The Hindu Business Line : We don't have a human analyser machine yet

A PUBLIC Notice from the New Delhi Commissioner of Customs talks of a new gadget installed in the Noida Special Economic Zone. It is the `precious metal analyser machine' and it is taking over work that humans used to do. "Hitherto the jewellery consignments requiring examination... are being examined/appraised by jewellery appraiser," reads the communication. Hereafter, the Preventive Officer on duty will do examination of such plain jewellery consignments with the help of the new machine. So, what will the gizmo do? It will generate `purity report'.

If only there were a precious human analyser machine to print a similar report.

Why hurry to courtroom?

SCORES of consignments of emergency lamps, with tubes of Chinese origin, came via Hong Kong to Chennai. Importers declared the value as $3.25 per unit; they sought that 16 per cent be levied on the MRP of Rs 330 plus a SAD of 4 per cent on the assessed value.

A `query' was sent by the Department that as per the instructions of Special Investigating Intelligence Branch the value was to be $5.25. Importers sent their replies that $3.25 was "the correct and true value". Also, they filed writ petitions. A whole batch of such petitions came up before the Madras High Court only to be dismissed as having no merit.

Justice F. M. Ibrahim Kalifulla observed that the writ petitions were "highly premature in nature", filed "to thwart the statutory exercise" to be performed by the Department, and that the communication was only a `query'. "It can at best be stated to be an `expression of doubt' which looms large in the mind of the Department in accepting the transaction value as declared."

Perhaps the lamps also could be some sophisticated ones, which would glow as soon there were even a query about power failure. But even at $6, the lamps should have been fairly cheap for consumers, which one wonders whether they were.

Observation of substance

ABOUT four years ago, when an Uzbeck national came to India "to do business in garments" it was found that she was "carrying large quantity of Diazepam" tablets. Don't gulp it as if it were an antacid because it is a `psychotropic' substance that can have an altering effect on perception, emotion, or behaviour, or a `drug' in short.

The Uzbeck was, therefore, arrested under the Narcotic Drugs and Psychotropic Substance Act. However, she could get a bail when the High Court was of the view that the substance recovered "cannot be treated to be a psychotropic substance", even though the Department produced a report of the Central Control Laboratory.

At the apex court, things took a different turn. The judges said that the High Court had not kept in view the description of Diazepam. Also, the lab report "was lightly brushed aside without any justifiable reason."

An observation of substance, one may say.

Steel unstained

ONE fine morning the Mumbai Customs got hold of a big consignment of steel belonging to Siddhi Vinayak Steel. The Department said that the same was part of the importation made in Chennai. During adjudication two things came up: One, the company pleaded that it was the Revenue's own case that the seized consignment "is a part of the importation made at Chennai" and so the Mumbai officer did not have any jurisdiction. "Alternatively, it was pleaded that the goods have been obtained by the appellants from the local market, in support of which they placed various bills on record."

At the Mumbai Tribunal, the company's advocate referred to the observation of the Department — "that the appellants could not disclose the lorry numbers or the specific description of the goods like width, length, and so on."

The advocate said that it was not possible for any trader to remember all these factors. The Tribunal ruled: "Goods cannot be held to be of smuggled nature; and if at all there is a contravention, it is for the importer at Chennai who, instead of using the goods themselves, has diverted the same to the local market. The goods, in any case, cannot be said to be of tainted character."

Stainless steel, may we say?

Case of transparent soap

READ this from a recent ruling of the Mumbai CESTAT in the Kimberly-Clark Lever P Ltd case: Appellants are manufacturers of diapers and clear the goods for sale to the depots of C&F agents Hindustan Lever Ltd; from these depots the goods are sold to wholesale buyers; in September 1997, for a `promotional pack' of diapers, they declared a lower price, and this was with an offer of one Pears soap free to the consumer; Duty was paid on the reduced price declared; dealers were billed separately for the price of Pears soap.

The Department questioned the valuation of promotional pack. When the company approached the Tribunal, the decision was to remand the issue back to the Department for re-determination after finding out whether or not the sale of Pears soap to the wholesale buyer was compulsory.

One hopes they see through the transparent soap.

Mistakes are expensive

ROM is read-only memory. But that's with reference to computers. For taxman, it means `rectification of mistake'.

In a recent ROM case that involved Besterna Chemicals, the issue was about a higher rate that the Commissioner stated in his order. Instead of 16 per cent, he put 18 per cent.

To decide this, the Tribunal had to cite a couple of case laws and rule thus: "It is clear that there is a mistake apparent on record which the Tribunal has power to correct." By reducing `M' in ROM, there could be ample savings by plugging avoidable litigation.

Tailpiece

"Tax collections cross Budget estimates!"

"In spite of you!"

Detaxification@TheHindu.co.in

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