11.06.2014
Wednesday
THE policy prescriptions in almost every sector of the Indian economy are contained in a book titled 'Getting India Back of Track: An Action Agenda for Reform' by 17 top thinkers, launched yesterday with a panel discussion organised by FICCI. Some of the suggestions:
Recognise the imperative of growth: India must return to high rates of economic growth over a long period of time to correct its current developmental deficiencies. Policymakers should aim to sustain India's economic transformation over the secular period as they implement the next generation of reforms, which generally pertain to liberalizing factor markets (in contrast to a previous wave's focus on product markets).
Increase reliance on markets for efficient allocation: Policymakers should examine their long-standing assumption that state intervention is the best possible instrument for making allocation decisions in the economy. Wherever possible, private goods should be produced and distributed principally through market mechanisms. State resources should be utilized mainly for producing collective goods or those private goods that are hard to produce through the market because of misaligned incentives.
Rebuild state capacity: Reforms should increase the state's currently rather weak capacity to do what only governments can do - build institutions for effective rule-making, administration, and adjudication.
Shift the locus of reform from the centre to the states: Decisions about economic and social policy in the future should be made at the lowest possible levels of competent authority, meaning India's states.
Customs - Anti Dumping Duty on Pre-sensitized Positive Offset Aluminium Plates
ANTI Dumping Duty on Pre-sensitized Positive Offset Aluminium Plates originating in, or exported from, China PR (and some other countries) was imposed by Notification No. 108/2007-Cus Dated 25.09.2007. This notification lapsed on 24.09.2012. On 25.09.2012, they extended it further till 23.09.2013 and limited the ADD to the goods viz. Pre-sensitized Positive Offset Aluminium Plates/PS Plates originating in or exported from People's Republic of China.
So, this expired on 23.09.2013, but dumping continued and so the Government has now freshly imposed the Anti Dumping Duty on this product for a period of five years from 09.06.2014.
Wasn't there any dumping during the period 24.09.2013 to 08.06.2014? Who is responsible for the injury to the domestic industry and loss of revenue to the Government?
Notification No. 25/2014-Customs (ADD), Dated: June 09, 2014
Know Your Customer - RBI Clarification on Proof of Address
THERE is a branch of a nationalised bank just a few yards away from my office. My new secretary wanted to open an account in that branch. The Bank refused because she did not have proof of address near the bank. Her Adhaar card did not impress the Banker as that showed an address a few kilometres away from this branch. He advised her to open the account in a branch nearer to her residence for which she had a proof of address. Proof of address of her workplace was not good enough for the Bank manager. She has to take a day's leave to open an account in a branch near her house. She simply doesn't understand why the Bank is so stubborn in refusing her an account - the Bank knows better - they have their rules, which they follow scrupulously - for the ordinary people.
Reserve Bank of India seems to have heard her problem and has solved it.
Reserve Bank has been receiving representations/references from various quarters' especially migrant workers, transferred employees, etc. regarding problems faced in submitting a proof of current/permanent address while opening a bank account. It has now been decided to simplify the requirement of submission of 'proof of address' as follows:
a) Henceforth, customers may submit only one documentary proof of address (either current or permanent) while opening a bank account or while undergoing periodic updation. In case the address mentioned as per 'proof of address' undergoes a change, fresh proof of address may be submitted to the branch within a period of six months.
b) In case the proof of address furnished by the customer is not the local address or address where the customer is currently residing, the bank may take a declaration of the local address on which all correspondence will be made by the bank with the customer. No proof is required to be submitted for such address for correspondence/local address. This address may be verified by the bank through 'positive confirmation' such as acknowledgment of receipt of (i) letter, cheque books, ATM cards; (ii) telephonic conversation; (iii) visits; etc. In the event of change in this address due to relocation or any other reason, customers may intimate the new address for correspondence to the bank within two weeks of such a change.
RBI has advised Banks to revise their KYC policy in the light of the above instructions and ensure strict adherence to the same.
RBI/2013-14/634 - DBOD.AML.BC. No. 119 /14.01.001/2013-14, Dated: June 09, 2014
Central Excise Chief Commissioner Indrajit Dasgupta sings his way to success
HE is an IRS officer of the 1981 batch, at present Chief Commissioner of Customs and Central Excise at Mysore. Apart from collecting Revenue and preventing evasion, he is happily engaged in promoting Rabinder Sangeet outside Bengal.
Meet Indrajit Dasgupta, a singer by passion, not profession, with several albums to his credit in Bengali and Hindi. His songs are so popular that in one of his albums, Bollywood Icon Amitabh Bachchan in his stentorian voice explained each of the songs of Gurudev Tagore. [https://www.youtube.com/watch?v=4esS-1lMcCk]
His latest album, 'Mor Bina' consisting of eight songs of Tagore, was released last week by Ganapati Sachidananda Swamiji, the pontiff of Avadhoota Datta Peetham in Mysore. The Swamiji himself is renowned for his healing and meditation music.
If music be the food of love ………….. - in his pursuit of music, Mr. Dasgupta is inspired by his wife Mrs. Ratna Dasgupta who is also an IRS officer - a Commissioner of Income Tax and an accomplished guitarist and painter.
We don't know whether Revenue has gone up because of Rabinder Sangeet, but certainly Mysore zone will be a nice place to work in or drop in - what with the Chief Commissioner singing the sweet songs of Gurudev Tagore and the Dasguptas home should be a better place with added attractions of Guitar and paintings.
Income Tax JC promotes himself - lands up in jail
HERE is the strange case of an Income Tax Joint Commissioner counterfeiting a promotion order and appointing himself as Additional Commissioner - Finally he landed up in jail.
Roshan joined the IRS as Assistant Commissioner of Income Tax in 1990 and was promoted as Joint Commissioner in 2001. In 2007, he claimed that he was promoted as Additional Commissioner and he asked his office to get 4 rubber stamps with his name and designated as Additional Commissioner.
CBI investigations revealed that he was not considered for promotion and was never promoted as Additional Commissioner. The CBI filed a charge-sheet in 2012 and now the CBI Court has sentenced him to undergo three Years Rigorous Imprisonment with fine of Rs.20,000/-
Holidays List 2015
GOVERNMENT has released the list of holidays for Government offices for the year 2015. As usual, April 14, the birthday of Dr. Ambedkar is not declared as a holiday, but it will be announced sometime in April. It beats logic as to why the Government cannot include this holiday in the regular list of holidays.
DOPT F. No. 12/5/2014-JCA-2, Dated: June 06 2014
Jurisprudentiol - Thursday's cases
 Customs
On examining goods at docks, part quantity of packed Sugar was found not up to standard grade, hence same were not loaded - Confiscation, RF & penalty is imposable u/s 113(k) of CA, 1962 only on account of any willful act, negligence or default of exporter - since proper care was taken by merchant exporter, no cause for ordering confiscation etc.: CESTAT
THE appellant, a merchant exporter, procured 10,000 bags of sugar for exportation. The said consignment was manufactured and supplied by Nagar Taluka Sahakari Sakhar Karkhana Ltd.
The buyer wanted the sugar of certain grade. As the goods were not examined at the end of the manufacturer/supplier they were examined in the docks by the surveyor of the buyer at Docks wherein it was found that out of 10,000 bags, 5980 bags were not upto the standard grade. These bags were, therefore, not loaded on the vessel and were taken back to the unit.
Income Tax
Whether for purpose of determining time frame for completion of assessment, date on which requisition u/s 132A is made, is irrelevant - YES: HC
ASSESSEE derives commission income from purchase and sale of properties and from the trading of transistor parts. It also worked as an informer for DRI. CBI conducted a search and seized cash of Rs. 1.12 crores. DIT (Inv.) issued warrant of authorization u/s 132A to CBI to deliver the books of account, documents and the assets seized by CBI during the search.
Assessee filed a petition before Special Judge requesting for release of cash seized by CBI. The Special Judge dismissed the petition of assessee and directed CBI to transfer the seized amount to Income tax Department. Assessee filed return declaring an income of Rs. 1.13 crores for AY 2002-03 which included Rs. 90 lacs seized by CBI in response to notice issued u/s 158BC. AO made assessment considering the whole amount seized as undisclosed income for the block period. AO also completed assessment for AY 2002-03 separately determining the income at Rs. 90 lacs.
The issue before the Bench is - Whether for the purpose of determining the time frame for completion of the assessment proceedings, the date on which the requisition under Section 132A is made, would not be material and the time period must run from the date when AO is in a position to proceed with the assessment proceedings and conclude the same. And the verdict goes in favour of the assessee.
Central Excise
Appellant manufacturing transformers and clearing same on payment of duty by availing CENVAT - prima facie denial of CENVAT credit on inputs used in manufacture of transformers on ground that in respect of service provided of erection and commissioning of such transformers, appellant paying ST by availing Works Contract Composition Scheme cannot be upheld - Stay granted: CESTAT
THE appellant is a manufacturer of transformers and has executed a contract with M/s. Sunil Hitech Engineers Ltd. for supply, erection and commissioning of transformers.
The adjudicating authority is of the view that the appellant is not eligible to avail the CENVAT Credit on the inputs which were procured and consumed for manufacturing of transformers as they have discharged the service tax liability under the category of Works Contract services by availing Composition Scheme and that they having availed the CENVAT Credit they should not have availed and discharged tax under Works Contract composition scheme.
See our Columns Tomorrow for the judgements
Until Tomorrow with more DDT
Have a nice day.
Mail your comments to vijaywrite@taxindiaonline.com |
Download PDF
