TIOL-DDT 963 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 963</font><br>
01.10.2008<br>
Wednesday</strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Right
to enjoy life and liberty includes the right not to be disturbed. A right
to be left alone is a right under Article 21 of the Constitution of India</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On
7.12.2007, we carried a Supreme Court Judgement with the caption, <strong><font color="#FF6633">DRI
loses a narcotics case because the officer receiving the information did
not record it in writing</font>. - </strong></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=50&filename=legal/sc/2007/2007-TIOL-218-SC-NDPS.htm" target="_blank">2007-TIOL-218-SC-NDPS</a></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBEC has now taken note of the judgement and has written to the field formations. The Board's letter highlights the observations of the Apex Court,</font></p>
<blockquote>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">“This Court times without number has laid great emphasis on recording of reasons before search is conducted on the premise that the same would the earliest version which would be available to a court of law and the accused while defending his prosecution.”</font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">“In the instant case, the statutory requirements had not been complied with as the person who had received the first information did not reduce the same in writing. An officer who received such information was bound to reduce the same in writing and not for the person who hears thereabout.”</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board wants the CCs and DGs to ensure that such statutory requirements read with the Court's judgement are followed unscrupulously.</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=25&filename=notification/custom/2008/boardsletter.htm" target="_blank">CBEC's F.No. 591/29/2001- Cus (AS) Dated: 8th August, 2008</a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise Valuation Database</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Director General, Valuation of CBEC is in the process of developing a valuation database for sensitive commodities – it already exists in Customs. Sensitive commodities have been identified and analysed Valuation data and other relevant details of identified sensitive commodities at all India level will be prepared and published by the DGOV in the form of a monthly Central Excise Valuation Bulletin and circulated to all Central Excise Zones. The development of an electronic database on the lines of NIDB will be the next step.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What is NIDB – see <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=7746" target="_blank">TIOL-DDT 933 - 20.08.2008</a></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=31&filename=notification/excise/2008/valadm.htm" target="_blank">DGOV letter F.No. Val/Adm/2005/Part C/2008 Dated: 16th July, 2008</a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Constitution of Panel of Senior/Junior Standing Counsels for handling Indirect Taxation cases before High Courts</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBEC has appointed a panel of Senior/Junior Standing Counsels for handling the cases of Indirect Taxation before various High Courts. The Law Ministry already has Assistant Solicitors General for defending the Union of India in all the High Courts. Apparently the Board feels that the Department needs better representation before the High Courts. <strong>DDT </strong> notices that at least in six cases, the present ASGs are appointed as Senior Standing Counsels. Board has instructed that appeals/petitions filed by the Department/parties on or after 15.10.2008 shall be handled by the Departmental Standing Counsels only. So till 15 th October, they will appear as the Asst Solicitors General and thereafter as Senior Standing Counsels! These Counsels will be allotted work by the Chief Commissioners.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Hitherto there used to be one ASG for the entire Central Government – now there are half a dozen counsels for the CBEC alone in each High Court. To keep all these counsels busy, the Department will have a full time wing to go to the High Courts for all frivolous cases. All the lawyers in the Tribunal - migrate to the High Courts, for that is where the action is going to be now.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For prosecution cases reaching the High Courts, the Board has issued some strange instructions – <font color="#FF6633">“the Chief Commissioner may assign the case to the Special Public Prosecutors appointed by the Department who have handled the case before the Lower Courts as Standing Counsels.”</font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This shows a poor understanding of the ground realities – A Public Prosecutor who appeared for the Department in the trial court may not be practicing in the High Court at all. There is a vast difference between advocacy in the High Court and the lower courts. [of course it cannot be inferred by any chance that one is greater than the other – only they are two different games altogether]</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Further, facts (evidence) play a major role in the lower courts, while LAW is the dominant factor in the High Court. So the PP who successfully appeared for the Government in the lower court may be a thorough failure in the High Court. The converse is also true.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So it is suicidal for the Revenue to depend on the lower court PP to defend it in the High Court.</font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2008/office.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC's F.No. 278 A/43/2007-Legal Dated: 8th September, 2008</font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT issues detailed instructions on TDS on Salaries</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBDT has come out with its annual circular on TDS on Salaries with model calculations. The good news for Central Government employees is that the Pay Commission arrears to be paid next year are not to be taxed this year. Also see our <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=mbuzz/mbuzz1014.htm" target="_blank">Mixed Buzz</a></strong>.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/it08cir09.pdf" target="_blank">CBDT Circular No. 9/2008 [F.No.275 /192/2008-IT(B)] Dated: September 29, 2008</a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Tomorrow is also Shastri Jayanti</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While
the whole Nation will be paying the customary and ritualistic homage to the ‘Father
of the Nation', it is worth remembering that tomorrow is also the birthday
of Lal Bahadur Shastri, one of our most humble Prime Ministers.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I
AM RESPONSIBLE: Here was a minister who resigned from the Cabinet owning
moral responsibility for a railway accident. Of course if it is emulated,
it will be very difficult to have a minister for more than a couple of months.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is rarely that we remember him, but then humility and high office don't go together these days.</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">– Friday's cases</font></strong></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><strong><strong><strong><strong><strong><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></strong></strong></strong></strong></strong></strong></strong></font></strong></font>CESTAT/Service Tax</strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>For any appeal/application before the CESTAT, a minimum fee of Rs. 1000/- has to be paid; No appeal maintainable against a clarificatory letter issued by an AC; Courts are not supposed to decide academic issues unless necessary for deciding the appeal. CESTAT</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> is manifest that appeal lies only where there is a demand towards service tax and/or interest, or penalty has been imposed; even if the appeal were maintainable, the appellant is required to pay the minimum fee prescribed by the statute, that is, one thousand rupees.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There being no determination of rights - final or adverse to the appellant - the letter being merely 'clarificatory' in nature, issued at the behest of the appellant themselves, there was no cause of action for the appellant to file any appeal to the Commissioner (Appeals), and after the said appeal was dismissed, to file another appeal to the Tribunal.</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>Whether for lapses and carelessness of officials issuing Show Cause Notices, cause of Public Revenue should irreparably suffer? Tribunal remands case of demand of additional duty of excise to establish marketability</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“<strong>WE</strong> have given serious thought to the question as to whether for the lapses and carelessness of the officials issuing the impugned Show Cause Notices, the cause of the Public Revenue should irreparably suffer with no hope of recovery of such huge amounts of Revenue from the salaries of the defaulting officials. Fortunately, as far as the present Show Cause Notices are concerned, the provisions of the basic law i.e. the Central Excise Act, 1944 as well as the Central Excise Rules, 1944 which are applicable by reference to levy and collection of the Additional Excise Duty under the 1957 Act have been invoked. Moreover, both the enactments the 1944 Act and the 1957 Act operate in the same field viz. excise duty on manufactured goods.”</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 color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Abetment of smuggling – RTA officials who issued certificates for vintage cars, not liable for penalty under Customs Act – No question of law on findings of fact by Tribunal: Gujarat High Court</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Customs is the know-all department; they don't believe certificates issued by other Government Departments and even foreign governments. This is a strange case in which the Commissioner of Customs imposed penalties of Rs 7 Lakhs, 9 Lakhs and 12 Lakhs respectively on three junior clerical level employees of the State Transport Department on the charge of abetting smuggling. Their offence- they made wrong entries in the RC books to facilitate export of vintage cars.</font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See
our columns on Friday for the judgements</font></strong></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Friday with more <strong>DDT</strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day.</font></p>
<p align="justify"><font color="#FF6633" 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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