TIOL-DDT 986 · 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 986 </font><br>
06.11.2008 <br>
Thursday </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Anti Dumping Duty on Phenol – yet another resurrection. </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Anti Dumping Duty on phenol was imposed by <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2002/ctariff02_079.htm" target="_blank"><strong><strong>Notification
No. 79/2002</strong>- </a>Cus, dated 13-8-2002 which was to be valid till 12th
day of February, 2003. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, technically the notification had a natural death on 13.02.2003. But by <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2003/ctariff03_047.htm" target="_blank">Notification No. 47/2003- </a>Cus </a></strong>., dated 24-3-2003, a definitive Anti Dumping Duty was imposed, more than a month after the expiry of the original notification, but of course from the date of the original date of notification, that is 13.08.2002. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Even this notification expired on 13.08.2007. Eighteen days later, by Notification No. 98/2007- Cus ., dated 31-8-2007, the Notification No. 47/2003-Customs, dated the 24th March, 2003 was superseded (much after its death) and fresh anti dumping duty was imposed which was to be in force up to and inclusive of the 12th August 2008. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12th August 2008 passed by silently without the Board realising about this notification. One more death. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now on 31st October 2008, the Government has again imposed anti dumping duty without a whisper about what happened to Notification No. 47/2003 which had its second death on 13.08.2008. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Even the latest notification freshly imposing Anti Dumping Duty was not available anywhere even though it was issued on 31.10.2008. Are our Notifications cowards? Shakespeare said, “cowards die many times before their death”. (<strong>The
valiant but faces death only once</strong>.) </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_114.htm" target="_blank">Notification NO. 114/2008 – Cus Dated: October 31, 2008 </a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Anti Dumping imposed on Cable Ties </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government has imposed provisional Anti dumping Duty on cable ties origination in or exported from the People's Republic of China and Taiwan. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The anti-dumping duty imposed shall be effective up to and inclusive of the 29th April, 2009, and shall be payable in Indian currency. [unless of course resurrected on a later day] </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_118.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification NO. 118/2008 – Cus Dated: October 31, 2008 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Exim Bank's Line of Credit of USD 30 million to the African Export-Import Bank ( Afreximbank ) </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Export-Import Bank of India ( Exim Bank) has concluded an Agreement dated March 20, 2008 with the African Export-Import Bank ( Afreximbank ), making available to the latter, a Line of Credit (LOC) of USD 30 million (USD thirty million ) to facilitate purchase of capital and engineering goods, industrial manufactures ,consumer durables and services and other items from India by Buyers in any of the Afreximbank's Member States. The goods and services from India for exports under this Agreement are those which are eligible for export under the Foreign Trade Policy of the Government of India and whose purchase may be agreed to be financed by the Exim Bank under this Agreement. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Credit Agreement under the LOC is effective from September 22, 2008 and date of execution of Agreement is March 20, 2008. Under the LOC, the last date for opening of Letters of Credit and Disbursement will be 36 months ( September 21,2011) from the scheduled completion date(s) of contract(s) in case of project exports and 42 months (March 21, 2012) from the effective date of the Credit Agreement in case of supply contracts . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Similar arrangements are made with the Government of Suriname, Democratic Socialist Republic of Sri Lanka, Government of Cote d'Ivoire, Lao People's Democratic Republic and Republic of Rwanda. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2008/rbi08cir028.htm" target="_blank">RBI Circular NO. 28,</a> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2008/rbi08cir029.htm" target="_blank">29</a>, <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2008/rbi08cir030.htm" target="_blank">30,</a> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2008/rbi08cir031.htm" target="_blank">31</a>, <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2008/rbi08cir032.htm" target="_blank">32</a> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2008/rbi08cir033.htm" target="_blank">& 33/ RBI ., Dated: November 5, 2008 </a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Obama – The MAN</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In 1964, Irving Wallace wrote his famous novel about a black man becoming the President of America. It happened in strange circumstances - the Vice-Presidency is vacant, because of the incumbent's death. Then, while overseas, the President and the Speaker of the House suffer a freak accident; the President is killed, the Speaker of the House dies in surgery. Douglass Dilman, the President Pro Tempore of the Senate, a black man earlier elected to that office in deference to racial tokenism is the constitutional successor, much to the disbelief and chagrin of racist America. (including some wifely jealousy) </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Irving Wallace then said, “Such a novel could even contribute to the equality revolution now in progress in our country. I hope I have succeeded.” </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He did – after 44 years! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">44 years after Wallace visualised a Black as the US President albeit by an accident, a Black has been elected emphatically by the greatest Democracy in the world. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If you can get a copy of “The Man”, grab it and read it – I assure you, you will not regret it! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As they say, “ <strong>That he be judged not by the colour of his skin but by the content of his character” </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And the Indian Stock Market greeted the greatest event in current history with a huge fall! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A friend, who is a great student of Astrology, told me that Saturn's profound influence on this great man took him to dizzying heights. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It's all in your stars! </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Pre –Deposit – You have a strong case but no money – what if? </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">You are stuck with a huge demand and you appeal to the Tribunal, where you are required to make a pre-deposit of the duty/tax demanded – you really don't have the money to make the pre – deposit, but you know you have a strong case. What do you do? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We are reporting a case tomorrow on such a situation. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The party petitioned the High Court which observed that it had two options – Believe the petitioner that he did not have the money – then Revenue interests are not safe and so waiver of pre-deposit cannot be given. And if the Court does not believe him, it is assumed that he has the money and so pre-deposit need not be waived. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I had a similar experience – I appeared before the High Court with a plea to waive pre-deposit as my client's factory was closed and he has no means to pay the deposit. The Court asked me, “what will you do if you lose the case?”, I said, “I will go to jail, but right now I have no money; please give me an opportunity to prove my innocence”. The Court asked me, if I could give a Bank Guarantee and I submitted that no Bank would give a guarantee to a ‘broke' firm like mine. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Court was pleased to grant me waiver [ <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=33&filename=legal/hc/2005/2005-TIOL-181-HC-AP-CX.htm" target="_blank">2005-TIOL-181-HC-AP-CX </a>]
, </strong> but in the case we are reporting tomorrow, the petitioner
was not so lucky. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Sword of pre-deposit is dangerously hanging over the heads of all assessees – the concept of pre-deposit should be done away with till after the stage of Tribunal as it is almost impossible to get any order favourable to the assessee from the Revenue Adjudicators. </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></strong></font></p>
<p align="justify"><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><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FERA </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Pre-deposit - Petitioner has no money. If he is to be believed, no waiver can be granted as Government revenue is not safeguarded; If he is not believed, waiver cannot be granted as it is assumed he has money: Delhi High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Court considered two options: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Believe the petitioner: Then the Court cannot pass any order to safeguard the realisation of penalty, because he has no money. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Don't believe the petitioner: In that case, it is assumed that he has the money but he is not willing to deposit and the strategy adopted by the petitioner is to prolong the proceedings and avoid depositing the amount of penalty. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Looking at the matter from any point of view, the High Court did not find any fault with the orders passed by the tribunal. </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>By passing a restraint order u/s 132(3), time limit available for framing assessment cannot be extended; a panchanama prepared on revocation of prohibitory order wherein only thing mentioned is 'search is finally concluded', is not a valid panchanama: ITAT by majority </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A panchanama prepared on the revocation of prohibitory order u/s. 132(3) wherein the only thing mentioned is 'search is finally concluded', is not a valid panchanama – Therefore, the panchanama prepared on 8-9-1997 cannot be said to be a panchanama prepared in pursuance to the warrant of authorization for search within the meaning of See. 158BE (1) of the Act. If a panchanama prepared on the revocation of prohibitory order u/s. 132(3) wherein the only thing mentioned is 'search is finally concluded', is held to be a panchanama prepared on the conclusion of search within the meaning of Explanation to Sec. 158BE , it would amount to an extending the period of limitation for completion of assessment on account of restraint order u/s. 132(3). </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Services of Financial leasing provided to clients – Whether service tax to be paid at rate prevailing at time of receipt of EMI or at time of entering lease agreements – Tribunal finds <em>prima facie </em> case in favour – waives pre-deposit </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Tribunal observed that in absence of specific provision, the rate of tax applicable to the service tax shall be the rate prevailing on the date of rendering the services. </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>Revenue Appeal after assessee's appeal had been decided; When appeals are on different aspects of Commissioner's order, doctrine of merger does not apply – Larger Bench decision in <em>LML case </em> distinguished: CESTAT by majority </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When the Tribunal kept all the issues open for decision at the lower level, the Revenue took the longer route of fighting out its appeal. It took three long years at the Appellate Tribunal to get a decision in its favour that too by a Majority after reference to the Third Member. It is obvious that Revenue scraped through by the skin of its teeth given that the issue was too close to call with Apex Court decisions supporting both the viewpoints. Just imagine what would have happened to the denovo case based on the earlier order of the Tribunal if Revenue had lost its appeal. </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 color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until tomorrow with more <strong>DDT</strong> </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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