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REVENUE
TRANSPARENCY TIMES
RNI Regd. No. : DELENG/2009/29517
International Standard Serial Number 2348 – 2958
English Monthly
New Delhi
Vol : VI
Transparency weeds out corruption
Opaqueness breeds it
No. 5
Pages: 16
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January 2015
Price: Rs 20/- (Per copy)
US $1 (Per copy) Outside India
CAN TRADE Assistant Commissioner Central A SALUTE
NOTICE OR Excise Yamuna Nagar deliberately
BOARD'S
circulars issued by CBEC
CIRCULAR disregard
As is well known that Central board of on the ER 1 returns submitted by the assesses
Excise and Customs (CBEC) issues to R.O to make the concerned Range officers
ACT AS
circulars from time to time for smooth ( Superintendent) busy on the system and
functioning of the department and to may not be able to concentrate on the trade
ESTOPPEL ? facilitate the trade and to ease the problems who are prone to duty evasion.. All the
How good is a Public
Notice to the taxpayers?
That is the question.
There is a standing
grievance amongst the
people, not only the
taxpayers but also those
facing Company Law
Board or SEBI or any
other branch of the
Government, that they
do not get any written
clarification when they
ask for it. The reason
why the government
departments do not want to give individual
clarification or public notice is that, if found
wrong, the clarification or the public notice is
likely to be produced in the court to claim that
it was a promise binding the government, that
is, to invoke the theory of promissory
estoppel. However, even if a clarification is
given in writing to a person or issued as a trade
notice or as a circular by the office it does not
necessarily act as an estoppel. The legal status
of a circular issued by the Board under Section
37B of Central Excise or Section 151A of the
Customs Act is, however, quite different and
its binding nature is the subject matter of
several judgements of the Supreme Court (not
discussed here). However, we have to keep in
mind that if a circular of the Board is
reproduced or quoted in a public notice or
trade notice, that will naturally have the same
effect as that of a Board's circular. Here the
discussion is about how good a clarification
given to one person or a trade notice given to
the general public is in the legal sense.
The legal position is however, that public
notice is for guidance of the people but if in a
critical analysis it is found that if it is against
the law, the law prevails and not the public
notice. To appreciate this aspect of the matter
we shall do well first to see the judgments on
the subject chronologically.
Wrong clarification given by officer is not
estoppel
Continued on page 6
of trade and officers. It is also a fact that
CBEC circulars have to be followed by all
offices working under CBEC and non
compliance is viewed seriously and harsh
action is taken against those not complying,
if brought to the notice of CBEC.
RTT has gathered that Assistant
Commissioner of Central Excise Yamuna
Nagar is one of those
powerful IRS
officers also very close to the senior
officers of CBEC. Therefore, the said
Assistant Commissioner believes that
whatever he says or does is the ultimate
law.
Yamuna Nagar is one of the major hub of
plywood industry consisting of more than
300 units and metal industry consisting of
more than 450 units and both are evasion
prone commodity being consumer item.
Majority of SSI units are operating multiple
units to evade duty and there appears to be
zero control of Central Excise. The
problem multiplies manifold when the
Central Excise officers close their eyes and
allow evasion of duty. Rather the industry
is divided into groups and each Group head
take care of the Asstt.Commissioner
sources say. Whatever cases have been
booked are merely an eye wash as compare
to the quantum of actual evasion. The units
pay duty as per settlement and not as per
actual clearances made sources say. The
units are maintaining multiple set of
Invoices and same are destroyed when the
goods reach at destination a old modesoperandi adopted by the tax evaders. Even
branded plywood/board is manufactured
without payment of any duty. This is well
within the knowledge of the senior Central
Excise officers of Panchkula
Commissionerate sources say.
RT T h a s g a t h e r e d t h a t
the
Asstt.Commissioner Yamuna Nagar has
adopted a unique modus operandi. All type
of on-line
work of the Asstt
.Commissioner
is being done by a
Inspector(who is under probation period)
puts un-necessary and irrelevant objections
established modus-operandi for evasion of
duty viz. under valuation, clandestine
clearance, non-accounting of raw-material as
well as finished goods, is being practiced in
Yamuna Nagar but the Asstt. Commissioner
pretends his ignorance with vested interest on
the matter sources say. The said fact can be
corroborated from the number and nature of
minor cases booked by the divisional
preventive Yamuna Nagar.
Reference is invited to Circular
No.952/13/2011-CE dated
8/9/2011(regarding stuffing of export
containers under supervision of Central
Excise Officers) issued by CBEC. As per the
circular Range officer will depute the Sector
Officer or himself carry out the process of
examination and sealing of export goods. This
circular is applicable on all type of exports.
As per this circular, exporter will request the
Superintendent/Inspector for sealing/stuffing
24 hours advance or within shortest period
mutually agreed upon. Hence, it is quite clear
that advance intimations of export will be
addressed to Range Officer/Sector officer
only and not to the Division Office in any
way. But this circular is not acceptable to
I.C.Mehta, Asstt.Commissioner and he after
over ruling and superseding the said circular
has issued orders to the Range Officers vide
letter no C No
IV(16) 09/tech/Exp
intimation/YNR /2013 dated 17/1/2014 ,
clearly stating that the Range officer should
forward the copy of the intimation of the
Exporter to the Divisional office . The said
letter was issued to the RO'S in view of the
fact considered by the Asst Commissioner
that in certain cases of Exports , the range
officers have allowed the export himself only
without examination by the sector
officer/Inspector which is against the
procedure prescribed for export . Either the
Asst Commissioner is not well conversant
with the rules and the board circular dated
8/9/2011(Circular no 952 /13/2011 /CX) or
had some hidden agenda certainly not for
augmenting Government revenue. It should
Continued on page 9
RTT & Metro Press pays tribute to the
greatest martyr, Netaji Subhash Chandra
Bose, for his unparalleled contribution to
the Indian National Movement
HAWALA
Hawala Cases:
1. Terrorism: The series
of bomb blasts in a major
Indian city in 1993 was
funded through Hawala.
The investigation exposed
that the funds behind these
bombings were routed
through Hawala operators
in the United Kingdom,
Dubai and India.
A K Agnihotri
2. Insider Trading: A
Ex-Comm, Customs citizen of a South Asian
& Central Excise
country, who was an
investment banker in a
major financial center, is accused of giving
'tips' to various friends and relatives. After
some illegal trades took place, the banker
resigned and apparently fled the United States
for his homeland. At the same time, several of
his associates also traveled to this same
country as well as several European financial
centers. An examination of detained bank
records reflects that money was transferred to
persons having the same nationality in at least
one of these financial centers. It is possible
that these wire transfers were the first part of
Hawala-like transfers of the profits from the
illegal trades to the investment banker's home
country.
3. Narcotics Trafficking: Citizens of some
countries supposedly importing heroin and
are alleged of shaking hands with bank officer
to clean the earnings from the sale of the
heroin. This bank officer is understood to
open accounts without following proper
'know your customer' (KYC) norms and also
Continued on page 5
Consigned to Archives 2014, Welcome 2015:
The Year that wasstarted with lot of
hopes for Indian
democracy and will go
Somesh Arora down the annals of
CCO, Amicus History, with some of
Rarus, Ex-Comm, them having been
Customs &
achieved. Indian
Central Excise e l e c t o r a t e s v o t e d
overwhelmingly for a
change and got it too. Whether that
change will radically change their lives
remains to be seen. As the end of the Year
unfolded, the faith in the goodness of
religion went down and in the humanity
became strong. While in Kashmir,
people in general responded with the
good sense to all the gestures made by
army, people and establishment during
floods with a high turnover in elections
in a triumph for democracy. The
incidents across the border- whether
killings of innocent on Wagah or of
budding students in Peshawar sent
shock waves even to this side of the
border. Another incident which added
to the year- end gloom was of Café in
Australia, where an Asylum seeker,
targeted the natives of the country which
gave him asylum. If killing others and
your own is all about religion, it is better
to be irreligious. Of special mention in the
incident is the story of Victoria, a teacher
of that unfortunate
school in Peshawar.
She saved precious
lives of small children by hiding them in
the cupboards and by informing the
assailants that children had gone to Gym.
She no doubt suffered her ill fate when
they sprayed her with bullets, but she has
kept the faith in humanity, alive. Compare
this with the Backdrop of ISIS reportedly
killing 40 Christian children for not
converting to Islam. Does no one in the
Islamic world has courage to tell these
people about the true message of Islam?
Have all voices of sanity in the world
become cowards to these insane?
Economically, the recession became
deep rooted and India was no exception.
Down was in, and up out- with sluggish
stock markets, petro prices, WPI index,
IIP index, gold and commodities and
exports. Respite was the lower oil import
Continued on page 8
2
January 2015
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Audit of the Service
Tax assessees by the
officers of Service Tax and
Central Excise Commissionerates
Circular No. 181/7/2014-Service Tax
Section 94 of the Finance Act, 1994 deals
with rule making powers of the Central
Government in relation to service tax. Subsection (2) of section 94, dealing with
specific purposes for which rules can be
made, was amended with effect from
06.08.2014, vide Section 114(J) of the
Finance Act, 2014, and a new clause (k) was
added to sub-section (2) of section 94,
which is reproduced below –
“(k) imposition, on persons liable to pay
service tax, for the proper levy and
collection of tax, of duty of furnishing
information, keeping records and the
manner in which such records shall be
verified.”
2. In exercise of the rule making powers
under clause (k) of sub-section (2) of section
94 of the Finance Act, 1994, the Central
Government has inserted a new rule 5(A)(2)
in the Service Tax Rules, 1994 vide
notification no. 23/2014-Service Tax dated
5th December, 2014. This rule, interalia,
provides for scrutiny of records by the audit
party deputed by the Commissioner. Such
scrutiny essentially constitutes audit by the
audit party consisting of departmental
officers.
F. No. 137/46/2014-Service Tax
CIC recommends ordinary
postal stamp as
RTI fee instrument
People seeking information under RTI Act
may now be able to use postal stamps as
application fee if a recommendation of the
Central Information Commission is accepted
by the Centre.
Two Information Commissioners in two
separate cases-- R K Jain and Raghubir Singh- have made a common recommendation to
the Department of Personnel and Training for
implementing postal stamps as a mode of
payment of RTI fee thus reducing hassles of
applicants.
RTI users now have to pay a fee of Rs 10
either in cash, bank demand draft or Indian
Postal Order to get information.
Some authorities like Army and Indian
air force refuse to accept applications drawn
in favour of Accounts Officer despite clear
directives of the Department of Personnel and
Training causing hassles to applicants.
"The appellant has submitted that the
postal department's recommendation for use
of ordinary postal stamps for payment of RTI
fee is both practical and user friendly. The
3. Verification of records mandated by the
statute is necessary to check the correctness of
assessment and payment of tax by the
assessee in the present era of self-assessment.
It may be noted that the expression “verified”
used in section 94(2)(k) of the said Act is of
wide import and would include within its
scope, audit by the departmental officers, as
the procedure prescribed for audit is
essentially a procedure for verification
mandated in the statute.
4. It may also be noted that the Hon’ble High
Court of Delhi in the judgment dated
04.08.2014 in the case of M/s Travelite (India)
[2014-TIOL-1304-HC-DEL-ST] had
quashed rule 5A(2) of the Service Tax Rules,
1994 on the ground that the powers to conduct
audit envisaged in the rule did not have
appropriate statutory backing. This judgment
can now be distinguished as a clear statutory
backing for the rule now exists in section
94(2)(k) of the said Act.
5. Departmental officers are directed to audit
the Service Tax assessees as provided in the
departmental instructions in this regard. G.S.R. (E).- In exercise of the powers
Difficulty, if any, in implementing the circular conferred by sub-section (1) of section 5A of
may be brought to the notice of the Board.
the Central Excise Act, 1944 (1 of 1944), the
(Himani Bhayana) Under Secretary (Service Tax)
Central Government, being satisfied that it is
necessary in the public interest so to do,
hereby exempts all goods falling under the
First Schedule to the Central Excise Tariff
Act, 1985 (5 of 1986) donated or purchased
out of cash donations, for the relief and
rehabilitation of the people affected by the
floods in the State of Jammu and Kashmir
from the duty of excise leviable thereon under
the Central Excise Act, 1944, subject to the
following conditions, namely:(i) that it is certified by the manufacturer of
such goods on the relevant clearance
documents that the goods are intended to be
donated for the relief and rehabilitation of the
people affected by the floods in the said State
free of cost;
(ii) that the goods are sent directly from the
factory of the manufacturer or warehouse to
Commission finds merit in the appellant's
submissions and would urge the DoPT to
consider this at the earliest.
"In this connection it is noted that the
government of Tamil Nadu has already
allowed payment of RTI fee by affixing court
fee stamps, Information Commissioner
Basant Seth said in the matter of activist R K
Jain.
Agreeing with Seth, Information
Commissioner Sridhar Acharyulu also issued
an exhaustive order on the issue
recommending to DoPT to avail the
opportunity of giving New Year Gift to the
citizens by permitting and publicising the use
of ordinary postal stamps for the payment of
RTI fee.
"Accepting postal stamps for RTI fee
would resolve many difficulties in payment,
besides preventing wastage of public money
in returning or rejecting the IPOs or spending
much larger amounts than Rs 10, for realising
Rs 10, and avoidable litigation," he said.
Source: Business Standard
Notification No. 25/2014-Central Excise
the Central Government, the Government of
Jammu and Kashmir; or as the case may be,
the relief agencies of the Central
Government, the Government of Jammu and
Kashmir including the relief agencies duly
approved by the Central Government or the
Government of Jammu and Kashmir; and
(iii) that the manufacturer produces before
the jurisdictional Deputy Commissioner or
the Assistant Commissioner of Central
Excise, as the case may be, within six months
from the date of removal of the goods or
within such extended period as the said
officer may allow, a certificate from the
District Magistrate of the affected area in the
State of Jammu and Kashmir that the said
goods have been donated for use for the
aforesaid purpose.
2. This notification shall remain in force upto
and inclusive of the 31st March, 2015.
[F.No. 356/24/2014-TRU]
(Akshay Joshi)
Grants exemption from
Basic Excise Duty to goods
donated or purchased
out of cash donations for the
relief and rehabilitation of
people affected by the
floods in the State of
Service Tax Third Amendment
Jammu and Kashmir
Notification No. 25/2014-Central Excise
G.S.R. (E).- In exercise of the powers
conferred by sub-section (1) of section 5A
of the Central Excise Act, 1944 (1 of 1944),
the Central Government, being satisfied
that it is necessary in the public interest so to
do, hereby exempts all goods falling under
the First Schedule to the Central Excise
Tariff Act, 1985 (5 of 1986) donated or
purchased out of cash donations, for the
relief and rehabilitation of the people
affected by the floods in the State of Jammu
and Kashmir from the duty of excise
leviable thereon under the Central Excise
Act, 1944, subject to the following
conditions, namely:(i) that it is certified by the manufacturer of
such goods on the relevant clearance
documents that the goods are intended to be
donated for the relief and rehabilitation of
the people affected by the floods in the said
State free of cost;
(ii) that the goods are sent directly from the
factory of the manufacturer or warehouse to
the Central Government, the Government of
Jammu and Kashmir; or as the case may be,
the relief agencies of the Central Government,
the Government of Jammu and Kashmir
including the relief agencies duly approved by
the Central Government or the Government of
Jammu and Kashmir; and
(iii) that the manufacturer produces before
the jurisdictional Deputy Commissioner or
the Assistant Commissioner of Central
Excise, as the case may be, within six months
from the date of removal of the goods or
within such extended period as the said officer
may allow, a certificate from the District
Magistrate of the affected area in the State of
Jammu and Kashmir that the said goods have
been donated for use for the aforesaid
purpose.
2. This notification shall remain in force upto
and inclusive of the 31st March, 2015.
[F.No. 356/24/2014-TRU]
(Akshay Joshi)
Rules 2014
NOTIFICATION No. 23/2014-SERVICE TAX
G.S.R.
(E).In exercise of the powers
conferred by clause (k) of sub-section (2),
read with sub-section (1) of section 94 of the
Finance Act, 1994 (32 of 1994), the Central
Government hereby makes the following
rules further to amend the Service Tax Rules,
1994, namely:1. (1) These rules may be called the Service
Tax (Third Amendment) Rules, 2014. (2)
They shall come into force on the date of their
publication in the Official Gazette.
2. In the Service Tax Rules, 1994, in rule 5A,
for sub-rule (2), the following sub-rule shall
be substituted, namely:“(2) Every assessee, shall, on demand make
available to the officer empowered under subrule (1) or the audit party deputed by the
Commissioner or the Comptroller and
Auditor General of India, or a cost accountant
or chartered accountant nominated under
section 72A of the Finance Act, 1994,(i) the records maintained or prepared by
him in terms of sub-rule (2) of rule 5;
(ii)
the cost audit reports, if any, under
section 148 of the Companies Act, 2013 (18
of 2013); and
(iii) the income-tax audit report, if any, under
section 44AB of the Income-tax Act, 1961
(43 of 1961),
for the scrutiny of the officer or the audit
party, or the cost accountant or chartered
accountant, within the time limit specified by
the said officer or the audit party or the cost
accountant or chartered accountant, as the
case may be.”
Note:- The principal rules were published in
the Gazette of India, Extraordinary, Part II,
Section 3, Sub-section (i) vide notification
No. 2/94-SERVICE TAX, dated the 28th
June, 1994 vide number G.S.R. 546 (E),
dated the 28th June, 1994 and last amended
vide notification No.19/2014-SERVICE
TAX, dated the 25th August, 2014 vide
number G.S.R. 614 (E), dated the 25th
August, 2014.
(Himani Bhayana)
Under Secretary to the Government of India
[F.No 137/46/2014-Service Tax]
3
January 2015
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Seeks to impose anti-dumping Grants exemption from
duty on Sodium Nitrite
the duties of Customs
originating in or
to goods imported
exported from China PR
Notification No. 46/2014-Customs (ADD)
G.S.R.
(E). -Whereas, the designated section 9A of the Customs Tariff Act, read
authority vide notification number No. with rules 18 and 23 of the Customs Tariff
15/2/2013-DGAD, dated the 18th October, (Identification, Assessment and Collection
2013, published in the Gazette of India, of Anti-dumping Duty on Dumped Articles
Extraordinary, Part I, Section 1, dated the 18th and for Determination of Injury) Rules,
October, 2013, had initiated mid-term review 1995 and in supersession of the notification
in terms of sub-section (5) of section 9A of the of the Government of India in the Ministry
Customs Tariff Act, 1975 (51 of 1975) of Finance (Department of Revenue) No.
(hereinafter referred to as the Customs Tariff 76/2011-Customs, dated the 17th August,
Act), read with rule 23 of the Customs Tariff 2011, published in the Gazette of India,
(Identification, Assessment and Collection of Extraordinary, Part II, Section 3, SubAnti-dumping Duty on Dumped Articles and section (i), vide number G.S.R. 628(E),
for Determination of Injury) Rules, 1995, in dated the 17th August, 2011, except as
the matter of continuation of anti-dumping respects things done or omitted to be done
duty on imports of Sodium Nitrite (hereinafter before such supersession, the Central
referred to as the subject goods), falling under Government, on the basis of aforesaid
tariff item 28341010 of the First Schedule to finding and recommendation of the
the Customs Tariff Act, originating in, or designated authority, hereby imposes on
exported from, People’s Republic of China the subject goods, the description of which
(hereinafter referred to as the subject country), is specified in column (3) of the Table
imposed vide notification of the Government below, falling under tariff item of the First
of India, in the Ministry of Finance Schedule to the Customs Tariff Act, as
(Department of Revenue) No. 76/2011- specified in the corresponding entry in
Customs, dated the 17th August, 2011, column (2), originating in the countries as
published in the Gazette of India, specified in the corresponding entry in
Extraordinary, Part II, Section 3, Sub-section column (4), exported from the countries as
(i) vide number G.S.R. 628(E), dated the 17th specified in the corresponding entry in
August, 2011;
column (5), produced by the producers as
And, whereas, the designated authority, in specified in the corresponding entry in
its final findings in mid-term review vide column (6), exported by the exporters as
notification No. 15/02/2013, dated the 15th specified in the corresponding entry in
October, 2014, published in the Gazette of column (7), and imported into India, an
India, Extraordinary, Part I, Section 1, dated anti-dumping duty at the rate equal to the
the 15th October, 2014, has recommended amount as specified in the corresponding
that anti-dumping duty is required to be entry in column (8), in the currency as
extended at the modified rates on imports of specified in the corresponding entry in
the subject goods originating in, or exported column (10)
and as per unit of
from, the subject country.
measurement as specified in the
Now, therefore, in exercise of the powers corresponding entry in column (9), of the
conferred by sub-sections (1) and (5) of said Table, namely:Table
for donation for the
relief and rehabilitation
of people affected by the
floods in the State of
Jammu and Kashmir
Notification No. 33/2014-Customs
G.S.R. (E).- In exercise of the powers
conferred by sub-section (1) of section 25 of
the Customs Act, 1962 (52 of 1962), the
Central Government, being satisfied that it is
necessary in the public interest so to do,
hereby exempts all goods falling under the
First Schedule to the Customs Tariff Act, 1975
(51 of 1975) when imported into India and
intended for donation for the relief and
rehabilitation of the people affected by the
floods in the State of Jammu and Kashmir
from –
(a) the whole of the duty of customs leviable
thereon under the First Schedule to the said
Customs Tariff Act; and
(b) the whole of additional duty of customs
leviable thereon under the section 3 of the
said Customs Tariff Act,
subject to the following conditions, namely:(i) that it is certified by the importer on the
relevant clearance documents that the goods
are intended to be donated for the relief and
rehabilitation of the people affected by the
floods in the said State free of cost;
(ii) that the said imported goods are sent to
the Central Government, the Government of
Jammu and Kashmir; or as the case may be,
the relief agencies of the Central
Government, the Government of Jammu and
Kashmir including the relief agencies duly
approved by the Central Government or the
Government of Jammu and Kashmir for the
purpose; and
(Iii) that the importer produces before the
Deputy Commissioner or the Assistant
Commissioner of Customs, as the case may
be, within six months from the date of
importation of the said goods or within such
extended period as the said officer may allow,
a certificate from the District Magistrate of
the affected area in the State of Jammu and
Kashmir that the said goods have been
donated for use for the aforesaid purpose.
2. This notification shall remain in force
upto and inclusive of the 31st March, 2015.
[F.No. 356/24/2014-TRU]
(Akshay Joshi)
Under Secretary to the Government of India
Adjudication of appraising
related cases
Circular No. 14/2014 -Customs F. No. 450/145/2014-Cus IV
2. This notification shall remain in force upto
and inclusive of the 16th August, 2016, unless
revoked earlier, and the anti-dumping duty
shall be paid in Indian currency.
Explanation. - For the purposes of this
notification, rate of exchange applicable for
the purposes of calculation of anti-dumping
duty shall be the rate which is specified in the
notification of the Government of India, in the
Ministry of Finance (Department of
Revenue), issued from time to time, in
exercise of the powers conferred by section
14 of the Customs Act, 1962 (52 of 1962)
and the relevant date for determination of
the rate of exchange shall be the date of
presentation of the bill of entry under
section 46 of the said Customs Act.
[F.No.354/41/2000 –TRU (Pt.IV)]
(Akshay Joshi)
Under Secretary to the Government of India
Attention is invited to Board Circular No
44/2011-Cus dated 23.09.2011 regarding
adjudication of appraising related cases. 2.
Para 5 of the Board Circular No 44/2011- Cus
dated 23.09.2011 clarified that the officers of
DRI and DGCEI shall not exercise authority
in terms of section 28(8) of the Customs Act,
1962 even though they have been assigned the
function of ‘proper officers’ for the purposes
of section 17 and section 28 of the Customs
Act 1962 vide notification No 44/2011- Cus
(N.T.) dated 6.07.2011.
3. Pursuant to the Cadre structuring
/reorganization of CBEC, new posts in the
rank of Commissioners of Customs have been
created in DRI and DGCEI for adjudication
of cases relating to cases investigated by
DRI and DGCEI.
4. In the light of the aforementioned
development, Board has decided that
henceforth, specified officers of DRI and
DGCEI may attend to work relating to
adjudication of case where show cause
notices of short levy / non levy of customs
duty have been issued under section 28 of
the Customs Act 1962.
5. Board Circular No. 44/2011- Cus dated
23.09.2011 stands modified to the above
extent.
(Pawan Khetan)
OSD (Cus-IV)
4
January 2015
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Seeks to impose definitive anti-dumping duty on imports of
Clear Float Glass originating in or exported from Pakistan,
Saudi Arabia and United Arab Emirates (UAE)
Notification No. 48/2014-Customs (ADD)
G.S.R.
(E). - Whereas in the matter of
imports of Clear Float Glass of nominal
thicknesses ranging from 4mm to 12mm
(both inclusive), the nominal thickness
being as per BIS 14900:2000, (hereinafter
referred to as the subject goods), falling
under the headings 7003, 7004, 7005, 7009,
7013, 7015, 7016, 7018, 7019, 7020 of the
First Schedule to the Customs Tariff Act,
1975 (51 of 1975) (hereinafter referred as
the Customs Tariff Act), originating in, or
exported from Pakistan, Saudi Arabia and
UAE (hereinafter referred to as the subject
countries) and imported into India, the
designated authority in its final findings
vide, notification No. 14/25/2012-DGAD,
dated the 10th October, 2014, published in
the Gazette of India, Extraordinary, Part I,
Section 1, dated the 10th October, 2014, has
come to the conclusion that(i) the subject goods have been exported to
India from the subject countries below the
associated normal values, thus resulting in
dumping of the subject goods;
(ii) the domestic industry has suffered
material injury in respect of the subject goods;
and
(iii) the dumped imports of the subject goods
from the subject countries have caused
material injury to the domestic industry, and
has recommended imposition of definitive
anti-dumping duty on all imports of subject
goods, originating in or exported from the
subject countries so as to remove the injury to
the domestic industry.
Now, therefore, in exercise of the powers
conferred by sub-section (1) and sub-section
(5) of section 9A of the Customs Tariff Act,
read with rules 18 and 20 of the Customs
Tariff (Identification, Assessment and
Collection of Anti-dumping Duty on Dumped
Articles and for Determination of Injury)
Rules, 1995, the Central Government, on the
basis of the aforesaid final findings of the
designated authority, hereby imposes
definitive anti-dumping duty on the subject
goods, the description of which is specified in
column (3) of the Table below, falling under
heading of the First Schedule to the Customs
Tariff Act as specified in the corresponding
entry in column (2), originating in the country
specified in the corresponding entry in
column (4), exported from the country
specified in the corresponding entry in
column (5), produced by the producer
specified in the corresponding entry in
column (6), exported by the exporter
specified in the corresponding entry in
column (7), and imported into India, an antidumping duty equal to the amount indicated
in the corresponding entry in column (8), in
the currency as specified in the
corresponding entry in column (10) and per
unit of measurement as specified in the
corresponding entry in column (9) of the said
Table, namely:-
Table
Sl.
No.
Heading
Description
of goods
Country
of
origin
Country
of
exports
Producer
Exporter
Amount
Unit of
measurement
Currency
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
1
7003,
7004,
7005,
7009,
7013,
7015,
7016,
7018,
7019,
7020
Saudi
Arabia
Saudi
Arabia
Obeikan
Glass
Company,
Saudi
Arabia
Obeikan
Glass
Company,
Saudi
Arabia
58.22
MT
US$
2
-do-
Clear Float
Glass of
nominal
thicknesses
ranging
from 4 mm
to 12
mm (both
inclusive),
the nominal
thickness
being as per
BIS
14900:2000
-do-
Saudi
Arabia
Saudi
Arabia
MT
US$
-do-
-do-
Saudi
Arabia
Saudi
Arabia
165.07
MT
US$
4
-do-
-do-
Saudi
Arabia
Any
country,
other
than
subject
countries
Arabian
United
Float
Glass
Co, Saudi
Arabia
Any
exporter
other
than
those at
Sl. Nos. 1
and 2
above
Any
134.92
3
Arabian
United
Float
Glass
Co, Saudi
Arabia
Any
producer
other
than
those at
Sl. Nos. 1
and 2
above
Any
165.07
MT
US$
5
January 2015
For e-paper, visit : www.thertt.com
Continued from page 1
assists the traffickers with the management of
these accounts, which are used for illegitimate
money transfers. In addition, this bank officer
may be handling the receipt of shipments of
negotiable instruments from a south Asian
country on behalf of so-called criminals in that
country. These shipments may symbolize part
of money laundering scheme as well as
probable infringement of country's laws
regarding the import of currency.
4. Welfare Fraud: Certain immigrants from a
particular country are charged for committing
large scale welfare fraud. An employee of a rental
agency deposits large numbers of checks into a
personal checking account, and then wires
money to a variety of offshore locations. It is
suspected that Hawala is being used to remit
money (which probably includes proceeds
derived from welfare fraud), via couriers.
5. Gambling: Hawala has been used as a
substitute banking system in a South Asian
gambling operation. The gambling operators
have engaged Hawala operators to accept
money 'on deposit' from gamblers, and pay
winnings through them as well. This is
something of a indication to the dependability
of Hawala. One of the principals in this
gambling operation is that this had been going
on for nearly twenty years without any major
difficulties.
6. Customs and Tax Violations: An
individual representing himself as being in the
gold business in a large city, especially as a 'gold
broker', is alleged of different customs and tax
infringements as well as money laundering. This
individual has made very large cash deposits at
several banks, and at least one bank has closed
this individual's account because of these
deposits. This individual's bank account was
inspected in juxtaposition with a tax
investigation. This individual asserts to provide
gold shops with gold bullion, and also that he sells
gold coins and jewellery to individuals. It is
believed that this individual is acting as a bank for
various individuals and businesses,
supplementing them in escaping the tax payment.
In the wake of the recently sensitive concerns that
money launderers and terrorist groups use
informal transfer systems, many countries
consider the overlooking of the Hawala industry
as no longer a suitable policy alternative. The
probable ambiguity that portrays these systems is
believed to present risks of money laundering
and terrorist financing and therefore it is required
to provide proper attention to these problems.
COMBATING MONEY LAUNDERINGHAWALA
I. Ratification and implementation of UN
instruments:
Each country should take immediate
steps to ratify and to implement fully the 1999
United Nations International Convention for
the Suppression of the Financing of Terrorism.
Countries should also immediately implement
the United Nations resolutions relating to the
prevention and suppression of the financing of
terrorist acts, particularly United Nations
Security Council Resolution 1373.
II. Criminalising the financing of terrorism
and associated money laundering:
Each country should criminalise the
financing of terrorism, terrorist acts and
terrorist organisations. Countries should
ensure that such offences are designated as
money laundering predicate offences.
III. Freezing and confiscating terrorist
assets:
Each country should implement measures
to freeze without delay funds or other assets of
terrorists, those who finance terrorism and
terrorist organisations in accordance with the
United Nations resolutions relating to the
prevention and suppression of the financing of
terrorist acts.
Each country should also adopt and
implement measures, including legislative
ones, which would enable the competent
authorities to seize and confiscate property
that is the proceeds of, or used in, or intended
or allocated for use in, the financing of
terrorism, terrorist acts or terrorist
HAWALA
organisations.
IV. Reporting suspicious transactions
related to terrorism:
If financial institutions, or other
businesses or entities subject to anti-money
laundering obligations, suspect or have
reasonable grounds to suspect that funds
are linked or related to, or are to be used for
terrorism, terrorist acts or by terrorist
organisations, they should be required to
report promptly their suspicions to the
competent authorities.
V. International Co-operation:
Each country should afford another
country, on the basis of a treaty,
arrangement or other mechanism for
mutual legal assistance or information
exchange, the greatest possible measure of
assistance in connection with criminal,
civil enforcement, and administrative
investigations, inquiries and proceedings
relating to the financing of terrorism,
terrorist acts and terrorist organisations.
Countries should also take all possible
measures to ensure that they do not provide
safe havens for individuals charged with
the financing of terrorism, terrorist acts or
terrorist organisations, and should have
procedures in place to extradite, where
possible, such individuals.
VI. Alternative Remittance:
Each country should take measures to
ensure that persons or legal entities,
including agents, that provide a service for
the transmission of money or value,
including transmission through an informal
money or value transfer system or network,
should be licensed or registered and subject
to all the FATF Recommendations that
apply to banks and non-bank financial
institutions. Each country should ensure
that persons or legal entities that carry out
this service illegally are subject to
administrative, civil or criminal sanctions.
VII Wire Transfers:
Countries should take measures to
require financial institutions, including
money remitters, to include accurate and
meaningful originator information (name,
address and account number) on funds
transfers and related messages that are sent,
and the information should remain with the
transfer or related message through the
payment chain.
Countries should take measures to ensure
that financial institutions, including money
remitters, conduct enhanced scrutiny of
and monitor for suspicious activity funds
transfers which do not contain complete
originator information (name, address and
account number).
VIII. Non-Profit Organisations or Non
Government Organisations(NGO's):
Countries should review the adequacy of
laws and regulations that relate to entities that
can be abused for the financing of terrorism.
Non-profit organisations are particularly
vulnerable, and countries should ensure that
they cannot be misused:
i.
By terrorist organisations posing as
legitimate entities;
ii. To exploit legitimate entities as conduits for
terrorist financing, including for the purpose of
escaping asset freezing measures; and
iii. To conceal or obscure the clandestine
diversion of funds intended for legitimate
purposes to terrorist organisations.
IX. Cash Couriers:
Countries should have measures in place
to detect the physical cross-border
transportation of currency and bearer
negotiable instruments, including a declaration
system or other disclosure obligation.
Countries should ensure that their
competent authorities have the legal
authority to stop or restrain currency or
bearer negotiable instruments that are
suspected to be related to terrorist financing
or money laundering, or that are falsely
declared or disclosed.
Countries should ensure that effective,
proportionate and dissuasive sanctions are
available to deal with persons who make
false declaration(s) or disclosure(s).
The FATF recognising the importance of
Hawala published a paper on "The Role
of Hawala". While the main paper is
available on the FATF website , I have
edited and am reproducing some of the
salient issues flagged in the paper.
TYPES OF HAWALA AND OTHER
SIMILAR SERVICE PROVIDERS
CATEGORIZED BY LEGITIMATE AND
ILLICIT USE
For the purposes of this typology, there are
three major types of Hawala and other similar
service providers that operate across the globe
as categorized by legitimate and illicit use to
which distinct ML/FT risks apply:
Pure traditional (legitimate) Hawala and
other similar service providers;
Hybrid traditional (sometimes unwitting)
Hawala and other similar
service providers and
Criminal (complicit) Hawala and other
similar service providers
PURE TRADITIONAL HAWALA AND
OTHER SIMILAR SERVICE
PROVIDERS
In South Asia and Middle East, the word
Hawala is commonly used to refer to “Pure
Traditional Hawala”, a centuries-old money
transmission system which was often used for
trade-finance. These systems have operated
for centuries in an unregulated environment
and are still present in some countries for
trade-finance and personal remittances,
sometimes under a regulatory umbrella, but
more typically not. Pure Traditional Hawala
and other similar service providers are also
extensively used to send low-value
remittances on behalf of individuals, for
example, migrant workers extending outside
their historical geographical area as
populations migrate and trade routes develop.
For instance, Hawala are a common provider
for remittances to migrant workers in the
United Arab Emirates, where a significant
portion of the working class population is
composed of expatriates. Pure Traditional
Hawala and other similar service providers
tend to be popular among migrants because of
familial, regional or tribal affiliation and
inadequate access to regulated financial
services for senders/recipients in origin/
receiver countries. These service providers
may primarily function to provide legitimate
and efficient remittance/trade finance
services to customers sending low value
transactions. If sufficiently regulated and
supervised, these providers, due to the low
value of their average transactions, may
present a low or lower money laundering and
terrorist financing vulnerability. Minimal
supervision in certain jurisdictions, however,
may amplify the risk for misuse.
HYBRID TRADITIONAL HAWALA AND
OTHER SIMILAR SERVICE
PROVIDERS
Hybrid Traditional Hawala and other similar
service providers (Hawala and Other
Similar Service Providers) or designated
non-financial institutions or designated nonfinancial businesses and professions
(DNFBPs) in the provision of legitimate
services but at the same time they may also be
used, wittingly or are also used, wittingly or
not, for illegitimate purposes such as
transmission of illicit money across the
borders. These networks are not primarily set
up to move illicit money but may be involved
in illegal activities such as movement of
money generated from tax evasion, to evade
currency controls and to avoid sanctions, etc.
These service providers utilize similar
methods as traditional HOSSPs and are not a
part of a criminal network. They develop
where there is an un-serviced demand for
remittances: they may interact with other
HOSSPs to complete transactions.
CRIMINAL HAWALA AND OTHER
SIMILAR SERVICE PROVIDERS
In some countries, there is concern that
HOSSPs systems are increasingly being set
up or expanded to service criminals.
Providers who set up such systems are
described in this report as “Criminal
HOSSPs”. Such systems are driven by
illegitimate money flows and are often
controlled by criminals or criminal groups.
They therefore represent a high criminal
money laundering and terrorist financing risk.
A third party professional money launderer
often runs the financial network. These
criminal networks also enable other offences
including tax fraud, currency offences and
corruption. Criminal Hawala and other
similar service providers are often a part of
well-developed criminal networks that have
been developed specifically to enable
illegitimate activities. Initially these channels
may be developed as networks to satisfy
local/personal remittance needs by
Traditional or Hybrid Hawala and other
similar service providers. As the network
grows into a strong transfer corridor, it
becomes attractive to criminals and evolves
into a criminal transfer corridor. These
criminal networks are characterized by high
value transactions between legal and natural
persons that do not necessarily share the same
cultural or geographic background. They are
often used to send payments to countries with
developed and regulated banking systems.
COMMON CHARACTERISTICS OF
HAWALA AND OTHER SIMILAR
SERVICE
PROVIDERS
This sub-section describes the common
characteristics of “Hawala and Other Similar
Service Providers” based on survey2 results,
previous FATF work on alternate remittance
services, literature review and country
presentations at Hawala typology workshop.
The descriptions are also influenced by the
lack of a common definition or understanding
of what HOSSPs are. All the characteristics
may not always be present in all the countries
of operations. In other words, only some of
these characteristics may be present in some
countries. Generally Hawala and other
similar service providers include:
a. Illegal or unlicensed/unregistered money
transmitters. More than half of the respondents
confirmed that HOSSPs are generally either
unregulated or illegal in their country. In most of
the countries, Hawala and other similar service
providers have not traditionally been subject to
any regulatory oversight. However, recent
efforts have resulted in the shifting of Hawala
and other similar service providers into the
regulated financial sector in several countries. In
50% of the countries that responded to the
question, Hawala and other similar service
providers are now regulated. In some countries,
the process of regulation is in its very early stage.
b. Alternative remittance providers that transfers
funds outside of banks or other regulated
financial institutions. All except one of the
surveyed countries that responded to the
question agreed to this, and this characteristic is
the only one that is common in most of the
surveyed countries.
c. Money transmitters that use net settlement
with payout agents actually transferring no
funds. In net settlement, there are no funds
transferred for each and every transaction that
takes place between Hawala and other similar
service providers. For these individual
transactions, Hawaladar (a money transmitter
that provides Hawala services) and similar
service providers use their local cash pool to pay
the beneficiary.
After a set period of time (example after a month)
only the net amount owed between
the two Hawaladars and other similar service
providers is settled. About 80% of the surveyed
countries concur that net settlement without
transfer of funds is the most common settlement
process used in their country by Hawala and
other similar service providers.
d. Money transmitters that settle through
equivalent value instead of monetary
instruments. Settlement through value may take
place through trade transactions, such as
merchandise or other commodities. At times,
Hawaladar and other similar service providers
that owe debt to corresponding providers settle
accounts by fulfilling commercial obligations of
such corresponding providers such as paying a
debt or invoice of same value that they owe. This
approach is used in 68%of the countries that
responded to the question.
e. Money transmitters that often only serve
specific diaspora communities. About 32% of
the countries believed that Hawala and other
similar systems serviced only specific
communities. Traditionally, Hawala and other
similar channels were described as groups or
networks that were based on familial, regional,
or tribal affiliation. In recent times, Hawala and
other similar service providers have started
servicing wider networks, but this is still an
emerging trend.
To be Continued ...
6
January 2015
For e-paper, visit : www.thertt.com
Continued from page 1
Can Trade Notice Or Board's
Circular Act As Estoppel ?
[ Venkateswara Oil Mills v. State of A.P. 1960 (11) STC 555 (A.P.) ]
In this case under the Hyderabad Sales Tax
Act, 1950, the question was to decide the
effect of a letter by the Deputy
Commissioner of Commercial Taxes that
certain exemption from sales tax was
available. The assessee did not collect the
tax from the consumers. But when it was
found that no exemption was there and tax
was chargeable, the assessee went to the
High Court and pleaded that this
clarification should act as estoppel. The
High Court held that even if it were a
mistaken interpretation given by an officer
of the Government, it would not bind the
Government and it would not create an
estoppel against the statute. Under the
Hyderabad General Sales Tax Act, the
Department was entitled to impose taxes on
the sale of goods, a right which could not be
taken away by a wrong interpretation placed
by a subordinate officer of the Government.
The High Court observed that if we interpret
otherwise, a subordinate officer would be
entitled to nullify the whole content of
legislation passed by the legislature in
exercise of its legislative authority derived
under Item 54 of List II in the VIIth
Schedule of the Constitution.
Trade notices binding as promissory
estoppel
[ U.O.I v. Indo-Afgan Agencies - AIR 1968
SC 718 ]
In this case under the Import and Export
Control Act, 1947, the Supreme Court held
that even assuming that the provisions
relating to the issue of trade notices offering
inducement to prospective exporters are
executive (and not legislative), the Union
Government and its officers are not entitled
at their mere whim to ignore the promises
made by the Government.
The Supreme Court held here that trade
notices if they give out promise, the doctrine
of promissory estoppel will apply and will
override the doctrine of executive necessity.
Trade notice as estoppel in central excise
classification
[ Nav Gujarat Paper Industries v. Supdt.
Central Excise 1977 (1) E.L.T. (J 67) (Guj.) ]
By Trade Notice No. 250/70, dated
September 17, 1970, the Collectorate of
Central Excise, Baroda stated that the
labels, cartons, etc. made out of duty-paid
paper and printed with designs and
monograms of a manufacturer or trader with
or without description of particular goods or
quality were articles of paper and, therefore,
outside the purview of Item 17 of the Central
Excise Tariff. The Gujarat High Court held
that even if the trade notice amounted to
executive instructions, the Department would
be estopped from contending that what was
mentioned in the trade notice should not be
adhered to.
We may note here that the Gujarat High Court
in any case decided the case on merit. The
issue was not decided merely on the ground
that the goods were not paper under Item 17
because the trade notice said so. That only
shows that estoppel was not applied against
the statute. Estoppel was not applied to do
something which was illegal.
Trade notice acts as promissory estoppel in
customs classification
[ Star Chemicals v. U.O.I. - 1980 (6) E.L.T.
133 (Bom.) ]
In this case under the Customs Tariff the facts
were that there was a dispute about
classification of rock phosphate in pebble
form, the choice being between Tariff Items
35 and 87. A trade notice was issued by the
Collectorate of Bombay which implied
classification in favour of Item 35. The High
Court said that a trade notice is binding on the
Government and the Government would be
estopped from contending that the trade
notice would not be adhered to.
It must be pointed out here that in this
judgment the Court went in detail into the
arguments in favour of Item 35 and Item 87
and finally concluded on merit that it is Item
35 which is suitable. The case was not decided
merely because of the trade notice.
Advice to pay duty where duty is not
chargeable cannot be the basis of plea for
promissory estoppel
[ D.R. Kohli v. Atul Products Ltd. - 1985
(20) E.L.T. 212 (S.C.)
= 1985 (2) SCC 77 ]
In this case under the Central Excise Rules,
1944, the Supreme Court had to decide the
admissibility of an exemption to dyes if such
dyes were manufactured from other dyes on
which excise duty or countervailing duty had
been paid. Under the notification, exemption
could be claimed only where the dyes used in
the manufacture of other dyes were liable to
payment of excise duty when they were
manufactured and such duty had been paid. A
voluntary payment of excise duty on dyes
(with the written permission of the
Superintendent of Central Excise) which
were not liable for such payment would not
earn any exemption under the notification.
Since the Department accepted the payment
of excise duty which was not due, the assessee
pleaded promissory estoppel against the
Department. The Supreme Court did not
accept this plea. The Court observed that the
assessee had not altered his plans of
production in pursuance of the Department's
acceptance of duty. The assessee cannot argue
that it would not have manufactured the dyes
but for the advice or action of the Department.
On the other hand the assessee had before him
the exemption notification which alone could
be the basis for its actions. The Supreme Court
held in this case that the Department's advice
and acceptance of duty which was not due
could not be the basis for a plea for promissory
estoppel.
Wrong clarification not estoppel against
making correct clarification No estoppel
against statute
[ Rishav Kumar & Sons v. State of U.P. 1987 (66) STC 222 (S.C.) ]
In this case under the U.P. Sales Tax Act,
1948, the facts were that the Government gave
clarification that “weights and measures”
were included in the expression “mill-stores
and hardware” so that the dealers of “weights
and measures'' got the impression that they
were to pay lower sales tax. They did not
collect higher tax from the customers on the
basis of such clarification. The Allahabad
High Court decided that ”weights and
measures" are not included in “mill-store and
hardware” and so the dealers came to face
higher tax even for the period when they had
not collected higher tax from the customers.
When the assessees pleaded for promissory
estoppel before the Supreme Court, the latter
held that the decision of the High Court is
correct and so the clarification given by the
High Court cannot give rise to a situation of
estoppel against the statute. “The law is clear
and there are several decisions of this Court
which make the position abundantly certain
that estoppel is not available to be pleaded
against an Act,” observed the Supreme Court.
However, on the basis of the rule of fairness
the Supreme Court ordered sales tax to be
charged at a lower rate but this order was
passed due to the “special facts and
circumstances of the case”. The Court also
ordered that it will not be a precedent.
This judgment is relevant for those cases
where clarifications are issued by Customs
Houses, by public relation officers. Even if
found wrong, these clarifications cannot be
made to operate as promissory estoppel to
compel the Customs House to make a wrong
classification.
Public Notice cannot act as estoppel if it is
statutorily wrong
[CC vs Tullow India Operations Ltd, - 2005
(189) ELT 401 (401)]
This pronouncement by the Supreme Court
has made the position clear that a trade notice
or public notice cannot be made to prevail
against what is otherwise statutorily wrong.
A public notice cannot nullify the statutory
requirement. There is no estoppel against the
statute, is a well-accepted principle endorsed
by many judgments.
We can see from the judgments that though
the Courts have held trade notices as capable
of acting as estoppel, they have first
discussed and found out what the correct
position is. If the trade notice gives the
position as has been found by the Courts as
the correct position, then only the trade
notices have been taken as acting as estoppel.
A trade notice is at best a clarification and a
wrong clarification cannot act as an estoppel.
For no one can force the Government to do a
thing which is statutorily wrong, since there
is no estoppel against a statute. The
conclusion is that while the government
departments issue clarifications or trade
notices for the sake of smooth functioning of
the departments, in some cases where the
clarifications may be eventually found to be
against the correct classification on merit or
against the statute, the clarifications are of no
avail. They cannot be cited as promise made
by the government and the rule of promissory
estoppel cannot be invoked. In the largest
majority of cases it so happens that the
clarifications agree with the correct legal
position. It is only in a small number of cases
that they contradict the statute.
Conclusion:
The judgments discussed above will show
that a wrong clarification does not constitute
any promise for the purpose of acting as
promissory estoppel. A wrong clarification
may misguide the party, he may act on it to
his own detriment which is all very
unfortunate but finally the position remains
that no clarification can force the
Government to do something which is
basically wrong as there is no estoppel
against statute.
Smukher2000@yahoo.com
Amendment to CESTAT Appeal Forms
Circular No. 991/15/2014-CX F.No.390/Misc./46/2011-JC
Reference is invited to Circular
No.969/03/2013-CX dated 11th April, 2013
whereby the forms for filing appeal in the
CESTAT were amended/revised and new
forms for Central Excise (E.A.-3, E.A.-4,
E.A.-5), Customs (C.A.-3, C.A.-4, C.A.-5)
and Service Tax (S.T.-5, S.T.-6, S.T.-7) were
notified vide Notification Nos 6/2013Central Excise (N.T.), 37/2013-Customs
(N.T.) and 5/2013-Service Tax, all dated
10.04.2013 respectively and made
effective from 1.6 2013.
ii)
Along with the above forms, the prefigured alpha numeric numbers to be filled in
for the orders passed by the Commissioner or
Commissioner (Appeal) or Commissioner
(Adjudication), as the case may be were also
issued for all the Commissionerates of
Central Excise, Customs and Service Tax
including all the Commissioners (Appeals)
and Commissioners (Adjudication).
iii)
Consequent to Cadre Restructuring
certain new Commissionerates have been
created, Board has received references from
the field formations requesting for
assigning/creating alpha-numeric codes for
new Commissionerates.
Iv) In respect of Customs Commissionerates
in Chennai/Delhi/Mumbai, the codes given in
the third part has been suitably amended to
capture the nature of the Commissionerate.
For example, code CHN-CUSTM-AIR
refers to refers to the Commissionerate of
“Chennai Customs (I) Airport”,CHNCUSTM-002 refers to “Chennai Customs
(II)”, CHN-CUSTM-006 refers to
“Chennai Customs (VI)”, CHN-CUSTMACC refers to “ Chennai (VII) Air Cargo
Complex” and CHN-CUSTM-GEN refers
to Chennai (VIII) (General)
Commissionerates as per the table given
below:
v)
References have been received from
field formations regarding difficulties being
faced in accommodating order number in
given three boxes in cases where the
Adjudicating Authority/Commissioner
(Appeals) has passed a common order
disposing of multiple cases or appeals
involving more than one party and wherein
range of order number has to be assigned to
such orders viz. order no 12-15 or 12 to 15. In
such cases, Adjudicating
Authority/Commissioner (Appeals) may
pass individual orders in each case and assign
single number only viz Order No 999 etc.
vi)
In Commissionerates where more
than 999 orders are being passed, the number
of boxes (meant for order number) are being
increased from three to four to accommodate
an order number exceeding 999. Accordingly
the total number of boxes given for alpha
numeric code is increased from 21 to 22.
vii)
Therefore, revised/amended prefigured alpha numeric numbers are being
issued.
(2)
The new alpha numeric series would
be effective from 01-01-2015.
(Sunil K. Sinha)
Director (Judicial Cell)
7
January 2015
For e-paper, visit : www.thertt.com
Not including petroleum against spirit of GST, say experts
Petroleum spans goods and services and
would have been crucial in reducing the
cascading effect
“We will not call it 'Goods and Services Tax'
(GST) if petroleum and other related products
are not in its ambit.” This is the unanimous
opinion of tax experts and producers on noninclusion of petroleum products in a GST.
The Centre on Tuesday evening reached a
consensus with states on GST by not including
petroleum products and by compensating
them for loss in revenue due to the reformative
tax. The exclusion of petroleum products,
though, will be for a limited period, till states
reach comfortable revenue levels.
The constitution amendment Bill on a national
GST is likely to be tabled in the current session
of Parliament. However, the government is
not confident of passing the Bill this
session.
“We are surprised the Centre was not able
to convince states on the key issue of
petroleum,” said an industry participant
who did not wish to be named.
GST is a value-added tax (VAT) that is to
replace all indirect taxes levied on goods
and services by India's Central and state
governments. It aims to be comprehensive
for most goods and services.
The intent of GST was to have an efficient
indirect tax regime without distortions, and
to minimise the cascading effect created by
multiple taxes in the existing system.
Including petroleum and related products
in the GST ambit would have gone a long
way in achieving that objective, as this is
one product that involves various goods and
services from stages like exploration,
production, refining, etc. The input tax credit
from these under GST could have been
utilised. That would have led to a substantial
price advantage for petroleum products and
had a critical impact on everyday life,” said
Sriram Govind, senior member (international
tax practice), Nishith Desai Associates.
States, which earn over 50 per cent of their
revenue from taxes on petrol and other
petroleum products, wanted these to be out of
GST, so they could continue to levy different
tax rates on these products. At present, the
state laws do not allow companies to avail of
input credit for petroleum products.
Meanwhile, there also are sections of the
market focusing on the positives in exclusion.
They say if the condition has not improved, it
has not deteriorated, either.
“Not including petroleum in GST is
accommodation of state government's fear of
losing revenue. By this provision, the
condition has not improved for producers in
the economy. But from the point of view of
people in business, the condition has not
deteriorated either,” said Vivek Mishra,
executive director for indirect tax practice,
PricewaterhouseCoopers.
Parthasarathi Shome, chairman of the Tax
Administration Reform Commission, had
earlier said no tax policy designer could call it
GST if petroleum products were kept out of it.
Source: Business Standard
Authentication of supply invoice/ ARE-3 by the
Central Excise Authorities for
Claiming Deemed export benefits
Circular No.17/2014-Customs F.No.605/75/2014-DBK
Attention is drawn to Circular No. 15/2008Cus dated 26.09.2008 in which guidelines on
the above subject have been prescribed for
recipient units registered with Central Excise
or not so registered. In respect of units
registered with Central Excise, the
Superintendent of Central Excise in-charge of
the unit has to make an endorsement on
documents within 21 days from the date of
supply or receipt of intimation, whichever is
later.
2.
It is reported to the Board that
compliance with the above provision is
difficult to assess when the said
endorsement is not dated by the
Superintendent. Moreover, difficulty was
reported in obtaining document certified by
Central Excise Authority w.r.t. recipient
units registered with Central Excise but
operating under the selfbonding/warehousing procedure
prescribed in Circular No. 19/2007-Cus
dated 03.05.2007.
3. The matter was examined in consultation
with the DGFT. It has been decided by the
Board to amend the guidelines by adding the
following lines at the end of para 2(a) in
Circular No. 15/2008-Cus “Such
endorsement shall bear the dated signature of
the Superintendent of Central Excise.
Further, where the recipient unit is operating
under the procedure prescribed vide Circular
no. 19/2007-Cus dated 03.05.2007, the
Superintendent of Central Excise shall, as is
specified in that Circular, provide an attested
true photocopy of the original ARE-3.”
4. This instruction may be brought to the
notice of the trade/exporters by issuing
suitable public notice. The officers may be
suitably guided through a Standing Order.
Difficulties faced, if any, in implementation
may be brought to the notice of the Board.
(Sanjay Kumar) Under Secretary (DBK)
Make tax evasion a serious crime: SIT chief
Tax evasion needs to be made a serious
“criminal offence” to force foreign countries
to reveal names and account details of Indians
stashing illicit wealth abroad, the Special
Investigation Team on black money has said.
While adding more teeth to India's pursuit of
black money kept abroad, this would also
check generation of unaccounted wealth
within the country, SIT chairman MB Shah
said.
At present, tax evasion is a civil offence in
India and it is dealt under the Income Tax
Act, 1961 while forex violations are dealt
under the Foreign Exchange Management
Act (FEMA).
Both laws are civil in nature and do not
have criminal proceedings attached as
such.
Delhi High Court questions RBI on cap on
withdrawals through ATM
The Delhi High Court today questioned
Reserve Bank of India's decision to put a cap
on withdrawals by banking customers using
their ATM cards, saying account holders were
being "unneccesarily taxed".
As per RBI's new guidelines, bank customers
in six metros -- Delhi, Mumbai, Chennai,
Kolkata, Hyderabad and Bangalore -- are
allowed to withdraw money free of charge
only five times a month and every transaction
beyond this limit will be charged Rs 20 per
use.
A division bench of Chief Justice G Rohini
and Justice P S Teji issued notice to RBI,
Indian Banks' Association (IBA) and State
Bank of India while fixing the matter for next
hearing on February 18.
"Why are you unnecessarily taxing your own
account holders. File your response by next
date of hearing," the bench said.
The High Court was hearing a PIL filed by
advocate Swati Aggarwal, seeking directions
to allow banking customers to make unlimited
number of transactions free of any charge on
own bank ATMs.
According to the plea, the guidelines came
into force from November 1 and have already
been implemented by several banks, including
State Bank of India, the largest bank in India,
said the plea.
It claimed that the guidelines were issued at
the behest of a few banks and IBA, which
had approached RBI seeking changes in the
extant instructions regarding free
transactions at other banks' ATMs.
The plea contended that levying of charges
was highly "arbitrary and unjustified"
besides being "discriminatory and against
good banking practices and reforms and a
backward move".
It also said that the RBI guidelines were
against international practices in relation to
use of own bank ATMs followed across the
world.
"In almost all modern economies of the
world, there is no cap on the number of
transactions one can make on own bank
ATM and unlimited number of transactions
remain free of charge on their own bank
ATMs," it said.
The petition contended that RBI decision is
contradictory to its own earlier circular
dated March 10, 2008, whereby it had
"justified and given directions allowing the
free usage of ATMs for unlimited number
of transactions on own bank ATMs".
Source: The Economic Times
“We have made a serious pitch for this
(making tax evasion a serious criminal
offence in India). One reason is that if tax
crimes remain civil in nature, the foreign
governments will not cooperate,” Shah said,
adding: “If this is made a crime, then there is
no difficulty and then they (foreign countries)
are bound to reveal the names. That is the
main purpose.”
The SC-constituted SIT, which has former SC
judges MB Shah and Arijit Pasayat as
chairman and vice-chairman, recently
submitted its latest report on black money,
wherein it has disclosed tracing of Rs4,479
crore held by Indians in a Swiss bank and
unaccounted wealth worth Rs14,958 crore
within India. It pointed out that more than 25
countries have made “tax crimes” a predicate
offence.
Source: The Indian Express
CBI FILES A CHARGE SHEET AGAINST AN
ADDITIONAL COMMISSIONER OF INCOME TAX
IN AN ALLEGED BRIBERY OF RS. 30,00,000/-(appx)
The Central Bureau of Investigation has filed
a chargesheet in the Court of the Special
Judge for CBI Cases, Ahmedabad U/s 120B
r/w 419, 465 of IPC & Sections 7,12,14 and
13 (2) r/w 13(1)(a) & (d) of the Prevention of
Corruption Act, 1988 against an Additional
Commissioner of Income Tax, and 04
others(all private persons) in an alleged
bribery of Rs. 30,00,000/-.
A case was registered U/s 7 of The Prevention
of Corruption Act, 1988 against the said
Additional Commissioner of Income Tax, on
the allegations for obtaining an illegal
gratification of Rs. 30,00,000/-(approx) on
25.03.2013, from a builder of Ahmedabad for
passing a favourable order in assessment/
scrutiny proceedings being conducted by him
against the firm of the builder, in respect of its
Income Tax Return for the Assessment Year
2010-2011. During investigation, it was
revealed that the accused also allegedly
conspired with 04 private persons to obtain
the said illegal gratification of Rs.30,00,000/(approx). The accused was arrested during
the investigation and is currently on bail.
After thorough investigation, CBI filed a
chargesheet. The public is reminded that the
above findings are based on the investigation
done by CBI and evidence collected by it.
Under the Indian Law, the accused are
presumed to be innocent till their guilt is
finally established after a fair trial.
CBI ARRESTS A DEPUTY GENERAL MANAGER OF
NORTHERN COAL FIELDS LTD. FOR ACCEPTING
A BRIBE OF RS. 40,000/The Central Bureau of Investigation has arrested a
Deputy General Manager (C), Amlohri Project,
Northern Coal Fields Ltd. (NCL) Singrauli (Madhya
Pradesh) for demanding & accepting a bribe of Rs.
40,000/- from the Complainant.
A case was registered on a complaint against Dy. GM
(C), Amlohri Project, Northern Coalfields Ltd.(NCL),
Singrauli (MP), Ministry of Coal (Govt. of India) U/s
7 of PC Act, 1988 on the allegations that the Dy. GM
had demanded an illegal gratification of Rs.40,000/-
for handing over of Site, Layout, related documents to
the complainant and starting the work of construction
of RRM retaining wall along east dump at Amlohri
Project, NCL, Singrauli (MP)”. CBI laid a trap and the
accused was caught red handed while demanding and
accepting bribe of Rs. 40,000/- from the
Complainant.
The arrested accused was produced before the Special
Judge, CBI Cases, Jabalpur and was remanded to
police custody up to 23.12.2014.
8
January 2015
For e-paper, visit : www.thertt.com
Consigned to Archives 2014,
Welcome 2015:
Continued from page 1
bill which will help Govt. garner about
Rs.20,000 crores by way of additional
levy of Central Excise on oil products.
Though the P.M. tried to reach all out for
investment to rich countries, but
response was less than expected due to
most Corporate trying to hold on to their
precious liquidity. May be the time till
economic conditions improve, can be
utilized to make bureaucracy both at
centre and state more responsive to the
needs of Business. Introduce G.S.T. and
labour reforms. State Governments,
particularly should be subjected to
discipline and demand for any fiscal
concessions linked to the suitable
business climate being created. It
makes no sense as to why a Federal
agency to fight corruption throughout
India including in States cannot be
created to fight corruption, after all
same is clearly linked with money
laundering. Young Civil servants can be
given a stint of their training as an
attachment with Corporate and Small
Scale Units to make them understand
what makes the Business fail in India
but excel abroad.
And for welcoming 2015, I began with
by wishing all readers, colleagues,
countrymen a very happy and
prosperous new year. May positivity rule
throughout the year and bring out the best
in you and in all around you. May our
leadership not only work hard but fulfill
all promises to reinforce our faith in
politicians. May our lives become less
and less regulated and our inner discipline
stronger and stronger.
May the Year turn out to be a turning point
in the economic downturn that raises its
ugly head, sporadically thorough out the
world. May the voices of sanity get
strengthened, where ever they exist. And
the insane get guided by the true faith.
Drugs in Punjab, stop the
menace: The P.M.s preaching about the
drugs in `Mann ki baaat' got a response
from the Deputy C.M. of Punjab with his
statement that Centre should stop drugs
from coming from Haryana and
Rajasthan to Punjab. Rather than joining
the debate it is better that both
Governments sternly resolve to stop the
menace before it is too late. The fact is
that drugs have ruined Punjab to the
extent even terrorism in 1980s could not
do. Punjab which was only a transit point
for drugs coming from Afghanistan and
Pakistan in 1980s and 1990s has now
become consumption point. Opium by
admixing it with sugar was always
Airtel customers to be
charged more for VoIP calls
Bharti Airtel prepaid customers
will be charged more for voice
and video calls made on Skype,
Viber and similar services than
for browsing the internet, in a
move that could impinge on the
principle of 'net neutrality'.
India's largest telco said voice
over internet protocol (VoIP)
calls made on its network won't
be eligible for discounted rates.
Staring January, an Airtel
customer using a prepaid data
pack will be able to avail of
discounted rates only for internet
browsing and will be charged a
higher rate for VoIP calls.
"VoIP over data connectivity
would be charged at standard
data rates of 4p / 10 KB ( 3G
service) and 10p / 10 KB (2G
service)," the company said in a
statement posted on its website.
An Airtel spokesperson said the
company will soon launch
independent packs for VoIP
c o n n e c t i v i t y. W h i l e t h e
spokesperson declined to
comment on the pricing of these
packs, they are expected to be
higher than discounted rates that
the company offers for internet
browsing.
Airtel's rivals are watching the
development closely. While an
Idea Cellular spokesman said the
company had nothing
specifically lined up, he added
that the company will respond to
the competitive needs of the
market.
A senior industry analyst
described Airtel's move as
unprecedented. "Globally,
especially in developed markets
like Germany where Viber
originated and even the US, no
telecom operator charges
differential rates for VoIP and
internet browsing," said the
person, who didn't want to be
identified.
The move to charge differential
rates for browsing and VoIP
callsthrows the spotlight once
again on net neutrality, the basic
principle of which is that service
providers will treat all data on the
internet equally and not impose
differential pricing or discriminate
among users, content sites, apps
and platforms. US President
Barack Obama recently weighed
in on the side of net neutrality.
India's telecom regulator is
examining the issue and is
expected to issue a consultation
paper on socalled over-the-top
(OTT) players or apps that ride on
telecom networks. The regulator is
already scrutinising Airtel's
exclusive WhatsApp and
Facebook data packs to determine
whether these amount to
providing preferential access to
specific content providers over
others.
The decision by Bharti Airtel to
charge more for VoIP calls could
also be seen as a move to protect
revenue. Telcos have seen their
SMS earnings erode as apps such
as WhatsApp and Viber have
gained traction and popularity.
WhatsApp, which now has 70
million subscribers in India, is said
to be planning to launch call
services, and this could impact the
voice revenue of phone
companies.
Source: The Economic Times
consumed and was mostly coming from
cultivation areas of Rajasthan, M.P. and
U.P. in Punjab. Therefore to that extent
there may be some truth in the statement
of Dy. C. M. of Punjab. But harsh fact is
that now youth has become addicted to
hardcore substances like Heroin and
Cocaine and even Children are reported
to be consuming Iodex, polish and such
substances to get the kick. The social
fabric has become weak and responsive to
the needs of the youth and children.
Punjab is no more a state that used to
excel in sports and was always on the
forefront of growth path. The smugglers
have become strong, organized and are
enjoying patronage. Agencies have
become weak in their resolve and stray
incidents of a Custom officer and even
N.C.B. officer carrying drugs for cartels
have been found, indicating that grip of
mafia is stronger than imagined. How the
N.C. B. officer in question still found a
posting and landed up in Enforcement
after his dubious stint, is something to be
investigated. Those interests which are
inimical to India will be too willing to
benefit from the situation needs no
emphasis. With drug consignments from
across the border now comes mobile with
a SIM card which can operate through
Pakistani towers and cannot be easily
intercepted by Indian agencies, is a
pointer of adaptability of smugglers. If
the youth of Punjab goes astray it will
neither be in the interest of the State nor
the Union, as the events of the History
have shown in the past.
Good move by DOPT: Reportedly,
Dept. of Personnel and training is
contemplating that all retired civil
servants at the time of their retirement
should be given a DVD highlighting all
the achievements they made during their
service career. A laudable move indeed.
For the reason that we know that in
Bureaucracy, while we have some who
sing their own glory from the roof tops,
there are others whose achievement
though there may be many to count,
remain unsung. And then what better
time rather than to give it to them on the
eve of their superannuation and lyrics
being scripted by the civil servant only.
Appreciable. But then why confine the
goodness only to civil servants and why
not apply it to everyone in the
Government. Here is an idea, which even
the H.R. Departments of corporate
should be copying.
Happy New Year 2015 to all.
Re-warehousing of goods
imported and/or
procured indigenously by
EOU/EHTP/STP/BTP units
Circular No.16/2014-Customs F.No. 605/75/2014-DBK
Attention is drawn to the self-bonding/warehousing
procedure on the above subject specified in Circular No.
19/2007-Cus dated 03.05.2007. It has been brought to
the notice of the Board that the units which are under the
said procedure are facing difficulty in obtaining deemed
export benefits as the ARE-3 is not certified by the
Central Excise authorities.
2. The matter was examined in consultation with the
DGFT and DG (EP). To resolve the issue and facilitate
trade, it has been decided by the Board to provide that the
Superintendent in- charge of the unit shall make two
legible photocopies of the original copy of ARE-3 (that
bears his counter signature) and attest each of them as
true copies with his dated signature. One attested copy
shall be kept in the Range office for records and the
other one shall be handed over (against dated
acknowledgement) to the unit for use while applying
deemed export benefits.
3. Accordingly, the last sentence in para 2(b) of Circular
No. 19/2007-Cus shall be taken as modified to the
above extent.
4. This instruction may be brought to the notice of the
trade/exporters by issuing suitable public notice. The
officers may be suitably guided through a Standing
Order. Difficulties faced, if any, in implementation may
be brought to the notice of the Board.
Sanjay Kumar
Under Secretary (Drawback)
SC rejects Delhi lawyer's appeal in
misdemeanour case, sends strong
signal against women harassment
Sending a strong signal against incidents of harassment
of women particularly in court premises, the Supreme
Court on Friday threw out an appeal by a lawyer against
a week-long jail term in a case of misdemeanour against
a woman colleague in Delhi High Court in 2012.
A bench of Justices T S Thakur and Adarsh K Goel said
there was no ground to interfere with the Delhi High
Court order, passed under the Contempt of Courts Act.
Lawyer Amit Chanchal Jha, 36, is accused of physically
abusing a female colleague and behaving indecently
during a hearing before a HC registrar on January 13,
2012.
The HC, acting suo motu, had the same day sent Jha to
jail for a week and debarred him from practising in any
Delhi court for three months. It also directed the Bar
Council of India, the apex disciplinary authority for
lawyers, to act against Jha.
Saying Jha's actions had interfered with judicial
procedure, obstructed justice and lowered the majesty
of the court, the high court had convicted him of
contempt of court.
Jha then appealed to the top court, and claimed his
conduct did not strictly fall under the Contempt of
Courts Act, 1971. Lalit argued that the incident took
place when the two lawyers were working together and
the registrar was not present.
His lawyers said the incident happened on the spur of
the moment and his client regretted his behaviour. He
claimed that any disciplinary action against him could
come only from the Bar Council and not the court.
Source: Indian Express
9
January 2015
For e-paper, visit : www.thertt.com
Assistant Commissioner,Central Excise, Yamuna Nagar
deliberately disregard circulars issued by CBEC
Continued from page 1
also be got clarified from the AC as to
whether any action was taken by him against
the ROS who have allowed export without any
examination by the Sector officer, if not why?
RTT has also gathered that a particular
inspector close to the Asst Commissioner use
to examine maximum number of containers
for export of all Range offices (5 t0 8
containers in a day) .
RTT is in possession of a copy of a note sheet
wherein the Assistant Commissioner passed
order “ Allowed as a special case.Pl ask RO to
charge merchant overtime as applicable” Is
any officer of the Delhi Commissionerate
will throw some light under which rule the
Asst Commissioner was passing such order
when Board's Circular clearly specifies for
Export of goods Superintendent to depute the
sector officer or himself carry out the process
of examination and sealing as per relevant
departmental instructions. Will the CBEC
Chairman order an inquiry in the matter?
Since all these actions of Asstt.Commissioner
appear to be anti-exporters and actions
indicating something else with a hidden
agenda. It appears that he is acting as an
Inspector & Superintendent with vested
interests by adopting the method of putting the
pressure on manufacturer exporters who are
earning foreign exchange for the country. It
will not be out of place to mention that Asst
Commissioner in his Letter dated 21/11/2013
has mentioned two different incidents viz. (I)
Range Officers are not accompanying the
Inspectors in examination of export goods and
(ii) Range Officers alone himself allowed
exports without examination by the Inspector.
If the Range Officers were committing the
crime, willfully conniving with the exporters
exports, the Asstt. Commissioner should have
taken action against the officer as provided
under the law. But no such action appears to
have been taken, which itself proves that
the actions of the Asstt. Commissioner was
for something else.
It has also been learnt that the Asst
Commissioners is in habit of harassing a
number of officers who did not obey his
order blindly or wanted to discharge their
duty as per rule and regulations including
women officers. Even women officers
have been harassed and tormented on one
pretext or the other, RTT has gathered.
In one case Mehta directed to one lady
officer to produced Medical certificate
from Disst hospital even though she
applied for earned leave. Lady women
officer who lodged complained against the
mental torture was again tortured by Mehta
on one pretext or the other. This can be
verified from the memos issued to officers
by Asst Commissioner.
Under which rule Assistant Commissioner
directed the lady officer to go to hospital for
check up and submission of medical
certificate thereof. One more instance is
brought into the knowledge of the readers
that when the lady officer got her medically
checked up in a government hospital and
has been diagnosed with acute depression
with suicidal tendency. Mehta did not stop
there, he again
sent a letter through
Superintendent Vigilance intimating her
that the medical certificate submitted by the
lady officer is not in prescribed form and
directed her to again submit medical leave
application along with medical certificate
in form 4.
Will the Chief Commissioner of Delhi
under whose jurisdiction Panchkula
Commissionerate falls throw some light
about the rules for granting Earned leave and
producing medical certificate from
government hospital.
Constitution of India prohibits gender bias in
any institution in India; however, the same
appears to be not being properly followed by
the Central Excise department. Ii appears that
women who served this department with
utmost honesty, sincerity, dedication and
integrity are subjected to abuse and
harassment. To raise the issue of injustice and
corruption to the competent authorities of
Central Excise offices has become a crime
and those who try to raise their voices are
being crushed time to time.
Attention is invited towards the Supreme
Court guidelines delivered in the case of
Medha Kotwal Lele and Others vs. Union of
India and Others
The Supreme Court observed that “It is
discriminatory for instance when the woman
has reasonable grounds to believe that her
objection would disadvantage her in
connection with her employment or work
including recruiting or promotion or when it
creates a hostile work environment
Appropriate work conditions should be
provided in respect of work, leisure, health
and hygiene to further ensure that there is no
hostile environment towards women at
workplaces and no woman employee should
have reasonable grounds to believe that she is
disadvantaged in connection with her
employment”.
The Union government recently expanded the
definition of sexual harassment at the
workplace by including the elements of threat
and skewed treatment within its ambit. Now,
any implied or explicit promise of
preferential treatment, threat of detrimental
or humiliating treatment, which is likely to
affect the health of women employees, would
amount to sexual harassment. The new set of
rules has been included in the Central Civil
Services (Conduct) Rules, 1964, through
amendments by the Ministry of Personnel,
Public Grievances and Pensions. To make the
workplace more conducive for women, the
new rules state that “interference with a
woman's work or creating an intimidating or
offensive or hostile work environment,
implied or explicit threat about her present or
future employment status” would also
amount to sexual harassment.
Directorate of Vigilance/CBEC ought to
conduct an inquiry of the whole issue in the
interest of principal of natural Justice and to
get rid of the corrupt officers with vested
interest causing loss to Government revenue.
Dg vigilance should also initiate action
against Asst Commissioner for harassing
women officer by creating a hostile work
environment, implied or explicit threat about
her present or future employment status” in
view of the Supreme Court order and
amendment made in the CCS (Conduct Rule).
Silence of Commissioner of Panchkula
Commissioner ate should also be taken into
account as harassment.
In order to carry out impartial inquiry the Asst
Commissioner should also be transferred
from his present posting immediately.
However, if CBEC/DG Vigilance fails to
conduct impartial inquiry the case should be
referred to National Commission for women.
Review of Accredited Clients Programme (ACP)
Circular No. 18/2014-Cus F.No.450/90/2010-Cus.IV
Attention is invited to Board's Circular
No.42/2005-Cus. dated 24.11.2005 and
Circular No.29/2010-Cus dated 20.08.2010
on the Accredited Clients Programme (ACP).
graded re-entry.
3. Board has reviewed the ACP on the basis
of the representations received and the
recommendation of the Chief
2.Board has received a number of Commissioners of Customs. Accordingly,
representations from the ACP clients whose it is decided that as a trade facilitation
ACP status has either been withdrawn or not measure the ACP status of ACP clients
extended on account of them having been which has either been withdrawn or not
served a show cause notice in terms of the extended on account of them having been
amended para 7(iii) of the said Circular dated served a show cause notice in terms of the
24.11.2005. Board observes that on account amended para 7(iii) of the said Circular
of such withdrawal or non-extension of the dated 24.11.2005 may be restored as
ACP status, the imports of the affected ACP follows:
clients are no longer facilitated which reduces (i) Restored after 3 months if the entity
the overall facilitation levels. This matter was pays the duty demanded with interest and
also discussed during the All India Conference 25% penalty within 30 days of the Show
of Chief Commissioners of Customs held in Cause Notice or if the entity's application is
October, 2014 and a view emerged that there is allowed to be proceeded with by the
justification to review the ACP to allow a Settlement Commission.
(ii) Restored after 6 months if the entity pays
the duty demanded with interest.
The restoration of the ACP status in terms of
(i) and (ii) above would be subject to the
condition that if another case of the type
mentioned in paragraph 7(iii) of the said
Circular dated 24.11.2005 is booked within
the 3 months or 6 months period, as the case
may be, against the said entity the period of
exclusion would be 1 year. If another (or
more) case(s) is booked during the 1 year
period, the exclusion period would be 3 years.
4. Board has also decided that the ACP status
would not ordinarily be denied to an entity if,
in the category of cases specified above, the
Customs/Central Excise duty or Service Tax
involved is up to Rs. 50 lakhs and Rs. 25
lakhs, respectively.
5. Board also desires that outstanding
disputes with ACP clients that are pending in
adjudications and appeals shall be
expeditiously finalized. Furthermore, in
order to encourage greater participation in the
ACP, the Risk Management Division (RMD)
shall suo moto identify importers eligible for
the ACP and approach them to enroll in the
programme on 6-monthly basis.
6. Board's Circular No.42/2005-Cus. dated
24.11.2005 and Circular No.29/2010-Cus
dated 20.08.2010 stand modified to the
aforementioned extent.
7. Chief Commissioners of Customs /
Customs and Central Excise are requested to
issue suitable trade notice/ Public notice for
guidance of trade/staff.
(P.K. Khetan) OSD (Cus.IV)
Norms for Execution of Bank Guarantee in respect of Advance
License/Export Promotion Capital Goods (EPCG) Schemes
Circular No. 15/2014-Customs F.No.605/144/2013-DBK
Reference of field formations is drawn to
Circular No. 58/2004-Cus dated 21.10.2004
on the above subject as amended by Circular
Nos.17/2009-Cus, 32/2009-Cus, 6/2011-Cus
and 8/2013-Cus.
2. Presently, the para 3.2 of the Circular No.
58/2004-Customs prescribes that the bank
guarantee (BG) exemption specified in para
3.1 of the Circular shall be admissible subject
to certain conditions. One of the conditions
(amongst others) for the admissibility of the
Nil or 15% or 25% BG is in para 3.2(c) of
the Circular. It prescribes that the license
holder should not have been penalized
during the previous three financial years in
certain types of cases booked against him
under statutes specified therein. If this
condition is not satisfied, i.e. the license
holder has been penalized, the exemption
(Nil or 15% or 25%) from BG becomes
inadmissible and 100% BG becomes
applicable to the relevant category of
importer specified in para 3.1 of the Circular.
3. It has been brought to notice of the Board
that in the above situation the exemption from
BG becomes inapplicable (i.e. trade
facilitation gets affected) even if there is
absence of risk to revenue.
4. In order to redress the above position, the
Board has decided to add sub-para (d) below
sub-para (c) in para 3.2 of Circular No.
58/2004-Customs (as amended) as follows “(d) Where the condition (c) above is not
fulfilled, the jurisdictional Commissioner of
Customs is satisfied, for reasons recorded in
the file, that 100% BG is not justified on
account of absence of risk to revenue.”
5. These instructions may be brought to the
notice of the trade/exporters by issuing
suitable Trade/ Public Notice. Officers may
be suitably guided through Standing Orders.
Difficulties faced, if any, in implementation
may be brought to the notice of the Board at
an early date.
(Sanjay Kumar) Under Secretary (DBK)
10
January 2015
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11
January 2015
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Seeks to levy definitive anti-dumping duty on imports
of cable ties, originating in or exported from People's
Republic of China and Chinese Taipei, for a period of five years
Notification No. 47/2014-Customs (ADD)
G.S.R.
(E). Whereas, the designated
authority, vide notification No. 15/20/2013DGAD, dated the 17th October, 2013,
published in the Gazette of India,
Extraordinary, Part I, Section 1, had initiated a
review in the matter of continuation of antidumping duty on imports of Cable Ties
(hereinafter referred to as the subject goods)
falling under heading 3926 of the First
Schedule to the Customs Tariff Act, 1975 (51
of 1975) (hereinafter referred to as the
Customs Tariff Act), originating in or
exported from the People's Republic of China
and Chinese Taipei (hereinafter referred to as
the subject countries), imposed vide
notification of the Government of India, in the
Ministry of Finance (Department of Revenue)
No. 44/2009- CUSTOMS, dated the 30th
April, 2009, published in the Gazette of
India, Extraordinary, Part II, Section 3, Subsection (i) vide number G.S.R. 296(E), dated
the30th April, 2009;
And whereas, the notification No. 44/2009CUSTOMS, dated the 30th April, 2009,
published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section
(i) vide number G.S.R. 296 (E), dated the 30th
Sl.No.
April, 2009 was superseded by notification the 16th October, 2014, in Part I, Section 1 of
No. 56/2012-Customs (ADD), dated the the Gazette of India, Extraordinary, has come
14th December, 2012, published in the to the conclusion thatGazette of India, Extraordinary, Part II, (i) the subject goods from subject countries
Section 3, Sub-section (i) vide number are entering the Indian market at dumped
G.S.R. 891(E), dated the 14th December, prices and dumping margin is significant;
2012 whereby modified anti-dumping duty (ii) the domestic industry continues to suffer
was imposed on the subject goods valid material injury on account of continued
upto the 30th October, 2013;
dumping of subject goods from subject
And whereas, the Central Government had countries; dumping of the product under
extended the anti-dumping duty on the consideration is likely to intensify from the
subject goods, originating in or exported subject country should the current antifrom the subject countries upto and dumping duty be withdrawn;
inclusive of the 30th October, 2014 vide
notification of the Government of India, in (iii) the dumping and injury is likely to
the Ministry of Finance (Department of continue if the anti dumping duty is revoked;
Revenue) No.28/2013-Customs (ADD), (iv) the anti-dumping duties are required to
dated the 12th November, 2013, published be continued,
in Part II, Section 3, Sub-section (i) of the and has recommended imposition of the antiGazette of India, Extraordinary vide dumping duty on the subject goods,
number G.S.R 732(E), dated the 12th originating in or exported from the subject
November, 2013;
countries.
And whereas, in the matter of review of Now, therefore, in exercise of the powers
anti-dumping duty on import of the subject conferred by sub-sections (1) and (5) of
goods, originating in or exported from the section 9A of the Customs Tariff Act, read
subject countries, the designated authority with rules 18 and 23 of the Customs Tariff
in its final findings, published vide (Identification, Assessment and Collection of
notification No. 15/20/2013-DGAD, dated
Table
Subheading
(2)
3926
90
Description
of goods
(3)
Cable Ties
Specification
Country of
origin
(5)
People’s
Republic of
China
Country of
export
(6)
People’s
Republic of
China
2
3926
90
Cable Ties
Any
People’s
Republic of
China
People’s
Republic of
China
3
3926
90
Cable Ties
Any
People’s
Republic of
China
People’s
Republic of
China
4
3926
90
Cable Ties
Any
People’s
Republic of
China
5
3926
90
Cable Ties
Any
6
3926
90
3926
90
Cable Ties
Any
Cable Ties
Any
Any country
other
than subject
countries
Chinese
Taipei
Chinese
Taipei
Any country
other
than subject
countries
People’s
Republic of
China
3926
90
Cable Ties
Any
(1)
1
7
8
2. The anti-dumping duty imposed under this
notification shall be effective for a period of
five years (unless revoked, superseded or
amended earlier) from the date of publication
of this notification in the Official Gazette and
shall be paid in Indian currency.
(4)
Any
Any country
other
than subject
countries
Chinese
Taipei
Any country
other
than subject
countries
Chinese
Taipei
Explanation.- For the purposes of this
notification, rate of exchange applicable
for the purposes of calculation of such antidumping duty shall be the rate which is
specified in the notification of the
Government of India, in the Ministry of
Producer
Anti-dumping Duty on Dumped Articles and
for Determination of Injury) Rules, 1995, the
Central Government, after considering the
aforesaid final findings of the designated
authority, hereby imposes on the subject
goods, the description of which is specified in
column (3) of the Table below, specification
of which is mentioned in column (4), falling
under sub-heading of the First Schedule to the
Customs Tariff Act as specified in the
corresponding entry in column (2),
originating in the countries as specified in the
corresponding entry in column (5), exported
from the countries as specified in the
corresponding entry in column (6), produced
by the producers as specified in the
corresponding entry in column (7), exported
by the exporters as specified in the
corresponding entry in column (8), and
imported into India, an anti-dumping duty at
the rate equal to the amount as specified in the
corresponding entry in column (9) in the
currency as specified in the corresponding
entry in column (11) and as per unit of
measurement as specified in the
corresponding entry in column (10) of the
said Table, namely:-
Exporter
Amount
Unit Currency
(7)
M/s
Changhong
Plastics
Group
Imperial
Plastics
Co. Ltd.
M/s
Changhong
Plastics
Group
Imperial
Plastics
Co. Ltd.
Any
producer
other than
those at Sl.
No 1 and 2
above
Any
(8)
M/s
Changhong
Plastics
Group
Imperial
Plastics
Co. Ltd.
M/s
Changhong
Plastics
Group
Co. Ltd.
(9)
1.99
(10)
Kg
1.99
Kg
US
Dollar
Any
exporter
other than
those at Sl.
No 1 and 2
above
Any
2.13
Kg
US
Dollar
2.13
Kg
US
Dollar
Any
Any
2.13
Kg
US
Dollar
Any
Any
1.29
Kg
Any
Any
1.29
Kg
US
Dollar
US
Dollar
Any
Any
1.29
Kg
Finance (Department of Revenue), issued
from time to time, in exercise of the powers
conferred by section 14 of the Customs Act,
1962 (52 of 1962), and the relevant date for
the determination of the rate of exchange shall
be the date of presentation of the bill of entry
(11)
US Dollar
US
Dollar
under section 46 of the said Customs Act.
[F.No. 354/165/2008-TRU (Pt.-I)]
(Akshay Joshi)
Under Secretary to the Government of India
12
January 2015
For e-paper, visit : www.thertt.com
GRC GLOBAL CHA STUDY CIRCLE
OBJECTIVE
MODULE 1 --> FOR RULE 6 OF CHA
REGULATIONS
MODULE 2 --> FOR G-CARD
MODULE 3 --> PREPARATION FOR FINAL
CHA INTERVIEW
MODULE 4 --> THROUGH
interview drill and mock test after completion of
CORRESPONDENCE ONLY FOR G-CARD
written in very simple language and lucid
To conduct specialized program in manner, explaining the subject both
imparting training to the candidates pragmatically and conceptually along with
appearing in CHA Regulation 6 examination relevant citations.
and preparing them for final CHA interview. The candidates are also acquainted with the
COURSE @ APPROACH
The course has been designed with the help
of highly qualified, competent faculty
members and consultants with vast
experience in the field of Central Excise &
Customs and in consonance with the
prescribed syllabus. All subjects required to
provide comprehensive knowledge about
all aspects of the subjects are covered in the
course. Moreover, the course material for
the topics of significant importance has
the course.
OTHER ACTIVITIES
The institute also deals exhaustively in Central
Excise, Customs and Service Tax matters. It
undertakes training program for corporate
personnel in indirect taxation
The following specialized courses
are undertaken
List of Study Material Provided
Customs
Laws & Procedure Baggage & Rules
Fera & Fema
Book of Forms
For details contact course coordinator
9953048514 or 9868110393
Grcglobalstudycircle14@gmail.com
13
January 2015
For e-paper, visit : www.thertt.com
SKILL DEVELOPMENT AND TRAINING PROGRAMMES OF CENTRAL GOVERNMNETS
Sl.
No.
6
Ministry/
Department
Schemes/ Programmes/ Institutions having
provision for Vocational Education and
Training programme
D/o Information DOEACC - ‘O’ level
Technology
CEDTI
7
M/o
(DGET)
Target Group
Duration
of
Training (long-term
/ Short-term)
Recognized
engineering
colleges/
polytechnics
and
schools of architecture having
related academic degree or
diploma programme
Students or working persons
with 10+2 pass
and
long-term
programmes
Flexible duration for
passing examination
It conducts courses in the field of Short term courses
Electronics,
Telecommunications,
IT,
Process
Control
&
Instrumentation
School leavers with 8th, 10th and One to Three years
12th pass
Labour Craftsmen Training Scheme (CTS)
(5114 ITIs)
6 months to 4 years
th
Apprenticeship Training Scheme (ATS)
(20,800 establishments)
Sl.
No.
Ministry/
Department
th
School leavers with 8 , 10 and
12th pass or National Trade
Certificate (from NCVT) Holder
Crafts Instructor Training Scheme (CITS) (6 Instructors of ITIs
Institutes)
1 year
Advanced Vocational Training Scheme and
Hi-tech Training Scheme (65 centres)
Industrial Workers/ Technicians
Short Term courses
Schemes/ Programmes/ Institutions having
provision for Vocational Education and
Training programme
Target Group
Duration
of
Training (long-term
/ Short-term)
Supervisory Training (2 institutes)
Supervisors from Industry
Women Training Institutes(11 institutes)
Women
(School
Instructors and others)
Long and short term
leavers, Long and short term
Training
Executives
and Short Term
Principals
Model School leavers with 8th, 10th and One to Three years
12th pass
Central Staff Training and Research Institute
Model Training Institutes
Industrial Training Institutes
8
M/o
Rural National Institute of Rural Development Practicing Manager
(NIRD) Conducts about 150 programmes
development
Development
Swarnjayanti
(SGSY)
9
and
Gram
Swarozgar
Yojana
in
rural Short term Courses
Focus is on the vulnerable Need based short
groups among the rural poor. term
SC/ STs should account for a
minimum of 50%, women for
20% and disabled for 3% of the
total swarozgaris during a year.
Entrepreneurship Development Programme, ? Workers
Both short term and
M/o MSME
Skill Development Programme (SDP),
long term
?
Educated unemployed youth
[Small Industries Management Development Programme
It has 72 institutes/ bodies.
Development
?
Entrepreneurs
SSSI – 30
Organisation
Br. SSSI- 28
(SIDO)]
RTC – 4
Tool Rooms – 8
14
January 2015
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SKILL DEVELOPMENT AND TRAINING PROGRAMMES OF CENTRAL GOVERNMNETS
15
January 2015
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Head of an institution/Dept. cannot
interfere in the working of the RTI
Delhi High Court in a landmark judgment
dated 5-12-2014, in the case of R K Jain
(petitioner) v. s Income Tax Settlement
Commission
has held ( W.P.(C) No.
2939/2014)has delivered that the Head of an
institution/Dept. cannot interfere in the
working of the RTI authorities and cannot
nullify an order passed by the RTI authority
even though subordinate to him.
R K Jain the petitioner had filed an RTI
application seeking information, interalia,
with respect to disposal and pendency of
matters before the Income Tax Settlement
Commission. In response to this application,
respondent no.2 (CPIO and Joint
Commissioner of Income Tax, Income Tax
Settlement Commission) passed an order
dated 26.09.2013 furnishing certain
information to the petitioner. However, by the
said order certain other information as sought
for was denied. The petitioner preferred an
appeal before respondent no 4, who was
specified as the First Appellate Authority. The
said appeal was partly allowed by an order
dated 21.10.2013. The petitioner sent a letter
dated 23.10.2013 to respondent no.2 Seeking
compliance of the order dated 21.10.2013,
however, received no response thereto.
Thereafter, the petitioner sent another
reminder dated 09.03.2014 and subsequent
thereto received the impugned order on
15.03.2014, which was issued by respondent
no. 3 (and not by respondent no. 2 who had
passed the earlier order as the CPIO). The
impugned order referred to an administrative
order passed by the respondent no. 1; the
extract of which as quoted in the impugned
order reads as under:
“As there has been total no-compliance by
the JDIT-II and DIT(Inv) of the provisions
of the RTI Act, 2005 and notification by the
Chairman, ITSC, New Delhi order No. C26016/1/05/SC-RTI/1178 dated 29/31-07
2013, the orders of even numbers dated
26.09.2013 and 21.10.2013 passed by the
JDIT and DIT(Inv) are ab initio void and
are annulled. The RTI application will be
disposed of in accordance with the
provisions of the RTI Act, 2005 and
notification by the Chairman, ITSC, New
Delhi order No.C-26016/1/05/SCRTI/
1178 dated 29/31-07-2013 by the
Administrative Officer, (CPIO) ITSC,
Principal Bench, New Delhi at the earliest.
The learned counsel appearing for the
petitioner contends that the orders passed
by the CPIO (i.e. respondent no 2) and the
First Appellate Authority (i.e. respondent
no. 4) could not be denied or declared as
void by an administrative order. This is
disputed by the learned counsel appearing
for the respondents who submits that the
Chairman, Income Tax Settlement
Commission, being the overall
administrative head of the department,
would have the inherent power to pass an
administrative order in respect of any order
passed by the other sub-ordinate officers.
He contends that respondent nos.2 and 4
were not the designated authorities under
the RTI Act with respect to the information
sought by the petitioner since the
information pertained to another wing of
the department.
PAC raps I-T dept for surge
in uncollected taxes, laxity
A Parliamentary committee has rapped the
income tax department for the rising
uncollected tax demand and “lack of sustained
efforts” on its part to recover the pending
amount, which rose to Rs 4.86 lakh crore in
2012-13 from Rs 4.08 lakh crore in 2011-12.
According to the figures submitted by the
central board of direct taxes (CBDT) to the
Public Accounts Committee (PAC), of the
total uncollected amount, Rs 2.47 lakh crore
pertains to top 25 defaulters only, pending at
various judicial fora.
“The committee had desired the department of
revenue to vigorously pursue such cases.
However, the ministry has furnished the
routine reply that these cases are being
persistently followed up by them. Keeping in
view the pendency of such cases in various
courts for a long period of time, the committee
would reiterate that the department of revenue
should take concrete measures to realise
revenue in a time-bound manner,” the
committee has recommended in its report
submitted to Parliament.
Pulling up the I-T department on its laxity, the
committee observed that demand of Rs
8,872.94 crore was pending with public sector
units including LIC, SBI and BSNL while the
department lost a major recovery demand of
Rs 7,027.09 crore in case of LIC, to the
Income Tax Appellate Tribunal (ITAT),
proving its “inefficiency in handling such
cases which ultimately quashed at higher
for apart from flawed assessments”. While
raising concern over the manner in which
the government cases are represented at
various judicial fora, the Parliamentary
panel said that during the last five years,
more than 35-40 per cent of the appeal filed
in the ITAT, high courts or Supreme Court,
were decided against the department.
In order to rectify the situation, the
committee urged the department to engage
special counsels with “proven expertise in
taxation matters to represent the complex
cases in tribunals, high court or the
Supreme Court.”
After being called the biggest litigant in the
government in 2010 by the then finance
minister Pranab Mukherjee, the CBDT had
asked its officials to refrain from filing
frivolous appeals while tax demand limits
for filing the same had also been raised.
Under fire, the CBDT has now proposed,
an official said, “to engage senior counsels
on the lines of senior counsel-special
engagement as engaged by the law ministry
to deal with cases related to international
taxation”. The proposal is pending with the
law ministry.
Source: The Indian Express
After hearing both side , the Judge observed
that
the impugned order is set aside.
However, it will also be open for the
respondents to approach the CIC to assail the
orders dated 26.09.2013 and 21.10.2013
passed by respondent no.2 and respondent
no.4 respectively. Needless to mention that if
an appeal is filed before the CIC by the public
authority (the Income Tax Settlement
Commission), the same would be considered
in accordance with law.
The rate of
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(B/W):
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issue
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The Judgment throws light on the following:
* That the Head of an institution/Dept. cannot
interfere in the working of the RTI authorities
and cannot nullify an order passed by the RTI
authority even though subordinate to him.
*That an order passed by statutory authority
under RTI Act cannot be invalidated by an
Administrative order without recourse to the
hierarchy of the authorities under the RTI Act.
*That an order passed by the First Appellate
Authority under RTI can only be questioned
before the Central Information Commission
or any other competent judicial form and not
by any administrative authorities.
*That the High Court quashed the Order
passed by the Chairman of the Income Tax
Settlement Commission (ITSC), whereby the
said Chairman set aside the Order passed by
the RTI First Appellate Authority of the ITSC.
*That the writ petition can directly be filed in
the High Court when anybody acted without
authority of law to dislodge and order passed
under RTI Act.
SBI studies if women
can work from home
State Bank of India (SBI) is studying the
technological feasibility of allowing women
employees to work out of home for some
functions. The bank's IT department will
advise the management whether it is possible
to have systems in place for monitoring and
supervising work being done remotely.
Arundhati Bhattacharya, the first woman to
head the bank in 208 years, had said that she
would be looking at ways to increase
retention of women staff. After she took
charge, the bank announced that it would
allow women to take a two-year sabbatical
from work in case they want it for children's
education or taking care of parents.
Speaking to TOIwhile flagging off the SBI
Pinkathon, a marathon for women aimed at
raising awareness of breast cancer,
Bhattacharya said that, while 38-40% of
recruits were women, their high dropout rate
resulted in women accounting for just of 20%
of the workforce.
At present, the strength of women employees
in the total workforce of the bank is 45,132,
which constitutes more than 20% of the total
staff strength of 2,22,033. Bhattacharya said
that the dropouts were for various reasons,
including looking after children, to relocate or
to look after the elderly.
“We try to accommodate staff where transfers
are concerned, but right now we are not able to
provide flexible timings. We are looking at
whether it is technologically possible to allow
working from home,” said Bhattacharya.
She said that the bank has chosen to support
the Pinkathon to raise awareness of women's
health.
Source: The Times of India
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16
January 2015
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Right of citizen to
seek information
from the Computer
server / database
maintained by the
Excise and
C u s t o m s
department
endorsed by Delhi
High court
Delhi High Court has recently
upheld the CIC decision in the
case of Rakesh Saraf v. D.G.
Systems of Central Excise &
Customs, wherein it was held
that:1.
selectively picking a
portion of the database by
running a SQL/Oracle query,
does not amount to creation of
fresh information under RTI. 2.
transferring of data from
database to CD/DVD is not hit
by section 7(9) of the RTI Act,
as it will not amount to
disproportionately diverting
the resources of the Public
Authority.
3. Information about the
manufacture of a product on
All-India basis as contained in
the database of Revenue Deptt.
on the basis of Excise Returns
filed by assesses, is disclosable
under RTI Act.
The Review Petition filed by
the Excise and Customs Deptt.
has been dismissed by Delhi
HIgh Court on 19-11-2014.
The decision of CIC as
endorsed by Delhi High Court
establishes the right of the
citizen to seek information
from the Computer SERVER /
Database maintained by the
Excise and Customs Deptt. and
thus will bring in the much
needed transparency in the
matter of collection of Excise
and Customs duties, on the one
hand and seeking of
information from the
Databases / Computer Servers
of the Govt. Departments.
Mandatory Digital System for
Custom Brokers can prevent revenue frauds
India is one of the select bands of nations that have
the Digital Signature Legislation in place. This
Act grants digital signatures that have been issued
by a licensed Certifying Authority in India the
same status as a physical signature. Digital
signatures deploy the Public Key Infrastructure
(PKI) technology. The Information Technology
Act 2000 provides for use of Digital Signatures on
the documents submitted in electronic form in
order to ensure the security and authenticity of the
documents filed electronically. Certification
Agencies are appointed by the office of the
Controller of Certification Agencies (CCA) under
the provisions of IT Act 2000.
A digital signature authenticate electronic
documents in a similar manner a handwritten
signature authenticates printed documents. This
signature cannot be forged and it asserts that a
named person wrote or otherwise agreed to the
document to which the signature is attached. The
recipient of a digitally signed message can verify
that the message originated from the person
whose signature is attached to the document and
that the message has not been altered either
intentionally or accidentally since it was signed.
Also the signer of a document cannot later disown
it by claiming that the signature was forged. In
other words digital signatures enable the
"authentication" and “non-repudiation” of digital
messages assuring the recipient of a digital
message of both the identity of the sender and the
integrity of the message.
A digital signature is issued by a Certification
Authority (CA) and is signed with the CA's
private key. A digital signature typically contains
the: Owner's public key the Owner's name
Expiration date of the public key the Name of the
issuer (the CA that issued the Digital ID) Serial
number of the digital signature and the digital
signature of the issuer.
CBEC has decided introduce the Risk
Management System (RMS) with the
“Accredited Client's Programme” (ACP) as its
major component. The objective of the
programme is to grant assured facilitation to
importers who have demonstrated capacity and
willingness to comply with the laws Customs
department is required to implement. With the
implementation of the Risk Management System,
this programme will replace all existing schemes
for facilitation in the sites where RMS is
implemented. The RMS was implemented from
November, 2005 onwards in a phased manner,
beginning with the Air Cargo Complex, Sahar,
and Mumbai. it would be mandatory for the
accredited clients under the ACP to file bills of
entry using digital signatures. Therefore,
importers are advised to obtain Digital Signature
Certificates being issued by CBEC. Where the
Accredited Clients are filing their documents
through their Custom House Agents, they must
advise their Custom House Agents to file their
bills of entry using digital signatures granted to
them by the department CBEC announced.
It is a dilemma that the Customs department
makes excellent policy on paper but those policies
are never implemented. The launching of Digital
Signature programme for ACP Custom Brokers
met the same fate as nine year has been elapsed
since the announcement was made through
circular no 42/2005 but till date no action has been
taken implement the same. The present
Government with a vision, mission and passion
desires to achieve the desired result with time
bound policies and their implementation.
However, it is doubtful that the present set up in
CBEC will be able to implement the Government
policies in a time bound manner.
There are about 365 ACP Customs Brokers and
these Customs Brokers are clearing 60%to 70%
of the total clearances of cargo. Most of the cargo
is cleared by this ACP Brokers through RMS
without examination of goods and digital
signature made mandatory would have been of
immense help to check revenue frauds.
The goal of the Risk Management System (RMS)
is to enable the department to strike an
appropriate balance between trade facilitation and
enforcement. Under the RMS, Bills of Entry filed
by importers in the Indian Customs EDI System
will be processed for risk and a larger number of
consignments will be allowed clearance based on
the importer's self assessment without
examination, after checking the marks and
numbers on the packages or in the case of Full
Container Load (FCL Cargo), the container
numbers and seals, and after taking over the
relevant documents from the importers. Other
consignments would be selected for
Appraisement or Examination or both depending
on the evaluation of risk by the RMS.
Making Digital Signature mandatory for all
CHAS will help in prevent revenue frauds
because:
1 The Digital Signature (DS) will establish the
identity of the Custom Broker.
2. It will check all the Loan Licensee (Benami)
Custom Broker.
3. No Import and export documents should be
allowed to be filed from CMC Sr. Centre
4. It was found in many custom frauds in past that
many frauds were done by these Benami Loan
Customs Brokers and misuse of some other
Customs Broker name without their knowledge.
5. Once the Digital Signature is made
compulsory for Custom and Custom Broker,
identity problem will not arise.
6. It was already made mandatory by C Cir.
45/2005 for ACP clients
7 It is more than 9 years still not a single Custom
Broker had been given Digital Signature even in
case of ACP importers.
8. Many Govt. Revenue depts. have already
made it mandatory to file documents by Digital
Signature only such as Income Tax, TDS Returns
and Registrar of Companies
9. With Custom RMS and trade facilitation
initiative 60% to 75% even some times 85%
Custom clearance had been allowed with NIL
checks.
In such cases it is very essential to have the
identity of the document filing agency.
10. This will also help the Custom department to
check the Service tax checks. Since it is common
that all these Benami Custom Broker also
indulge in keeping the collecting Service tax and
they do not keep any proper records and do not
deposit in the Government Exchequer.
Cabinet plans to e-file all Cabinet notes
Government plans to have all Cabinet files
including Cabinet notes in electronic format
from next month. This is being seen as a major
step towards creating paperless offices across
the board at Centre.
"The government's intention is that from
January onwards, we must have all Cabinet files
in an e-format. Normally, hard copies of bulky
Cabinet files (notes) are circulated. They should
be digitalized and computerized," food minister
Ram Vilas Paswan told ministry officials to
mark the Good Governance Day on
Wednesday.
E-governance, digitization and more use of
technology has been focus areas for the
Narendra Modi government. Sources said all
ministries and departments have been asked
to follow suit. Already Andhra Pradesh
government under N Chandrababu Naidu
has set an example of holding the first ecabinet meeting. There were only tablets and
e-devices and no papers. The minutes of the
meeting were electronically noted, remarks
and suggestions were keyed in, power-point
presentations were made.
Sources said the new emphasis would mean
that all ministers and secretaries would have
to become more IT savvy in the next few
weeks. Interestingly, sources said Paswan
signed the first e-file on Wednesday.
Assuring Paswan of achieving better
governance, food secretary Sudhir Kumar
said, "Action has been taken to move
towards e-files in our department. All
possible steps are being taken in this
direction."
Source: The times of India