TIOL-DDT 775 · 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 775 </font><font face="Verdana, Arial, Helvetica, sans-serif"><br>
04.01.2008 <br>
Friday </font></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income tax – HRD Directorate notified </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The President of India is pleased to give his assent to the constitution of the Directorate of Income Tax, Human Resource Development (HRD), Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, with immediate effect. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The functions of the Directorate are:- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i) To develop and design strategic human resource plans, policies and processes aligned with the goal and vision of the Income Tax Department for ensuring optimal resource mobilisation and delivery of taxpayer services. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ii) To assess and determine the job requirements, job profiles and skills needed for various jobs in the Income Tax Department, and make projections of human resource requirements. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iii) To assist CBDT in designing and implementing policies for systematic career progression, equal opportunity, gender equity, counselling and employee welfare. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iv) To operate a human resource information system by accessing database maintained by CBDT. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">v) To assist CBDT in developing and implementing proper human resource development policies including those relating to recruitment, promotions, performance appraisals, transfers and succession plans. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">vi) To design a scientific and objective performance management system to foster accountability and develop a scientific scheme for linking of rewards to performance. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">vii) To identify training needs, formulate training policies and facilitate skill enhancement, and to coordinate with other educational/training institutions/agencies in India and abroad for training of officers of the Department. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">viii) To foster international co-operation for incorporating administrative best practices in the field of tax administration. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ix) Any other matter which may be specially assigned by the CBDT. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The Notification further stipulates that </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i. The Directorate of Income Tax (HRD) will be headed by a Director General of Income Tax (HRD) who will be an officer of the level of Chief Commissioner of Income Tax and will be located in New Delhi . The Directorate shall have a Director of Income Tax (HRD) who shall be an officer of the rank of Commissioner of Income Tax. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ii. The Directorate of Income Tax (HRD) shall have three divisions of Cadre Management, Performance Management, and Training and Capacity Building . These divisions would be headed by officers of the rank of Additional Commissioners of Income Tax who would perform the functions enclosed as Annexure ‘I'. The divisions shall report to Director of Income Tax (HRD). The functions assigned to the divisions can be amended by the Central Board of Direct Taxes. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iii. The Directorate of Income Tax (HRD) will function under the administrative control of the Director General of Income Tax (HRD) New Delhi . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iv. The Directorate of Income Tax (HRD) shall be an attached office of CBDT and its proposals shall be put up to Director General of Income Tax (HRD), who will put up the same to Member (Personnel), Central Board of Direct Taxes. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">v. The staff requirements of the Directorate of Income Tax (HRD) will be met from within the overall sanctioned strength of the income Tax Department. </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=35&filename=notification/cbdt/2007/it07not292.htm" target="_blank">NOTIFICATION NO. 292/2007, Dated: December 31, 2007 </a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Export to SEZ – no restriction on currency </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per para 5.7.2 of the Handbook of Procedures, <font color="#663399">Export proceeds shall be realised in freely convertible currency except for deemed exports. </font></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the following is added to this para, </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Export to SEZ Units/ Supplies to Developers/Co-developers, irrespective of currency of realization, would also be counted for discharge of Export Obligation. </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=47&filename=notification/dgft/2007/dgft07pn94.htm" target="_blank">DGFT PUBLIC NOTICE NO. 94 (RE-2007) /2004-09, Dated: January 1, 2008 </a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Export
of Sugar to EU - corrigendum </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT PN No. 62(RE-2007)/2004-2009, dated 08.10.2007 allocates a total quantity of 10,000 MTs of White Sugar out of <strong>2006-2007 </strong> season's production for export to EU for the year 2007-2008 (July, 2007 to June, 2008) as under :- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">( i ) 10,000 MTs of White Sugar to EU </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. This refers to HS Code No.1701 00 00 in the Schedule 2 of ITC(HS) Classification of Export & Import Items, 2004-2009 under which M/s. Indian Sugar Exim Corporation Ltd, New Delhi is the designated agency for export of sugar to EU under preferential quota. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>3. As regards Special Certification requirement, entries to be made in document EUR and GSP are as follows : - </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>( i ) Complimentary Sugar (Raw Sugar) </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>“(Application of Regulation (EC) No.950 /2006, Complimentary Sugar. Serial No.09.4315 ).” </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. EUR Form is to be endorsed by Customs at the Port of Shipment and the GSP Certificate by Export Inspection Agency/Directorate general of Foreign Trade. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now in </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Para 1 </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“2006-2007 season's production” <strong>replaced </strong>by “2007-2008 season's production”. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Para 3 </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Para 3 is replaced by the following: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> “3. As regards Special Certification requirement, entries to be made in document EUR and GSP are as follows : - </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“Application of Regulation (EC) No. 950/2006, ACP /India Sugar, Serial No. 09.4337.” </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Similar corrigendum is made to Public Notice No. 61(RE-2007)/2004-2009, dated 08.10.2007 by substituting para 3 as </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“3. As regards Special Certification requirement, entries to be made in document EUR and GSP are as follows : - </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(Application of Regulation (EC) No.950 /2006, Complementary Sugar. Serial No.09.4315 ).” </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=47&filename=notification/dgft/2007/dgft07pn95.htm" target="_blank">DGFT PUBLIC NOTICE NO. 95 and 96 (RE-2007) /2004-09, Dated: January 2, 2008 </a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Import of sandalwood - procedure </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Import of Sandal Wood under Exim Code No. 44039922 will be restricted and subject to a ceiling of 5,000 cum in each licensing year. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Imports will be permitted only against an Import Licence issued by the Directorate General of Foreign Trade. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. The Import Licence shall be issued in consultation with the Ministry of Environment and Forest . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. The ceiling of Sandal Wood for each financial year will be monitored by the Ministry of Environment and Forest to ensure that it is not exceeded. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. The licence will be valid for a period of one year from the date of issue. No further revalidation of such licence shall be allowed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Procedure for obtaining licence: </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Applicant will submit the application in the Aayaat Niryaat Form to the DGFT (Headquarters office), Udyog Bhawan , New Delhi – 110 011. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) The applicant will be required to declare the quantity of sandalwood and their specifications to be imported species-wise, quantity-wise and the country from which it is to be imported. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) The purpose of import must be specified. If the importer is having sandalwood – based unit, it must be legally established and registered with the concerned State / UT Forest Department. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) In case the importer is a trader not having his own sandalwood based unit, the past performance and antecedents must be given for necessary verification. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(v) Utilisation Certificate specifying the details and necessary ‘Transit Permit' regarding the earlier import must be specified by the applicant, for seeking permission for import of sandalwood second time </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Before clearance of the import consignment, the customs authorities are required to verify the following documents. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) The ‘Certificate of Origin' from the country of export; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) The necessary phytosanitary certificate; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) A certificate from the Government authorities of country of export stating that export of sandalwood is legally permitted from the concerned country. </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=46&filename=notification/dgft/2007/dgft07cir023.htm" target="_blank">DGFT POLICY CIRCULAR NO. 23 (RE-2007)/ 2004-09, Dated: December 31, 2007 </a></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Jurispruden</font> <font color="#FF6633" size="5">tiol </font> – <font color="#006600">Monday's cases </font></strong></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Rules relating to provisional assessment of duty does not envisage passing of an order in writing before clearance of the goods: Bombay HC </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">FOR want of a nail, the battle was lost! Here is a case where an assessee ended up paying more than a Crore of rupees as excise duty, more than a decade ago, for the simple sin of executing a B-13 bond for provisional assessment. Had the assessments not been treated as provisional, there would have been no demand at all. The High Court held that there was no requirement of an order for provisional assessment, though the <strong><font color="#FF6633">CBEC had categorically stated that an order was very much required and this was binding on Revenue but unfortunately this circular seems to have not been brought to the notice of the Court. </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">FTP - 'Denied Entities List' – including the name in the list has civil consequences and cannot be done without notice and hearing : Bombay HC </font></strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <font color="#FF6633">per the guidelines for maintaining the 'Denied Entities List', </font></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">"Instances have come to the notice when external agencies such as DRI , CBI , ED etc request for information in connection with some investigations or sometimes recommend licensing authorities to withold further licencing facilities to the firms under investigation. In such cases, if routine information has been called for, the same should be provided. If recommendations to suspend/cancel licenses are also contained in the communication then the information supplied should be adequately examined from the point of view denial of benefits under the Rules/Act. If evidence is found to be insufficient, agencies may be informed that more evidence will be needed before denial of the benefits can be pronounced under the Rules/Acts and will mention the reasons why the licensing authority thinks that there is no sufficient evidence to invoke rules relating to the refusal of license. If external agencies have supplied evidence to the satisfaction of the licensing authority, he shall place the firm in the DEL after issuing a speaking order against the erring firm without disclosing the source of information in the denial order." </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In this case before the High Court, the petitioner's name was entered in the 'Denied Entities List' under rule 7 of the Foreign Trade Regulation Rules, 1993. The effect of the name appearing in the 'Denied Entities List' has civil consequences. They were also not given an opportunity of being heard before their name was entered in the 'Denied Entities List.' </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income tax/ Settlement </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Settlement Commission – mandatory payment of interest - new provisions challenged - rights of citizens cannot be trampled over by Government, under the banner of speedy justice : Delhi HC </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The new provisions of Settlement Commission brought in by last year's budget are under challenge. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The consequence of non-disposal of the pending settlement applications by the Commission is that a large number of them will abate and the applicants will have to face regular assessment on the basis of material that they have disclosed in confidence along with their settlement applications. This will, no doubt, seriously prejudice the applicants but the Respondents do not seem to be concerned about it. <strong><font color="#FF6633">The noble intention of Parliament is sought to be defeated by the Respondents by frustrating the implementation of the law, without actually saying so </font></strong><font color="#FF6633">. <strong>Is this what speedy justice is all about? It is in this context that we say that the rights of citizens cannot be trampled over by the Respondents, under the banner of speedy justice. </strong></font></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our columns Monday for the judgements </strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more DDT </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="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></font></p>
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