TIOL-DDT 1889
28.06.2012
Thursday
Dr. Manmohan Singh is back in the job, which he is acclaimed to be the best in. And he has sent a strong message that he means business. Yesterday, soon after taking over the Finance Portfolio, he met senior officers from the Finance Ministry and told them that reviving investor sentiment was on top of his priorities. The new FM was concerned about the way the exchange rate is going and apparently worried that capital flows are dying up. He wanted the “India Growth Story” restarted.
The stage is all set for an expert economist to take over and clean the mess and Dr. Singh fits the bill eminently. The fate of this nation depends on whether he would take full control and ensure that economic engineering takes precedence over political engineering or allow things to drift, in the next two years. In 1991, he changed our destiny and destination. Twenty years later, he has another opportunity and we need him now more than we did in 1991.
Dr. Singh told the officers,
I am happy to meet all of you in a new context with me looking after the Finance Portfolio once again. Apart from a brief spell in 2008, I have been away from the details and nitty-gritty of Finance for a long time.
Therefore, I depend on all of you to give me sound advice on not just matters relating to the Finance Ministry but all aspects of the government and the economy as a whole.
The Finance Ministry is an all-encompassing Ministry whose reach extends to every corner of the government and the nation.
The way it functions is critical for the future of millions of our countrymen who look up to the government to throw open channels for their progress, prosperity and welfare. Therefore, the Finance Ministry has a vital role in evolving economic policies, which are conducive to economic growth and the overall welfare of the nation.
At the current juncture, we are passing through challenging times economically. The growth rate has taken a dip; the industrial performance is not satisfactory; things are not rosy on the investment front; inflation continues to be a problem.
On the external front, I am concerned about the way the exchange rate is going. Investor sentiment is down and capital flows are drying up.
There are some external reasons and we need to work towards making our country resilient in meeting these external challenges. However, there are many domestic reasons as well. We need to address these quickly. We need to work to get the economy going again and restart the India growth story.
In the short run, we need to revive investor sentiment, both domestic and international
The Finance Ministry has had a glorious tradition of doing excellent work. I expect the same from you.
Let us hope the Prime Minister, as FM would bring in a welcome change in the functioning of our tax departments and that there would be more accountability and responsibility in tax law drafting.
Place of Provision of Services - Can a Notification be issued under a provision, which is yet to come into force?
GOVERNMENT had notified the Place of Provision of Services Rules, 2012 by Notification No. 28/2012-Service Tax dated 20.06.2012, in exercise of the powers conferred by sub-section (1) of section 66C of the Finance Act 1994.
A Netizen has sent in this query:
Please refer to the Place of provision of Service Rules, 2012 framed through Notification No. 28/2012-ST dated 20.6.2012. The Rules would come into force from 1.7.2012. However, these Rules are framed on 20.6.2012 by exercising powers conferred under Section 66C(1) of Finance Act, 1994; that again will come into existence from 1.7.2012 as notified by Notification No. 19/2012 ST dt 5.6.2012(being clause F of Section 143 of Finance Act, 2012 that contains Section 66C).
Can the Notification No. 28/2012-ST be given by exercising powers under Section 66C(1) that is yet to come into force?
CESTAT asks Registrar to fix responsibility for failure to list Restoration application filed in year 2005
VIDE an order dated September 2005, the appeal filed by Ciens Laboratories against an order-in-appeal dated 31.12.2001 was dismissed for non-prosecution. Consequently, the appellant filed an application for Restoration of Appeal in the month of October 2005.
However, this ROA application never came up before the CESTAT until November 2011.
Piqued at this lackadaisical state of affairs in the Registry, the Bench had (in its words) - "directed the Registry to fix the responsibility of the concerned officer/official as the ROA application was kept pending for more than six years in the registry".
The matter was heard recently. Noting that the applicant had filed the miscellaneous application, along with requisite fee, immediately after dismissal of appeal and explained the reasons for non-appearance on the date fixed, the order of dismissal was recalled and appeal restored to its original number.
Before concluding, the Bench gave the following directions -
“2. As noted above, the reason for not listing the application for six years is not coming out from the records, a copy of this order be sent to the Registrar, CESTAT, New Delhi to fix the responsibility of the concerned officer/official for not listing the application for six years.
3. The Registry is directed to list the appeal for final hearing on 12.07.2012.”
Hopefully, by that date, the 'concerned' officer is cornered.
Please see 2012-TIOL-745-CESTAT-MUM
DDT Cartoon
Jurisprudentiol - Friday's cases
Customs
Bank Realisation Certificate may not be required for claiming duty draw back: High Court
DUTY Drawback on Re-export of Industrial Enzymes - Petitioner claimed duty draw back under Section 74 of the Customs Act, 1962 - Department directs petitioner to produce non-availment of CENVAT Certificate/Declaration and Bank Realisation Certificate/GR Waiver. Petitioner produced CENVAT Certificate Vide letter dated 24.12.2009 and produced Bank Realisation Certification on 03.11.2010. Respondent returns claim treating it as “Claim not Filed”. Petitioner filed Writ Petition - High Court directs grant of duty draw back.
Income Tax
Book surplus - Whether difference between market value and face value of shares arising in a transaction of amalgamation is to be construed as income taxable u/s 28(iv) - NO: ITAT Third Member
THE issues before the Third Member are - Whether the expression ‘any proceeding under this Act' used in section 263, includes any statutory proceeding concluded by the assessing authority for the purpose of exercise of revisional jurisdiction; Whether any issue not considered by the AO in the assessment, can be brought to life by the CIT in exercise of his revisionary powers u/s 263; Whether the revisionary jurisdiction of the CIT is issue-based or proceeding based; Whether the period of limitation to exercise revisional jurisdiction u/s 263 can be computed from the time of completion of income escaping assessment u/s 143(3), read with section 147; Whether the ‘book surplus' i.e. the difference between the market value and the face value of the shares arising in a transaction of amalgamation is an income taxable u/s 28(iv) of the Act and Whether the transfer of such ‘book surplus' to a General Reserve Account is merely an accounting treatment/notion or appropriation of profits.
Central Excise
Review under Section 35 E of the Central Excise Act, 1944 by the Board - Respondent contends that review was not done within one year and files go missing in Board - CESTAT deplores Board's affairs and dismisses the appeal
WHEN the matter is pending before the Tribunal, it is inexplicable as to why the relevant review file is missing from the Board's office. It is also inexplicable as to why the copy of the review order sent to the Commissioner, Tiruchirappalli does not bear the signature of the learned Member. A public official like the learned Member of the Board is required to affix his signature to a statutory order or direction made by him in exercise of the statutory functions assigned to him and statutory responsibilities cast upon him - In the absence of any valid review order produced the applications filed before the Tribunal are not maintainable as appeals.
See our columns Tomorrow for the judgements
Until Tomorrow with more DDT
Have a Nice Day
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