Top Customs Officer in dock for Rs 1.5 Crore Consultancy Charges

Exchange Rate for imported goods is Rs 74.03 Per Pound Sterling and Rs 51.22 Per Yen-Exchange Rate for export is Rs 72.45 Per Pound Sterling and Rs 49.94 Per Yen-Customs Non-Tariff Notification No.128 Sensex slips further and closes at 8773 100 per cent EOUs allowed to export non-basmati rice-DGFT Notification No.59 Customs duty of 5 per cent imposed on import of Pig Iron, spiegeleisen, semi-finished products, flat products & long products Import of Crude Soyabean Oil subjected to 20 per cent customs duty- no change in import duty on refined soyabean oil-Customs Tariff Notification No.122 Time-limit for filing refund of service tax extended to 6 months-Service Tax Notification No.32 Rahul Bajaj asks Industry to prepare for the worst Tariff Value for import of Brass Scrap is 3525 and for poppy seeds 5206-Customs Non-Tariff Notification No. 127 CBEC clarifies the entire amount of duty paid by the manufacturer, as shown in the invoice would be available as credit irrespective of the fact that subsequent to clearance of the goods, the price is reduced by way of discount or otherwise-Central Excise Circular No.877 Mandavariya (Kishangarh), District Ajmer notified for Unloading of imported goods and loading of export goods-Customs Non-Tariff Notification No.117 SC Ruling-the entitlement of benefit in terms of Section 32AB, Section 80HH and Section 80I of the Income Tax Act- conversion of Jumbo rolls of photographic films into small flats and rolls in the desired sizes amounted to manufacture/production-AIT-2008-413-SC SC Ruling-Whether any "gift" arose in terms of Section 2(xii) of the Gift-tax Act, 1958 on the allotment of rights issue by the appellant company to its shareholders vide Board's Resolution- Whether there was any element of "gift" as defined under Section 2(xii) in the appellant issuing Bonus shares in the ratio of 1:23-AIT-2008-412-SC DEPB benefit allowed on export of cement and steel-DGFT PN 108 exports of cement in all types and forms and primary steel products eligible for export incentives under Focus Market Scheme-DGFT Notification No.58 Import of Marble Tiles-DGFT Notification No.57 Clarification on setting up Duty Free Shops approved by FIPB-Customs Circular No.19 HC Ruling-Income Tax-"reserves" arising out of the acquisition of the business of Tata Cellular Limited could never have the character of "income" in the hands of the petitioners-pre-requisite condition contained in proviso to section 147 to enable the re-assessment to be opened after period of 4 years have elapsed have not been met-AIT-2008-410-HC HC Ruling-Central Excise- valuation of the goods for the purpose of excise duty and whether excise duty was chargeable under Section 4 or Section 4A of the Central Excise Act 1944-while construing rule 3, who are excluded are only the institutional or industrial consumers as explained in Rule 2A and the industrial or institutional consumers in terms of the proviso to rule 2(p) for the purpose of chapter-II are the same-If the person who purchase the prepacked commodity not directly from the manufacturer or packers, they are consumers and the declaration will be of no effect-AIT-2008-408-HC Government considering imposition of import duty on steel Bad News for Consulting Engineers- whether turnkey contract can be vivisected?- The conclusion in Daelim case on the point, prima facie, being not in accordance with law, matter goes to Larger Bench-AIT-2008-405-CESTAT Larger Bench of CESTAT rules Credit is admissible on an input service relating to the business-AIT-2008-407-CESTAT credit of the service tax paid on the outdoor catering (canteen) service is admissible as input service under Rule 2(l) of the Cenvat Credit Rules, 2004-AIT-2008-406-CESTAT The payment for use of "services for MTNL/other companies via the interconnect/port/access/toll by the assessee would not fall within the purview of payments as provided for under section 194J of the Act, so as to be eligible for tax deduction at source-The interconnect charges/port access charges cannot be regarded as fees for technical services-AIT-2008-404-HC Computation of Value under Section 14 for Levy of Export Duty - Customs Circular No. 18 Advance Ruling- Whether the service fee paid by the applicant to Intertek Testing Management Limited UK under Global Management Service Agreement is taxable as "Royalties & Fee for Technical Services" as per the provisions of Article 13 of DTAA between India & UK? Whether the applicant is required to deduct tax at source on the service fee paid to Intertek Testing Management Limited, UK, at the rate of 10% plus applicable surcharge and cess as per the provisions of section 115A(1)(b)(BB) of the Income-tax Act-AIT-2008-401-AAR Larger Bench of SC Ruling-whether the revenue can be precluded from filing an appeal even though in respect of some other years involving identical dispute no appeal is filed -AIT-2008-403-SC SC Ruling-whether transfer of Banking Undertaking gave rise to taxable capital gains under Section 45 of the 1961 Act-it was not possible to compute capital gains and, therefore, the said amount of Rs. 10.20 cr. was not taxable under Section 45 of Income Tax Act-AIT-2008-400-SC Export duty of 8 per cent notified in place of earlier rate of Rs. 200 per tonne on export of iron ore fines-Customs Tariff Notification No.121 Pan Masala Packing Machines (Capacity Determination And Collection of Duty) Second Amendment Rules, 2008-Central Excise Non-Tariff Notification No.45 SC rules Ethylene and propylene manufactured by the assessee and used in its factory in the further manufacture of the same goods would be entitled to the benefit of exemption contained in notification no.217/86-AIT-2008-398-SC New DEPB Rates on export of all products notified–DGFT PN 102 service tax paid under Section 66A is available as 'input credit' under Cenvat Credit Rules, 2004 provided the said services are used as input services by the manufacturer or producer of final products or a provider of output taxable service-Service Tax Trade Notice No.43/2008 Anti-dumping duty imposed on import of cable ties from China & Taiwan-Customs Tariff Notification No.118 Definitive Anti-dumping duty imposed on import of Phenol from Singapore, South Africa & European Union-Customs Tariff Notification No.114 High-tech products entitled to benefits under High-Tech Products Export Promotion Scheme –DGFT PN 101

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Top Customs Officer in dock for Rs 1.5 Crore Consultancy Charges

AIT News Network

MUMBAI. Axe has finally fallen on High profile Top Customs Officer of the rank of Chief Commissioner who now faces major penalty for alleged official misconduct for cheque payments amounting to around Rs 1.5 Crore received by his alleged innocent and inexperienced son from an Industrial House while he adjudicated a case in favour of the said Industrial House.

A firm M/s Alpha Medallia Agencies Private Limited, was allegedly floated only on paper, having no books of accounts, by inexperienced 24 year old son of the Top Customs Officer merely to recover Consultancy Charges of around Rs 1.5 Crore from the Industrial Group with whom his father had official dealings during his long stint in Mumbai. The firm could not produce any evidence to prove that it had provided any Consultancy to the said Companies. The rich son had no previous experience of any business or consultancy as shown to have been provided by him.
Customs Officer did not intimate the department under conduct rules about his son getting a huge consultancy fee from Company while he was himself adjudicating the matter related to the Company. Non-intimation is contravention of of Rule 4(2)(ii) of the CCS (conduct) Rules. The Top Officer has claimed that he was not aware of the activities of his son that he was a Consultant for the Companies which had official dealings with them.
The High Profile Officer was posted in Mumbai as Commissioner of customs (Imports), for a long time during the period when M/s Alpha Medallia received consultancy fees. The Officer adjudicated a matter pertaining to the import of company manuals, containing front-end engineering packages by a Big Group.
The Customs issued a Show Cause notice for Customs duty demand and penalty of Rs 62 crore . The Customs Officer adjudicated the case and lowered Customs duty to Rs 3.36 crore and also imposed a nominal penalty of Rs 10 lakh. The Customs Department challenged the order in appeal.
Another Company by the name of Abbavardin Impex allegedly floated by the son is said to have exported diamond and jewellery etc to Gulf , Hong Kong and South Africa, Oman and Hong Kong to the tune of Crores but inquiry by investigating agency has revealed these were fictitious transactions.
Corruption at Top level is the biggest challenge being faced by the Customs Department. Several Top Officers including Chairman of CBEC were booked by CBI in the past but the things have not changed and there is no soul-searching by the Officers.
Is there any use of booking an Officer for misusing his Position when the Officer has already worked with the Government for 35 years and is going to retire in next 3 months?
Government Officers remain poor while their sons, wives and relatives become rich. When they retire; they are disowned by even their own family members. A Senior IRS Officer was recently raided by CBI in Delhi and his own son is said to be informer as the relations between son and father strained on disputes related to share of money in business run by them. An IRS is yet to recover from the jolt given by his wife who did not bother to reach court when his bail application was being heard and he was in judicial custody as she opted for Airconditioned environment of her house rather than running around in heat of the summer.But exceptions are always there. A Senior IRS posted in Kolkata was raided by CBI some time back and cash of Rs 50 Lakh was recovered from Bank Locker. His wife gave a statement before the court that she was a High Class Call Girl and the cash seized by CBI was her income earned through Profession and her innocent husband was not aware of her Profession. Innocent husband was ultimately acquitted of corruption charges as the source of seized cash was duly explained by "Professional though unfaithful" wife.

· Another IRS Officer arrested by CBI

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· A Dozen IRS Officers resign for Packages of Rs 1 Crore