TIOL-DDT 814 · 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><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 814 </font><font size="2"><br> 28.02.2008 <br> Thursday </font></strong></font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Why a separate Rail Budget? </font></strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Certainly not for entertainment by Laloo ! </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">My friend in Chennai, Natarajan , Advocate sent me this query:- </font></p> <blockquote> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">I rather wonder, as to why the Budget of the Railway Ministry shall be given such an importance. The Budget of the Finance Ministry, which contains various taxation proposals and also allocations for all activities of the Government, is very important and the whole nation is glued to Mr. FM on the last day of February 2008 and this is understandable. But, why the Budget of the Railway Ministry is making sensational news? Is every citizen really bothered to know as to what are the few new trains announced by the Railway Minister or the few kilometres of the routes which are going to be electrified? Does the marginal reduction of train fare have such a news value? When compared, the impact of hike of the price of petrol by a Re. would have more news value than a marginal reduction in train fare. </font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have we ever heard of the Budgets of any other Ministries being presented in the Parliament and getting such media coverage? For example, Petroleum Ministry, Civil Aviation Ministry? Do they have any budgets at all? </font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">What is the history behind making the railway budget so special? Can anyone enlighten me and also similar ignorant netizens? </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT's </strong> research revealed interesting facts. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CAG 's Report No.6 of 2006 (Railways) stated: </font></p> <blockquote> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Railway finances were separated from General finances through a Separation Convention in 1924 to secure stability for civil estimates by providing an assured contribution from railway revenues and also to introduce flexibility in the administration of railway finances. In 1949 the Separation Convention was reviewed and another convention resolution was adopted with effect from 1 April 1950, which recommended presentation of a <strong>separate railway budget </strong> every year prior to presentation of the general budget. As contemplated in the convention of 1949, a Railway Convention Committee ( RCC ) was constituted in 1954 to review the rate of dividend payable by the Indian Railways to the general revenues and other ancillary matters </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Natarajan is not alone in his views. P. Upendra , a former railway Minister, speaking in the Lok Sabha on March 13, 1999 , said, </font></p> <blockquote> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">When the Railway finances were separated in 1920, the purpose was different because they wanted to give to the Railways freedom to expand, freedom to plan for themselves , unfettered by the impact of the general finances. But we find today that the purpose of this Budget is completely lost. There is the same old rigmarole every year and the same old tamasha of the Minister giving finishing touches to the Budget with the Minister of State sitting by his side and the Members of the Railway Board standing behind. Actually, his own colleague in the Samata Party, Shri George Fernandes , when he was the Railway Minister, said that there was no need for a separate Railway Budget and there is no secrecy in the Railway Budget. So, the Minister need not carry a briefcase with the Budget. There is a lot of difference between the General Budget and the Railway Budget. Even if the Minister increases the fares and freight charges and even if somebody buys a ticket two months ahead he has to pay the difference when the new fares come into operation. Therefore, there is no secrecy at all. If the Minister wants to introduce a new train or if he wants to order a survey, why should he wait for the Railway Budget? He can do these things throughout the year. So, I think, the time has come to find out whether it is worthwhile to have a separate Railway Budget, because today, the Ministry of Defence has got almost the same budget, the Ministry of Telecommunications is reaching the same level and the Ministry of Power is also having almost the same budget. Therefore, with about Rs.35 ,000 crore income and revenue, I do not think the Railways need a separate budget. In fact, a Status Paper each year, probably, will serve the purpose by indicating what the Railways have done. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Six years later, on March 14, 2005 , Pramod Mahajan , participating in the discussion on the Rail Budget, said, </font></p> <blockquote> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">When the total revenue of the country was Rs. 180 crores during 1920-21, railways revenue was Rs. 82 crores . Today the total budget revenue of the country has touched to more than Rs. 5 lac crores and railway budget has reached to Rs. 50 thousand crores approximately. Some public sector and private sector companies in the country today also have a budget of more amount than the budget of railway. Therefore, there is no justification for a separate railway budget. Only two main items i.e. passengers fare and goods freight and changes in the timings and frequency of the trains are generally repeated in the railway budget. Therefore, this budget can also become a part of the General Budget. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Pakistan also like India had a separate Railway budget, but now has a common budget. But now the TV channels starved of news, hungry for stories will not allow the entertainment to be curtailed and the Laloos of the world should have their hour of glory. </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Exchange rates for March 2008 notified </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government has notified the exchange rates for imports and exports with effect from 01.03.2008. DDT readers will remember that now there is only one notification for both imports and exports instead of two notifications one each for exports and imports. </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=24&filename=notification/custom/2008/cnt08_010.htm" target="_blank">Notification NO . 10/2008- Cus .( NT) Dated 26th February, 2008 </a></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>New post for Income Tax officers in Mauritius and Singapore </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT calls for applications for the post of First Secretary at Mauritius and Singapore at the level of JCIT /Addl. CIT . The applications should reach the Board by 7th March, 2008. </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=70&filename=pitara/deputation/cbdt_mauritius.htm" target="_blank">CBDT F.No.A -23012/4/2007-Ad.VI dated February 26, 2008 </a></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FM's Post Budget Session with Industry Associations </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The FM, along with his two Ministers of State, is to hold post -Budget Interactive Session with Industry Associations from 0930 am to 1100 am at Vigyan Bhavan , on Monday the 3 rd march, 2008. Normally, the FICCI , the CII and other Industry associations invite the FM for their meetings after the budget, but now he has taken the initiative to address them. Is it because he has a lot of things to explain or he is simply plain bored addressing too many trade meetings? </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Send us your Budget Comments </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Do send us your comments and analysis of the budget. Please indicate clearly in the mail whether you want your name to be carried or not. We have a large number of netizens who would like to remain anonymous and we do respect their sentiments. Do write in with your name, address and contact number and I repeat, please tell us whether you would like us to use your name. </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Economic Survey today </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please stay with us for the Economic survey which is to be released today. </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"><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></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 size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">Commissioner (Appeals) passing an order that is totally extraneous to the issue set aside by Tribunal </font></strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ADMITTED</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong>that the provisions of Section 35A of the CEA '44 permit the Commissioner (A) to enhance penalty or fine in lieu of confiscation or confiscating goods of greater value or reduce the amount of refund but not before following the principles of natural justice. Also admitted that the Commissioner(A) under the very same section can order the appellant to pay any duty not levied or paid, short levied or short paid or erroneously refunded but not before he follows the principles of natural justice & issues a notice within the time limit specified in section 11A of the CEA '44 . </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><em><font color="#FF6633">But the section, at least as on date, does not allow the Commissioner (A) to impose any interest on an assessee. </font></em></strong> However, the Commissioner of Central Excise (Appeals), Pune thinks otherwise. He imposed an interest under section 11AB on an assessee who had filed an appeal before him against an order denying him refund! </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">Commissioner (A) passing contrary orders in respect of same order-in-original – Tribunal finds it a prima facie case to grant complete waiver of pre-deposit </font></strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong>was only recently in <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=6804"><strong>DDT-803 </strong></a> that we carried the inside information that the CBEC Member was not happy with 10% success rate of the Departmental appeals in CESTAT . It is revealed from the said communication that the Member desired the need to sensitize field formations in this regard. Accordingly, the letter ends with the following message – The Chief Commissioners are, therefore, advised to <strong><font color="#FF6633">take necessary measures</font> </strong> so that frivolous appeals or weak appeals are not filed and drafting of appeals can also be improved. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Although the above advise is a welcome one, at the same time why does the Board feign ignorance of the fact that these appeals are based on review orders which are ordered by the Committee of Chief Commissioners/Commissioners [from May 2005] & earlier it was the Board themselves who passed these Review orders. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is common knowledge that appeals are usually a cut & paste of the Review Orders – so the answer is <font color="#FF6633">– <strong> a good review order will fetch a good appeal. </strong></font></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sometimes, appeals are filed just for the sake of filing them – accepting anti-revenue orders is not my forte kind of logic & the sensible second Committee Member has to sign on the dotted line! </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 color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif"></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></font></p> </body> </html>