THE appointment of a Chairman for CBEC (and CBDT) was mired in confusion in recent times. TIOL Netizens are aware of the controversy over the one-year tenure and seniority issues on the appointment of Chairmen of the Boards.

After the retirement of the former CBEC Chairman V Sridhar in November 2010, S. Dutt Majumder, the senior-most Member in CBEC was given additional charge of the post of Chairman, for three months. Just when the three months period expired on 28 February 2011, the Government extended his additional charge until his retirement on 31 October 2011. Now they have appointed him as the regular Chairman when he has exactly a month and a half to go before superannuation.

That has set the rumour mills going. Why should an incharge chairman be appointed a regular chairman just 45 days before his retirement? There is absolutely no difference in pay, perquisites or status. He has already been selected for the post of Ombudsman. Will he go as ombudsman or continue as Chairman?

The ball for Budget 2012 preparations would start rolling about the time of his retirement. He is closely associated with GST, rather the face of GST for MoF after Finance Minister himself. In such a situation, can the FM afford to have a new person as Chairman? Therefore, an extension for a few months for the incumbent Chairman is a huge possibility, if we go by the FM's powers to grant six-month extension.

DOR F.No A.12026/11/2010-Ad.I Office Order No. 262/2011, Dated : September 14, 2011

Customs Duty Exemption extended to goods imported for internal security operations and coastal security operations

CENTRAL Government has amended Notification No. 39/96-Cus dated July 23, 1996 to allow import of certain important goods and equipment (in addition to personal effects of persons on duty in Central Para Military Forces), without payment of BCD, CVD and SAD for the purpose of internal security operations and coastal security operations.

Notification No. 89/2011-Cus., Dated: September 12, 2011

Export of Non-Basmati Rice, Wheat and Onions - Board Wants Strict Monitoring

DGFT has issued three notifications on 9.9.2011, which modify the Export policy in respect of Non-Basmati Rice, Wheat and Onion with immediate effect.

Notification No.71 (RE-2010)/2009-2014 dated 9.9.2011 makes "Free" the export of Non-Basmati Rice subject to it being made by private parties from privately held stocks and only through Customs EDI ports.

Notification No.72 (RE-2010)/2009-2014 dated 9.9.2011 makes "Free" the export of Wheat subject to such export taking place only through Customs EDI Port.

Notification No.73 (RE-2010)/2009-2014 dated 9.9.2011 "Prohibits" the export of Onions of all varieties including those in "cut, sliced or broken in powder form". This prohibition is subject to the transitional arrangement under para 1.5 of the Foreign Trade Policy (FTP). As per this arrangement, shipment of export will be allowed "if made within the original validated with respect of available balance and time period of an irrevocable commercial letter of credit, established before the date of imposition of such restriction".

CBEC wants the prohibition on export of Onion shall be enforced strictly without any deviation. Board also desires that the export of Non-Basmati Rice and Wheat shall be monitored on fortnightly basis. DG, Systems has been asked to submit regular reports.

Circular No. 41/2011-Cus., Dated: September 14, 2011

Bablani Does it again - Wins in CAT

IF you wonder who Babalni is - Kishori Lal Bablani recently retired as Chief Commissioner in the Customs and Central Excise Department, which he joined as an appraiser in 1976. Normally appraisers don't become even Commissioners – but how did Bablani become a Chief Commissioner?

Here is the story.

KL Bablani appeared for the I.A.S. and Allied Services examination in the year 1974. He passed that examination and was placed at S. No. 221 in Category III. Candidates up to S.No. 198 were accommodated in Class I service based on the available vacancies. Since Bablani was at S.No. 221, he was accommodated in Class II service in the Customs Department as appraiser.

With effect from 10-11-1976, he was working as Customs Appraiser (Class II) in the Bombay Customs House. In 1983, he made a representation to the effect that in 1974, when the Department of Customs and Excise has notified available vacancies to be filled in by the candidates who qualified at the I.A.S. and Allied Services examination, the number of vacancies was wrongly intimated. Initially, this Department had intimated 35 vacancies to be so filled in for Class I posts. This figure was finally revised to 40 vacancies. According to Bablani, 97 vacancies should have been so notified in Class I posts in 1974 and not 40. Had the vacancies been correctly notified, he would have been appointed to Class I post in this Department in 1974.

The representation, which was made in 1983, was rejected on 23-9-1985. He filed a writ petition in the High Court, which was transferred to the CAT, which allowed his claim by the order of the CAT in 1994. The Government took the matter to the Supreme Court, which dismissed the Government appeal and so Bablani got his seniority from 1974 and got all the promotions.

In 2004, another appraiser made a similar writ petition in the Delhi High Court and the High Court relying on the same Bablani case dismissed the petition. - 2008-TIOL-409-HC-DEL-SERVICE.

Now Bablani has won another case in the CAT with regard to selection in Settlement Commission and it seems, he has won costs too. Perseverance pays!

Government Accepts GOM Recommendations on Corruption - Sanction for prosecution to be decided within three months

THE Government has accepted the recommendations made by the Group of Ministers (GoM) on Corruption in its First Report, aimed at fast-tracking of cases against public servants accused of corruption.

When CBI asks for sanction to prosecute senior officers, it takes years for them to get the sanction. Now this is going to change:

Where the Investigating Agency has requested sanction for prosecution, it will be mandatory for the competent authority to take a decision within a period of 3 months from receipt of request, and pass a Speaking Order, giving reasons for the decision. In the event of refusal of sanction to prosecute, the competent authority will have to submit its order including reasons for refusal, to the next higher authority for information within 7 days.

Jurisprudentiol – Friday's cases

Service Tax

Photography – Value includes cost of goods and material used and consumed in course of rendering such service – CESTAT LB

FOR the purpose of Section 67 of the Finance Act, 1994, the value of service in relation to photography would be the gross amount charged including cost of goods and material used and consumed in the course of rendering such service. The value of other goods and material, if sold separately would be excluded under exemption Notification No.12/2003 and the term 'sold' has to be interpreted using the definition of 'sale' in the Central Excise Act, 1944 and not as per the meaning of deemed sale under Article 366 (29A) (b) of the Constitution.

Income Tax

Whether when importer avails bank credit limits of others to make payments to foreign parties, reimbursement of interest paid on such credit is liable to tax deduction at source - YES, rules Calcutta HC

APPELLANT was engaged in the business of importing and dealing in pulses and edible oil. Assessment was made u/s 143(3). Later on, a notice was received from the revenue alleging that it appeared that the appellant had not deducted tax at source on payment of interest on loan taken from three companies.

Customs

Anti Dumping Duty - Different Tariff Heading numbers mentioned in initial notification and final notification after sun set review - Latter one correct - No stay: CESTAT

THIS is yet another case where an avoidable instance of mis-classification by the D.A. It is high time that the D.A. takes on board a trained Customs specialist so that such classification faux pas do not recur.

Central Excise

MRP based assessment - Different retail prices for different regions on same package - Duty liability to be discharged on highest of MRPs - Revenue appeal allowed: CESTAT

IT is absolutely clear than when on a given package, more than one retail sale price is declared, then the maximum of such retail sale price shall be deemed to be retail sale price for purposes of charging Central Excise levy under section 4A.

Delay defeats equity is a well-known principle of jurisprudence. - Supreme Court in the Bablani case

See our columns Tomorrow for the judgements

Until Tomorrow with more DDT

Have a Nice Day.

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