revenue international standard serial number 2348 – 2958 ... · continued on page 03 revenue...

Continued on page 03

Revenue Department, despite delivery of judicial pronouncements by various legal forums, including the Apex court, had consc ious ly mis - in te rpre ted , mis -represented and disobeyed with sole motive, to keep the lower rung officers at down-to-morale status. India attained Independence from the colonial era in Aug-1947. The legacy left behind by the British, although dismantled by the politicians, is exclusively and d iscree t ly fo l lowed by the CBIC, irrespective of the successive Governments. We recall our June-2019 edition wherein it was printed that “……Govt proposes but Customs (Delhi) disposes in ease of doing business….” We thought that the attitude of the Department was confined to trade and policies. However, to our utmost surprise, the art of functioning and bypassing the norms of the laid down principles, the Department has extended its tentacles to other ends also. It has not left its own subordinate officers working under their wing. For instance, the recent-most-discussed topic of pay anomaly in the Gr.B officers of the Department (CBIC), the ordeal has not ended notwithstanding the landmark judicial pronouncement of the Hon’ble Supreme Court of India in the case of Somvir Rana Vs Govt. NCT. Particularly and notably, the

IRS (CBIC) cadre can only take credits and laurels for work done by the juniors who are given only one promotion in t h e i r l i f e t i m e i n comparison to at least five promotions to IRS o f f i c e r s . S i l e n c e continues from all the top ranked officers of CBIC

on this issue, since decades. A biased and self centered IRS fraternity never talks about the stagnated career prospects of the officers who joined as Inspectors and toiled for the successes of CBIC. An old adage spells that old habits die hard. And habits that have been left by the Brits while leaving our country at the time of Independence have been adopted by our good bureaucrats by stepping in to their shoes. Though the prejudiced adage fails to die, the application and enforcement of this adage succeeds through our learned laurels of bureaucracy. The reason for importing this version accrued and emerged after seeing the style and functioning of certain issues in the Department (revenue), wherein the fundamental rights of the citizen were at stake, especially with reference to Art.14 of the Constitution of India, which guarantees equality of law. It is time to pronounce that the Continued on page 07

PARDE MEIN REHNE DO PARDA NA UTHAO 15. Salomon v. Salomon still vitalN o t w i t h s t a n d i n g t h e e x t e n s i v e l i t e r a t u r e connected with 'lifting the corporate veil', one should n o t f o r g e t t h a t t h e conventional view that a company is a distinct legal

entity still holds the field and after almost a century the old ruling in Salomon's case (supra) retains its vitality. The courts insist upon very strong evidence for displacing it Thus, a Government company is not regarded as an agent or trustee of the state (except for writ purposes) unless it is performing sovereign (as opposed to commercial) functions - Praga Tools Corpn. v. Inamuel AIR 1969 SC 1306; Tamlin v. Hannaford [1950] 1 KB 18. The property of a Government company has been held to be not that of the State - Bharat Aluminium Co. Ltd. v. Special Area Development Authority [1981] 51 Comp. Cas. 184 (MP). A transport company in which all the shares were held by the Transport Commission was held to be not acting as an agent for the Commission - Ebbow Wale UDC v. S. Wales Traffic Area Licensing Authority [1951] 2 KB 366 (CA). A wholly owned subsidiary company is also viewed to be as distinct from its parent as any other company - Free Wheels (India) Ltd. v. Dr. Veda Mitra AIR 1969 Delhi 258, except when the parent controls its activity in all respects-fle. F.G. Films Ltd. [1953] 1 WLR 483. The fact that in certain cases companies have to give a "group accounts" [section 212 - 214 of the Companies Act] does not impair their individuality. Documents in the custody of a subsidiary company are not necessarily in the custody of the holding company - Lonrho Ltd. v. Sell Petro-leum Co. Ltd. [1980] 2 WLR 367 (CA). A holding company is not liable for its insolvent subsidiary company -Re Southard & Co. Ltd. [1979] 1 WLR 1198. All these rulings show the vitality of Salomon's case {supra). 16. Benami transactionsAt this stage, it is necessary to examine the pos i t ion resu l t ing f rom the Benami Transactions (Prohibition) Act, 1988. Section 3(1) of that Act prohibits any one from entering into any benami transaction and section 4 (1) provides as under : "(1) No suit, claim or action to enforce any right in respect of any property held benami against the person in whose name

Much media hype was built around the maiden budget o f M s . N i r m a l a S i t h a r a m a n , F i n a n c e Minister being the first from a woman in many decades. Newspapers were full of their wish list and speculation about what all was about to happen in their tendency of one upmanship and so were the T.V.

Channels in their quest for eye balls. Budget proposal were asked in all sincerity and thereafter speculat ion started about inheritance tax, GST frauds under PMLA and many others. None of these fructified except the cash withdrawal tax which was pitched at one crore in the budget, instead of oft sounded Rs.10 lakhs in the pink media. Little had the media realized that most of the tax proposals had been tackled in interim budget of 2019 and that there was little room available for the FM for manoeuvring at this stage when almost one third of the fiscal had already run its course. The lack of knowledge about the nitty gritty of the budget was too self evident in speculating media. The budget therefore was given thumbs down by certain segments in ignorance, even when it did not deserve to. The main fiscal provision worth applauding in the tax proposals is amnesty scheme for ending litigation in for central excise and service tax, which is so liberal that everyone will be tempted to settle his litigation at the earliest. Really a bold step to reduce burden on existing business people and step forward to allow them to reduce tax. This sure is to my mind the most outstanding provision in the tax proposals. But incidentally it did not receive much space in an otherwise lengthy speech of almost two hours fifteen minutes. Overall, Madam FM did a good job of her maiden budget and therefore in the convention of Mr. Chidamabaram being called Chidu, Dr. Manmmohan Singh being called Manni, earns the pet and affection name of `Seethe’. Wishing her many more budget presentation in the august house.Cheer Factors:Custom:

New Delhi Vol : X No. 11 Pages: 12 July 2019 Price: Rs 20/- (Per copy)US $1 (Per copy) Outside India

The CBI has registered a case against three Indian Revenue Services officers from the Customs department in a case of fraudulent claim of export incentives of Rs. 6.5 crore. Deputy commissioners Sharad Ranjan, Kunal Anuj and Kamleshwar Singh allegedly created fictitious bank accounts to divert duty drawback incentive fraudulently into the accounts, the CBI said. Duty drawback compensates exporters for duties paid on inputs used to manufacture exported products. The accused were posted in the drawback section of the Customs office at Nhava Sheva during different periods.

The three IRS officers were posted in the Customs office at Nhava Sheva at different times between 2017 & 2018 when they committed the crime. Kamleshwar Singh was posted between March and Sept 2017 and fraudulently disbursed Rs.2 crore, whereas Sharad Ranjan worked from Sept 2017 to March 2018 and defrauded Rs.3.5 crore. Kunal Anuj was there only for a month in March 2018, when he committed a �1 crore fraud. Singh and Ranjan have since retired. The three officers, among other private persons, have been booked for cheating, forgery, fraud and also under the Prevention of Corruption Act.

The scam perpetrated at JNPT was unearthed by the DRI in April 2018. TOI was the first to report about it. It was found that the officers connived with private players to siphon off government funds, officials said. The trio misused authority and lifted alerts on suspicious exporters who had been kept on hold due to investigations against them. The FIR says alerts were placed on some exporters since 2010 for holding back drawback amount on suspicious exports.latestlaws logo The accused private individuals, with the help of the Customs officers, opened fictitious accounts in the name of various

exporters in different banks using forged documents, the FIR stated. The accounts were fraudulently registered in the Electronic Data Interchange system of the Customs. The officers lifted alerts and issued instructions to banks to disburse drawback amounts in the accounts, the FIR said, adding, “Later, the amounts were withdrawn and misappropriated.” According to the FIR, the officers again placed the alerts. The private persons include businessmen Sadruddin Lassanwala, Ramesh Saingh, Arjun Goregaonkar, Rajumar Suryanath and Ashuthosh Singh, and agent Shaikh Arife. Source: Latest Laws .Com

A K AgnihotriEx-Comm, Customs& Central Excise


REVENUETRANSPARENCY TIMES

English MonthlyTransparency weeds out corruption

Opaqueness breeds it

RNI Regd. No. : DELENG/2009/29517

International Standard Serial Number 2348 – 2958

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Somesh AroraCCO, Amicus

Rarus, Ex-Comm,Customs &

Central Excise

CORPORATE VEIL& GOVERNANCE

A K Banerjee, Chief

RTT Bureau

government’s determination to have a taxpayer-friendly GST regime that will not hesitate to penalise defaulters and fraudsters. On customs duty, the guiding factors were national security concerns, promotion of “Make in India”, reduction in import dependence and protection of MSME sector. To garner more revenue, she has also proposed special additional excise duty and road and infrastructure cess on petrol and diesel. Besides, she has also proposed to impose a basic excise duty on tobacco products and crude. The Budget also proposes a few amendments to the Customs Act to counter fraudulent attempts. Overall, the Budget proposals on indirect taxes are healthy, implementable and essential. Source: Business Standard

Sumit Dutt Majumder Nirmala Sitharaman has done well in summing up certain critical decisions of the council on GST The Budget proposals on indirect taxes have dealt with customs because GST matters are now dealt with by the GST council. However, Finance Minister Nirmala Sitharaman has done well in summing up certain critical decisions of the council on GST. These include introduction of simplified single monthly return, electronic invoice system that will capture the invoice details to be used for invoice matching, and detection of tax evasion. Her proposal to have a legacy dispute resolution-cum-amnesty scheme to take care of Rs 3.75 lakh crore blocked in litigation in pre-GST excise and service tax is laudable. These s teps show the

BUDGET 2019-20- Willthe budget end bahi khatarelating to Excise andService tax litigation ofthe tax payers?

Budget 2019: Taxpayer-friendly GSTregime, says Sumit Dutt Majumder

Fraud in Export Incentive: Custom Dept booked 3 IRS Officers for RS 6.5 crore loss

Resenment in CGST Staff over pay Anomalies

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July 20192

Circular No. 18/2019-CustomsF.No. DGEP/G&J/22/2018 Madam/ Sir, Circular No. 25/2018-Customs dated 08.08.2018 has p r e s c r i b e d s t a n d a r d o p e r a t i n g procedures for the expeditious discharge of the bonds executed by nominated agencies/ banks under notification No. 57/2000- Customs dated 08.05.2000, as a measure of trade facilitation. 2. Presently, bonds are credited and closed only after entire imported goods (meant for export after prescribed value addition/wastage norms) have been used and exported as finished

goods. These bonds and corresponding bank guarantees sometimes remain outstanding in full due to non availability of facility of partial credit against that quantity of import of gold for which export obligations have been fulfilled. This hinders the expeditious discharge of bond leading to capital blockage of exporter. Thus puts unnecessary burden on the exporters. 3. Various representations were received from Gems & Jewellery export promotion council that partial crediting of Bonds and Bank Guarantees, submitted at the time of import of gold,

may also be facilitated in proportion to the export obligations fulfilled for which necessary prescribed documentation evidencing the same has been provided to the jurisdictional customs authorities. 4 . T h e m a t t e r h a s b e e n examined , in consul ta t ion wi th Directorate General of Systems. In order to address the above said issue a new provision has been developed in ICES 1.5 to proportionately credit the Bond and Bank Guarantee online as and when the exports are being made, partially against the said Bond and Bank Guarantee. Directorate General of

Systems will issue system advisory giving details of the new functionality regarding partial crediting of RE bond in ICES. 5. The procedure and the timeline prescribed vide Circular No. 25/2018- Customs dated 08.08.2018 will apply mutatis-mutandis to partial discharge of bonds also. 6. Difficulties, if any, may be brought to the notice of the Board. (Saroj Kumar Behera)Additional Director

Partial discharge of bonds executed by nominated agencies/ banksunder notification No. 57/2000-Customs dated 08.05.2000

No. 27/2019-Customs (ADD) G.S.R. (E). – Whereas, the Central Government, in exercise of the powers conferred by sub-sections (1) and (5) of section 9A of the Customs Tariff Act, 1975 (51 of 1975), (hereinafter referred to as the Customs Tariff Act), read with rules 18 and 23 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, levied anti-dumping duty on imports of ‘Paracetamol’ (hereinafter referred to as the subject goods) falling under Chapter 29 of the First Schedule to the Customs Tariff Act, originating in or exported from China PR (hereinafter referred to as the subject country), vide notification No. 26/2013-Customs (ADD), dated the 28th October, 2013, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 710(E), dated the 28th October, 2013 for a period of five years from the date of publication in the Official Gazette; And whereas, the designated authority, vide notification No. 7/16/2018-DGAD, dated the 25th April, 2018, published in the Gazette of India, Extraordinary, Part I, Section 1, initiated a review in the matter of continuation of anti-dumping duty and recommended the extension of the anti-dumping duty on the subject goods for a period of six months; And whereas, on the basis of the recommendations of the designated authority, the Central Government had extended the anti-dumping duty on the subject goods, originating in or exported from the subject country up to and inclusive of the 26th April, 2019 vide notification No.39/2018-Customs (ADD), dated the 20th August, 2018, published in the Gazette of India, Extraordinary Part II, Section 3,

Sub-section (i), vide number G.S.R 786(E), dated the 20th August, 2018 amending aforesaid notification No. 26/2013- Customs (ADD), dated the 28th October, 2013; And whereas, the designated authority in its final findings dated 29th January, 2019, published vide notification No. 7/16/2018-DGAD, dated the 29th January, 2019, in the Gazette of India, Extraordinary, Part I, Section 1, regarding the review of anti-dumping duty on the subject goods originating in or exported from the subject country, recommended termination of the anti-dumping duty on the import of subject goods; And whereas on the basis of these final findings, the Central Government, vide notification No.19/2019-Customs (ADD), dated the 16th April, 2019, published in the Gazette of India, Extraordinary Part II, Section 3, Sub-section (i), vide number G.S.R 309 (E), dated the 16th April, 2019, rescinded the aforesaid notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 39/2018-Customs (ADD), dated the 20th August, 2018 to terminate the levy of anti-dumping duty on the subject goods as per the said final findings of the designated authority; And whereas the Hon’ble High Court of Gujarat in the matter of SCA No. 5278/2019 vide order dated 24th April, 2019, directed to extend the aforesaid notification No. 39/2018-Customs (ADD), dated the 20th August, 2018 till 24th June, 2019, and on being informed that the said notification No. 39/2018- Customs (ADD), dated 20th August, 2018 had already been rescinded vide notification No. 19/2019- Customs (ADD) dated the 16th April, 2019, the Hon’ble High Court suspended notification No. 19/2019- Customs (ADD)

dated the 16th April, 2019, till final disposal of the main petition; And whereas the Hon’ble High Court of Gujarat in the matter of SCA No. 5278/2019 vide order dated the 9 th May, 2019, again directed that the notification No. 39/2018-Customs (ADD), dated the 20th August, 2018 be extended for a further period up to 24th June, 2019; And whereas the Central Government has challenged the aforesaid order vide Special Leave Petition No. 13302-13304/2019 in the Hon’ble Supreme Court; A n d w h e r e a s t h e C e n t r a l Government has extended notification No. 39/2018-Customs (ADD), dated the 20th August 2018 vide notification No. 22/2019-Customs (ADD), dated the 10th June, 2019 [G.S.R. 415 (E), dated the 10th June, 2019], in pursuance of order of Hon’ble High Court of Gujarat dated the 9 th May, 2019; And whereas the Hon’ble High Court of Gujarat in the matter of SCA No. 5278/2019 vide order dated 20th June, 2019, again directed that the notification No. 39/2018-Customs (ADD), dated the 20th August, 2018 be further extended up to and inclusive of 09th July, 2019; A n d w h e r e a s t h e C e n t r a l Government has extended notification No. 39/2018-Customs (ADD), dated the 20 th August 2018 vide notification No. 26/2019-Customs (ADD) dated the 24th June, 2019 [G.S.R. 450 (E), dated the 24th June, 2019], up to and inclusive of 9th July, 2019, in pursuance of order of Hon’ble High Court of Gujarat dated 20 th June, 2019; And whereas the Hon’ble High Court of Gujarat in the matter of SCA No. 5278/2019 vide its final order dated the 3 rd July, 2019, directed the respondent No. 2 to undertake the exercise of recording its final finding afresh and respondent No. 1 to extend the anti-dumping on the product in question, till the final findings are rendered.

And whereas the DGTR vide OM No. 7/16/2018-DGAD (Part file)-1, dated the 8 th July, 2019 has recommended that the anti-dumping duty on Paracetamol may be extended up to and inclusive of the 27th October, 2019. Now therefore, in exercise of powers conferred by sub-sections (1) and (5) of section 9A of the Customs Tariff Act, 1975 read with rules 18 and 23 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, and in pursuance of the aforesaid order dated the 3 rd July, 2019 of Hon’ble High Court, without prejudice to the rights and contentions of the parties to be decided in the ultimate outcome of the SLP in the Hon’ble Supreme Court, the Central Government hereby makes the following further amendments in the notification of Government of India, in the Ministry of Finance (Department of Revenue), No. 39/2018 Customs (ADD), dated the 20th August, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G. S. R. 786 (E), dated the 20th August, 2018, namely:- In the said notification, for the figures, letters and word “9 th July, 2019”, the figures, letters and word “27th October 2019” shall be substituted.[F.No.354/93/2001-TRU (Pt-IV)] (Ruchi Bisht) Under Secretary to the Government of India No te : The p r inc ipa l no t i f i ca t ion No.26/2013-Customs (ADD), dated the 28th October, 2013 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 710(E), dated the 28th October, 2013 and last amended vide notification No. 26/2019-Customs (ADD), dated the 10th June, 2019, vide number G.S.R. 450(E), dated the 24th June, 2019

Seeks to further amend notification No 27/2011-Customs dated 1st March 2011 to reduce theexport duty on EI tanned leather and Hides, skins and leathers, tanned and untanned, all sorts

Notification No. 24/2019 – CustomsG.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, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), No. 57/2017- Customs, dated the 30th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection

(i), vide, number G.S.R. 798 (E), dated the 30th June, 2017, namely:- In the said notification, in the TABLE, - (i) against S. No. 6A, in column (3), after item (b), the following proviso shall be inserted, namely: -“Provided that nothing contained in the entries mentioned at items (a) and (b) shall apply to the following goods, namely: - (i) connectors;(ii) microphones;(iii) receivers;(iv) speaker;

(v) SIM socket”; (ii) S. Nos. 11 and 12 and the entries relating thereto shall be omitted; (iii) against S. No. 13, for the entry in column (3), the following entry shall be substituted, namely: -“All goods other than charger or adapter of the following goods, namely: - (i) Cellular mobile phones;(ii) CCTV Camera;(iii) IP camera; (iv) Digital Video Recorder (DVR);(v) Network Video Recorder (NVR)”.[F. No. 334/3/2019-TRU]

(Gunjan Kumar Verma) Under Secretary to the Government of India Note: - The principal notification No.57/2017-Customs, dated the 30th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 798(E), dated the 30th June, 2017 and last amended, vide, notification No. 2/2019 -Customs, dated the 29th January, 2019, published, vide number G.S.R. 60(E), dated the 29th January, 2019.

Seeks to further amend notification No 57/2017-Customs dated 30th June, 2017 to explicitly exclude the specifiedelectronic items from scope of entry at S.No.6A of the notification and to provide the effective rates on other goods

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• No custom duty on certain parts of Electrical vehicles• Capital goods for manufacturing electric items including cell phone cameras, phone chargers and adapters, set top boxes, lithium ion cell, display modules will have no customs duties on them. • No Custom Duty on import of Defense Equipment not manufactured in India for next five years.• Custom Duty reduced on certain raw-materials like inputs for Artificial Kidney, Capital Goods required for manufacture of specified electronic goods etc.• Export duty charges on tanned leather has been removed. Hides, skins, leather, tanned and untanned of all sorts has been reduced from 60% to 40%.• The government is removing customs duties from defense equipment and its parts imported by the Ministry of Defence or Armed Forces. • The same as above goes for medical devices - “raw material, parts or accessories for use manufacture of artificial kidneys, disposable sterilized dialyzer and micro-barrier of artificial kidney”. While these carried the applicable rate of customs duties, it has now been reduced to none. • The duty on inputs for manufacturing CRGO steel, and amorphous alloy ribbon, have been halved to 2.5% and 5% respectively.• Export duty on EI tanned leather and Hides, skins and leathers, tanned and untanned, all sorts. Reduced form 15% to Nil.• Designated persons other than persons in charge of a vessel or a ship or vehicle also allowed to file departure manifest.• Redemption fine in lieu of confiscation can also be waived in deemed closure cases.• B C D o n U r a n i u m a n d o t h e r concentrates being made `Nil” BCD also being made ` nil` for all goods of TH2844 for nuclear power generation.• Duty on wool fiber and wool tops reduced form 5% to 2.5%Parts of telephone handsets exempted• Section 9C of the Customs Tariff Act,75 being amended to provide for certain appeals regarding safeguard levy and investigation to be heard by CESTAT.Income Tax:• PAN and Adhaar interchangeable and allow those who do not have PAN to file income tax returns. In addition to that, those who do not have PAN can simply quote their Aadhar Number instead of PAN.• Corporate tax with turnover of up to Rs 400 crore slashed to 25 per cent from a current rate of 30 per cent. • Additional Rs.1.5 lakh tax relief on home loan for purchase of a house up to Rs 45 lakh. • Tax deduction interest on loans taken of upto Rs.1.50 lakhs /per fiscal on Electric vehicles.• Proposed easing angel tax for startups MSMEs. • Angel Tax: Will not require scrutiny from I-T department for startup. • Capital gain exemption from sale of residential house or investment in startups extended till Financial year 2021.• STT restricted only to the difference between settlement and strike price in case of exercise of options.• TDS on insurance to be now 5 percent on net income instead of 1% on gross receipt. Provision to be applicable from 1.9.2019.Others:• Amnesty schemefor excise and service tax litigants. Even EOUs/ SEZ units facing central excise demand can benefit. It will be of reader’s interest to reproduce provisions relating to the scheme, for ease of reference:(CHAPTER V of Finance Bill, 2019

Clause 119. (1) This Scheme shall be called the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (hereafter in this Chapter referred to as the “Scheme”). (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. 120. In this Scheme, unless the context otherwise requires,— (a ) “amount declared” means the amount declared by the declarant under section 124; (b) “amount estimated” means the amount estimated by the designated committee under section 126; (c) “amount in arrears” means the amount of duty which is recoverable as arrears of duty under the indirect tax enactment, on account of— (i) no appeal having been filed by the declarant against an order or an order in appeal before expiry of the period of time for filing appeal; or (ii) an order in appeal relating to the declarant attaining finality; or (iii) the declarant having filed a return under the indirect tax enactment on or before the 30th day of June, 2019, wherein he has admitted a tax liability but not paid it; (d) “amount of duty “ means the amount of central excise duty, the service tax and the cess payable under the indirect tax enactment; (e) “amount payable” means the final amount payable by the declarant as determined by the designated committee and as indicated in the statement issued by it, in order to be eligible for the benefits under this Scheme and shall be calculated as the amount of tax dues less the tax relief; (f ) “appellate forum” means the Supreme Court or the High Court or the Customs, Excise and Service Tax Appellate Tribunal or the Commissioner ( Appeals); (g) “audit” means any scrutiny, verification and checks carried out under the indirect tax enactment, other than an enquiry or investigation, and will commence when a written intimation from the central excise officer regarding conducting of audit is received; (h) “declarant” means a person who is eligible to make a declaration and files such declaration under section 124; (i ) “declaration” means the declaration filed under section 124; (j) “departmental appeal” means the appeal filed by a central excise officer authorised to do so under the indirect tax enactment, before the appellate forum; (k) “designated committee” means the committee referred to in section 125; (l) “discharge certificate” means the certificate issued by the designated committee under section 126; (m) ‘‘enquiry or investigation’’, under any of the indirect tax enactment, shall include the following actions, namely:— (i) search of premises; (ii) issuance of summons; (iii) requiring the production of accounts, documents or other evidence; (iv) recording of statements; Short title and commencement. Definitions. (n) “indirect tax enactment” means the enactments specified in section 121; (o) “order” means an order of determination under any of the indirect tax enactment, passed in relation to a show cause notice issued under such indirect tax enactment; (p) “order in appeal” means an order passed by an appellate forum with respect to an appeal filed before it; (q) “person” includes— (i) an individual; (ii) a Hindu undivided family; (iii) a company; (iv) a society; (v) a limited liability partnership; (vi) a firm; (vii) an association of persons or body of individuals, whether incorporated or not; (viii)the Government; (ix) a local authority; (x) an assessee as defined in rule 2 of the Central Excise Rules, 2002; (xi) every artificial juridical person, not falling within any of the preceding clauses. (r) ‘‘quantified”, with its cognate expression, means a written communication of the amount of duty payable under the indirect tax enactment; (s) “statement” means the statement issued by the designated committee under section 126; (t)

“tax relief” means the amount of relief granted under section 123; (u) all other words and expressions used in this Scheme, but not defined, shall have the same meaning as assigned to them in the indirect tax enactment and in case of any conflict between two or more such meanings in any indirect tax enactment, the meaning which is more congruent with the provisions of this Scheme shall be adopted. 121. This Scheme shal l be applicable to the following enactments, namely:— (a) the Central Excise Act, 1944 or the Central Excise Tariff Act, 1985 or Chapter V of the Finance Act, 1994 and the rules made thereunder; (b) the following Acts, namely:— (i) the Agricultural Produce Cess Act,1940; (ii) the Coffee Act, 1942; (iii) the Mica Mines Labour Welfare Fund Act, 1946; (iv) the Rubber Act, 1947; (v) the Salt Cess Act, 1953; (vi) the Medicinal and Toilet Preparations (Excise Duties) Act, 1955; (vii) the Additional Duties of Excise (Goods of Special Importance) Act, 1957; (viii) the Mineral Products (Additional Duties of Excise and Customs) Act, 1958; (ix) the Sugar (Special Excise Duty) Act, 1959; (x) the Textiles Committee Act, 1963; (xi) the Produce Cess Act, 1966; (xii) the Limestone and Dolomite Mines Labour Welfare Fund Act, 1972; (xiii) the Coal Mines (Conservation and Development) Act, 1974; (xiv) the Oil Industry (Development) Act, 1974; 5 10 15 20 25 30 35 4 37 (xv) the Tobacco Cess Act, 1975; (xvi) the Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour Welfare Cess Act, 1976; (xvii) the Bidi Workers Welfare Cess Act, 1976; (xviii)the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978; (xix) the Sugar Cess Act, 1982; (xx) the Jute Manufacturers Cess Act, 1983; (xxi) the Agricultural and Processed Food Products Export Cess Act, 1985; (xxii) the Spices Cess Act, 1986; (xxiii)the Finance Act, 2004; (xxiv) the Finance Act, 2007; (xxv) the Finance Act, 2015; (xxvi) the Finance Act, 2016; (c) any other Act, as the Central Government may, by notification in the Official Gazette, specify. 122. For the purposes of the Scheme, “tax dues” means— (a) where— (i) a single appeal arising out of an order is pending as on the 30th day of June, 2019 before the appellate forum, the total amount of duty which is being disputed in the said appeal; (ii) more than one appeal arising out of an order, one by the declarant and the other being a departmental appeal, which are pending as on the 30th day of June, 2019 before the appellate forum, the sum of the amount of duty which is being disputed by the declarant in his appeal and the amount of duty being disputed in the departmental appeal: Provided that nothing contained in the above clauses shall be applicable where such an appeal has been heard finally on or before the 30th day of June, 2019. Illustration 1: The show cause notice to a declarant was for an amount of duty of Rs.1000 and an amount of penalty of Rs.100. The order was for an amount of duty of Rs.1000 and amount of penalty of Rs.100. The declarant files an appeal against this order. The amount of duty which is being disputed is Rs.1000 and hence the tax dues are Rs.1000. Illustration 2: The show cause notice to a declarant was for an amount of duty of Rs.1000 and an amount of penalty of Rs.100. The order was for an amount of duty of Rs.900 and penalty of Rs.90. The declarant files an appeal against this order. The amount of duty which is being disputed is Rs.900 and hence tax dues are Rs.900. Illustration 3: The show cause notice to a declarant was for an amount of duty of Rs.1000 and an amount of penalty of Rs.100. The order was for an amount of duty of Rs.900 and penalty of Rs 90. The declarant files an appeal against this order of

determination. The departmental appeal is for an amount of duty of Rs.100 and penalty of Rs.10. The amount of duty which is being disputed is Rs.900 plus Rs.100 i.e Rs.1000 and hence tax dues are Rs.1000. Illustration 4: The show cause notice to a declarant was for an amount of duty of Rs.1000. The order was for an amount of duty of Rs.1000. The declarant files an appeal against this order of determination. The first appellate authority reduced the amount of duty to Rs.900. The declarant files a second appeal. The amount of duty which is being disputed is Rs.900 and hence tax dues are Rs.900; (b) where a show cause notice under any of the indirect tax enactment has been received by the declarant on or before the 30th day of June, 2019, then, the amount of duty stated to be payable by the declarant in the said notice: Provided that if the said notice has been issued to the declarant and other persons making them jointly and severally liable for an amount, then, the amount indicated in the said notice as jointly and severally payable shall be taken to be the amount of duty payable by the declarant; (c) where an enquiry or investigation or audit is pending against the declarant, the amount of duty payable under any of the indirect tax enactment which has been quantified on or before the 30th day of June, 2019; Tax dues. 38 (d) where the amount has been voluntarily disclosed by the declarant, then, the total amount of duty stated in the declaration; (e) where an amount in arrears relating to the declarant is due, the amount in arrears. 123. (1) Subject to the conditions specified in sub-section (2), the relief available to a declarant under this Scheme shall be calculated as follows: (a) where the tax dues are relatable to a show cause notice or one or more appeals arising out of such notice which is pending as on the 30th day of June, 2019, and if the amount of duty is,— (i) rupees fifty lakhs or less, then, seventy per cent. of the tax dues; (ii) more than rupees fifty lakhs, then, fifty per cent. of the tax dues; (b) where the tax dues are relatable to a show cause notice for late fee or penalty only, and the amount of duty in the said notice has been paid or is nil, then, the entire amount of late fee or penalty; (c) where the tax dues are relatable to an amount in arrears and,— (i) the amount of duty is, rupees fifty lakhs or less, then, sixty per cent. of the tax dues; (ii) the amount of duty is more than rupees fifty lakhs, then, forty per cent. of the tax dues; (iii) in a return under the indirect tax enactment, wherein the declarant has indicated an amount of duty as payable but not paid it and the duty amount indicated is,— (A) rupees fifty lakhs or less, then, sixty per cent. of the tax dues; (B) amount indicated is more than rupees fifty lakhs, then, forty per cent. of the tax dues; (d) where the tax dues are linked to an enquiry, investigation or audit against the declarant and the amount quantified on or before the 30th day of June, 2019 is— (i) rupees fifty lakhs or less, then, seventy per cent. of the tax dues; (ii) more than rupees fifty lakhs, then, fifty per cent. of the tax dues; (e) where the tax dues are payable on account of a voluntary disclosure by the declarant, then, no relief shall be available with respect to tax dues. (2) The relief calculated under sub-section (1) shall be subject to the condition that any amount paid as predeposit at any stage of appellate proceedings under the indirect tax enactment or as deposit during enquiry, investigation or audit, shall be deducted when issuing the statement indicating the amount payable by the declarant: Provided that if the amount of pre-deposit or deposit already paid by the declarant exceeds the amount payable by the declarant, as indicated in the statement issued by the designated committee, the declarant shall not be entitled to any refund.

BUDGET 2019-20- Will the budget end bahi khata relating to Exciseand Service tax litigation of the tax payers?

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July 2019


124. (1) All persons shall be eligible to make a declaration under this Scheme except the following, namely:— (a) who have filed an appeal before the appellate forum and such appeal has been heard finally on or before the 30th day of June, 2019; (b) who have been convicted for any offence punishable under any provision of the indirect tax enactment for the matter for which he intends to file a declaration; (c) who have been issued a show cause notice, under indirect tax enactment and the final hearing has taken place on or before the 30th day of June, 2019; (d) who have been issued a show cause notice under indirect tax enactment for an erroneous refund or refund; (e) who have been subjected to an enquiry or investigation or audit and the amount of duty involved in the said enquiry or investigation or audit has not been quantified on or before the 30th day of June, 2019; (f) a person making a voluntary disclosure,— (i) after being subjected to any enquiry or investigation or audit; or (ii) having filed a return under the indirect tax enactment, wherein he has indicated an amount of duty as payable, but has not paid it; 5 10 15 20 25 30 35 40 45 Relief available under Scheme. Declaration under Scheme. 39 (g) who have filed an application in the Settlement Commission for settlement of a case; (h) persons seeking to make declarations with respect to excisable goods set forth in the Fourth Schedule to the Central Excise Act, 1944; (2) A declaration under sub-section (1) shall be made in such electronic form as may be prescribed. 125. (1) The designated committee shall verify the correctness of the declaration made by the declarant under section 124 in such manner as may be prescr ibed: Provided that no such verification shall be made in case where a voluntary disclosure of an amount of duty has been made by the declarant. (2) The composition and functioning of the designated committee shall be such as may be prescribed. 126. (1) Where the amount estimated to be payable by the declarant, as estimated by the designated committee, equals the amount declared by the declarant, then, the designated committee shall issue in electronic form, a statement, indicating the amount payable by the declarant, within a period of sixty days from the date of receipt of the said declaration. (2) Where the amount estimated to be payable by the declarant, as estimated by the designated committee, exceeds the amount declared by the declarant, then, the designated committee shall issue in electronic form, an estimate of the amount payable by the declarant within thirty days of the date of receipt of the declaration. (3) After the issue of the estimate under sub-section (2), the designated committee shall give an opportunity of being heard to the declarant, if he so desires, before issuing the statement indicating the amount payable by the declarant: Provided that on sufficient cause being shown by the declarant, only one adjournment may be granted by the designated committee. (4) After hearing the declarant, a statement in electronic form indicating the amount payable by the declarant, shall be issued within a period of sixty days from the date of receipt of the declaration. (5) The declarant shall pay electronically through internet banking, the amount payable as indicated in the statement issued by the designated committee, within a period of thirty days from the date of issue of such statement. (6) Where the declarant has filed an appeal or reference or a reply to the show cause notice against any order or notice giving rise to the tax dues, before the appellate forum, other than the Supreme Court or the High Court, then, notwithstanding anything contained in

any other provisions of any law for the time being in force, such appeal or reference or reply shall be deemed to have been withdrawn. (7) Where the declarant has filed a writ petition or appeal or reference before any High Court or the Supreme Court against any order in respect of the tax dues, the declarant shall file an application before such High Court or the Supreme Court for withdrawing such writ petition, appeal or reference and after withdrawal of such writ petition, appeal or reference with the leave of the Court, he shall furnish proof of such withdrawal to the designated committee, in such manner as may be prescribed, along with the proof of payment referred to in sub-section (5). (8) On payment of the amount indicated in the statement of the designated committee and production of proof of withdrawal of appeal, wherever applicable, the designated committee shall issue a discharge certificate in electronic form, within thirty days of the said payment and production of proof . 127. Within thirty days of the date of issue of a statement indicating the amount payable by the declarant, the designated committee may modify its order only to correct an arithmetical error or clerical error, which is apparent on the face of record, on such error being pointed out by the declarant or suo motu, by the designated committee. 128. (1) Every discharge certificate issued under section 126 with respect to the amount payable under this Scheme shall be conclusive as to the matter and time period stated therein, and– (a) the declarant shall not be liable to pay any further duty, interest, or penalty with respect to the matter and time period covered in the declaration; (b) the declarant shall not be liable to be prosecuted under the indirect tax enactment with respect to the matter and time period covered in the declaration; (c) no matter and time period covered by such declaration shall be reopened in any other proceeding under the indirect tax enactment. Ame of s Rectification of errors. 5 10 15 20 25 30 35 40 45 Verification of declaration by designated committee. 1 of 1944. Issue of statement by designated committee. Issue of discharge certificate to be conclusive of matter and t ime period. 50 40 (2) Notwithstanding anything contained in sub-section (1),— (a) no person being a party in appeal, application, revision or reference shall contend that the central excise officer has acquiesced in the decision on the disputed issue by issuing the discharge certificate under this scheme; (b) the issue of the discharge certificate with respect to a matter for a time period shall not preclude the issue of a show cause notice,— (i) for the same matter for a subsequent time period; or (ii) for a different matter for the same time period; (c) in a case of voluntary disclosure where any material particular furnished in the declaration is subsequently found to be false, within a period of one year of issue of the discharge certificate, it shall be presumed as if the declaration was never made and proceedings under the applicable indirect tax enactment shall be instituted. 129. (1) Any amount paid under this Scheme,— (a) shall not be paid through the input tax credit account under the indirect tax enactment or any other Act; (b) shal l not be refundable under any circumstances; (c) shall not, under the indirect tax enactment or under any other Act,— (i) be taken as input tax credit; or (ii) entitle any person to take input tax credit, as a recipient, of the excisable goods or taxable services, with respect to the matter and time period covered in the declaration. (2) In case any predeposit or other deposit already paid exceeds the amount payable as indicated in the statement of the designated committee, the difference shall not be refunded. 130. For the removal of doubts, it is hereby declared that, save as otherwise

expressly provided in sub-section (1) of section 123, nothing contained in this Scheme shall be construed as conferring any benefit, concession or immunity on the declarant in any proceedings other than those in relation to the matter and time period to which the declaration has been made. 131. (1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Scheme. (2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the form in which a declaration may be made and the manner in which such declaration may be verified; (b) the manner of constitution of the designated committee and its rules of procedure and functioning; ( c) the form and manner of estimation of amount payable by the declarant and the procedure relating thereto; (d) the form and manner of making the payment by the declarant and the intimation regarding the withdrawal of appeal; (e) the form and manner of the discharge certificate which may be granted to the declarant; (f) the manner in which the instructions may be issued and published; (g) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made, by rules. (3) The Central Government shall cause every rule made under this Scheme to be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. Restrictions of Scheme. Removal of doubts. Power to make rules. 132. (1) The Central Board of Indirect Taxes and Customs may, from time to time, issue such orders, instructions and directions to the authorities, as it may deem fit, for the proper administration of this Scheme, and such authorities, and all other persons employed in the execution of this Scheme shall observe and follow such orders, instructions and directions: Provided that no such orders, instructions or directions shall be issued so as to require any designated authority to dispose of a particular case in a particular manner. (2) Without prejudice to the generality of the foregoing power, the Central Board of Indirect Taxes and Customs may, if it considers necessary or expedient so to do, for the purpose of proper and efficient administration of the Scheme and collection of revenue, issue, from time to time, general or special orders in respect of any class of cases, setting forth directions or instructions as to the guidelines, principles or procedures to be followed by the authorities in the work relating to administration of the Scheme and collection of revenue and any such order may, if the said Board is of opinion that it is necessary in the public interest so to do, be published in the prescribed manner. 133. (1) If any difficulty arises in giving effect to the provisions of this Scheme, the Central Government may, by order, not inconsistent with the provisions of this Scheme, remove the difficulty: Provided that no such order shall be made after the expiry of a period of two years from the date on which the provisions of this Scheme come into force. (2) Every order made under this section shall, as soon as

may be after it is made, be laid before each House of Parliament. 134. (1) No suit , prosecution or other legal proceeding shall lie against the Central Government or any officer of the Central Government for anything which is done, or intended to be done in good faith, in pursuance of this Scheme or any rule made thereunder. (2) No proceeding, other than a suit shall be commenced against the Central Government or any officer of the Central Government for anything done or purported to have been done in pursuance of this Scheme, or any rule made thereunder, without giving the Central Government or such officer a prior notice of not less than one month in writing of the intended proceeding and of the cause thereof, or after the expiration of three months from the accrual of such cause. (3) No proceeding shall be commenced against any officer only on the ground of subsequent detection of an error in calculating the amount of duty payable by the declarant, unless there is evidence)• Incentive will be offered on purchase of electric vehicles adding that government has already moved to GST council to cut rates from 12% to 5%.• Rs.3,000/- pension per month for workers from the informal sector. • 2% interest subvention for GST-registered MSME on fresh or incremental loans.• New television channel for start-ups. • Pension benefit extended to retail traders with annual turnover less than Rs 1.5 crore. • New payment platform for MSMEs to be created.• No Service Tax on license fee for liquor license • Retrospective exemption from service tax in certain cases relating to long-term lease of plots for development of infrastructure for financial business. No service tax shall be levied or collected on upfront amount, called as premium, salami, cost, price, development charges or by any other name, payable in respect of service by way of granting long term lease of thirty years or more of plots for development of infrastructure for financial business, provided or agreed to be provided by the State Government Industrial Development Corporations etc. to the developers in any industrial or financial business area during the period 1st day of October 2013 to 30th June 2017.• Retrospective service tax exemptions to IIM in line with what is presently being given to IIMs.Fear Factors:sad mood moodsCustoms:- Gold import duty as well as duty on precious metals raised. Spurt in smuggling likely with customs duty on gold being raised form 10 percent to 12.5% . Gold Control era has shown that there is no correlation between higher duty and gold exports, but certainly between high gold duty and smuggling.Tear Factors:Customs:• Precious metals including gold, silver, platinum in base, semi-manufactured, unwrought of powder form will see buyers paying 12.5% customs, increased from 10%. This is applicable to waste and scrap, as well as ornaments made of precious metals as well.• Construction materials such as floor covering of plastics, ceramic tiles and metal fittings will have a customs duty of 15% raised from 10%.• For 2019-20, marble slabs will see twice as much customs tariff of 40%.• An increased duty of 7.5% will be imposed on stainless steel in ingots or other primary forms as well as its semi-furnished




July 2019


products, from the earlier 5%.• Duty on electronics and electrical equipment increases for indoor and outdoor split-system air conditioning units, loudspeakers, digital video records, network, video recorders, CCTV cameras and optical fibres, among others. • Duty on imported books has been increased by 5% • Cashews are going to get more expensive. While the earlier tariff rate was 45%, it has now been increased to 70% under this budget. (Health Ministry also says have snack of chana etc. O! visiting bade babu).• A range of automobile parts will also see an increase in rate of duty. That includes motor vehicle parts, chassis and bodies, including cabs, for certain motor vehicles from 10% to 15%.• BCD of Rupee one per tonne on imported crude being imposed. This is apart from increase in cess.• BCD on newspaper print, uncoated and coated paper used in printing now raised

from Nil to 10 percent.( Go paperless, save trees)• Exemption to water blocking tapes used in optical fibers for telecom now withdrawn. Duty raised on optical fibers too.• Duty on various metals being raised. Similarly duty being raised for various auto parts, split air- conditioners parts, catalytic converters, stone crushing parts, digital video recorders and CCTV cameras etc., loudspeakers.Income Tax:• No change in t ax s l abs o r exemption limit.• Surcharge tax rates for the higher income group individuals having taxable income from Rs. 2 crore to Rs. 5 crore and Rs. 5 crore and above is to be increased by 3 percent and 7 percent respectively.• Levy of TDS of 2 per cent on cash withdrawal exceeding Rs. 1 crore in a year from a bank account .Others:• Increase in Special Additional Excise Duty and Road and Infrastructure

cess each by Re.1/- per litre on petrol and diesel in anticipation of prices of petrol coming down as indicated in Economic survey. This works out to Rs.2/- each on Diesel and Petrol.• Cigarettes containing tobacco will become more expensive. • Increase in excise duty of 0.5 % on products are Cigarettes, Hookah or gudaku tobacco, Smoking mixtures for pipes and cigarettes, -Biris, Chewing, Tobacco, Jarda Scented Tobacco. Protects NCCD also in the wake of recent Supreme Court ruling. (And those who paid despite my opinion to the contrary- Well do not claim refund now for the past as unjust enrichment is only right of the department and no one else.)Legal Provisions Change Tracker:Income tax:• Scope of Black Money Act relating to undisclosed foreign assets extended to include even NRIs and persons not o r d in a r i l y r e s i d en t i n I n d i a w i th retrospective effect from 2016 with consequent powers also given to reopen assessments.

• The existing anti abuse provision u/s 115QA of the Act, pertaining to buy-back of shares from shareholders by companies not listed on a recognised stock exchange, to be extended to all companies including companies listed on recognised stock exchange.• 5% TDS on payments exceeding Rs 50 lakh by individual or HUF for professional works.• Enhancing threshold of tax for launching prosecution for non-filing of returns from Rs. 3,000 to Rs. 10,000, for proceeding against a person and exempting appropriate class of persons from the anti-abuse provisions of section 50CA and section 56 of the Income Tax Act.• Pre-filled tax returns will be made available to taxpayers which will contain details of salary income, capital gains from securities, bank interests, and dividends etc. and tax deductions. Information regarding these incomes will be collected from the concerned sources such as Banks, Stock exchanges, mutual funds, EPFO, State Registration Departments etc



July 2019

In a first, a high-level team of anti-corruption bureau (ACB) led by Sunil Kadasane trapped Dhule regional transport officer Parvez Tadvi for demanding a bribe from his subordinate, a motor vehicle inspector, for a posting on the border check-post . The 37-year-old inspector had approached Tadvi for a posting on the Maharashtra-Gujarat border checkpost in Dhule district. In the transport department, a posting there is considered the most lucrative assignment. After several rounds of talks, Tadvi demanded Rs 4.5 lakh for the posting. "We recorded the conversation between Tadvi and the inspector in the presence of government witnesses. It was recorded on umpteen occasions. Based on Tadvi's demand, an offence under Prevention of Corruption Act was registered against him and he was arrested,'' a senior police officer said. Talks between the two on a bribe took place at Tadvi's residence in Dhule city. It was for the first time in the recent past that a

subordinate officer knocked at the doors of ACB to trap his boss. On May 8, Dhule ACB had trapped Tadvi for demanding a bribe of Rs 30,000 from a local agency, which had supplied material during Road Safety Week. Tadvi had demanded Rs30,000 for clearing a bill of Rs 1.8 lakh. Tadvi had told the agency representative to hand over the bribe to a clerk in his office. Tadvi was not arrested as he had obtained anticipatory bail. Dhule activists said the department had given a long rope to controversial officials like Tadvi. As per standing orders of chief minister Devendra Fadnavis, Tadvi should have been suspended immediately after ACB registered an offence under Prevention of Corruption Act. Principal secretary (transport) Ashish Kumar Singh told TOI his department had submitted a proposal for Tadvi's suspension.Source link

Vehicle inspector gets own boss trappedfor demanding Rs 4.5 lakh bribe

T h e C e n t r a l V i g i l a n c e Commission (CVC), the apex vigilance institution in the country, has warned all departments, organisations and ministries of consequences if any reference related to disciplinary proceedings/action against public servants is sent closer to their retirement dates, officials said. Every department or a government organisation has a chief vigilance officer (CVO)�who is usually responsible for finalising a disciplinary proceeding against officials indulging in any activity in violation of the norms. The Commission had in 2007 and then 2011 made it clear that if CVOs do not prioritize the cases against officers “due to retire shortly”, then it would take a serious view of such an attitude. However, the practice continued following which, the CVC on Tuesday issued an order stating if the vigilance complaints and references are not sent by the first week of the month of superannuation of the officer (s) concerned, then it would not render its advice. Instead, it would recommend action against the authority concerned. A senior CVC officer, who asked not to be named, said, “This is a final

w a r n i n g t o t h e C V O s / c o n c e r n e d departments.” Explaining the need for such an order, the officer added, “The apex vigilance body lately witnessed that some departments, particularly central public sector units (CPSUs) and public sector banks (PSBs) had a set pattern where they used to refer the vigilance and investigation cases to the Commission seeking its advice at the last moment and sometimes even a few days before retirement of officer (s).” Some references were even received by it in the second half the month when an officer is due to retire. This led to the CVC not getting enough time to examine the matter, further giving advantage to the suspect public servants and initiation of disciplinary proceedings at the fag end of service of an officer. The Commission recently asserted its power in vigilance matters when it recommended the removal of former Central Bureau of Investigation director Alok Verma from his post in October last year. Verma was reinstated by the Supreme Court briefly in January this year but the government sacked him on January 10 again on the recommendation of the CVC.Source : Hindustan Times

CVC warns govt officials againstdisciplinary plaints close to retirement

In a significant ruling, a two-judge bench of the Gujarat High Court has directed the GST department to pay 9% interest on the for the default of delayed refund of IGST. The petitioners contended that there is a substantial delay in making payment of the refund of the Integrated Tax paid on the export of goods in terms of Section 16 of the Integrated Goods and Services Tax Act, 2017 and the Rule. They therefore, prayed the Court to allow compensation and interest for such default. According to the relevant rules, the petitioners are eligible for refund within seven days. While hearing the petition, Justice J B Pardiwala and Justice A C Rao observed that “the position of law appears to be well settled. The provisions relating to an interest of delayed payment of refund have been consistently held as beneficial and nondiscriminatory. It is true that in the taxing statute the principles of equity may have little role to play, but at the same time, any statute in taxation matter should also meet with the test of constitutional provision.”

“In the overall view of the matter, we are inclined to hold the respondents liable to pay simple interest on the delayed payment at the rate of 9% per annum. The authority concerned shall look into the chart provided by the writ applicants, which is at Page 30, Annexure D to the writ application and calculate the aggregate amount of refund. On the aggregate amount of refund, the writ applicants are entitled to 9% per annum interest from the date of filing of the GSTR-03. The respondents shall undertake this exercise at the earliest and calculate the requisite amount towards the interest. Let this exercise be undertaken and completed within a period of two months from the date of receipt of the writ of this order. The requisite amount towards the interest shall be paid to the writ applicants within a period of two months from the date of receipt of the writ of this order.” Advocates Vinay Sharaff, Vishal J Dave and Nipun Sighvi appeared for the petitioners.Source: Tax Scan Team

Gujarat High Court orders Tax Dept topay 9% Interest on Delayed IGST Refund

Notification No. 26/2019–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 hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), No.14/2006-Customs, dated the 1st March, 2006, published in the Gazette of India, Extraordinary vide number G.S.R. 86 (E), dated the 1st March, 2006, namely:- In the said notification, in the Table, against serial numbers 41 and 42, for the entry in

column (2), the entry “5407 42” shall respectively be substituted. [F.No.334/3/2019-TRU] (Gunjan Kumar Verma) Under Secretary Note: - The principal notification No.14/2006-Customs, dated the 1st March, 2006 was published in the Gazette of India, Extraordinary, vide number G.S.R. 86 (E), dated the 1st March, 2006 and was last amended vide notification No.81/2017-Customs, dated the 27th October, 2017 and published in the Gazette of India, Extraordinary, vide number G.S.R 1340 (E), dated the 27th October, 2017.

Seeks to further amend notification No 14/2006-Customsdated 1st March 2006 in order to change the classification ofother dyed fabrics of nylon from “5407 42 00” to “5407 42”

Notification No. 28/2019 – Central Tax G.S.R......(E). - In exercise of the powers conferred by the second proviso to sub-section (1) of section 37 read with section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), the Commissioner, on the recommendations of the Council, hereby extends the time limit for furnishing the details of outward supplies in FORM GSTR-1 of the Central Goods and Services Tax Rules, 2017, by such class of registered persons having aggregate turnover of more than 1.5 crore rupees in the preceding

financial year or the current financial year, for each of the months from July, 2019 to September, 2019 till the eleventh day of the month succeeding such month. 2. The time limit for furnishing the details or return, as the case may be, under sub-section (2) of section 38 and sub-section (1) of section 39 of the said Act, for the months of July, 2019 to September, 2019 shall be subsequently notified in the Official Gazette. [F. No. 20/06/16/2018-GST] (Ruchi Bisht)Under Secretary to the Government of India

Seeks to extend the due date for furnishing FORM GSTR-1 forregistered persons having aggregate turnover of more than1.5 crore rupees for the months of July, 2019 to September,2019



the property is held or against any other person, shall lie by or on behalf of a person claiming to be the real owner of such property." This is subject to exceptions regarding trusts and Hindu undivided families. If property is held benami, then section 4(1) prevents recovery by the real owner. Section 5 of the said Act provides for the acquisition of benami property by the Government As regards the impact of the legislation on the doctrine of lifting the corporate veil, only time will tell us how far it has got any important consequences. This is a matter that calls for a separate analysis. 17. Aspect of statutory construction - Supreme Court in Renusagar's caseThe latest Supreme Court judgment on the subject of lifting the corporate veil is of interest in the field of exemption from tax. That case was also discussed in passing in para 6.1 in a limited manner. Before discussing it further, it may be mentioned that there are so many angles from which the doctrine can be approached. Application of the doctrine in a particular case can be taken as an example of judicial creativity - an aspect welcome to writers on jurisprudence and on the judicial method. For students of corporation law, such concrete cases may, again, supply useful material for bearing in mind how the conservative doctrine that a company is different from its components may come to be modified. Again, students of legal history will see a parallel between the equitable jurisdiction evolved in the Court of Chancery to correct the hardship of the common law and the corrective jurisdiction assumed by the courts by lifting the corporate veil, thus modifying the full operation of a statutory fiction. At the present stage, it may be of some use to develop the theme of statutory construction. In Renusagar's case (supra), the question was whether a holding company, using power generated by its subsidiary, can be described as utilising its 'own source of generation' within the meaning of section 3(l)(c) of the U.P. Electricity Duty Act, 1952, where under a concessional rate of duty is provided for such consumption. The Supreme Court answered the quest ion in the affirmative, after reviewing the important decisions on the subject. The crucial reasoning of the Supreme Court is as follows : "As the facts make it abundantly clear all the steps for establishing and expanding the power station were taken by Hindalco. Renusagar is whollyowned subsidiary of Hindalco and is completely controlled by Hindalco. Even the day-to-day affairs of Renusagar are controlled by Hindalco. Renusagar has at no point of time indicatedany independent volition. Whenever felt necessary, the State or the Board have themselves lifted the corporate veil and have treated Renusagar and Hindalco as one concern and the generation in Renusagar as the own source of generation of Hindalco. In the impugned order, the profits of Renusagar have been treated as the profits of Hindalco." 18. Object of the statuteAs a matter of statutory construction, this approach harmonises with the well-known rule that in construing a statute it is permissible to have regard to the object of the statute. This is a rule which necessarily had to be evolved by the courts because of the inherent elasticity of most words. One of the elementary rules of the interpretation of statutes is that, when there is a doubt about their meaning, the words of the statute are to be understood in the sense in which they best harmonise with the object of the enactment. In dealing with matters relating to general public, statutes are presumed to used words in their popular rather than the narrowly legal or technical sense. This is particularly so when the narrow interpretation is bound to defeat the object of the Act. General words and phrases are more or less elastic and admit of restriction or extension to suit the legislation in question, however wide they may be in the abstract. It is also well recognised that if there is any ambiguity in the phraseology of a statute, that construction which facilitates the remedying of the potential abuse is to be preferred, and it is the duty of the court to place such construction as shall suppress the

mischief and advance the remedy. While interpreting various Land Reform Acts, the Supreme Court has also adopted a similar approach, as is clear from the decision reported in Chemeli Wati v. Delhi Municipal Corporation AIR 1986 SC, 1191, Buddhan Singh v. Babi Bux AIR 1970 SC 1880, State of Andhra Pradesh v. Mohd. Ashrafuddin AIR 1982 SC 913 and Begulla Bapi Raju v. State of Andhra Pradesh AIR 1983 SC 1073. It may be mentioned that the principle that the object of the statute is to be borne in mind in construing it, can be traced to the dictum of Chief Justice Abbot in R. v. Hall. [1822] 107 ER 47 cited with approval in the Privy Council by Lord Romilly in Re Lyne [1861] 16 ER 688 (PC). This was quoted again by Maxwell and the Supreme Court of India has adopted it in Workmen of Bimakuchi Tea Estate v. Management of Bimakuchi Tea Estate AIR 1958 SC 355 : "The words of a statute, when there is a doubt about their meaning; are to be understood in the sense in which they best harmonise with the subject of the enactment and the object which the legislature had in view. Their meaning is found not so much in a strict grammatical or etymological propriety of language, nor even in its popular use, as in the subject or in the occasion on which they are used, and the object to be attained." 18 .1 The S up reme Cour t i n Renusagar's case was confronted with a very simple English word 'own'; the court could have placed a literal construction and given dominance to the technical legal aspect by reiterating the conservative doctrine that a company is a distinct personality. But the court chose not to be bound down by that doctrine. Rather, it expanded the region of the word 'own' by allowing it to embrace within its sweep an undertaking technically owned by another company, but substantially and exclusively utilised by the holding company. It is not that the words were disregarded ; but they were applied in a particular manner. Once more, the judgment bears out the truth of a wellknown judicial comment often cited in academic literature : words, in addition to a hard central core of meaning, have a 'penumbra, a dim fringe' - Commissioner v. Ickelheimar, 132 F. 2d 660, 662, referred to by Archibold Cox, "Judge Learned Hand : An Interpretation" 60 Harvard Law Review 370, 372. 19. ConclusionThe above selective survey will, it is hoped, bring out some important facets of lifting the corporate veil. In the first place, this is an indefinite concept and much depends on the equities of the case and the requirements of public interest. Secondly, it would be a serious misconception to suppose that the doctrine always acts in a restrictive way so as to take away some benefit or impose some burden by lifting the veil. In many situations, its invocation leads to a positive benefit being conferred upon someone in whose favour the veil is lifted. Thirdly, the spheres in which the doctrine operates are as wide apart as property, trusts, tort and contract. Fourthly, the extension of criminal liability in the corporate field is best left to statutory provisions rather than to the courts. Finally, in banking transactions, it is advisable to adhere to the orthodox proposition that a company is distinct from its members and directors. In this sense, the authority of Salomon (supra) still holds the field. There have been long standing controversies about the corporate personality in both the UK and India. There has been a growing realisation that one should not be allowed to get away with what is grossly improper or unfair or inequitable by merely putting on the company cloak. Salomon could cock a snook at his creditors, sheltered by Salomon & Co. in 1897 - Salomon v. Salomon & Co. [1897] AC 22 ; but specific performance was ordered against a company to which the defendant had transferred his property to avoid such an action against himself, 60 years later - Jones v. Lipmam [1962] 1 All ER 442. The courts have, in recent years, made it clear that they would like to look at the economic consequences of transactions rather than their format - Furniss v. Dawson [1984] 1AU ER 530 (HL). The flight of profits to tax sanctuaries like Jersey, Bermudas, etc., to escape legitimate tax liability, contributed,

on. Many of the old provisions have lost their relevance now but several stringent provisions are still applicable to private companies. Section 179 dealing with the liability of the directors of a private company in liquidation and section 79 denying the benefit of offset of carried forward losses to subsequent years, where there is any change in the shares holding are typical instances of the statutory disregard of the separate identity of a company. A 'dividend' is defind in section 2 (22) of the Income-tax Act to include an advance of loan to a shareholder of a company in which the public are not substantially interested and also any concern in which the shareholder is a member or a partner and in which he has a 'substantial interest'. Section43 (2) of the Delhi Shops & Establishments Act, 1954 treats the corporate facade with equal contempt. In the case of a private company owning an establishment in Delhi, any of its shareholders may be prosecuted and punished under the Act for any offence for which the employer in the establishment is punishable. Government companies have not been unaffected by this new trend in which the distinction between a company and its shareholders is getting blurred. Mr. Justice Krishna Iyer puts the new concept in his inimitable style in Som Parkash Rekha v. Union of India [1981] 51 Comp. cas. 71 (SC): "The government company is a mini - incarnation of government itself, made up of its blood and bones and given corporate shape and status for defined objectives, not beyond". It is interesting to note that a government company's claim for exemption for sales-tax was turned down in National Insurance Co. Ltd. v. Union of India [1982] 49 STC ISO (Delhi) and the same view is taken even now whenever the Government, State or Central, dons the gown of a company for undertaking any commercial activity. But the court's attitude to employees' rights and treatment in government undertakings is different. The following observations in Central Inland Water Transport Corporation v. Brojo Nath Ganguly [1986] 60 Comp. Cas. 797 (SC) sums up the current thinking of the court : "If there is an instrumentality or agency of the State which has assumed the garb of a government company as defined in section 617 of the Companies Act, it does not follow that it thereby ceases to be an instrumentality or agency of the State. For the purpose of article 12 of the Constitution, one must necessarily see through the corporate veil to ascertain whether behind that veil is the face of an instrumentality or agency or the State". This was a case where the hire-and-fire concept which is supposed to keep executives on their toes, was tested. The court or the Legislature steps in only when fiscal or legal obligations are sought to be bypassed by a corporate entity. But the damage to the corporate personality is sometimes done not by an external agency but by those who control a corporation. Companies have been seen caught in destructive family feuds; and mutual mudslinging between industrial giants is also not an unknown phenomenon. The court does not have to lift the corporate veil in such cases; it is ripped up by the companies themse lves . In these circumstances, if there is cynical indifference among the public to the decline in the corporate status, who is to blame for it? And what is the remedy? The economists' anxiety to avoid double taxation of corporate profits, once in their own assessments and for a second time in the hands of the shareholders when they receive any dividend, indicates another point of view. The government have so far been proceeding on the assumption that section 80L of the Income-tax Act, in terms of which a limited deduction is available for dividend income, provides adequate relief incentive to shareholders. But the "split system" under which the distributed profits of a company are exempted from tax and other methods of taxing a company have been convassed as better alternatives to the "classical system" prevailing in India. It remains to be seen whether such treatment will further erode the inviolability of the corporate status. To be continued...

among other things, to this development- In re Westons' settlements [1960] 1 Ch.223 and WallerSteinerv.Moir[1974]l WLR991,but efforts to provide tax relief may also result sometimes in the corporate identity being disregarded. For example, the Finance Act, 1967 introduced a new form of relief in the UK called 'group relief by which a member of a group of companies could surrender its claim to relief for capital allowance, etc., to another company which was a member of the same group (called the claimant company).Two companies were taken to belong to a group, if one of them was a 75 per cent subsidiary of the other or both were 75 per cent subsidiaries of a third company. One of the oldest debates in corporate taxation pertains to the issue where there is double taxation when a company pays tax on its own income and its shareholders are required to pay further tax on the dividend they derive from it. There is no uniformity on extent and manner in which relief should be offered to the shareholders to mitigate the hardship that the existing system causes. Shri Bakshi has referred to various judgments of the Supreme Court in tracing the evolution of the doctrine of 'lifting the corporate veil' in India. The following cases supplement his citations and should serve to show that the courts in India do not hesitate to intervene when any attempt is made by anyone to evade his legal obligations through the corporate status: PNB Finance Ltd. v. Shital Prasad Jain [1983] 54 Comp. Cas. 66 (Delhi) where the corporate entity was attempted to be used for a fraudulent purpose.Jyoti Ltd. v.KanwaljitKaurBhasin[1987] 62 Comp. Cas. 626 (Delhi) where the corporate shield was blatantly used to disobey the orders of the court willfully.Tracway (P) Ltd. v. CST [1981] 47 (MP) where a private company was constituted by the partners of a firm to frustrate sales tax liability.Wood Plymer Ltd., In re. ; Bengal Hotels Ltd., In re [1977] 109 ITR 177 (SC) where the object of amalgamation of two companies was to transfer a capital asset to avoid the capital gains tax.Workmen of Associated Rubber Industry Ltd. v. Associated Rubber Industry Ltd. [1986] 157 ITR 77 (SC) where a wholly owned company was used to reduce the amount of bonus payable to the workmen.Shri Ambica Mills Ltd., In re. Exparte Jaykrishna Harivallabhdas [1986] 59 Comp. Cas. 368 (Guj.) where the managing director, being an officer of the company, was required to support the company's petition under section 101, instead of pleading ignorance of the proceedings.The following observations of Mr. Justice Chenneappa Reddy in the case mentioned last above are a pointer to the judicial approach to corporate claims: "It is the duty of the court, in every case where ingenuity is expended to avoid taxation and welfare legislation, to get behind the smoke-screen and discover and true state of affairs. The court is not to be satisfied with form and leave well alone the substance of a transaction.... Avoidance of welfare legislation is as common as avoidance of taxation and the approach in considering problems arising out of such avoidance has necessarily to be the same". Judicial interpretation apart, extensive inroads have also been made by the Legislature on the concept of the separate personality of a company, as stressed by Mr. Justice S. Ranganathan in his book on Corporate Ta x a t i o n i n I n d i a , p p . 1 0 2 - 1 0 7 (Documentation Centre for Corporate and Business Policy Research, New Delhi, 1982). Being, in essence, no more than a group of individuals bound by a common memorandum and articles, a company is not immune from any of the frailties to which individuals are susceptible. It is their ingenuity and their proneness to succumb to the temptation to get round the law that drive the Legislature to make frequent changes in the law. In the past, the revenue authorities were required to ascertain the place (in or outside India) where the management and control of a company lay, the relationship between the directors and other shareholders and the extent of their controlover a company's voting power, the adequacy of the grounds for a closely held company's not distributing the prescribed percentage of its income as dividends, and so

July 2019

CORPORATE VEIL & GOVERNANCE



officers of Gr. B rank and file, in the CBEC, had since more than a decade from 5th Pay Commission, were fighting for their legitimate rights in as much as they demand pay equality as per the recommendation of the Pay Commission. But, all the efforts and pleas, reach the deaf and dumb ends. The Government being a welfare State, introduced Pay Commissions, an especial career beneficiary awardees to the Central Govt. employees. While accepting the recommendations of the Pay Commission, the intention of the Govt. was clear with positive approach to boost the morale of the public servants who are devoted their entire life span till 60 years, in the service of the nation. Goverment introduced a scheme which assures career progress among the public servants in their tenure. It has been named as Assured Carrer Progression (ACP) and la ter Modif ied Assured Carreer Progression (MACP). The recommendation in this matter was penned by the Pay Commission and the Govt. accepted the report and recommendation of the Pay Commission under Para 2 of OM No. 35034/3/2008-Est t . (D) dated 19.05.2009 which is reproduced below:- “The Goverment has considered the recommendation of the sixth Central Pay Commission to introduce of (MACP) Scheme and has accepted the same with further modification to grant three financial upgradation under the MACP Scheme at intervals of 10, 20 and 30 years of continuous service.” As per the laid down principles and maxims, the above recommendation of the Pay Commission was approved and vetted by the Cabinet Secretary, being the top of the execut ive funct ionary and thus, the mechanism of implementation set into motion for the benefit of the public servants. However, as crt icised in the introductory paras, the Department was not ready to go with the recommendation of the Pay Commission in letter and spirit. The Govt. inserted one para 8.1 in Annexure- I of their OM dated 19.05.2009 issued in the form of the executive instruction to implement MACP Scheme, without the approval of the Competent Authority i.e. the Union Cabinet. The said Para declared that ‘grade pay of Rs.5400 in PB-2 and RS.5400 in PB-3 shall be treated as separate grade pays for the purpose of grant of upgradtion under MACP Scheme’. This Correspondent has noted that the said para contained in the said executive instruction issued by Dop&T has potential of substantially modifying the MACP Scheme

and thus such executive instruction could not be issued without seeking the approval of Union Cabinet. It is apparent that the same Grade Pay(may be in diffrents pay bands)has been illegaly declared as two seprate Grade Pays. Under the pretext of the said Para 8.1, as reflected in the beginning of the article, the CBIC denied the upgradation benefit of next Grade Pay of Rs.6600/- after Grade Pay of Rs.5400/-. This led to litigation by the staff b e f o r e t h e H o n ’ b l e H C o f M a d r a s ( S u b r a m a n i a m & o r s ) u n d e r W P No.13225/2010, which was decided in favour of the petitioners that they should be granted the due benefits as per the norms and reports of the Pay Commission. As usual, without spending any pie from the pockets, the CBIC filed an appeal SLP before the Apex Court which was dismissed and ruled in favour of the petitioners by upholding the order of the Hon’ble HC of Madras. The copy of the judgement fo the SC is available in the website [ref: Civil Appeal No.8883/2011 dt. 10.10.2017]. In similar issues, various courts passed their judgments ruling in favour of the p e t i t i o n e r s i . e . G r . B Inspectors/Superintendents to fix the grade pay of Rs.5400/- and 6600/- as the case may be, after the completion of the mandatory tenure of 10, 20 and 30 years of service.(i) HC of Gujarat under SCA No.19775/2018 dt. 26.12.2018 –(ii) OA No.541/1994 dt.24.02.95 by CAT Jabalpur(iii) OA No.2323/2012 dt01.03.7 by CAT Delhi(iii) SLP (C) 7278/2011 filed by CBIC dismissed on 02.05.11(iv) HC of Chandigarh CWP No.19387/2011 dt. 31.05.11 (v)HC of Delhi in WP(C) 9357/2016 dt. 20.12.17(vi) HC of Delhi UOI Vs Delhi Nurses-WP(C) 5143/2012(v i i ) HC o f Madras i n t he ca se o f S.Balakrishnan-WP No.11535/2014(viii) OA No.60/2019 dt. 22.05.19 by CAT Chandigarh The Department later took the stand to implement the order in persona. It is needless to elucidate that the orders passed by the Hon’ble Supreme Court are law of the land in virtue of Article 14 of the Constitution of India. But as stated above, the Department is at their whims and fancy to keep the lower rung officers to shuttle from their place of dwelling to courts and lose their hard earned money to pay the litigation charges. The act of this, travelled its journey

of the CBEC are not at par with their compatriots working in Govt. of NCT, New Delhi. The authorities are to be brought under the purview of disobeying as the matter of implementation is decided not by law but by their style. This is highly apprehensible. Our edition again invites the attention of the Board and the readers that in various decisions of the Apex Court, it has been held invariably that “Normal rule is that when a particular set of employees is given relief by the Court, all other identically situated persons need to be treated alike by extending that benefit. Not doing so would amount to discrimination and would be violative of Article 14 of the Constitution of India. This principle needs to be applied in service matters more emphatically as the service jurisprudence evolved by this Court from time to time postulates that all similarly situated persons should be treated similarly. Therefore, the normal rule would be that merely because other similarly situated persons did not approach the Court earlier, they are not to be treated differently.” The Edition has faith over the judiciary. And is not having any doubt over the implementation of the orders of the Court unless it is pending for appeal or review. But once orders attained finality, there is no room for any instructions or orders to not to implement the orders of the courts. Conclusively, the edition states that the CBEC is acting itself above law. They failed to implement the orders of the Apex Court and thus has violated the proclamation of Art.141 of the Constitution, failed to treat their Gr. B officers equally and thus has violated the proclamation of Art. 14 of the Constitution, failed to uphold the supremacy of the Constitution and thus had contravened the provisions of Rule 3(iv) and (xviii) of CCS Conduct Rules 1964 – amended vide OM No.11013/6/2014-Estt.A dt. 10.12.2014 which is reproduced as under:3 (iv) commit himself to and uphold the s u p r e m a c y o f t h e C o n s t i t u t i o n a n d democratic values;3 (xviii) refrain from doing anything which is or may be contrary to any law, rules, regulations and established practices; At the end, our edition and entire amicus requests the authorities to respect and obey law of the land and the orders of the Court. (Valuable inputs received from Ex Superintendent GST, ksv chary)

from various Commissionerates, wherein in s o m e Z o n e s , t h e r e s p e c t i v e C h i e f Commissioners ordered for implementation of the Apex Court in rem and awarded the benefit of pay upgradation to all of its officers who are placed in similar eligible position.( i ) C G S T B h o p a l Z o n e [F.No.C.No.II(39)29CCO/BZ/2015/3520 dt. 27.06.2019(ii) CGST Lucknow Zone [F.No.II93)97/-CCSC/KKK/CAT/LKO/2018 /228 d t . 26.02.19 However, the CBEC, till date had not given its concurrence to all zones to implement the order of the Apex Court of the subject reference matter, in rem. Our report emphasizes that unless otherwise specific, the orders of the Apex Court has to be implemented in rem. To substantiate and negate the Department’s opinion of implementing the issue in personal, the edition brings forth the case of Somvir Rana, Govt. of NCT Delhi, wherein the State Department failed in an SLP in the case of Somvir Rana [Diary No.23663/2017]. The Apex Court in this case, had held that : “..once the question in principle, has been settled, it is only appropriate on the part of the Govt. of India to issue a Circular so that it will save the time of the Court and the Administrative Departments apart from avoiding un-necessary and avoidable expenditure. ..The present situation is that the stepping up is available only to those who have approached the Court. But since the issue has otherwise become final, we direct the Govt. of India to immediately look into the matter and issue appropriate orders for granting pay-scale so that people need not unnecessarily travel either to the Tribunal or the HC or this Court…” O u r e d i t i o n a l s o g a t h e r e d information which revealed that following the above order, the Govt. of NCT of Delhi, after consultation with the Dept. of Expenditure, M/Finance, GOI [OM No.8-5/2017-E.III(A) dt. 16.04.2018], issued a common order under F.No.DE.3(32)/E-III/Misc/2018/3871-81 dt. 22.05.2018, to give benefit to all those employees and not restricted to the petitioners only. The paradoxical theory floated by the Board is that when the Govt. of Delhi sought for implementation of the above order in rem, the Dept. of Expenditure, functioning under the Min i s t ry o f F inance , has g iven concurrence, whereas in the case of Dept. of Revenue (CBEC), the same authority viz., Dept. of Expenditure has not given any concurrence. Thus, it appears that the officers

July 2019

Press release on conclusion of GST DAY, 2019, dated 1st July 2019 On 1st of July, 2019, the Hon’ble Union Minister of State for Finance, Shri Anurag Singh Thakur presided over the ‘GST Day’ celebrations organized by the CBIC in New Delhi. 2. Dr. Ajay Bhushan Pandey, Revenue Secretary, Sh. P.K. Das, Chairman CBIC, and Shri John Joseph Members of CBIC graced the occasion. Senior officers of various Ministries of Government of India, senior officers of CBIC, senior retired officers of CBIC, the representatives of all major Trade and industry associations were present in large numbers 3. On this occasion, Union Minister of State for Finance granted Commendation Certificate to 30 CBIC Officers from various formations across the country for their valuable contribution in the administration of GST. He also released a book on “GST for MSME” by CBIC. 4. Speaking on the occasion, the Hon’ble Minister of State Finance Shri Anurag Singh Thakur stated that “GST has been a game changer for all stakeholders in the economy. Prior to GST, in the constitutional scheme, taxation power with

Central Government on goods was limited up to the stage of manufacture and production, while States had power to tax sale and purchase of goods. On the other hand, the Centre had the exclusive power to tax services. This sort of division of taxing powers created a grey zone which led to legal disputes since determination of what constitutes a goods or service became increasingly difficult to synergise central, state and local area levies. In GST the transition had been to levy taxes on supplies, and mechanisms to be brought in place in such a way that burden of GST does not fall on business but on the end consumption. By subsuming more than a score of indirect taxes under GST, the road to a harmonized system of indirect tax has been paved to make India an economic union, which has also significantly contributed towards higher efficiency and competitiveness”. 5. The Hon’ble MoS further added that our Hon’ble Prime Mister has rightly called GST as Good and Simple Tax .It is a shining example of GST having made India a true common market is that the transport time and cost of moving goods across the length and breadth of the country have come down significantly. There are so many other positives that do not need

AntiProfiteering etc , and will continue to take such measures as and when required 7. Speaking on the occasion the Shri Ajay Bhushan Pandey, the Revenue Secretary stated that GST is an excellent example of federal cooperation . There are 1.2 Cr tax payers who have registered on GSTN. Around 70 lakh tax payers regularly file returns and an amount of Rs 1 lakh Cr of tax is paid online .He further stated that the return filing process , refund sanction procedure , multiple ledger have been streamlined . The e-invoice is proposed to be released which will streamline return filing process. He called upon the officers that on this Day we should remember what can be further done for trade facilitation . 8 Proposing vote of thanks, Shri John Joseph, Member (Tax Policy) thankfully assured all speakers that “CBIC aspires to improvise tax administration with the changing requirement of times” and further assured that “whatever extra mile is required to work to address the challenges, our endeavour would be to keep improving the tax administration to meet the challenges”. The event ended with the thanks to all present at the occasion.Source: CBEC

reiteration”. He has stated that all the decisions taken in GST Council are on consensus basis .He called upon all Officers to make GST in India the best GST available in the world. He has stated that the CBIC has done very good job for MSME sector. The NACIN has conducted GST training for all Officers apart from the support given to GST Practitioners .He has cautioned about fake invoices in GST bring bad name and urged the leaders of Industry to take corrective steps . Adding his concern over fake invoice menace, he added that “IMANDAR TAXPAYERS SE BAIR NAHIN, FAKE INVOICES WALON KI KHAIR NAHIN”. He summed up GST to be a WIN-WIN situation for all the stakeholders associated with the best tax GST. 6. Sh. P.K. Das, Chairman CBIC, welcoming all stated that the introduction of GST was a revolutionary step not only for the trade & industry, but also for all CBIC officers as well . GST through dual (Centre & State) administration lays the road map to achieve the goal of ‘ one Nation , one market and one tax’ for sincerely making Indian economy stronger than before . he further added that CBIC had been releasing SoPs , FAQs about various conce rn ing p rov i s ions l i ke TDS,

Seeks to extend the due date of filing returns in FORM GSTR-7

Resenment in CGST Staff over pay Anomalies

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Circular No. 107/26/2019-GSTCBEC-20/06/03/2019 Various representations have been received seeking clarification on issues related to supply of Information Technology enabled Services (hereinafter referred to as “ITeS services”) such as call center, business process outsourcing services, etc. and “Intermediaries” to overseas entities under GST law and whether they qualify to be “export of services” or otherwise. 2. The matter has been examined. In view of the difficulties being faced by the trade and industry and to ensure uniformity in the implementation of the provisions of the law across field formations, the Board, in exercise of its powers conferred by section 168 (1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as “CGST Act”), hereby clarifies the issues in succeeding paragraphs. 3. Intermediary has been defined in the sub-section (13) of section 2 of the Integrated Goods and Service Tax Act, 2017 (hereinafter referred to as “IGST” Act) as under –Intermediary means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account.� 3.1 The definition of intermediary inter alia provides specific exclusion of a person i.e. that of a person who supplies such goods or services or both or securities on his own account. Therefore, the supplier of services would not be treated as „intermediary� even where the supplier of services qualifies to be „an agent/ broker or any other person� if he is involved in the supply of services on his own account. 4. Information Technology enabled Services (ITeS services), though not defined under the GST law, have been defined under the sub-rule (e) of rule 10 TA of the Income-tax Rules, 1962 which pertains to Safe Harbour Rules for international transactions. It defines ITeS services as- "information technology enabled services" means the following business process outsourcing services provided mainly with the assistance or use of information technology, namely:—(i) back office operations;(ii) call centres or contact centre services;(iii) data processing and data mining;(iv) insurance claim processing;

(v) legal databases;(vi) creation and maintenance of medical transcription excluding medical advice;(vii) translation services;(viii) payroll; (ix) remote maintenance; (x) revenue accounting;(xi) support centres;(xii) website services;(xiii) data search integration and analysis;(xiv) remote education excluding education content development; or(xv) clinical database management services excluding clinical trials, but does not include any research and development services whether or not in the nature of contract research and development services5. There may be various possible scenarios when a supplier of ITeS services located in India supplies services for and on behalf of a client located abroad. These scenarios have been examined and are being discussed in detail hereunder:5.1 Scenario -I:The supplier of ITeS services supplies back end services as listed in para 4 above. In such a scenario, the supplier will not fall under the ambit of intermediary under sub-section (13) of section 2 of the IGST Act where these services are provided on his own account by such supplier. Even where a supplier supplies ITeS services to customers of his clients on clients� behalf, but actually supplies these services on his own account, the supplier will not be categorized as intermediary. In other words, a supplier “A” supplying services, listed in para 4 above, on his own account to his client “B” or to the customer “C” of his client would not be intermediary in terms of sub-section (13) of section 2 of the IGST Act.5.2 Scenario -II:The supplier of backend services located in India arranges or facilitates the supply of goods or services or both by the client located abroad to the customers of client. Such backend services may include support services, during pre-delivery, delivery and postdelivery of supply (such as order placement and delivery and logis t ica l suppor t , obta ining re levant Government clearances, transportation of goods, post-sales support and other services, etc.). The supplier of such services will fall under the ambit of intermediary under sub-section (13) of section 2 of the IGST Act as these services are merely for arranging or facilitating the supply of goods or services or both between two or more

persons. In other words, a supplier “A” supplying backend services as mentioned in this scenario to the customer “C” of his client “B” would be intermediary in terms of sub-section (13) of section 2 of the IGST Act.5.3 Scenario –III:The supplier of ITeS services supplies back end services, as listed in para 4 above, on his own account along with arranging or facilitating the supply of various support services during pre-delivery, delivery and post-delivery of supply for and on behalf of the client located abroad. In this case, the supplier is supplying two set of services, namely ITeS services and various support services to his client or to the customer of the client. Whether the supplier of such services would fall under the ambit of intermediary under sub-section (13) of section 2 of the IGST Act will depend on the facts and circumstances of each case. In other words, whether a supplier “A” supplying services listed in para 4 above as well as support services listed in Scenario -II above to his client “B” and / or to the customer “C” of his client is intermediary or not in terms of sub-section (13) of section 2 of the IGST Act would have to be determined in facts and circumstances of each case and would be determined keeping in view which set of services is the principal / main supply.6. It is also clarified that supplier of ITeS

services, who is not an intermediary in terms of sub-section (13) of section 2 of the IGST Act, can avail benefits of export of services if he satisfies the criteria mentioned in sub-section (6) of section 2 of the IGST Act, which reads as under – ―export of services means the supply of any service when,––(i) the supplier of service is located in India;(ii) the recipient of service is located outside India;(iii) the place of supply of service is outside India; (iv) the payment for such service has been received by the supplier of service in convertible foreign exchange; and (v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8.7. It is requested that suitable trade notices may be issued to publicize the contents of this Circular. 8. Difficulty, if any, in the implementation of this Circular may be brought to the notice of the Board. (Upender Gupta)Principal Commissioner (GST)

Notification No. 27/2019 – Central TaxG.S.R......(E).— In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), the Central Government, on the recommendations of the Council, hereby notifies the registered persons having aggregate turnover of up to 1.5 crore rupees in the preceding financial year or the current financial year, as the class of registered persons who shall follow the special procedure as mentioned below for furnishing the details of outward supply of goods or services or both.2. The said registered persons shall furnish the details of outward supply of goods or services or both in FORM GSTR-1 under the Central Goods and Services Tax Rules, 2017, effected during the quarter as specified in column (2) of the Table

below till the time period as specified in the corresponding entry in column (3) of the said Table, namely:-Quarter for which details in Time period for furnishingFORM GSTR-1 are furnished details in FORM GSTR-1July –September 2019 31st October, 20193. The time limit for furnishing the details or return, as the case may be, under sub-section (2) of section 38 and sub-section (1) of section 39 of the said Act, for the months of July, 2019 to September, 2019 shall be subsequently notified in the Official Gazette. [F. No. 20/06/16/2018-GST](Ruchi Bisht) Under Secretary to the Government of India

July 2019

Clarification on doubts related to supply of Information Technology enabled Services (ITeS services)

Seeks to prescribe the due date for furnishing FORM GSTR-1for registered persons having aggregate turnover of up to 1.5crore rupees for the months of July, 2019 to September, 2019


Notification No. 02/2019-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, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), No. 11/2017-Central Excise, dated the 30th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i), vide number G.S.R. 793(E), dated the 30th June, 2017, namely:-In the said notification, in the TABLE, -(i) in column (2), in the column heading, the words “of the First Schedule” shall be

omitted;(ii) Sl. No. 1 and the entries relating thereto shall be omitted. [F. No. 334/3/2019-TRU] (Gunjan Kumar Verma) Under Secretary to the Government of IndiaNote. -The principal notification No. 11/2017-Central Excise, dated the 30th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide, number G.S.R. 793(E), dated the 30th June, 2017 and last amended by notification No.22/2018-Central Excise dated the 10th October, 2018 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide, number G.S.R. 1019 (E), dated the 10th October, 2018.

Seeks to further amend notification No. 11/2017-Central Excisedated 30th June 2017 so as to omit an entry with respect to chapter 24

July 2019

G.S.R......(E).— In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), the Central Government, on the recommendations of the Council, hereby notifies the registered persons having aggregate turnover of up to 1.5 crore rupees in the preceding financial year or the current financial year, as the class of registered persons who shall follow the special procedure as mentioned below for furnishing the details of outward supply of goods or services or both. 2. The said registered persons shall furnish the details of outward supply of goods or services or both in FORM GSTR-1 under the Central Goods and Services Tax Rules, 2017, effected during the quarter as specified in column (2) of the Table below till the time period as specified in the

corresponding entry in column (3) of the said Table, namely:- Quarter for which details in Time period for furnishingFORM GSTR-1 are furnished details in FORM GSTR-1July –September 2019 31st October, 2019 3. The time limit for furnishing the details or return, as the case may be, under sub-section (2) of section 38 and sub-section (1) of section 39 of the said Act, for the months of July, 2019 to September, 2019 shall be subsequently notified in the Official Gazette.[F. No. 20/06/16/2018-GST](Ruchi Bisht)Under Secretary to the Government of India

Notification No. 27/2019 – Central Tax

Notification No.30 /2019 – Central Tax G.S.R......(E).— In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as “the said Act”), the Central Government, on the recommendations of the Council, hereby notifies the persons registered under section 24 of the said Act read with rule 14 of the Central Goods and Services Tax Rules, 2017, (hereinafter referred to as “the said rules”), supplying online information and data base access or retrieval services from a place outside India to a person in India, other than a registered person as the class of registered

persons who shall follow the special procedure as mentioned below.2. The said persons shall not be required to furnish an annual return in FORM GSTR-9 under sub-section (1) of section 44 of the said Act read with sub-rule (1) of rule 80 of the said rules.3. The said persons shall not be required to furnish reconciliation statement in FORM GSTR-9C under sub-section (2) of section 44 of the said Act read with sub-rule (3) of rule 80 of the said rules.[F. No. 20/06/16/2018-GST](Ruchi Bisht)Under Secretary to the Government of India

Seeks to provide exemption from furnishingof Annual Return / Reconciliation Statement for suppliers of Online InformationDatabase Access and Retrieval Services(“OIDAR services”)

Notification No. 34/2019 – Central Tax G.S.R.....(E).– In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 21/2019- Central Tax, dated the 23rd April, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 322(E), dated the 23rd April, 2019, namely:–In the said notification, in paragraph 2, the

following proviso shall be inserted, namely:–“Provided that the due date for furnishing the statement containing the details of payment of self-assessed tax in said FORM GST CMP-08, for the quarter April, 2019 to June, 2019, or part thereof, shall be the 31st day of July, 2019.”.[F. No. 20/06/16/2018-GST] (Ruchi Bisht)Under Secretary to the Government of IndiaNote:- The principal notification No. 21/2019-Central Tax, dated the 23rd April, 2019 was published in the Gazette of India, Extraordinary, vide number G.S.R. 322(E), dated the 23rd April, 2019.

Seeks to extend the last date forfurnishing FORM GST CMP-08

The Directorate of Revenue Intelligence (DRI) on Saturday has arrested Dinesh Maheshwari, the chief financial officer of Future Enterprises for evading customs duty worth Rs 14.58 crore. The company was importing readymade garments from Bangladesh through Petrapole Land Customs Station (LCS) without payment of basic customs duty, availing of the South Asian Free Trade Area (SAFTA) benefit, the agency said in a statement. He (Maheshwari) appears to be the main person responsible for the evasion of

duty to the tune of Rs 14.58 crore by Future Enterprises Ltd. He appears to be guilty of an offence punishable under Section 135 of the Customs Act and has, therefore, been arrested under Section 104 of the Customs Act, on July 12," it said. Investigations further revealed that the garments were supplied by third country suppliers based in Dubai and Singapore, but were delivered from Bangladesh after minimal processing, the DRI statement added.Source: CNBC-TV18 (With inputs from PTI)

Notification No. 32/2019 – Central Tax G.S.R… (E). - In pursuance of section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017) and sub-rule (3) of rule 45 of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), and in supersession of the notification of the Government of India in the Ministry of Finance, Department of Revenue No. 15/2019- Central Tax, dated the 28th March 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, S u b - s e c t i o n ( i ) v i d e n u m b e r

G.S.R.242(E), dated the 28th March 2019, except as respects things done or omitted to be done before such supersession, the Commissioner, hereby extends the time limit for furnishing the declaration in FORM GST ITC-04 of the said rules, in respect of goods dispatched to a job worker or received from a job worker, during the period from July, 2017 to June, 2019 till the 31 st day of August, 2019.[F. No. 20/06/17/2018-GST]( Ruchi Bisht)Under Secretary to the Government of India

Seeks to extend the due date for furnishingthe declaration FORM GST ITC-04

Future Enterprises' CFO Dinesh Maheshwari arrestedby DRI for evading Rs 14.58 crore customs duty

Two GST officers caught accepting Rs 25,000 bribe Two GST officers were caught by sleuths belonging to anti-corruption bureau (ACB) on Thursday for allegedly accepting bribe of Rs 25,000 from a builder in Valsad. One of the accused officers was caught while accepting bribe money while another nabbed during investigation. Anti-corruption bureau (ACB) officers arrested Sujitkumar Satyadev Prasad, superintendent, and Vivek Sharma, inspector, both posted in CGST and Central Excise office in Vapi. They were nabbed on Valsad Dharampur Road opposite RPF ground. The trap was executed by P D Barot, police inspector, under supervision of N P Gohil, assistant director, ACB, Surat. The accused officers carried out audit of a construction project of the

complainant and were demanding bribe of Rs 25,000 for not harassing him further. The complainant did not wish to give bribe to the officers and so called ACB on 1064 toll free number and lodged the complaint. ACB officers laid a trap on Thursday and nabbed Prasad for demanding and accepting the money. Sharma was nabbed by them during the course of the investigation. The ACB officers will also conduct searches at their residences and probe the source of their wealth, sources said. Recently, the ACB officers had caught a chief medical officer of a district for allegedly accepting bribe of Rs 10,000 from a complainant who had applied for renewal of his liquor permit on health ground.Source: Times of India

The district consumer redressal forum in Tirunelveli has imposed a fine of Rs. 15,000 on a restaurant and the assistant commissioner for state GST (SGST) in the commercial tax department, Tirunelveli for for charging Rs 2 as Goods and Services Tax (GST) on curd and Rs 2 as packing charge. The forum, while slapping a penalty on the restaurant, observed that the officer of the department also has equal responsibility to pay the amount as he failed to take action against the restaurant when the consumer took it to the notice of the official. The consumer, C Maharaja of Dharapuram in Tirunelveli district had purchased curd for Rs 40 from Hotel Annapoorna located near the district court on the Tiruchendur Road on February 6. He was asked to pay Rs 44 including Rs 1 as GST and Rs 1 as SGST and Rs 2 for packing charges. The complainant argued before the forum that curd was exempted from GST and it was unfair to collect GST for the same. Responding to the consumer, the partner who was at the billing counter stated that GST for the product was fed in the computer and he could not do anything about it. As the consumer questioned

charging the packing charge, the person concerned humiliated him, asking him to leave without the curd if he was unhappy over the purchase. “The consumer then took it up with the assistant commissioner (SGST) in the commercial tax department, demanding action against the restaurant and stop GST collection for the exempted item. But despite confirming that curd is exempted, the official told the consumer that he has been many such complaints over collection of GST and that he would not be able to do anything about it,” Brammanayagam said. Source: TAX SCANForum president K Devadass and members S Sivanmoorthi and M Muthulakshmi on Tuesday observed the GST collection as well as packing charge as lapse of service. They also directed them to pay Rs 15,004. It includes Rs 10,000 as compensation for causing mental agony to the consumer, Rs 5,000 as case handling charges for the consumer and the Rs 4 to be refunded to him. Directing them to make the payment in one month, the forum said they should pay it along with an interest of 6 percent in case of delay.

Hotel, GST Officer slapped with Rs. 15,000 for collecting GST on Curd


Somesh Arora The p rov i s ion o f Bi l l s and amending legislations are indications that, along with ground-level policing action, the legal framework is available to tighten the screws on nefarious designs of terrorists and their supporters. On such information not having being provided, the reporting entities can refuse to carry out transaction for such a person.That this government has a penchant for springing surprises was evident with the sudden moves of demonetisation, surgical strikes after the Uri attacks, and the Balakot air strike. But when the action has to be taken internally, preparing of a robust legal ground is indispensable. The provision of Bills and amending legislations are indications that, along with ground-level policing action, the legal framework is available to tighten the screws on nefarious designs of terrorists and their supporters. While certain laws do exist for this purpose—the Prevention of Money Laundering Act (PMLA), 2002, was the most effective instrument to suck out the finances of terrorism supporters—hardly anything was being done to book and investigate cases in terrorist-hit areas in the Northeast, Kashmir, Chhattisgarh, West Bengal and Odisha. Sleeper units of ISI are known to exist even in Tamil Nadu, Kerala and Karnataka. One reason could be the clout that such outfits wield in such areas, which negates the influence of government machinery and renders intel l igence gathering very difficult.

Now, the legislative changes being brought at one go are unprecedented. Just to list the major ones:> The Unlawful Activities Amendment Bill, 2019, is being amended to proceed against an individual to be declared terrorist instead of just an organisation, which was the case earlier;> Another amendment seeks to allow the investigation to be conducted by an officer of the National Investigation Agency (NIA) with prior approval of the director general even at a place other than that where the property representing the proceeds of terrorism is situated.Second, to strengthen the mechanism of reporting of transactions by reporting entities, the PMLA, 2002, has been amended by seeking to insert Section 12AA by virtue of Clause 189 of the Finance Bill, 2019. It provides that reporting entities shall authenticate the identity of clients be it gold purchaser or property purchaser, etc, through additional means like Aadhaar or as may be prescribed, and such entities shall be required to take additional steps to determine the ownership, financial position, sources of funds of the client as well as the purpose behind the transaction and the intended nature of the transaction between the parties.On such information not having being provided, the reporting entities can refuse to carry out transaction for such a person. It is also expected that in case the transaction is considered suspicious or is likely to involve any proceeds of crime, the scrutiny level of the reporting entity will correspondingly go

up. This effectively means that the reporting entities shall act as the first level of scrutiny of suspect transactions under the PMLA.Thirdly, the National Investigation Agency Act has been sought to be amended by allowing to probe cybercrime cases as well as cases of human trafficking. Similarly, the NIA shall be authorised and competent to also investigate ‘individual’ suspects’ links to terror along with terrorist organisations. T h e B e n a m i T r a n s a c t i o n s (Prohibition) Act, 1988, is being amended by adding Section 54(B) to permit entries in the records or other documents in the custody of any authority to be admitted as evidence in any prosecution or attachment proceedings. Even certified copies henceforth shall be allowed to be adduced where originals, for some reason, cannot be produced. The net effect will be that the records of the registrar of properties or of any other body on the production of such record or attested copies can be allowed as evidence and its authenticity taken as proved. It is amply clear that this strengthening of provisions can facilitate action against property attachments and confiscations even through remote investigations, and therefore terrorists activities can be financially paralysed and their supporters crippled. Further, Section 72(A) PMLA is being inserted to provide for an inter-ministerial coordination committee with statutory backing, to allow various agencies dealing with money laundering, counter terrorism, financial sector crimes, etc, to act in synergy with others. Although such

arrangements were earlier also available in the Joint Intelligence Committee and the Economic Intelligence Bureau, now they have been legally structured and cooperation shall be required to be statutorily provided by all regulators and agencies. In the 1980s, the government had created the Economic Intelligence Council under the chairmanship of the finance minister to encourage collation and dissemination of information—but the avowed purpose couldn’t be achieved. Whether the new legislation can surmount individual organisations’ quest for glory is something the current dispensation should focus on. However, with the stated resolve and the past experience of 3-4 years, maybe things will be done differently now. While legislative intent can provide muscle to the efforts of ground-level officers, it is eventually the righteous officers who make or mar the effects of a legislation. Too many cases are quashed by courts for lack of proper investigation. Conviction is always dependent on tying up evidence and within all fours of the law. At the same time, fundamental right violations have to be curbed. Too free a hand and that too without exacting supervision can create cavalier investigators with disregard to extant laws. One must remember the adage: ‘Power tends to corrupt, and absolute power corrupts absolutely’. The author is an advocate (Amicus Rarus) and former commissioner of Customs & ExciseSource: Financial Express.com

July 2019

Are we ready for a big bang legal action against terrorism?

GSTIN / PAN and Invoice information in Shipping Bill:1. Quoting GSTIN in Shipping bill is mandatory if the export product attracts GST for domestic clearance.2. Quoting PAN (Permanent Account Number), which is authorized as Import Export code by DGFT, would suffice if the exporter exclusively deals with products which are either wholly exempt from GST or out of GST regime. 3. In case of exports by specialized agencies such as United Nations Organization or notified Multilateral Financial Institutions, Embassies and Consulates, the exporter can quote Unique Identity Number, instead of GSTIN, in the Shipping bill.4. Without GSTIN or PAN or UIN, the Shipping bill cannot be filed.5. The claim for refund of IGST paid or Input Tax Credit on inputs consumed in goods exported cannot be processed without GSTIN and GST Invoice details in Shipping Bill.6. Commercial Invoice information should be provided in the Shipping Bill. Wherever Commercial Invoice is different from Tax Invoice, details of both have to be provided in the Shipping Bill.7. Taxable value and Tax amount should be mentioned against each item in the Shipping

bill for processing the refund amount. Multiple tax invoices issued by same GSTIN holder are allowed in one Shipping bill for the same consignee. 8. State code is part of GSTIN numbering scheme. However, in the Shipping Bill for the field “State of origin” declare the State code from where export goods originated as it was being done before.Bond or LUT along with Shipping Bill: 9. As per rule 96A of the Central Goods and Services Tax Rules, 2017 any registered person exporting goods without payment of integrated tax is required to furnish a bond or a Letter of Undertaking (LUT) in FORM GST RFD-11.10. The following registered person shall be eligible for submission of Letter of Undertaking in place of a bond: - a. a status holder as specified in the Foreign Trade Policy 2015- 2020; or b. who has received the due foreign inward remittances amounting to a minimum of 10% of the export turnover, which should not be less than one crore rupees, in the preceding financial year, and he has not been prosecuted for any offence under the Central Goods and Services Tax Act, 2017 (12 of 2017) or under any of the existing laws in case where the amount of tax evaded exceeds two hundred and fifty lakh rupees. (Notification No. 16/2017-Central

Tax dated 07th July, 2017 refers).11. The bond shall be furnished on non-judicial stamp paper of the value as applicable in the State in which bond is being furnished.12. The exporters shall furnish a running bond, in case he is required to furnish a bond, in FORM GST RFD -11. The bond would cover the amount of tax involved in the export based on estimated tax liability as assessed by the exporter himself.13. Based on the track record of exporter, a bank guarantee required to be submitted along with the bond may be waived off by the jurisdictional GST Commissioner. The bank guarantee should normally not exceed 15% of the bond amount. (Circular No. 4/4/2017-GST dated 07th July, 2017 refers) Drawback: 14. For a transition period of three months i.e. 1.7.2017 to 30.9.2017, composite rates of All Industry Rate (AIR) drawback are available to exporters. I. These composite rates are subject to certain conditions during transition period that ensure that input credit /refund under GST and drawback of composite rates are not taken together for the export product. II. Exporter has to produce certificate from jurisdictional GST officer to avail composite rate. This requirement is applicable to

supplies for export made on or after 1.7.2017, as all exporters are required to operate under GST from that date.III. The requirement of certificate is not a new requirement. All registered persons who were exporting under bond or on claim for rebate were producing such certificate prior to 1.7.2017 also. IV. In case export goods have been cleared from the factory or warehouse etc. prior to 1.7.2017 but let export order has not been given till 30.6.2017, certificate from GST officer is not required. For such goods, only a declaration from exporter or certificate from the then Central Excise officer as applicable is required. V. In case exporter is unable to produce requisite certificate for claiming composite AIR at the time of export, then exporter should have the Shipping bill amended to claim lower AIR (Customs portion) at time of export. The exporter can claim balance amount of drawback as supplementary claim when he produces certificate. 15. Instructions issued to all jurisdictional authorities to ensure smooth clearance of export consignments.PRESS RELEASE

GST and Exports - Attention Exporters

Several goods are taken out of India on consignment basis for exhibitions or other export promotion events. These goods are sold only when approved by the prospective customers abroad. The unsold goods are then brought back to India. This is a widespread practice in various sectors, including the gems and jewellery industry. Exporters of these items were facing problems due to the the lack of clarity on the procedure to be followed under GST at the time of taking these goods out of India and at the time of their subsequent sale or return to India. Taking cognizance of these problems and in order to help exporters, the Central Board of Indirect Taxes and Customs (CBIC) has now issued a comprehensive clarification in this regard vide Circular No. 108/27/2019-GST

dated 18.07.2019. The key points clarified in the Circular are the following:a) The activity of taking goods out of India on consignment basis for exhibition would not in itself constitute a supply under GST since there is no consideration received at this time.b) The movement of these goods out of India shall be accompanied by a delivery challan issued in accordance with the provisions contained in rule 55 of the CGST Rules. c) Since taking such goods out of India is not a supply, it necessarily follows that it is also not a zero-rated supply. Therefore, execution of a bond or LUT, as required under section 16 of the IGST Act, is not required. d) The goods taken out of India in this manner are required to be either sold or

brought back within a period of six months from the date of removal.e) The supply would be deemed to have taken place if the goods are neither sold abroad nor brought back within the period of six months. In this case, the sender shall issue a tax invoice on the date of expiry of six months from the date of removal, in respect of the quantity of goods which have neither been sold nor brought back. The benefit of zero-rating, including refund, shall not be available in respect of such supplies.f) If the specified goods are sold abroad, fully or partially, within the period of six months, the supply shall be held to have been effected, in respect of the quantity so sold, on the date of such sale. In this case, the sender shall issue a tax invoice in respect of such

quantity of goods which has been sold. These supplies shall become zero-rated supplies at the time of issuance of invoice. However, refund in relation to such supplies shall be available only as refund of unutilized ITC and not as refund of IGST. g) No tax invoice is required to be issued in respect of goods which are brought back to India within the period of six months.The above points are informative in nature and have been presented in this release in s imple language for benef i t of a l l stakeholders. The Circular issued in this regard, i.e. Circular No. 108/27/2019-GST dated 18.07.2019, may be referred which alone shall have the force of law.Source: CBIC

Clarification in respect of goods taken out of India for exhibition or on consignment basis for export promotion


T h e G o v e r n m e n t h a s b e e n receiving a number of representations regarding Annual Return (FORM GSTR-9 / FORM GSTR-9A) and Reconciliation Statement (FORM GSTR-9C). In this regard the following clarifications are issued for information of all stakeholders: - a) Payment of any unpaid tax: Section 73 of the CGST Act provides a unique opportunity of self – correction to all taxpayers i.e. if a taxpayer has not paid, short paid or has erroneously obtained/been granted refund or has wrongly availed or utilized input tax credit then before the service of a notice by any tax authority, the taxpayer may pay the amount of tax with interest. In such cases, no penalty shall be leviable on such tax payer. Therefore, in cases where some information has not been furnished in the statement of outward supplies in FORM GSTR-1 or in the regular returns in FORM GSTR-3B, such taxpayers may pay the tax with interest through FORM GST DRC-03 at any time. In fact, the annual return provides an additional opportunity for such taxpayers to declare the summary of supply against which payment of tax is made. b) Primary data source for declaration in annual return: Time and again taxpayers have been requesting as to what should be the primary source of data for f i l ing of the annual return and the reconciliation statement. There has been some confusion over using FORM GSTR-1, FORM GSTR-3B or books of accounts as the primary source of information. It is important to note that both FORM GSTR-1 and FORM GSTR-3B serve different purposes. While, FORM GSTR-1 is an account of details of outward supplies, FORM GSTR-3B is where the summaries of all transactions are declared and payments are made. Ideally, information in FORM GSTR-1, FORM GSTR-3B and books of accounts should be synchronous and the values should match across different forms and the books of accounts. If the same does not match, there can be broadly two scenarios, either tax was not paid to the Government or tax was paid in excess. In the first case, the same shall be declared in the annual return and tax should be paid and in the latter all information may be declared in the annual return and refund (if eligible) may be applied through FORM GST RFD-01A. Further, no input tax credit can be reversed or availed through the annual return. If taxpayers find themselves liable for reversing any input tax credit, they may do the same through FORM GST DRC-03 separately. c) Premise of Table 8D of Annual Return: There appears to be some confusion regarding declaration of input tax credit in Table 8 of the annual return. The input tax

credit which is declared / computed in Table 8D is basically credit that was available to a taxpayer in his FORM GSTR-2A but was not availed by him between July 2017 to March 2019. The deadline has already passed and the taxpayer cannot avail such credit now. There is no question of lapsing of any such credit, since this credit never entered the electronic credit ledger of any taxpayer. Therefore, taxpayers need not be concerned about the values reflected in this table. This is merely an information that the Government needs for 3 rd July 2019 settlement purposes. Figures in Table 8A of FORM GSTR-9 are auto-populated only for those FORM GSTR-1 which were furnished by the corresponding suppliers by the due date. Thus, ITC on supplies made during the financial year 2017-18, if reported beyond the said date by the corresponding supplier, will not get auto-populated in said Table 8A. It may also be noted that FORM GSTR-2A continues to be auto-populated on the basis of the corresponding FORM GSTR-1 furnished by suppliers even after the due date. In such cases there would be a mis-match between the updated FORM GSTR-2A and the auto-populated information in Table 8A. It is important to note that Table 8A of the annual returns is autopopulated from FORM GSTR-2A as on 1st May, 2019. d) Premise of Table 8J of Annual Return: In the press release on annual return issued earlier on 4th June 2019, it has already been clarified that all credit of IGST paid at the time of imports between July 2017 to March 2019 may be declared in Table 6E. If the same is done properly by a taxpayer, then Table 8I and 8J shall contain information on credit which was available to the taxpayer and the taxpayer chose not to avail the same. The deadline has already passed and the taxpayer cannot avail such credit now. There is no question of lapsing of any such credit, since this credit never entered the electronic credit ledger of any taxpayer. Therefore, taxpayers need not be concerned about the values reflected in this table. This is information that the Government needs for settlement purposes. e) Difficulty in reporting of information not reported in regular returns: There have been a number of representations regarding non-availability of information in Table16A or 18 of Annual return in FORM GSTR-9. It has been observed that smaller taxpayers are facing a lot of challenge in reporting information that was not being explici t ly reported in their regular statement/returns (FORM GSTR-1 and FORM GSTR-3B). Therefore, taxpayers are advised to declare all such data / details (which are not part of their regular statement/returns) to the best of their knowledge and records. This data is only for

i n f o r m a t i o n p u r p o s e s a n d reasonable/explainable variations in the information reported in these tables will not be viewed adversely. f) Information in Table 5D (Exempted), Table 5E (Nil Rated) and Table 5F (Non-GST Supply): I t has been r e p r e s e n t e d b y v a r i o u s t r a d e bodies/associations that there appears to be some confusion over what values are to be entered in Table 5D,5E and 5F of FORM GSTR-9. Since, there is some overlap between supplies that are classifiable as exempted and nil rated and since there is no tax payable on such supplies, if there is a r easonab le / exp la inab le ove r l ap o f information reported across these tables, such overlap will not be viewed adversely. The other concern raised by taxpayers is the inclusion of no supply in the category of Non-GST supplies in Table 5F. For the purposes of reporting, non-GST supplies includes supply of alcoholic liquor for h u m a n c o n s u m p t i o n , m o t o r s p i r i t (commonly known as petrol), high speed diesel, aviation turbine fuel, petroleum crude and natural gas and transactions specified in Schedule III of the CGST Act. g) Reverse charge in respect of Financial Year 2017-18 paid during Financial Year 2018- 19: Many taxpayers have requested for clarification on the appropriate column or table in which tax which was to be paid on reverse charge basis for the FY 2017-18 but was paid during FY 2018-19. It may be noted that since the payment was made during FY 2018-19, the input tax credit on such payment of tax would have been availed in FY 2018-19 only. Therefore, such details will not be declared in the annual return for the FY 2017-18 and will 3 rd July 2019 be declared in the annual return for FY 2018-19. If there are any variations in the calculation of turnover on account of this adjustment, the same may be reported with reasons in the reconciliation statement (FORM GSTR-9C). h) Role of chartered accountant or a cost accountant in certifying reconciliation statement: There are apprehensions that the chartered accountant or cost accountant may go beyond the books of account in their recommendations under FORM GSTR-9C. The GST Act is clear in this regard. With respect to the reconciliation statement, their role is limited to reconciling the values declared in annual return (FORM GSTR-9) with the audited annual accounts of the taxpayer. i) Turnover for eligibility of filing of reconciliation statement: It may be noted that the aggregate turnover i.e. the turnover of all the registrations having the same Permanent Account Number is to be used for determining the requirement of filing of

reconciliation statement. Therefore, if there are two registrations in two different States on the same PAN, say State A (with turnover of Rs. 1.2 Crore) and State B (with turnover of Rs. 1 Crore) they are both required to file reconciliation statements individually for their registrations since their aggregate turnover is greater than Rs. 2 Crore. The aggregate turnover for this purpose shall be reckoned for the period July, 2017 to March, 2018. j) Treatment of Credit Notes / Debit Notes issued during FY 2018-19 for FY 2017-18: It may be noted that no credit note which has a tax implication can be issued after the month of September 2018 for any supply pertaining to FY 2017-18; a financial/commercial credit note can, however, be issued. If the credit or debit note for any supply was issued and declared in returns of FY 2018-19 and the provision for the same has been made in the books of accounts for FY 2017-18, the same shall be declared in Pt. V of the annual return. Many taxpayers have also represented that there is no provision in Pt. II of the reconciliation statement for adjustment in turnover in lieu of debit notes issued during FY 2018-19 although provision for the same was made in the books of accounts for FY 2017-18. In such cases, they may adjust the same in Table 5O of the reconciliation statement in FORM GSTR-9C. k) Duplication of information in Table 6B and 6H: Many taxpayers have represented about duplication of information in Table 6B and 6H of the annual return. It may be noted that the label in Table 6H clearly states that information declared in Table 6H is exclusive of Table 6B. Therefore, information of such input tax credit is to be declared in one of the rows only. l) Reconciliation of input tax credit availed on expenses: Table 14 of the r econc i l i a t i on s t a t emen t ca l l s f o r reconciliation of input tax credit availed on expenses with input tax credit declared in the annual return. It may be noted that only those expenses are to be reconciled where input tax credit has been availed. Further, the list of expenses given in Table 14 is a representative list of heads under which input tax credit may have been availed. The taxpayer has the option to add any head of expenses. 2. All the taxpayers are requested to file their Annual Return (FORM GSTR-9 / FORM GSTR-9A) and Reconciliation Statement (FORM GSTR-9C) well before the last date of filing, i.e. 31st August, 2019. Source: Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs Press ReleasePRESS RELEASE

July 2019

Government of India Clarification regarding Annual Returns and Reconciliation Statement

Certain registered persons, while filing the return in FORM GSTR-3B for a given tax period, committed errors in declaring the export of services on payment of IGST or zerorated supplies made to a SEZ unit/developer on payment of IGST. They showed such supplies in the Table under column 3.1(a) (outward taxable supplies) instead of showing them in column 3.1(b) (zero rated supplies) of FORM GSTR-3B. Such registered persons were unable to file the refund application in FORM GST RFD-01A. This was because of an inbuilt validation check on the common portal which restricted the refund amount claimed to the amount mentioned under column 3.1(b) of FORM GSTR-3B filed for the corresponding tax period. 2. In order to give relief to such registered persons, it was decided that for the tax periods from 01.07.2017 to 31.03.2018, they shall be allowed to file the refund application in FORM GST RFD-01A on the

common portal subject to the condition that the amount of refund claimed shall not be more than the aggregate amount mentioned in the Table under columns 3.1(a), 3.1(b) and 3.1(c) of FORM GSTR-3B filed for the corresponding tax period. This was clarified vide Circular No. 45/19/2018-GST dated 30.05.2018. 3. Certain registered persons have committed the errors, as detailed in para 1 above, even for tax periods after March, 2018 and are unable to claim refund of the taxes paid on export of services or supplies made to SEZ unit/developer for these periods. To help these persons, it has now been decided to extend the period of the relief, by way of the relaxed validation as detailed in para 2 above, till 30.06.2019. To this effect, a corrigendum to Circular No. 45/19/2018-GST has been issued on 18.07.2019. Exporters are encouraged to avail the benefit of this extension.Source: CBIC

Corrigendum to Circular No. 45/19/2018-GST dated 30th May, 2018

Notification No. 29/2019 – Central Tax G.S.R...(E).- In exercise of the powers conferred by section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act) read with sub-rule (5) of rule 61 of the Central Goods and Services Tax Rules, 2017 (hereafter in this notification referred to as the said rules), the C o m m i s s i o n e r , o n t h e recommendations of the Council, hereby specifies that the return in FORM GSTR-3B of the said rules for each of the months from July, 2019 to September, 2019 shall be furnished electronically through the common portal, on or before the twentieth day of the month succeeding such month.

2 . Payment o f t axes fo r discharge of tax liability as per FORM GSTR-3B. – Every registered person furnishing the return in FORM GSTR-3B of the said rules shall, subject to the provisions of section 49 of the said Act, discharge his liability towards tax, interest, penalty, fees or any other amount payable under the said Act by debiting the electronic cash ledger or electronic credit ledger, as the case may be, not later than the last date, as specified in the first paragraph, on which he is required to furnish the said return.[F. No. 20/06/16/2018-GST] (Ruchi Bisht)Under Secretary to the Government of India

Seeks to prescribe the due date forfurnishing FORM GSTR-3B for themonths of July, 2019 to September, 2019


Manishh Nayyar Numerology is a language that allows you to expand the horizon of your awareness. It can help you understand yourself, your strengths, weaknesses and power of your name and your date of birth and is based extensively on mathematical calculations and the predictive part of numerology depends on your name and date of birth. Among all the branches of paranormal and divine arts, numerology (or the study of numbers) is a very popular way to analyze or predict one's personal profile. This will bring you immense help in your life as you will discover your inner self and thus be able to guide yourself in the coming days. Numerology can provide benefits for those who pay attention, intending to use it for bettering their own lives as follows:-1. Determine romance and relationships compatibility. Compatibility is important for long-term understanding and co-existence in relationships like family, friends, and partners in business.2. Gain personal insights. It is a great tool for revealing personal characteristics. The more you know yourself, the better your position to make intelligent and correct decisions.3. Divine your future.Every year, every month, and within other timed cycles, the life path can change. It helps in gaining personal insight to reveal some of the things you can expect this year and next year. Numerology is based on the ancient idea that each of us is a spiritual being, or a soul, who incarnates on the earth many times in order to further evolve toward higher states of awareness. During our long evolutionary path of many incarnations, we have accumulated a wealth of wisdom, and have made many good choices that benefit us in future lifetimes. We have also made mistakes, and have sometimes abused the gifts we have been given. To rectify such errors, we may take on an additional burden in order to learn a particular lesson that we failed to learn in previous lifetimes. In numerology, this burden is called a Karmic Debt and can be found in different places in the chart as a result of totals based on your date of birth or calculations based on the letters of your name. Numerology and Scale of Relationship: Suitable relations between two persons depend on the matching of their Life path no. that are given by the sum of their month/day/year of birth reduced to a single digit from 1 to 9. Whether it is a love affair, a marriage the Life path no. of the two people can straightaway tell the longevity of the relationship - everlasting, medium or completely unsuitable. Numerology vs Character Analyses:- Every letter or alphabet from A to Z has a number value from 1 to 9. As such every name has a specific number of 1's, 2's, 3's etc., repeated in his/her name. If the repetition of a particular number is above average the character of the person is intensified with the properties of that number. If a particular number is repeated is less than the average number of times than the negative properties of that number. If a number is completely missing in the name it appears as a karmic debt which may or may not be balanced by the Major numbers. Everything has a purpose and your date of birth determines the quality of the power within you and reveals your purpose in life based

on for those born as per the following no.'s as follows:-1 – Independent, attaining, leadership, Initiative, courage.2 – Cooperation, adaptability, partnering, spirituality, peace, diplomacy.3 – Expression, imagination, the joy of living, creativity.4 – A foundation, order, service, struggle against limits, steady growth.5 – Expansiveness, visionary, adventure, the constructive use of freedom.6 – Responsibility, love of home, nurturing, community, balance, sympathy.7 – Analysis, understanding, knowledge, awareness, studious, meditating.8 – Judgement, status oriented, power-seeking, high-material goals.9 – Humanitarian, giving nature, selflessness, obligations, creative expression.11 – Higher spiri tual plane, intuit ive, illumination, idealist, a dreamer.12 – The Master Builder, large endeavours, powerful force, leadership. Lo-Shu Grid:-According to the Lo-Shu Grid western system No 4,9,2 represents Mental plane, 3,5,7 represents Emotional plane and 8,1,6 represents Practical plane. Also, 4,3,8 represents power of Thought, 9,5,1 represents power of will and 2,7,6 represents power of Action. In Chinese Numerology, it is believed that missing numbers can be cured or corrected. It can be done by surrounding with the objects made of the element that belongs to that particular number. For Example:- No. 1 represents Water Element: It relates to communication with others and if it is missing, keep an aquarium or water fountain in the North direction. No. 2, 5 or 8 represents Earth Element: It relates to stability and the ability to reach one's goal and if it is missing, keep a stone pyramid or wear a crystal necklace. No. 3, 4 represents Wood Element: It relates to creativity and if it is missing, keep plants in the east direction and wear wooden sandalwood or tulsi maala. No. 6, 7 represents Metal Element: It relates to Velour and the ability to stand up for oneself and if it is missing wear a ring or bracelet made from gold or silver or hang a 6 rod wind chime or 7 rod wind chime in silver colour. No. 9 represents Fire Element: It relates to enthusiasm, excitement and motivation and if it is missing than tie red colour mauli around the hand or keep a red colour handkerchief. Numerology can help to analyse and to choose the numbers suitability related to choosing the mobile no., the car or house and the synchronisation of the name no. with the date of birth suitable for you and also selecting the colours which may have a better impact on your life. As it is said that work is worship and God helps those who help themselves, hence, analysing the suitability and synchronising the numbers may help you to get a better insight about your life, however, to succeed we have to be proactive and proceed ahead energetically wi th de te rmina t ion towards the goa l achievement with hard work and adherence to the chosen path and can take the help of this science for personal growth & also taking corrective actions for the challenges and circumstances. Mobile - 7669633161 Email - [email protected]

A chartered accountant has been arrested in Mumbai for allegedly aiding and abetting a businessman in an export fraud of Rs 118 crore. The arrest was recorded by the prevention of smuggling and customs fraud unit of Directorate of Revenue Intelligence (DRI) on Thursday. In June, the officials had arrested a business man Radha Madhav joint managing director Abhishek Agarwal from Daman, for defrauding the exchequer by taking monetary benefits of imports under a government scheme, but failed to fulfil obligations of exports. Later, his consultant, Ramesh Chavan, who had taken Rs 9 crore from the firm under the pretext of getting an export obligation certificate (EODC) was arrested. DRI had seized Rs 6 crore from his house. Abhishek submit ted the EODC, claiming he had complied with the obligation. DRI found it had exports of only Rs 18 crore, while Rs 118 crore was of “ghost exports”, with no records with Customs. Agarwal sought 10 days to procure records but failed to do so. He said he had engaged Chavan, who gave documents, which DRI said were bogus. “Agarwal said Chavan claimed he can close the EODC by his ‘settings’ and manage an EODC with a third-party export. We will unearth the racket and find other in the syndicate,” an official saidSource: Tax Scan Team

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The CBI has arrested an assistant commissioner and a superintendent posted at the CGST Department in Patna for allegedly receiving a bribe of Rs 2.5 lakh, officials said. Assistant Commissioner Chandan Prakash Pandey, a 2016-batch Indian Revenue Service officer, and Superintendent Mohammed Soaibuddin were caught red-handed while they were receiving the bribe from a flour mill owner, they said. The agency is carrying out searches

at the offices and the residences of Pandey and Soaibuddin in Patna and Jehanabad. Both are posted at the CGST (Central Goods and Services Tax), Patna-II. The duo had allegedly demanded a bribe of Rs 8 lakh for not filing a case against a firm owned by wife and sister-in-law of the complainant, the officials said. They were receiving Rs 2.5 lakh as a portion of the bribe when the agency nabbed them, they said.PTI

The IAS officer had allegedly taken the bribe to give a favourable report after the RBI asked the state government to probe the company's businesses, the police said.Updated : July 09, 2019 08:41 IST Deputy commissioner of Bengauru urban district BM Vijay Shankar was arrested today. (Representational) Bengaluru: The special investigation team (SIT) probing the Bengaluru-based IMA group ponzi scam has arrested the deputy commissioner of Bengaluru urban district BM Vijay Shankar on charges of receiving Rs 1.5 crore from company founder Mohammed Mansoor Khan, the police said.The IAS officer had allegedly taken the bribe to give a favourable report after the RBI asked the state government to probe the company's businesses, they said. With this, the number of people arrested by the SIT has gone up to five.Source: Press Trust of India

July 2019

Believe and Non-Believe of Numerology

CGST Assistant Commissioner in Patna arrestedfor taking Rs 2.5 lakh bribe

Chartered Accountantbooked for aiding Traderin Export Fraud

IAS Officer arrestedon Corruption Chargesin Bengaluru

OFFICE MEMORANDUMNo. 1/20/20 18-P&PW (E)It has been the experience of this Department that the Senior Pensioners i.e. the pensioners 80 years and above are facing a lot of difficulties standing in queues while giving the Life Certificates in November. It has been uhder the consideration of the Government to provide some relief to such pensioners.2. It has therefore, been decided by the Government, that Senior Pensioners aged 80 years and above be allowed to give their Life Certificate w.e.f 1 st October every year instead of November which would be valid till so" November of the subsequent year.3. The remaining pensioners below the age of 80 years may continue to give their Life Certificate in November as per existing provisions of CPAO Scheme booklet. This has the approval of competent authority. Under Secretary to Govt. of IndiaSource: Ministry of Personnel, Public Grievances & Pensions Department of Pension & Pensioners'

Submission of Life Certificate