TIOL-DDT 2632
02 07 2015
Thursday

A Larger Bench of the Supreme Court yesterday considered the question whether the Rules for the Interpretation of Schedule to the Central Excise Tariff Act would apply to the interpretation of an entry in a notification.

In Maestro Motors, the Supreme Court had elucidated that one has to examine the notification and then refer to serial number of the notification and the item number in the first schedule of the Act and if they are identical and pari materia, rules of interpretation will apply.

The Supreme Court in the present case held that Rules of interpretation may not be applicable if the notification commands and require a different understanding. It needs no special emphasis to state that rules or principles of interpretation are always subject to context and not binding commands on iron cast imperatives.

The main issue before the Supreme Court was whether the car air-conditioning kit & the compressor manufactured by the assessee would be classified as a complete air-conditioner.

This case, as they say, had a chequered history. In 2003, the Supreme Court held in favour of the assessee and allowed the benefit claimed in an exemption notification. The Tribunal followed the order of the Supreme Court and allowed the benefit to the assessee for the subsequent period. Aggrieved Revenue again appealed to the Supreme Court and this time pleaded that the earlier order of the Supreme Court required reconsideration. So, the matter was referred to a Larger Bench and yesterday the Larger Bench delivered its verdict confirming the earlier order of the Division Bench.

The period involved in this case (the second round) was from 1.8.1991 to 28.2.1993. The Tribunal gave its order in 2003. Revenue appealed to Supreme Court in 2003 with the usual application for condonation of delay. The Apex Court decided the case yesterday. The original issue started with a Show Cause Notice in 1990 which was settled in favour of the assessee in Supreme Court in 2003.

Government should not be a compulsive litigant. In this case, the Government should have gracefully accepted the Supreme Court decision of 2003 instead of appealing to the Supreme Court against the same assessee on the same issue (for a subsequent period) and pleading that the Supreme Court judgement required reconsideration. Every litigant feels that the decision against him is wrong and requires reconsideration.

We bring you the order of the Supreme Court today. Please see Breaking News.

Orders of appellate authorities should be followed unreservedly by subordinate authorities - Contemptible Order of CIT(A) - ITAT

HERE is yet another case of gross judicial disobedience.

The ITAT remanded a case to the CIT(A). The Learned CIT was not impressed. In the order he observed,

My predecessor had taken a particular view in the matter. In the absence of any additional evidence/ information before me, I cannot sit in judgement over the view taken by my predecessor. In any case, in my opinion, the view taken by my predecessor was correct.

The Learned CIT preferred to follow the order of his colleague predecessor, which was set aside by the Tribunal and therefore did not exist. The case again went to the Tribunal. The Tribunal was not amused and observed in a recent case decided by the Chandigarh Bench of the ITAT.

The earlier order of the predecessor of the learned CIT (Appeals) does not exist in the eyes of law. It could not be taken into consideration for any purpose and even the same is not an order in the eyes of law.

The learned CIT (Appeals) instead of following the order of the Tribunal and without considering the evidences and material on record and without giving his independent opinion on the matter in issue has preferred to follow the order of his predecessor. Even the learned CIT (Appeals) has quoted some portion of the order of his predecessor in the impugned order.

The learned CIT (Appeals) also blatantly observed in the impugned order that he cannot sit in judgment over the view taken by his predecessor. The findings of the learned CIT (Appeals) noted above, clearly show that the learned CIT (Appeals) instead of deciding the appeal on merits and in compliance with the order of the Tribunal preferred to follow the view and order passed by his predecessor. The learned CIT (Appeals) has even gone to the extent of noting in the impugned order that the view taken by his predecessor was correct.

Thus it is clear that the learned CIT (Appeals) has shown disobedience to the order of the Tribunal. It is a clear case of showing disrespect to the order of the Tribunal. Therefore, contempt proceedings could have been initiated against the learned CIT (Appeals) for blatantly disobeying the order of the Tribunal.

The learned CIT (Appeals) failed to take note of the fact that he is quasi-judicial authority under the Income Tax Act and is subordinate in judicial hierarchy to the Tribunal. The orders passed by the Tribunal are binding on all the revenue authorities functioning under the jurisdiction of the Tribunal. The principles of judicial discipline require that the orders of the higher appellate authorities should be followed unreservedly by the subordinate authorities.

The Tribunal did not propose to initiate contempt proceedings but warned the CIT to be careful in future in following the order of the Tribunal in accordance with law and should not show any defiance to the order of the Tribunal.

Twist in the Tale: It was the Revenue which appealed to the Tribunal against the order of the CIT(A) pleading that his order was illegal.

GSTN wants Vice-President and Senior Manager

GOD knows when or if the GST comes but there is a Company working on the IT part of it.

Goods And Services Tax Network (GSTN), a private limited company, has been registered in March 2013 under Section 25 of the Companies Act, 1956. The Government of India holds 24.5% equity in the Company and all States of the Indian Union, including NCT of Delhi and Puducherry, together hold another 24.5%. Balance 51% equity is with non-Government financial institutions.

The Company has been set up primarily to provide IT infrastructure and services to the Central and State Governments, taxpayers and other stake holders for implementation of the Goods and Services Tax (GST) which is expected to subsume in itself practically all indirect taxes prevailing in the country, including the three major indirect taxes Central Excise, Service Tax and VAT. GSTN would, thus, play a critically important role in reforming the indirect tax system in India.

As per the approved Organisational Structure of the Company, certain identified positions are open to Government officers. At present, GSTN proposes to fill up two positions - Vice President and Senior Manager, by taking Government officers on deputation.

Nominations are to reach the GSTN latest by 29th June 2015 - that was three days ago. Maybe this date is extendable; CBEC has circulated GSTN letter yesterday.

How letters travel in the Government in this Digital age is best exemplified by this correspondence.

- The letter from GSTN addressed to the Revenue Secretary is dated 27.5.2015.

- It reaches the Revenue Secretary on 9.6.2015 who ordered immediate action.

- It is sent to the CBEC Chairman on 23.6.2015.

- The CBEC sends it to all Chief Commissioners and their website on 30.6.2015.

- It is uploaded on the website on 1.7.2015.

Yesterday the Prime Minister said we are shifting from e-governance to m-governance. M stands for Mobile not modi.

CBEC Letter F.No.A.35017/63/2015-Ad.II, Dated., June 30 2015

Income Tax e-filing is ready

THE CBDT in a Press Release yesterday stated,

The Income Tax Department has released the software for preparing the Income Tax Return forms 1- SAHAJ, 2, 2A and 4S- SUGAM for AY 2015-16. The e-filing of these return forms has been enabled on the e-filing website - https://incometaxindiaefiling.gov.in.

ITR 1-SAHAJ, 2 and 2A can be used by an individual or HUF whose income does not include income from business.ITR 4S- SUGAM can be used by an individual or HUF whose income includes business income assessable on presumptive basis. The elaborate details of the persons who can use these forms are available in the instructions for filling the forms.

The facility for pre-filling of information for these return forms is available in the software for preparing the return forms. When the taxpayer exercises this option and just fills in his PAN,then personal information and information on taxes paid and TDS will be auto-filled in the form. Taxpayers are requested to use the return preparation software available free of cost under the ‘Downloads' section on the home page of the Income Tax Department's e-filing website- https://incometaxindiaefiling.gov.in. The use of Departmental software will ensure preparation of error-free returns thereby avoiding any need for future rectification due to data validation mistakes.

Notification of dates for compliance window under Black Money Act

IN another Press Release, the CBDT says,

The Finance Minister, in the budget speech this year, had announced that a comprehensive new law to deal with black money stashed away abroad would be enacted. The Bill to enact the proposed new law was passed by the Parliament in its Budget Session. The Bill received Presidential assent and became law on 26th May, 2015. The Act provides for separate taxation of undisclosed foreign income and assets. Stringent penalties and prosecution, including rigorous imprisonment upto ten years and penalty equal to three times of the tax have been prescribed for violation. The Act also provides a compliance window for a limited period to persons who have undisclosed foreign assets which they have not disclosed for the purposes of Income-tax so far.

The Central Government has notified the 30th day of September, 2015, as the date on or before which a person may make a declaration in respect of an undisclosed asset located outside India under the compliance provisions of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (‘Black Money Act').

The last date by which a person must pay the tax and penalty in respect of the undisclosed foreign assets so declared shall be the 31st day of December, 2015.

ADC in Customs - Who appoints them?

THE Government yesterday granted Non-Functional Selection Grade (NFSG) to 113 Joint Commissioners in the Customs and Central Excise Department. They will all continue to work in the same places with a substantial hike in pay and will start calling themselves Additional Commissioners. The fact is nobody has appointed them as Additional Commissioners.

WCO Photo Competition 2015 - Bolivia Entry

Until Tomorrow with more DDT

Have a nice day.

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