Promotions of re designated DEOs - Operation of stay of Madras HC

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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Promotions of re-designated DEOs - Operation of stay of Madras HC

By M. Ram kumar

Every promotion in each cadre has its own importance as for as the expectants in the cadre are concerned. In Central Excise and Customs the main field level officers are Inspectors and the entire revenue recovery begins on the action initiated by Inspectors only. Even though this cadre is a much maligned one the importance of it can not be undermined.

In the year 2002 the department witnessed a strange phenomenon called Cadre Restructure and those who are lucky and got the windfall promotions are now enjoying the fruit without many efforts, as usual. However there was another peculiar event that had happened was re designation of Data Entry Operators as SENIOR Tax Assistants in 2003. At one stroke and by ignoring the languishing the so called LDC and UDC almost all DEOs got the windfall and now there is no LDC or UDC. Within a short span most of the Tax Assistants are also promoted as Senior Tax Assistants with in the same year i.e. 2003.

Promotions from Senior Tax Assistants to Inspectors are governed under Rule 12 A and 12 B of the Recruitment Rules which read as:

Rule 12 A : Filling up of the post of Inspector under this rules is applicable only for a period of 2 years from the date of redesignated post of Senior Tax Assistants came into existence i.e. 05.05.2003. This appears to have been extended one more year.

Rule 12 B : Under this Rule the post of Inspector is required to be filled by the Senior Tax Assistant who have completed 2 Years of service in the Post cadre restructure of Senior Tax Assistant.

In order to stop promotions of STAs unless these two rules are challenged and stayed by any court or CAT there appears to be no bar to promote such STAs who have completed two years as STAs as on the date of second restructure i.e.7.8.07. However the Honble High Court of Madras

(Yet to be re designated as High Court of Chennai?) On an W.P. No. 8361 / 2004 by LDC/UDCs(old ministerial cadre) has quashed Rule 5(ii) of STA RR 2003 and Rule 4(4) of the TA RR which prescribed inter-se seniority. The O.A. 462/2003 never challenges the Rule 12A and 12B quoted above. In other words the crux of the issue involved is regarding assigning inter se seniority between pre cadre re structure ministerial cadre of UDC and DEO consequent to their elevation to the post of STA. Therefore the situation obtaining in Chennai CE and Customs Commissionerates does not exist at all in many other Commissionerates. To make the issue clear – wherever DEOs are directly appointed as such INSTEAD OF LDCs who opted as DEOs, they are eligible to become Inspectors and there is no bar on such promotions. Further the Stay given Madras High Court is against filling up f additional posts sanctioned in the cadre of TAs and STAs.

Therefore CBEC should WITH DRAW THE DIRECTIONS GIVEN TO FIELD FORMATIONS VIDE ITS LETTR DATED 7.8.07 in view of Madras HC order dated 13.4.2007. Now AGT is round the corner and there is huge backlog of vacancy in Inspectors cadre and if not filled in time there is a chance of delay in subsequent postings.

[The views are personal]