TIOL-DDT 914 · 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 bgcolor="#FFFFFF"> <p align="justify"><font size="3"><strong><font color="#663399" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 914 </font><font face="Verdana, Arial, Helvetica, sans-serif"></font></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br> <strong>23.07.2008 <br> Wednesday </strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> From Kerosene lamp to nuclear energy – unheard melody from the PM</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> What is there for <strong><font color="#FF6633">DDT</font></strong> on a Day when the whole Nation's attention was directed towards Parliament?</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> The largest Democracy in the world witnessed a Crore of Rupees inside Parliament and the Prime Minister of the Country not being able to make his reply to a confidence motion moved by him. The Prime Minister promptly uploaded his undelivered speech on his website. This was perhaps one of his best political speeches and the poor PM could not deliver it in the Lok Sabha.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> The PM said in his undelivered speech,</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <font color="#FF6666">Every day that I have been Prime Minister of India I have tried to remember that the first ten years of my life were spent in a village with no drinking water supply, no electricity, no hospital, no roads and nothing that we today associate with modern living. I had to walk miles to school; I had to study in the dim light of a kerosene oil lamp. This nation gave me the opportunity to ensure that such would not be the life of our children in the foreseeable future. </font></font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Sir, my conscience is clear that on every day that I have occupied this high office, I have tried to fulfil the dream of that young boy from that distant village.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> The PM was at his vitriolic best when he said, <br> <br> <font color="#FF6666">The Leader of Opposition, Shri L.K. Advani has chosen to use all manner of abusive objectives to describe my performance. He has described me as the weakest Prime Minister, a nikamma PM, and of having devalued the office of PM. To fulfill his ambitions, he has made at least three attempts to topple our government. But on each occasion his astrologers have misled him. This pattern, I am sure, will be repeated today. At his ripe old age, I do not expect Shri Advani to change his thinking. But for his sake and India's sake, I urge him at least to change his astrologers so that he gets more accurate predictions of things to come.</font></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Aberrations of Democracy</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> The great institution of Indian Democracy was at its performing best. Let's see some forms of government, all of which are present in our Democracy:</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Doulocracy, dulocracy;</strong> - a government controlled by slaves.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Demonocracy:</strong> The power or government of demons.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Gerontocracy;</strong> the system in which the rulers are old men.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Gynecocracy;</strong> Government by women.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Hagiocracy;</strong> a system of rule by persons considered holy.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Hierocracy;</strong> Government by the clergy; ecclesiastical rule.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Kakistocracy;</strong> Government by the least qualified or most unprincipled citizens.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Meritocracy</strong> - the belief that rulers should be chosen for their superior abilities and not because of their wealth or birth</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Mobocracy;</strong> government by the mob; the mob as ruler or dominant force in society.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Monocracy;</strong> - a form of government in which the ruler is an absolute dictator (not restricted by a constitution or laws or opposition etc.)</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Neocracy :</strong> Government by new or inexperienced hands; upstart rule; raw or untried officials.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Nomocracy;</strong> Government in accordance with a system of law.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Ochlocracy ;</strong> Government by the masses; mob rule.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Pantisocracy ;</strong> a utopian community where all are equal and all rule</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Pedantocracy;</strong> rule or government by pedants; domination of society by pedants</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Plutocracy:</strong> Government by the wealthy.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Polycracy:</strong> Government by many rulers; polyarchy</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Stratocracy:</strong> Government by the armed forces.(this is the speciality of our neighbour)</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Technocracy:</strong> A government or social system controlled by technicians, especially scientists and technical experts.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Timocracy :</strong> Platonism- a state in which a love of honour and glory is the guiding principle of the rulers.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> And finally e- democracy failed inside Parliament. While 60 Crores of Indian Citizens elect their leaders by electronic voting, 500 odd MPs could not use the electronic voting properly and it took more than an hour to correct it manually! And the electronic score board did not show the latest result.</font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Maharashtra VAT – E- filing of annexure</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> The Maharashtra Sales Tax Department proposes to introduce a system whereby Annexures containing details of invoices of sales and purchases are filed electronically along with returns.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Annexures will be in the form of invoice-wise details of sales and purchases. The annexure will be required to be filed along with the return. Dealers will be required to provide sales tax registration number (TIN) of the purchaser in the case of local sale. Therefore, it would be useful if the dealers start collecting the TIN of their purchaser and record this TIN on the Tax Invoice issued by them.</font></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/efilingvat.htm">Maharashtra Trade Circular No. 24 T of 2008 Dated 19 July, 2008</a></font></strong></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Proposals for Cabinet consideration - Instructions</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> The cabinet Secretary notes that sometimes Departments are observed to be bringing final notes for consideration of the Cabinet/Cabinet Committees which are substantially different from the original notes circulated to Ministries/Departments at the time of inter-ministerial consultations. This practice renders the institutional mechanism of inter-ministerial consultations infructuous, while giving the impression that requisite inter-ministerial consultations have been undertaken.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> So he wants the Secretaries of the Departments to ensure that proposals contained in the final note forwarded by the sponsoring Ministry/Department to the Cabinet Secretariat should be the same as those included in the note circulated to Ministries/Departments at the time of inter-ministerial consultations. If a sponsoring Ministry/Department makes a substantive change in original proposals after inter-ministerial consultations, it would be incumbent on them to re-circulate the note for completing inter-ministerial consultations.</font></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/cabinet.htm" target="_blank">Cabinet Secretary's D.O. No. 1/13/2/2008-Cab. Dated 11 July, 2008</a></font></strong></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Ban on export of Maize – DGT clarification</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> DGFT has amended Notification No.22 (RE-2008)/2004-09 dated 3rd July, 2008 to add,</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> “Further, exporters shall be permitted to get their existing Letters of Credit, which were opened prior to the date of ban and which are eligible under the Transitional Arrangements under Para 1.5 of the Foreign Trade Policy, extended beyond original validity and time period for a further period of 18 days.” </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2008/dgft08not025.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> DGFT Notification No. 25 (RE-2008)/2004-09, Dated: July 21, 2008</font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Customs Valuation – First Sale Rule to continue in US</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> The FSR – First Sale Rule allows for duty to be assessed on the “first sale” for export to the United States, which may be the initial sale from the factory where specific conditions are met. In January, based on the suggestion of World Customs Organization's Technical Committee on Customs Valuation, CBP proposed to eliminate this favourable valuation methodology, forcing businesses to value goods based upon the “last sale” price of a product prior to its entering the U.S.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Because imported goods are marked up with each intermediate transaction, eliminating the FSR would result in higher duties for importers, which would likely be passed on to already struggling consumers in the form of higher prices.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Now the US Customs has decided not to change the law at least until 2011.</font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> </font><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Jurispruden<font color="#FF6633" size="5"> tiol</font></strong></font><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> – Tomorrow's cases</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><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 color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_hammer.jpg" alt="Legal Corner Icon" width="100" height="84" hspace="5" border="0" align="left"></b></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></font><font color="#663399">Central Excise</font></strong><font color="#663399"> </font></font></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Reprieve for Moser Baer – CESTAT waives pre-deposit in case of huge demand of duty on clearances by EOU in DTA</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong><font size="3">G</font>OODS</strong> manufactured by EOU and cleared in DTA are leviable to duty under Section 3 of the Central Excise Act read with Notification 23/2003 CE dated 31.3.2003. As the goods cleared are subjected to aggregate duties of customs leviable on like goods if imported into India, the duties include the additional duty of customs leviable under sub-section 5 of Section 3 of the Customs Tariff Act 1975 also. The objective of this levy has been explained in the Section itself that it is aimed at counterbalancing the sales tax, value added tax, local tax or any other charges for the time being leviable on a like article on its sale, purchase or transportation in India. In case where the goods are cleared by the EOU in DTA, the same are normally subjected to local sales tax/VAT. Therefore to avoid double levy, the additional duty has been exempted for the clearances by EOUs vide Notification 23/2003 CE.</font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Income Tax</font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Just because Revenue has preferred no appeal in one case it does not amount to a bar to prefer appeal in another case on same issue - it can do so in public interest: Supreme Court</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>IT</strong> is not uncommon to find conflicting decisions on a particular tax issue by different High Courts. It is also not uncommon to find that the Revenue has accepted the decision in one particular appeal but has gone ahead and filed appeal in the case of another assessee on the same issue. But what went against the Revenue was the Apex Court decision that once the Revenue has accepted a particular decision on a particular issue in the case of an assessee, it cannot go in appeal in the case of another assessee on the same issue. And this is what prompted the Revenue to move the Apex Court which referred the same to a Larger Bench. The LB decision has come, and the Supreme Court has ruled that <strong>merely because in some cases the revenue has not preferred appeal that does not operate as a bar for the revenue to prefer an appeal in another case where there is just cause for doing so or it is in public interest to do so or for a pronouncement by the higher Court when divergent views are expressed by the Tribunals or the High Courts.</strong></font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"> See our columns Tomorrow for the judgements</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <font color="#FF6666">Until Tomorrow with more <strong>DDT</strong></font></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="vijaywrite@taxindiaonline.com" target="_blank">vijaywrite@taxindiaonline.com</a></font></p> </body> </html>