TIOL-DDT 813 · the untouched capture
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<p><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 813 </font><font size="3"></font><font size="2"><br>
27.02.2008 <br>
Wednesday </font></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Short selling and securities lending and borrowing – is STT applicable? – CBDT clarifies </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Securities and Exchange Board of India (SEBI) vide circular No.- MRD /DoP/SE/Dep/Cir14/2007 dated 20/12/2007, has decided to permit all classes of investors (individuals, institutional, etc.) to short sell. The SEBI circular stated that: </font></p>
<blockquote>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Pursuant to the recommendations of the Secondary Market Advisory Committee (SMAC) of SEBI and the decision of the SEBI Board, it has been decided to permit all classes of investors to short sell subject to the broad framework. </font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">2. In order to provide a mechanism for borrowing of securities to enable settlement of securities sold short, it has also been decided to put in place a full-fledged securities lending and borrowing ( SLB ) scheme for all market participants in the Indian securities market under the over-all framework of “Securities Lending Scheme, 1997” of SEBI specified by SEBI vide circular No. SMD /POLICY/SL/ CIR -09/97 dated May 07, 1997 . </font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">3. The Stock Exchanges shall issue the necessary guidelines in this regard and shall put in place systems to operationalise the above mechanisms for short selling and SLB . The stock exchanges shall also ensure that all appropriate trading and settlement practices as well as surveillance and risk containment measures, etc. are made applicable and implemented in this regard. </font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">4. The Stock Exchanges and the Depositories are advised to put necessary systems in place so as to distinguish the lending and borrowing transactions executed in the framework specified in the annexure from the normal market transactions in the demat system. </font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">5. The date of implementation of this circular will be communicated by SEBI subsequently. </font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">6. The Stock Exchanges and the Depositories are also advised to :</font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"> 6.1. test the necessary software/systems and remove any glitches in its operation well before the commencement date to avoid any problems in the live environment.</font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">6.2. make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision.</font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"> 6.3. bring the provisions of this circular to the notice of the member brokers/clearing members, depository participants and also disseminate the same on their website. </font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">6.4. communicate to SEBI, the status of the implementation of the provisions of this circular in the Monthly Development Report. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now this has raised certain taxation questions:- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Whether the lending/borrowing of securities under the Securities Lending Scheme will amount to “transfer” under clause (47) of section 2 of the Income-tax Act (Act) in the hands of the lender? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Whether lending/borrowings of the securities will be subjected to securities transaction tax ( STT )? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBDT has clarified the issue as:- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The Lending and Borrowing of Securities under the new scheme notified by SEBI vide circular No.- MRD /DoP/SE/Dep/Cir-14/2007 dated 20/12/2007 is in accordance with the overall framework of the Securities lending Scheme of 1997. Accordingly, the provisions of Section 47(xv) of the Act will be equally applicable in respect of the transactions under the new Scheme. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Securities Transaction Tax ( STT ) is levied on purchase or sale of an equity share, unit and derivative, under such circumstances as specified in section 98 of the Finance (No.2) Act, 2004. The transactions in the nature of lending and borrowing under the new Scheme do not fall within the scope of section 98 to the Finance (No.2) Act, 2004. </font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Therefore,
the transactions of lending and borrowing are not liable to securities
transaction tax (STT ). </strong></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=36&filename=notification/cbdt/2008/it08cir02.htm" target="_blank">CBDT CIRCULAR NO. 2/2008 dated February 22, 2008 </a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Benign Assessment Procedure for assessees engaged in diamond manufacturing and/or trading. </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The FM had announced in his Budget Speech on 28.2.2007 a ‘Benign Assessment Procedure', in the case of assessees engaged in diamond business. The procedure is:- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A. The procedure will apply to assessees engaged in the business of manufacturing and/or trading of diamonds. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">B. If an assessee has shown a sum equal to or higher than 6% of his total turnover from such business as his income under the head 'profits and gains of business or profession' for a particular assessment year, the Assessing Officer shall accept his trading results. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">C. (i) The assessee shall be required to maintain separate books of accounts of such business. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Acceptance of profit at 6% or above as per para (B) for a particular assessment year will not be a precedent for that assessee or for any other assessee. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">D. The procedure shall not apply to an assessee for an assessment year - </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Where assessment is being made pursuant to a - </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i. search and seizure action under section 132; or </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ii requisition made under section 132A; or </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iii survey action 133A. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Where 50 per cent or more of the income from such business of an assessee is claimed as deduction under Chapter-III or under Chapter VI-A of the Income-tax Act. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Where there is information regarding escapement of income. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">E. The rate of profit as a percentage of turnover would be reviewed annually on the basis of revenue generation and results of scrutiny assessments, searches and surveys made during the year. </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=67&filename=notification/cbdt/2008/instruct0802.htm" target="_blank">CBDT INSTRUCTION NO. 2/2008 dated February 22, 2008 </a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IPS – Indian Porter Service - Porter is now gang man – Lalu's gift to the red shirts. </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"><strong><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"><strong><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"><strong><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"><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"><strong><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"><strong><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"><strong><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"><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/PORTERS1.jpg" alt="Legal Corner Icon" width="250" height="185" hspace="5" border="0" align="left"></b></strong></b></font></b></font></b></font></b></font></b></font></b></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></b></font></b></font></b></font></b></font></b></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Immediately after Kerala was declared a hundred percent literate state, I landed up in Ernakulam (Kerala) with my wife. As we hired a porter to carry our luggage out of the station, my wife, a teacher wondered whether this porter was literate. I asked this porter if he could arrange reservation for our return journey. He said, “sure” and asked for our names which he wrote down in beautiful English, much better than my wife or I could have ever done. I told my wife, “he is not only literate, his English writing is much better than ours”. You can't miss them at any railway station, the red shirted porter. Many of us believe that the porter is a mercenary out to rob us, but after all he carries your luggage across several platforms and rail bridges, fort a small fee. When you bargain with him and fail and decide to carry your luggage yourself, you realise you can't do it yourself and finally hire him for the same fee he asked in the beginning or a little more. The porter is as old as the Railways itself. Even Abraham Lincoln is said to have worked as a porter! These red shirts who look like card carrying members of the Communist party had never got any benefits from the REDS and it is now our native Laloo Yadav who has come to their rescue. These porters are now to be government servants – they may refuse to carry your luggage now, but one section of the downtrodden masses is upgraded. The porter knows the station inside out and would be a great asset to the Station Master. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Will the elite PC emulate the rustic Laloo? There are a large number of contingent employees working in the Customs and Central Excise Department for more than two decades hoping that one day their services will be regularised and they can also take rest like the rest of the employees of the Department. Will PC do something for them? </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBI arrests Income Tax Assistant Commissioner and CA </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Central Bureau of Investigation yesterday arrested an Assistant Commissioner of Income Tax posted at Indore and a Chartered Accountant for demanding and accepting a bribe of Rupees nine lakhs from a complainant. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The complainant, proprietor of a private firm at Indore , lodged a complaint with CBI that the accused official had demanded bribe of Rs. nine lakhs from him for showing official favour to him regarding settlement of Income Tax after survey, which was conducted by the accused persons. After registering the case against the accused Assistant Commissioner and an Income Tax Officer, CBI laid a trap. The Chartered Accountant was caught red-handed while demanding and accepting the bribe of Rs. nine lakhs from the complainant on behalf of the Assistant Commissioner. </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">– Tomorrow ' s cases </font><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"><strong><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"><strong><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"><strong><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"><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"><strong><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"><strong><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"><strong><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"><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></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></b></font></b></font></b></font></b></font></b></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></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 size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">Mesne profits paid for deprivation of use of property by legal owner are capital receipts, not chargeable to tax; Since interest payment is also related to mesne profits, it is also capital in nature, rules ITAT Five-Member Special Bench </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"> contentious
issue before the Five-Member Special Bench was <strong> : <font color="#FF6633">Whether
in the light of the Apex Court decision in the case P. Mariappa Gounder </font></strong><font size="1">( </font></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=37&filename=legal/sc/2002/2002-TIOL-600-SC-IT.htm"><strong>2002-TIOL-600-SC-IT</strong></a></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font size="1"> )</font><font color="#FF6633"><strong>,
the mesne profit received by the assessee is revenue income chargeable to
tax?</strong></font> What is mesne profit? It is compensation or damages
paid to the lawful owner of a property for wrongful possession. In other
words, it is the sum received against unlawful possession of a property by
the legal owner. <strong> <font color="#FF6633">And the verdict has gone
against the Revenue which industriously argued to establish that such compensation
is revenue receipt. But having considered a large swathe of judicial decisions,
the Special Bench finally bought the argument of the assessee that since
the sum received was related to the use of a capital asset, it should be
treated as capital receipt. Even the interest paid on such a sum was also
held to be capital in nature. While arriving at this decision the Special
Bench also overruled the decision of Kolkata Special Bench which had held
such a sum as chargeable to tax in the case of Sushil Kumar . </font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Special Bench also observed that there is a difference of opinion amongst various High Courts on the issue relating to nature and character of the mesne profits. Therefore, following various judgements of the Supreme Court, it is held that the mesne profits constitute capital receipt not chargeable to tax. While summing up the decision, the Bench further noted that the Apex Court in the case of P. Mariappa Gounder (supra) was not concerned with the issue <strong><font color="#FF6633">whether the mesne profit received against the wrongful possession of the property is in the nature of revenue receipt or capital receipt. The only issue before the court related to the year of taxability.</font> </strong> Hence it cannot be said that the Supreme Court adjudicated upon the issue relating to the nature and character of the receipt by way of mesne profits. </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 size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">Cenvat credit should be allowed on basis of Depot invoices: CESTAT </font></strong></font></p>
<p align="justify"><font color="#FF6633"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"></font></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> appellants are manufacturers of readymade garments (Heading 61.02 of the First Schedule to the Central Excise Tariff Act.) Their products came to be chargeable to duty of excise with effect from 01.04.2003, from which date they have been clearing their products on payment of duty by availing CENVAT credit on inputs. During 2003-04, they had taken CENVAT credit of the duty paid on inputs in stock as on 31 st day of March, 2003, inputs contained in finished product in stock as on the said date as well as input in process as on the said date, amounting to over Rs. 1 crore, under Rule 9A of the CENVAT Credit Rules, 2002. The inputs, in respect of which such credit was taken, had been purchased from depots of various manufacturers of cotton yarn and the availment of credit was on the strength of depot invoices. The department having found fault with such invoices and having found no registration of the depots with the department, proposed to disallow the above credit to the appellants. </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 size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">Appeal – delay not condoned but original order passed without hearing – matter remanded : Bombay HC </font></strong></font></p>
<p align="justify"><font color="#FF6633"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE </font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"></font></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">petitioner is a manufacturer of Centrifugal Pumps. They also manufacture goods which are inputs for the pumps and which are used in the manufacture of the pumps. There is no dispute that the pumps as manufactured are exempt from Central Excise Duty. The Revenue demanded duty on the CI castings and a belated appeal was filed with Commissioner (Appeals) who held that he had no powers to condone delay. Tribunal also dismissed the appeal. And the assessee is before the High Court. </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">A two-decade old Customs show cause notice ultimately finds an Adjudicating authority, thanks to Tribunal </font></strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong> the year 1989 a notice was issued to the applicant by the Customs authorities. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The matter went to the Tribunal from the appellant's side & vide an order of March 1998 the Tribunal remanded the matter thus – </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>“In these circumstances it is held that it will be appropriate and in consonance with the principles of natural justice to remand the matter to the adjudicating authority for the purpose of hearing the appellants in the matter and to pass appropriate orders afresh regarding their liability to penalty in accordance with law. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The adjudicating authority may extend to appellants only such opportunity to defence as are feasible and practicable so as to complete the denovo proceedings within a reasonable time and is at liberty to pass order afresh if there is discernible attempt at procrastination of the proceedings. </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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