TIOL-DDT 795 · 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 795 </font><font size="3" face="Verdana, Arial, Helvetica, sans-serif"></font><font face="Verdana, Arial, Helvetica, sans-serif"><br>
01.02.2008 <br>
Friday </font></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Trinamool Court - Gram Nyayalayas </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">No, this has nothing to do with Madam Mamta Banerjee ; it's all about rural justice. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A daylong conference of Law Ministers, Law Secretaries of states and Registrars General of High Courts is being held today to discuss the establishment of Gram Nyayalayas in the country. Organised by the Ministry of Law and Justice, the conference will be chaired by the Union Minister of Law & Justice, Dr. H.R.Bhardwaj . The conference would also deliberate on other related matters like time frame and financial arrangements for the setting up of Gram Nyayalayas . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The main objectives of the Gram Nyayalayas Bill, 2007:- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a) To provide speedy, affordable and substantive justice to the poor at grass root level in the rural areas at their doorstep. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) Gram Nyayalaya will act as Subordinate Court at Intermediate Panchayat level. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c) The Gram Nyayalayas so established will be in addition to the civil and criminal courts established under any other law for the time being in force. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">d) The Central Government will bear all the non-recurring expenditure for setting up of the Gram Nyayalayas and will bear half of the recurring expenditure for three years after setting up of the Gram Nyayalayas . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">e) The Gram Nyayalayas will be empowered to deal with both criminal cases as well as civil cases as per the procedure laid down in the Gram Nyayalayas Bill, 2007. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Morbi tiles and morbid tales </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This Monday, we reported the DGCEI case on tile manufacturers in Morbi and the attack on DGCEI officers. We understand that the DGCEI chief was on an enquiry trip and has come up with some startling revelations about the local Central Excise officers tiled up with the evaders . It seems that the local Central Excise officers are not happy with the tiles trade who has coughed up Rs. 6 Crores under DGCEI pressure. The tax evaders are going to have a tough time but so are the officers who are said to be part of the scam; we hear that the DGCEI report is damning – to many officers and the North Block top brass, including the big boss is aware of the situation. True, internal vigilance is always better than an outside agency scalping a few heads! </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Foreign posting – CBEC all ready to mess up again? </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Some time back we had carried the story of how CBEC messed up recommending a name for a top slot in the World Customs Organisation. Without even circulating the details, the CBEC almost got the Revenue Secretary to forward a name. When we pointed out that no names were called for, a quick damage control exercise was done and CBEC quickly called for names and finally sent two names ( WCO wanted only one name) after the WCO had finalized the appointment – telling the world that the Indian Customs is not capable of sending a name and that too on time! When it comes to the prestige of the nation, the CBEC had been working overtime to ensure that it is always down. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Chairman, CBEC who is to retire soon had created a name for himself in trying to collect huge revenue from pan masala units, has somehow been not exactly successful on the foreign posting front. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now there is a vacancy for the post of Minister (Customs) in the WTO wing at Geneva . We are told that the Chairman has already recommended a couple of names and the file is already with the Revenue Secretary. But the Board (other than the Chairman that is) is not aware of this. There seems to be no selection, let alone a selection committee. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Even if justice is not done, it should at least appear to be done. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Internet down – we are helpless </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We request our esteemed Netizens to understand our plight due to the disruption in internet. With much difficulty, we are able to provide some basic services and due to no fault of ours, we may not be able to provide you with all the usual services. Please bear with us. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We are told that VSNL , Reliance and Bharti Airtel are in constant touch with Telecom Egypt to ensure the speedy repair of the SEMEWE -4 Cable ( SMW -4) and FLAG Cable connecting India to Western Europe . Normally repair of such type of submarine optical fibre cable takes 15 days time for restoration, however, it is expected that the links will be completely restored by the ILD operators within 10 days by expediting the repair of cables. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The disorder occurred near Alexandria off the coast of Egypt day before yesterday. The International long distance traffic and Internet traffic to Europe and USA has got affected due to this fault. Besides India , traffic of other countries is also affected. The circuits working on these cables are being shifted by the International Long Distance operators VSNL , Reliance and Bharti Airtel Ltd., to other cables such as SMW -3 cable and pacific route cables etc. to restore the telecommunication links. Out of total links working on these cables, approximately 30 percent links are restored and efforts are being made on war-footing for providing alternate path to remaining links. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Till then W e W ill W ait. – www . </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Deny leave and get shot! </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An Additional DIG of the CRPF was shot dead in Hyderabad yesterday, by a constable – for denying him leave – it is really difficult to be an officer. </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><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>Income Tax </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax - damages paid for non-fulfilment of contractual obligations - allowable expenditure - But, any sum paid for infraction of law, not allowable under Sec 37(1 ) : High Court Larger Bench </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ANY
business is a tricky ' business ' for its doers ! It is tricky because of
the presence of many parameters beyond the control of the doers. Under such
circumstances, what is to be treated as normal expenditure of business is
the sum of compensation which a business-doer has to incur as expenditure
for paying damages in case of non-fulfilment of certain obligations under
a contract. Now, the major question is whether such an expenditure can be
treated as wholly and exclusively for the purposes of business as mandated
by the provision of the Sec 37(1) of the Income Tax Act? Since there were
two conflicting views on this issue, the matter was handled by the Larger
Bench which has now lucidly and explicitly held that the word ' wholly '
in the Section 37 refers to the quantum of expenditure whereas the word 'exclusively'
refers to the motive and objective of the expenditure. The expression 'wholly
and exclusively' does not connote 'necessarily'. For instance, if a sum is
spent to promote the business for earning profits, deduction is allowable
even though it was not compelling or necessary for the assessee to incur
such an expenditure. Therefore, what is important for the test of allowability
of an expenditure as a deduction is whether an expenditure has been incurred
with the sole motive of furthering the business interest unalloyed with any
other consideration and such an expenditure was legitimised by commercial
expediency. </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>Bail is the rule; Jail is the exception.- Investigation to be complete within sixty days; If not completed, the accused has a statutory right to be released on bail: Even within the period, it is not necessary that he must perforce languish in jail: Personal liberty of a citizen is a Fundamental Right - High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court has reiterated some noble concepts on a citizen's liberty. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the criminal jurisprudence prevailing in all common law countries, every person is presumed to be innocent until proved to the contrary. The consequence that logically follows is that an accused ought not to be detained or imprisoned, that the personal liberty even of an accused should not be interfered with, until he is convicted by due process of law. Several offences are notified as being bailable and even in the remainder, that is non- bailable offences, the accused can be enlarged on bail by orders of the Court. Bail is the rule; Jail is the exception. This is what Sections 437/439 of the Cr. PC in terms postulate, viz. that when any person accused of or suspected of the commission of any non- bailable offence is arrested or detained he may be released on bail. However, an exception has simultaneously been prescribed, namely, that such a person shall not be so released unless it appears to the Court, on reasonable grounds, that he has been guilty of an offence punishable with death or imprisonment for life. </font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Quantity discount if not passed to dealers includible in Assessable value - DGCEI wins VIP case before Tribunal </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE appellant is engaged in the manufacture of plastic moulded furniture products, soft/hard luggage etc. & were selling their goods from their factory gate directly to dealers as well as through their regional depots. Investigations were carried out by the DGCEI , which revealed that the appellants have claimed uniform discount of 12% while clearing the goods from the factory. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A show cause notice was issued stating that as per the Charted Accountant certificate submitted by the appellant an amount of Rs.4,10,78,053.00 which was claimed as discount for the period 1.5.1996 to 30.6.2000 as quantity discount was not passed on to the dealers and accordingly duty amounting to Rs.74,82,028 /- was demanded. In adjudication, on the basis of revised CA certificate, the actual amount of quantity discount was arrived at and accordingly the duty of Rs.55 ,08,651 /- was held payable. </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><font color="#FF6666"></font></p>
<p align="justify"><font color="#FF6666"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"></font></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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