TIOL-DDT 774 · the untouched capture
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<p><font size="2"><strong><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 774 </font><font size="3" face="Verdana, Arial, Helvetica, sans-serif"></font><font face="Verdana, Arial, Helvetica, sans-serif"><br>
03.01.2008 <br>
Thursday </font></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Delay in filing appeals – Income Tax Department rapped by Bombay High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court used to condone delays up to 200 days considering the administrative difficulties of the Department. Since December, 2005 the files are no longer sent to the Law Ministry and the Appeals have to be drafted in Mumbai itself. The High Court therefore found no reason as to why the same latitude should now be shown to condone long delay in preferring the Appeal if otherwise there is no sufficient cause. This exercise was also partly resorted to, considering that over one thousand and five hundred Notice of Motions were pending and in respect of Appeals right from 2001 onwards. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court had to balance the right of the assessee in whose favour a right accrues. At the same time the Court also had to consider the adverse effect on the Revenue if these Appeals are dismissed. The Court did a statistical exercise and found that practically in every Appeal (about 2700 Appeals) there is a Motion for condonation of delay. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The main reasons for delay are </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) the failure by the Officers of Revenue to process the files in time </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) the time taken to draft the Appeals including by Advocates of the Department and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) Non-availability of stamp papers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court wondered why the file should not be processed within sixty days. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the instant case before it, the Court ordered;- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) the delay of 202 days is condoned subject to the Appellants paying to the Respondents costs quantified at Rs.2,500 /- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) The said costs to be recovered from the officers responsible for the delay. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) We see no reason why the State should be burdened with the costs. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) It is essential that these observations are complied with and Officers responsible for delay in preferring Appeals, must be held accountable. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(e) A copy of this order be forwarded to the Chairman of Central Board of Direct Taxes for necessary action. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Now what is going to happen? </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Does the High Court believe that appeals will now be filed on time? No chance! Most probably the copy of the High Court order that is marked to the Chairman will not be read by the Chairman. In the unlikely event of his reading it, he will mark it to some Member who will mark it to all CCs who will mark it all Commissioners, who will mark it to their subordinates and it will reach an Inspector who cannot mark it further. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As for the Rs. 2500/- to be paid by the officers responsible for the delay, 2500 officers will be identified and then it will be proved that not one of them could be personally held responsible. During that time, there was a visit by the Minister, a Parliamentary Committee, the Chairman, there were frequent power cuts, the Xerox machine was not working, the office building was shifted, the officer concerned was transferred and the new incumbent was on leave, the file was missing, clarifications were being sought from the Board, the standing Counsel was not co-operating and ………………………… </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And so the appeal could not be filed on time and nobody is really responsible for the lapse – file closed! </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=53&filename=legal/hc/2008/2008-TIOL-10-HC-MUM-IT.htm" target="_blank">2008-TIOL-10-HC-MUM-IT</a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Anti Dumping Duty on Flat base Steel Wheels </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The provisional anti dumping duty on Flat base Steel Wheels originating in, or exported from, the People's Republic of China was imposed by Notification No. 51/2007–CUSTOMS, dated the 29 th March, 2007 . Now on the recommendation of the Designated Authority, the Government has imposed definitive anti dumping duty on the product from the date of imposition of the provisional anti-dumping duty, that is, the 29 th March, 2007. </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=23&filename=notification/custom/2007/ctariff07_124.htm" target="_blank">NOTIFICATION NO. 124 /2007- Cus ., Dated: December 31, 2007 </a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Anti Dumping Duty on Mulberry Raw silk – JIT extension </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The anti dumping duty on Mulberry Raw Silk originating in, or exported from the People's Republic of China, imposed vide notification No.106 /2003-Customs was to expire on 1.1.2008. The government woke up Just In Time and extended it till 1.1.2009 </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=23&filename=notification/custom/2008/ctariff08_001.htm" target="_blank">NOTIFICATION NO. 1 /2008- Cus ., Dated: January 1, 2008 </a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Imports under SAFTA – duty reduced </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Duty on imports of several goods under South Asian Free Trade Area Agreement has been reduced by amending Notification no. 67/2006-Customs, dated the 30th June, 2006 </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=23&filename=notification/custom/2007/ctariff07_125.htm" target="_blank">NOTIFICATION NO. 125 /2007- Cus ., Dated: December 31, 2007 </a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SAFTA – free import of textiles </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Textiles and textile articles imported from People's Republic of Bangladesh , Kingdom of Bhutan , Republic of Maldives and Nepal will now attract nil rate of customs duty. </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=23&filename=notification/custom/2007/ctariff07_126.htm" target="_blank">NOTIFICATION NO. 126 /2007- Cus ., Dated: December 31, 2007 </a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Jurispruden <font color="#FF6633" size="5">tiol</font> – Tomorrow's cases </strong></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><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></b></font></b></font></b></font></b></font></strong></font></strong></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">warehouse keeper not liable to pay Customs duty - right of warehouse keeper to recover warehousing charges from sale proceeds appears superior to right of Revenue to recover customs duty – Refund ordered with interest and costs : Delhi HC </font></strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Petitioner has a warehouse in Faridabad , Haryana. On 1st March, 2001 certain garments imported by M/s. Kushang Apparels were warehoused in the petitioner's warehouse. Despite the warehouse period, in terms of Section 61 of the Customs Act, expiring on 28th February, 2002 the customs authorities did not initiate action under Section 72 of the Act requiring the owner to pay the customs duty failing which the goods could be sold to recover the customs duty. Meanwhile, the petitioner, acting under Section 63(2) of the Act, sought to put the goods to sale by way of auction. After four failed attempts at getting the minimum value price fixed by the customs authorities, the goods were finally sold by auction with the consent of the customs authorities on 31st August, 2004 The amount recovered by way of auction was Rs.41,44,555 /-. According to the petitioner, he spent an amount of Rs.2 ,05,329 /- on the auction and this was deducted by him from the sum recovered in the auction. </font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>the right of the petitioner here to recover the warehousing charges from the sale proceeds appears superior to the right of the Revenue to recover customs duty. </strong></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Proceedings in search cases cannot be used as an opportunity to either reopen concluded assessment or to reassess returned income : ITAT </strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">THE</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"></font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> facts
of the case are on a Search & seizure operations carried out at the business
premises of the assessee company on 18-3-02, in a notice u/s 158BC of the
I.T. Act, 1961, served on the assessee it was alleged that the assessee that a
sum of Rs.54,45,000 /- which was received by the assessee from its sister
concern M/s PMC Entertainment Pvt. Ltd, as application money was nothing
but the assessee company's own money which was brought into the books in
the garb of application money and the whole transaction was managed,
sham and was a deliberate arrangement to subvert the interest of revenue. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Writ jurisdiction </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Cause for action arose in Mumbai - Impugned order passed in Delhi - Petitioner has an equally efficacious remedy in Mumbai HC - writ dismissed in Delhi High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">THE</font></strong> challenge in this writ petition is to an order passed by the Additional Director General of Foreign Trade ( ADGFT ), New Delhi remanding the case back to the to the JDGFT , Mumbai for de novo consideration. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Court raised an initial objection to the maintainability of this writ in
Delhi High Court since the proceedings emanated from the order passed by
the JDGFT , Mumbai. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Petitioner submits that this Court and only this Court, has jurisdiction to deal with this matter as the impugned order was passed in Delhi , only this Court has the territorial jurisdiction to hear and decide this petition. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Court did not agree. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our columns Tomorrow for the judgements </strong></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>
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