TIOL-DDT 940
29.08.2008
Friday The CBEC has notified the Exchange Rates for Imported Goods and Export Goods with effect from 1st September 2008. Notification NO.98/2008 (NT)-CUSTOMS, Dated: July 28, 2008, is superseded. Notification NO.102/2008 (NT)-CUSTOMS , Dated: August 26, 2008 RBI Clarification on phasing out of Banknotes – no phase out of smaller denomination notes As a part of its currency management programme, the Reserve Bank phases out banknotes of old design once banknotes in new design with additional/enhanced security features are introduced. The Reserve Bank has asked banks that when they receive bank notes with old design in Rs. 500 denomination (1996 series), they may not re-issue such notes to public and instead return them to the Reserve Bank offices. Members of public will get the exchange value for the banknote of the old design tendered by them for the same value either in the new design of banknotes or by combination of other denominations or by credit to their account. All banknotes in the 1996 design/ series will continue to be legal tender. All central banks undertake such exercise of phasing out banknotes in old designs to ensure that banknotes with enhanced security features are continued in circulation. There is no time limit set for such phasing out or for members of public to exchange them. The Reserve Bank of India also clarifies that at present it is not phasing out any currency notes in smaller denomination, that is, Rs.10, 20, 50 and 100. Members of public can continue to use all genuine banknotes which are legal tender. Maybe it's time the RBI introduces notes of Rs. 10,000/- and Rs. 1 Lakh or maybe 1 Crore Denominations. At least it will be easy to display a One Crore Note or even a Hundred Crore bundle in Parliament, instead of carrying a gunny bag of notes! High Denomination Notes In 1954, we had a high denomination Note of Rs.10,000/- which was demonetised in 1978 by the HIGH DENOMINATION BANK NOTES (DEMONETISATION) ACT, 1978, which stipulated that On the expiry of the 16th day of January, 1978, all high denomination bank notes shall, notwithstanding anything contained in section 26 of the Reserve Bank of India Act, 1934, (2 of 1934) cease to be legal tender in payment or on account at any place. ¶High denomination bank note¶ was defined as to mean a bank note of the denominational value of one thousand rupees, five thousand rupees or ten thousand rupees, issued by the Reserve Bank. 
The Rs. 10,000/- note of 1954 must be worth a Crore now. So there is nothing wrong in having a note of Rs.1 Crore now. But before that if we are serious about unearthing or rather killing black money, may be the Rs.500/- and Rs.1000/- notes have to be demonetised and perhaps we can kill about Rs 20 Lakh Crores and that is more than twice the Union Budget. Banking Transaction Tax can do nothing, except harassing the genuine tax payers. Lawyers can advertise in web As per Rule 36 of the Bar Council of India Rules, 36. An advocate shall not solicit work or advertise, either directly or indirectly, whether by circulars, advertisements, touts, personal communications, interviews not warranted by personal relations, furnishing or inspiring newspaper comments or producing his photographs to be published in connection with cases in which he has been engaged or concerned. His sign-board or name-plate should be of a reasonable size. The sign-board or name-plate or stationery should not indicate that he is or has been President or Member of a Bar Council or of any Association or that he has been associated with any person or organisation or with any particular cause or matter or that he specialises in any particular type of worker or that he has been a Judge or an Advocate General.
Now, the BCI has amended the Rule to add, “PROVIDED that this rule will not stand in the way of advocates furnishing website information as prescribed in the Schedule under intimation to and as approved by the Bar Council of India. Any additional other input in the particulars than approved by the Bar Council of India will be deemed to be violation of Rule 36 and such advocates are liable to be proceeded with misconduct under Section 35 of the Advocates Act, 1961.”
I may be permitted a little aside. I remember the days when I was studying Law and in the class, the Professor was explaining that an Advocate cannot have a vulgar advertisement in the Railway Station – “Mr. So & So leading Criminal Lawyer of the City” A beautiful girl in my class asked the Professor, “what is vulgar about such an advertisement?” The Professor replied, “Vulgarity is not a girl in scantily clad clothes revealing her vital assets; a lawyer blatantly advertising himself is more vulgar” Now that Lawyers can advertise on the web, maybe TIOL can provide a good platform for the tax consultants to advertise. My Sales Team is blissfully ignorant of these developments. And so can Chartered Accountants The Institute of Chartered Accountants have stipulated that:- The Members may advertise through a write up setting out their particulars or of their firms and services provided by them subject to the following Guidelines and must be presented in such a manner as to maintain the profession's good reputation, dignity and its ability to serve the public interest. The Member(s)/Firm(s) should ensure that the contents of the Write up are true to the best of their knowledge and belief and are in conformity with these Guidelines and be aware that the Institute of Chartered Accountants of India does not own any responsibility whatsoever for such contents or claims by the Writer Member(s)/Firm(s).
Again TIOL may be a good platform Jurisprudentiol– Monday's cases  Speaking OrdersEven High Courts are required to pass speaking reasoned orders – The ¶inscrutable face of a sphinx¶ is ordinarily incongruous with a judicial or quasi-judicial performance. Supreme Court Right to reason is an indispensable part of a sound judicial system, reasons at least sufficient to indicate an application of mind to the matter before the Court. Another rationale is that the affected party can know why the decision has gone against him. One of the salutary requirements of natural justice is spelling out reasons for the order made, in other words, a speaking out. The ¶inscrutable face of a sphinx¶ is ordinarily incongruous with a judicial or quasi-judicial performance. If this is so for the High Court, it is more so for the Quasi Judicial Authorities. Customs Warehousing of goods - “Warehoused goods” means goods physically deposited in a warehouse – When part quantity of imported goods is warehoused time of filing Bill of Entry relevant to determine quantum of warehoused goods – Ex-bond Bill of Entry not applicable for goods not “Warehoused” – Only in respect of goods which have been physically warehoused and for which Ex-bond Bill of Entry is filed, Section 15 (1) (b) would be applicable – CESTAT WHEN an importer files an into-bond bill of entry on the eve of budget presentation and the cargo arrives on the budget day, there will be apprehension that duty rates would either go up or come down. This apprehension leads the importer to gamble with the options available to him. What if the discharge of cargo extends into the next day and the imported cargo is subjected to a higher levy of duty in the budget. Panic grips the appellant and he would file an ex-bond bill of entry for the entire quantity of goods imported even before the warehousing of goods is complete, hoping that he could get away with lower rate of duty prevailing on the eve of budget. But Customs authorities are smart enough to check the timing of warehousing, quantum of warehoused goods and then levy the prevailing rate of duty rather than accept the ex-bond bill of entry for the entire quantity at the old rates. This is precisely the story in the instant case and even Tribunal agreed with the lower authority's prudence in applying the prevailing rates. Service Tax Valiant efforts of Counsel for Revenue does not convince Bench - Rs Seven crore demand of Service Tax goes out of harbour - Ship Repair service is not Port Service: Tribunal THE appellants are engaged in the activity of Ship Repairing at the dry dock built by them in an area specified by the Board of Trustees of the Mormugoa Port Trust, at Mormugao Harbour, under an Agreement entered into between them and the Board of Trustees of the Mormugoa Port Trust. The Service tax was imposed on “Port Services” (Major Ports) with effect from 16.7.2001. M/s Mormugoa Port Trust falls in the category of “Major Ports”. “Port services” means any service rendered by a port or other port or any person authorized by such port or other port, in any manner, in relation to a vessel or goods. The issue is whether the ship repair services rendered by the appellants would come under the purview of “Port Services” as defined under section 65(82) of Chapter V of Finance Act, 1994. Income Tax Regular assessment and block assessment cannot stand simultaneously in view of the specific provision in Explanation to sub s.(2) of s.158BA of the IT Act - Revenue's plea that this was done to protect the interests of revenue as the block assessment orders were under challenge not acceptable in view of strict provision of law in s. 158BA: High Court IN an interesting case before the Karnataka High Court, Revenue filed two appeals seeking redressal from two orders passed by the Tribunal in favour of Wipro Finance Limited wherein the assessee claimed a substantial loss running into crores of rupees in two assessment years, by claiming depreciation, making provisions for bad and doubtful debts and finally claiming certain deductions from taxable income. See our columns Monday for the judgements Until Monday with more DDT Have a nice Weekend. Mail your comments to vijaywrite@taxindiaonline.com |
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