Financial Daily from THE HINDU group of publications
Saturday, Apr 24, 2004
Columns - Detaxfication
We don't have a human analyser machine yet
If only there were a precious human analyser machine to print a similar report.
Why hurry to courtroom?
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
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.
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
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
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.
"Tax collections cross Budget estimates!"
"In spite of you!"
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