of the appellants were retained by them for job work and the balance quantity was supplied to the appellants for conversion to garments. The quantity of fabrics retained by M/s. CFL for conversion into garments as job work for the appellants constitutes the subject-matter of this case. The garments so manufactured by M/s. CFL as job worker for the appellants were cleared for export in the name of the appellants.</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>