TIOL-DDT 2804
10 03 2016
Thursday

SIX years ago in DDT 1321 18.03.2010, I wrote:

Ludicrous declaration for domestic passengers travelling in international flights

RECENTLY  I flew to Hyderabad from Bangalore by Air India's Bangalore-Muscat flight. Along with my Boarding Pass, I was given a declaration form which I was asked to sign and hand over to the Customs Officer. The form required me to give a declaration that I do not possess the following articles or that I have valid customs clearance adjustments. The form was to be signed before a Customs Officer and to be countersigned by the Customs escorting officer. [This escort business is a strange concept in itself. More on that a little later.]

1. Watches, watch movements or parts thereof - of foreign origin
2. Transistors and diodes
3. Photographic cameras including Video Cameras
4. TV sets
5. VCRs, VCPs and Video Tapes [ who has them these days?]

(All the goods listed at S.Nos . 1 to 5 above are also available in a single instrument called a cell phone - a majority of the cell phone models available in the market these days have all these features in-built into a single instrument. Nowadays every person has a fancy of buying a cell phone with all these features and they also travel by air and more likely end up in international flights for reaching domestic destinations. So, how about declaring a cell phone and more so a cell phone with all the above technological features. What is the point?)

6. Zip fasteners

[Every male (or) female wearing a trouser will invariably have a zip fastener - so what is the Customs gaining out of this piece of declaration. Hope they don't ask for a physical examination]

7. Any other electronic items
8. Gold bullion and gold jewellery

(Gold jewellery is fashionable. These days, men are wearing more jewellery than women. And can't I carry a laptop or a flash drive?)

9. Silver bullion and coins
10. Foreign currency
11. Indian currency beyond Rs. 5000/-

(Are we living in medieval times? With inflation touching double digits, a sugar bag weighing a quintal is costing Rs. 5000/-. So, what are we trying to prove if we catch a person travelling with more than Rs. 5000/- that too to a domestic destination? Nowadays, banks are issuing international debit cards with far higher ceiling for cash withdrawal. What is the sanctity for this Rs. 5000/-?)

12. Any other dutiable/imported item

(All the goods tucked into a suitcase/ briefcase, worn by the passenger are dutiable goods. Will there be any dispute on that?)

With such outdated declaration forms, what is the Customs or for that matter Air India trying to prove? Why should we waste time and paper in such ridiculous activities?

It gives me great pleasure to report that CBEC has decided that domestic passengers who board international flights in the domestic leg are not required to file the Customs Baggage declaration form.

Board wants Chief Commissioners of Customs to ensure that the decision is implemented strictly at all airports.

A great gesture indeed.

CBEC Circular No.8/2016-Cus, Dated: March 08, 2016

Redress Grievances in a Timely and Effective Manner - CBEC Member

IT seems that in a recent meeting, the Secretary, DARPG emphasized that efforts should be made to remove the root cause of grievances. (Perhaps the root cause of grievances is the government employee).

CBEC Member Ms. Neerja Shah has written to all the Chief Commissioners that taking note of the importance being given to grievance redress, Chief Commissioners/Director Generals should review 10 grievances & Pr. Commissioner/Commissioner should review 20-30 grievances every week. She further adds that the mechanism of grievance redress by CBEC and its offices has received adverse comments recently and therefore, it is incumbent on each one of them to ensure that all grievances are redressed in a timely and effective manner.

Remember the help centres and taxpayers' assistance cells opened by the Department with much fanfare?

CBEC Member's D.O. 296/137/2013-CX (CPGRAMS) Pt.III., Dated: February 26, 2016

Income Tax Notice to a Dead Assessee!

DEATH and taxes are famously linked, but can you imagine an Income Tax notice to a dead assessee. That is precisely what happened in a case before the Delhi High Court recently.

A notice was issued by the ITO on 27th March 2015 to an assessee who died on 14th March 2015. The assessee's son wrote to the ITO that his father was dead; that the notice was time barred and that he did not know the financial affairs of his father.

The ITO was not amused. She took the stand that:

1. As the intimation of the death of the assessee was not received in her office, the notice was not issued on a dead person. (Death has to ratified by the ITO?)

2. The endorsement made by the postman that the addressee was dead, is treated as refusal by the family members of the Assessee to accept the notice.

On these two erroneous grounds, the Department continued the proceedings in the notice issued to the person who was dead even before the date of notice.

The High Court had no hesitation in holding that the actions of the Revenue in this case in persisting with the proceedings under Section 147/148 of the Act against the Petitioner were wholly misconceived both on facts as well as on merits. Accordingly, the impugned notice dated 27th March 2015 and all proceedings consequent thereto were quashed.

It is not as if the Income Tax authorities have no authority to recover tax dues from a dead person. The Legal representative of the dead person is liable to pay the dues.

But in this case they had a peculiar problem.

The last date for issue of notice in this case was 31st March 2015. They issued the notice on 27th March. 28th and 29th March were holidays being Saturday and Sunday. So they just had two more days. And to their bad luck, the assessee was already dead a full fortnight before the notice. Now, they did not have the time to issue the notice to the legal representative of the dead assessee; so they went ahead proceedings with the notice to the dead assessee on the assumption that the assessee had no business to die without the permission of the Income Tax Officer.

Please see 2016-TIOL-398-HC-DEL-IT

(PM Modi yesterday in Rajya Sabha)

Until Tomorrow with more DDT

Have a nice day.

Mail your comments to vijaywrite@tiol.in