December 25, 2014 FOREWORD The Government attaches utmost importance to the need for improving Governance and service delivery to the common man. One of the important tenets in this direction is the effective use of IT based applications under e-Governance initiatives. In line with this, the Ministry of Finance has taken-up the initiative of raising […]
E-Book on Good Governance – Ministry of Finance
December 25, 2014
FOREWORD
The Government attaches utmost importance to the need for improving Governance and service delivery to the common man. One of the important tenets in this direction is the effective use of IT based applications under e-Governance initiatives. In line with this, the Ministry of Finance has taken-up the initiative of raising an e-Book.
This provides an easy access to various initiatives including good governance initiatives taken under the Ministry of Finance (MoF) and an IT enabled platform. MoF hopes this will be useful to the citizens and an important step in bringing the governance closer to the public.
Ministry of Finance (MoF) is happy to launch this initiative on "Sushashan Diwas" (Good Governance Day).
Ministry of Finance Team
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
(i) As part of the Government's commitment to the principle of 'Minimum Government and Maximum Governance', Expenditure Management Commission was constituted on 5.9.2014 to review the allocative and operational efficiencies of Government expenditure. The Commission will submit its interim report before the Budget of 2015-16 and its final report before the Budget of 2016-17.
(ii) In the wake of severe calamities like Cyclones, Floods and Droughts etc., an amount of ₹ 427.06 crore, ₹ 10.74 crore, ₹ 1.42 crore, ₹ 82.77 crore, ₹ 83.13 crore, ₹ 172.33 crore, ₹ 18.51 crore and ₹ 1000.00 crore has been released to the States of Andhra Pradesh, Arunachal Pradesh, Himachal Pradesh, Karnataka, Madhya Pradesh, Uttarakhand, Telangana and J&K respectively for taking up immediate rescue, relief and restoration works.
(iii) Department of Expenditure has enhanced the delegation of powers for appraisal and approval of Plan Schemes and Projects at all levels. All schemes and projects up to ₹ 500 crore can now be approved by Central Ministries themselves, and only projects above ₹ 1000 crore are now required to be sent to the Cabinet for approval.
(iv) Swachh Bharat Kosh (SBK) has been set up to attract Corporate Social Responsibility (CSR) funds from corporate sector and contributions from individuals and philanthropists in response to the call given by Hon'ble Prime Minister on 15th August, 2014 to achieve the objective of Clean India (Swachh Bharat) by the year 2019, the 150th year of the birth anniversary of Mahatma Gandhi through Swachh Bharat Mission.
(v) Direct Benefit Transfer (DBT) : The vision of DBT is to transfer cash or benefits directly to the beneficiaries' accounts, preferably Aadhar seeded, cutting down several layers of the intermediaries in order to achieve timely and more frequent payments, target intended beneficiaries more accurately, remove fake, ghost beneficiaries and de duplicate and improve efficiency in delivery system. This is also to create transparency and accountability in government delivery systems and empower beneficiaries.
(vi) Central Pension Accounting Office (CPAO) has initiated process of issuing e-PPO to the pensioners. The CPAO has introduced the facility to see the first credit of pension in the pensioners/family pensioners bank account through its website.
DEPARTMENT OF FINANCIAL SERVICES
(vii) Financial Inclusion and Pradhan Mantri Jan Dhan Yojana (PMJDY):To increase banking penetration and promoting financial inclusion and with the main objective of covering all households with at least one bank account per household across the country , a National Mission on Financial Inclusion named as Pradhan Mantri Jan Dhan Yojana (PMJDY) announced by Hon'ble Prime Minister in his Independence Day Speech on 15th August, 2014 was formally launched on 28th August, 2014 at National level by Hon'ble Prime Minister.
(viii) Licensing small banks, payments banks and other differentiated banks: The Reserve Bank of India (RBI) formulated and released guidelines for licensing of payments banks and small finance banks in the private sector on November 27, 2014.
(ix) Varishta Pension Bima Yojana(VPBY): Government revived the 2003-04Varishta Pension Bima Yojana(VPBY) for one year for senior citizens over 60 years of age to enable a pension between ₹ 500 and ₹ 5000 per month against a stipulated purchase price, implying a monthly rate of return of 9%. Quarterly, biennual and annual options are also available.
(x) Cabinet Approval for Revival of 23 District Central Cooperative Banks: The Cabinet approved the Scheme for revival of 23 unlicensed District Central Cooperative Banks (DCCBs) in four States, comprising 16 in Uttar Pradesh, 3 in Jammu & Kashmir, 3 in Maharashtra and 1 in West Bengal. Under the Scheme, the total capital infusion envisaged would be ₹ 2375.42 Crore, of which the commitment from the Central Government would be ₹ 673.29 Crore. State Governments would provide ₹ 1464.59 Crore and NABARD ₹ 237.54 Crore.
DEPARTMENT OF ECONOMIC AFFAIRS
(xi) Several measures taken by the Government in the past seven months which augur well for the growth of Indian economy as evidenced in the following outcomes:
- GDP growth which was below 5 percent in the last two years has grown at 5.5 per cent in the first half of the current year.
- Inflation as measured by Consumer Price Index is at its lowest ever level in November 2014 (4.4 per cent) since the introduction of the new series in 2011-12.
- Wholesale Price Index inflation is 0.0 per cent for November, 2014, lowest since 2009. This has been achieved largely due to constant monitoring and measures taken such as delisting of vegetables and perishables from APMC Act, release of food grains stocks, fixing of minimum export prices for key commodities.
- India's external sector is now far more resilient and robust than before. Current account deficit was 1.9 per cent of GDP in the first half of 2014-15 as against 3.1 percent of GDP in the first half of 2013-14.
- Capital flows particularly investment flows have been buoyant in the first half of 2014-15 and there has been significant addition to the foreign exchange reserves. Total Investment Flows are placed at USD 43.4 billion in April-October, 2014 as against USD 9.4 billion
in April-October, 2013. Foreign Exchange Reserves stood at US$ 314.7 billion as on December 5, 2014.
(xii) Initiatives to promote savings rate in the economy:
- Investment limit under Public Provident Fund increased from ₹ 1 lakh to ₹ 1.5 lakh;
- A scheme exclusively for the girl child has been notified. The scheme will provide funds at the stage of "Education" and "Marriage" of the girl child.
(xiii) Initiatives taken by SEBI on Good Governance in past seven (7) months:
- To strengthen regulatory framework dealing with the insider trading SEBI Board in its meeting held on 19.11 14 approved amendments to SEBI (Prohibition of Insider Trading) Regulations 1992. The amendments provide for strengthening the legal and enforcement framework, align insider trading norms with international practices, clarity in definitions and concepts and facilitate legitimate business transactions.
- To address these concerns and to make the delisting process less cumbersome, SEBI Board in its meeting held on 19th November 2014 has approved certain proposals to review the existing regulatory framework on delisting for making it more effective by amending the SEBI (Delisting of Equity Shares) Regulations, 2009. The proposals approved, among others, includes conditions for the delisting to be successful, the process of the determination of offer price through reverse book building process, reducing timeline for completing the delisting process etc.
- SEBI vide its circular dated 12.11.14 provided for a framework to enable a single consolidated view of all the investments of an investor in Mutual Funds (MF) and securities held in demat form with the Depositories.
- SEBI vide circular dated13.10.2014 approved single registration for operating in all stock exchanges and / clearing corporations. This would simplify the registration requirements for stock brokers and clearing members.
- SEBI has been taking various measures to create awareness among investors about grievance mechanisms available to them through workshops as well as through print and electronic media. Vide circular dated 28.8.14 provided that all Stock Brokers and Depository Participants shall prominently display basic information about the grievance redressal mechanism available to investors in their offices in a prescribed format.
- SEBI vide its circular dated 8.8.2014 expanded the framework of the Offer for Sale of shares through Stock exchange mechanism which inter alia provided that a minimum of 10% of the offer size shall be reserved for retail investors.
(xiv) ECB / trade credit permission has been digitalized using the on-line application tracking system (ATS) of the RBI. The ATS, which can be accessed via a web browser over the internet, allows applicants to submit and track the status of the submitted application.
(xv) Real Estate Investment Trusts (REITs)/Infrastructure Investment Trust (InvITs) – Government has announced REITs and InVITs – innovative financing instruments for financing real estate and infrastructure projects. REITs have been successfully used as instruments for pooling of investments in several countries. InvITs seeks to facilitate similar structure for infrastructure projects. This will allow original equity investor to exit their investments which is expected to give a fillip to both, cash strapped real estate projects and infrastructure projects. Guidelines/ Regulations issued by SEBI.
DEPARTMENT OF REVENUE
Central Board of Direct Taxes (CBDT)
(xvi) While broadening the tax base and providing an equitable tax regime has been the underlying theme of the tax policy of the government, sustained economic growth continues to be the prime objective. Even in the limited fiscal space several important and path breaking initiatives for reviving the economy, promoting investment in manufacturing sector and measures of rationalising tax provisions so as to reduce litigation were introduced through the Finance (No.2) Act , 2014.
(xvii) Tax clarity and Dispute Resolution:
- Introduction of a "Roll Back" provision in the Advanced Pricing Agreement (APA) scheme so that an APA entered into for future transactions is also applicable to international transactions undertaken in previous four years in specified circumstances.
- Introduction of range concept for determination of arm's length price in transfer pricing regulations.
- To allow use of multiple year data for comparability analysis under transfer pricing regulations.
- Resident taxpayers enabled to obtain an advance ruling in respect of their income tax liability above a defined threshold.
- The scope of the Income-tax Settlement Commission enlarged.
- High Level Committee has been set up to interact with trade and industry on a regular basis and ascertain areas where clarity in tax laws is required and based on their recommendation the Central Boards of Direct and Indirect Taxes would issue appropriate clarifications in a time bound manner, wherever considered necessary.
(xviii) Non-adversarial tax regime:
In furtherance of its objective to improve the efficiency and equity of the tax system and to promote voluntary compliance, the emphasis of the government has been for providing a non-adversarial tax regime. Accordingly, the Central Board of Direct Taxes has issued detailed instructions to its field formations to ensure that the dignity of the taxpayers is respected while dealing with them, no frivolous demands are raised and no unnecessary litigation is continued.
(xix) Measures to curb Black Money
The Government is committed to take all possible measures to check the menace of black money in the country. These measures include putting in place robust legislative and administrative frameworks, systems and processes with due focus on capacity building and integration of information and its mining through increasing use of information technology. Certain major recent initiatives include the following:
- Constitution of a Special Investigation Team (SIT), in May 2014, with two former judges of the Hon`ble Supreme Court as Chairman and Vice-Chairman, inter alia, to deal with issues relating to black money stashed abroad;
- While focusing upon non-intrusive measures, due emphasis on intrusive enforcement measures in high impact cases with a view to prosecute the offenders at the earliest possible, for creating effective deterrence against tax evasion;
- Joining the global efforts to combat tax evasion, including supporting implementation of a uniform global standard on Automatic Exchange of Information on a fully reciprocal basis, facilitating exchange of information regarding persons hiding money in offshore centres;
- Legislative measures, wherever required, including amendment to section 285BA of the Income-tax Act, 1961 vide Finance (No.2) Act, 2014 facilitating the Automatic Exchange of Information;
Central Board of Excise and Customs (CBEC)
(xx) Measures to boost domestic manufacturing sector: A number of changes in the customs and excise duty structure including rectification of inverted duty structure have been made to promote domestic manufacture, attract new investment, increase capacity utilization & enable domestic value addition in sectors, such as electronics & IT, steel, chemicals & petrochemicals, and renewable energy.
(xxi) Rationalization of customs duty structure:
- on non-agglomerated coal of various types at 2.5% BCD and 2% CVD
- reduction in customs duty from 5% to 2.5% on ships imported for breaking up
- increase in customs duty on half-cut or broken diamonds from NIL to 2.5% and on cut & on polished diamonds and colored gemstones from 2% to 2.5%
(xxii) Relief Measures:
- Life micro-insurance schemes for the poor exempted from service tax
- Transport of organic manure by vessel, rail or road (by GTA) exempted from service tax
- Loading, unloading, packing, storage or warehousing, transport by vessel, rail, road(GTA), of cotton, ginned or baled, exempted from service tax
- Services provided by common bio-medical waste treatment facility operators for safe disposal of waste exempted from service tax
(xxiii) Clean Environment Initiative:
- Rate of Clean Energy Cess, levied on coal, lignite and peat, increased from ₹ 50 per tonne to ₹ 100 per tonne so as to replenish the National Clean Energy Fund for clean environment and energy purposes.
- Services provided by common bio-medical waste treatment facility operators for safe disposal of waste exempted from service tax.
(xxiv) Trade Facilitation:
- 24X7 Customs clearance facility is being established in 17 airports and 18 seaports by 31.12.2014. This would cover all exports in the 17 airports and exports involving free shipping bills and factory stuffed exports in the 18 sea ports.
- Customs Single Window Clearance Project for faster Customs clearance has been initiated and to begin with will be implemented with Plant Quarantine and Food Safety Standards Authority of India.
- Customs Accredited Client Programme (ACP) has been reviewed with a view to allow a graded re-entry to disqualified ACP clients. This will greatly facilitate major importers.
- Guidelines for establishing Air Freight Stations have been approved in consultation with M/o Civil Aviation with a view to encourage international air cargo.
- An integrated Customs EDI – SEZ Online system would be implemented w.e.f. 31.12.2014 for expediting the paper-less movement of export and import goods between SEZs and Gateway ports.
- The dual use of infrastructure created by developers of SEZs in the non-processing areas has been allowed. Thus, such infrastructure can now cater to both SEZ and domestic entities, which will ensure optimum utilization of existing infrastructure as well as incentivize development of new infrastructure.
- An automated risk management system (Advance Passenger Information System) has been initiated to facilitate genuine passengers at international airports by identifying suspect passengers in a scientific manner.
- E-payment of service tax and central excise has been made mandatory for all assessees/taxpayers in order to reduce the cost of compliance for the trade and industry
DEPARTMENT OF DISINVESTMENT
(xxv) Actual disinvestment: Government has disinvested 5% equity in SAIL and realized ₹ 1,720 crore. This Offer for Sale (OFS) of Shares through Stock Exchange Mechanism was one of the best ever by the Government in terms of high percent subscription and low discount offered.
(xxvi) Operationalizing the Action Plan on Disinvestment: CCEA approved the disinvestment proposals of Coal India Ltd (10% equity), ONGC (5%), NHPC (11.36%), PFC (5%) and REC (5%). Government sees disinvestment of CPSEs as a tool for realizing their productive potential, while improving corporate governance, public accountability, participation of the people and raising resources for priority Government social and economic programs.
(xxvii) Making the disinvestment program more inclusive: Earlier there was no reservation for retail investors in OFS. However, on 8 August, 2014, SEBI has mandated that minimum 10% of the offer size shall be reserved for retail investors in OFS and a discount has also been made admissible to them. Subsequent to this amendment in OFS Guidelines, Government has approved upto 20% of the offer size being reserved for retail investors. Further, retail investors may be allocated shares at a discount. This is likely to improve public participation in the disinvestment program.
(xxviii) Minimum Public Shareholding norms: In August 2014, SEBI has amended the minimum public shareholding norms for every listed CPSE. After this amendment, every listed CPSE has to increase its public shareholding to at least 25%, within a period of 3 years. This is likely to give further impetus to disinvestment of CPSEs with attendant benefits.
Delhi VAT : Sale of used cars not subject to VAT
CA Sumit Grover
Recently, Hon'ble Delhi High Court in the matter of Anand Decors & Ors. v. CTT, New Delhi, has pronounced that the cars, even though fall within capital goods, but sale of used cars is not subject to VAT under Delhi VAT Act, by virtue of section 6(3) of ibid.
Brief facts of the case:
The appellants were manufacturing certain commodities & were registered dealers under DVAT Act. They purchased motor vehicles(though non-dealing in the trading of motor vehicles) but didn't avail ITC thereon under DVAT. The revenue authorities considered the subsequent sale of said vehicles(post use thereof) as chargeable to VAT. The Tribunal also upheld the view of department. Thereafter, the appellant moved to High Court. And following observations were made by the Court:
1) Capital goods & capital assets are distinguishable;
2) Motor Vehicles would be a capital good, since the expression used is "directly or indirectly used in manufacturing……" & its purchase thereof would form part of business, but ITC thereon is not available by virtue of section 9(2).
3) Four conditions have be met out for excluding sale of car from the ambit of taxability under DVAT(i.e. exemption u/s 6(3) of ibid):
- There should be a sale of capital goods;
- The said capital goods should have been used by the dealer from the time of purchase till sale;
- The purpose for which the capital goods were used should be for making sale of taxable goods or taxable goods and non-taxable goods. The capital goods should not be exclusively used for making sale of non-taxable goods.
- The dealer should not have taken tax credit in respect of such capital goods under Section 9.
4) In the instant case, all these conditions have been duly fulfilled by the appellant, accordingly, the benefit of exemption from VAT can't be denied.
Comments: This verdict has emerged as a breather to the industry. Undue litigation from departmental side would be halted till the time any overruling verdict by the Apex Court is pronounced.Such types of litigation prone areas should also be taken up by the Ministry of Finance at the time of framing GST laws.
Third party data is used for (a) identification of all taxpayers who are liable to pay tax, but do not pay and (b) to ensure that taxpayers discharge their tax liability properly. 1. Information from Reserve Bank of India (RBI)/authorised banks for handling foreign exchange As part of an exercise undertaken by the DG Audit […]
7 Third Party Sources CBEC uses for detection of tax evaders
Third party data is used for (a) identification of all taxpayers who are liable to pay tax, but do not pay and (b) to ensure that taxpayers discharge their tax liability properly.
1. Information from Reserve Bank of India (RBI)/authorised banks for handling foreign exchange
As part of an exercise undertaken by the DG Audit to verify whether the service tax had been correctly paid on services sourced from outside India, transaction wise data relating to foreign remittances for selected purposes was collected from authorised foreign exchange dealers. Banks, which are authorised dealers of Foreign Exchange, maintain transaction-wise details of amount remitted outside the country. These details include the purpose for which the amount is remitted. There are 36 Purpose Codes that attract service tax liability. This data was used to identify potential taxpayers. It was found that there was a gap between the service tax payable and actually collected. In many cases, the remitters of foreign exchange who appeared liable to pay service tax were not even registered with service tax. ACES data available on service tax registrants and service tax payments was used for this purpose. Investigations have so far resulted in huge recovery.
2. Information from Income Tax
The CBDT maintains data pertaining to deductions effected for various purposes under specific heads.
| 1 | Insurance Commission | Section 194 D |
| 2 | Commission on Brokerage | Section 194 H |
| 3 | Rent for use of Property | Section 194 I |
| 4 | Payment to Service Providers | Section 194 J |
| 5 | Payment to Work Contractors | Section 194 C |
This data is useful for co-relating the service tax liability and income shown to the CBDT.
3. Information from the Central Board of Film Certification (CBFC)
The CBFC provides the details of films produced and owners of copyright, which is useful for identification of service providers. The list of all films produced and their owners with PAN number was obtained and data in ACES was matched to identify potential service tax payers. Many non-registrants were identified in this exercise and service tax was recovered.
4. Information from Ministry of Information and Broadcasting and Telecom Regulatory Authority of India
Annual reports published by Telecom Regulatory Authority of India (TRAI) and the website of Ministry of Information and Broadcasting contain details of television stations, radio stations and cable operators, which is useful for identifying service providers. By using the information available on the website, details of all service providers obtained and the PAN details were matched with ACES database. A large number of non-registrants were identified across the country and action for recovery of service tax taken.
5. Information from Civic Agencies
The information about civil contractors with authorities like the Delhi Development Authority can assist in identifying service providers, particularly in the construction sector. Details of service providers were procured from the civic authorities in Mumbai and Delhi, and their permanent account numbers (PANs) were matched with the ACES database. A large number of non-registrants who were required to register with service tax were identified and action taken for recovery of service tax.
6. Information from State VAT department
Information exchange between centre and state VAT departments have huge potential to detect non-compliance. A project between the CBEC, CBDT and Maharashtra VAT department called 'Tax 360' has unearthed huge evasion of duty by taxpayers.
7. Information from other Ministries:
Details of services provided by the Home Ministry by deploying the Central Industrial Security Force (CISF) for security of public installations like refineries, airports etc., and remunerations received were obtained from Home Ministry and service tax liability on such remunerations was recovered.
(Compiled by CA Sandeep Kanoi based on 3rd TARC Report)
1. Why should you pay taxes? You often wonder why you should pay any taxes. Some people think that taxes are paid only by the rich. Some people think that if they do not pay due taxes, nobody will notice. Some people wonder why taxes should be paid, since there is little that one gets […]
On the income tax side, countless assessees have faced difficulties owing to the tendency on the part of the assessing officers to arbitrarily adjust refunds against demands, many of them artificially created, without any reference to the assessees, which is a most unjust and unreasonable approach. The magnitude of the harassment resulting from the non-matching […]
Public interest litigation in TDS issues
On the income tax side, countless assessees have faced difficulties owing to the tendency on the part of the assessing officers to arbitrarily adjust refunds against demands, many of them artificially created, without any reference to the assessees, which is a most unjust and unreasonable approach. The magnitude of the harassment resulting from the non-matching of TDS and the resultant denial of refunds led the Delhi High Court to issue detailed directions, in the form of a 7- point mandamus, following which the CBDT issued a series of instructions to address the issue . The fact that it took stern orders from the High Court for the CBDT to seriously address the burning issue of inflicting harassment on a large body of taxpayers, can only be a reflection its attitude towards the taxpayer. Had the impact of the change to centralised processing on the taxpayer been properly considered and included in change management planning, many of the difficulties eventually faced by the taxpayer would have been anticipated and plans put in place to mitigate them. This would have avoided the widespread inconvenience to the taxpayers and criticism of the department.
Public interest litigation in TDS issues
In April 2012, Shri Anand Prakash, wrote a letter to the Delhi High Court voicing the agony of countless taxpayers, after he experienced utter helplessness and frustration due to numerous difficulties faced by taxpayers arising from the faulty processing of income-tax returns and TDS credit. Shri Anand Prakash pointed out that in processing the tax return under Section 143(1) of the I-T Act, there was invariably a mismatch between the TDS credit claimed and the TDS credit granted and demands were raised due to such mismatch. The department ignored the figure of TDS credit claimed and mechanically granted credit only for the credits shown in the online computer records, as available in Form No26AS. The taxpayers' protests were ignored even when proof of the TDS deduction was produced. Thereafter, demands were raised and often adjusted unilaterally with refunds that may be due to the taxpayer in future.
The mismatches were primarily due to errors or failure on the part of deductors and the only recourse for the taxpayer was to chase the deductors, many of them being government departments against whom the taxpayer was helpless. However, when it came to issuing demands, or adjusting fictitious demands against refunds, the department seemed to show remarkable promptitude.
The letter also pointed out that before fully or partly adjusting the refunds against past arrears, no opportunity was being given to the taxpayer though Section 245 of the Act provides for this.
The Delhi High Court took notice of the letter, treating this as public interest litigation. After a detailed and critical examination of the issues, it delivered detailed orders in Writ Petitions (Civil) Numbers 2659/2012 and 5443/2013 on July 31, 2012 and March 14, 2013, respectively. These orders included a 7-point mandamus to the CBDT. Based on the mandamus, the CBDT issued necessary instructions implementing the directions of the Delhi High Court.
1. In the case of Commissioner of Income Tax-6, Mumbai vs Maersk Global Service Centre (I) Pvt. Ltd (TS-260-HC2014 (BOM)-TP), the revenue was in appeal before the Bombay High Court, questioning the orders both of the Commissioner (Appeals) and the Income Tax Appellate Tribunal. The burden of the revenue's song was that, in view of [
Three examples of needless litigation
1. In the case of Commissioner of Income Tax-6, Mumbai vs Maersk Global Service Centre (I) Pvt. Ltd (TS-260-HC2014 (BOM)-TP), the revenue was in appeal before the Bombay High Court, questioning the orders both of the Commissioner (Appeals) and the Income Tax Appellate Tribunal. The burden of the revenue's song was that, in view of the infirmities of the Assessing Officer's (AO's) order, the Commissioner ought to have remanded the case back to him for a fresh consideration. Finding that the Commissioner had considered all aspects, including those alleged to have been ignored by the AO (in other words, the Commissioner himself corrected the omission of the AO by undertaking the exercise that the AO had omitted to do) and passed a reasoned order, the Tribunal had negated the appeal and upheld the Commissioner's order. While dismissing the appeal, the High Court said:
"To our mind, the order of the Tribunal is not vitiated by any serious legal infirmity nor is it perverse, rather it is unfortunate that a detailed and properly reasoned order of the First Appellate Authority and the Second Appellate Authority is being challenged and that too on such grounds by the revenue. We would highly appreciate the parties not discrediting the Tribunal or the First Appellate Authority in this manner. The complaints about unfair treatment or breach of principles of natural justice ought to be backed and supported by some material which would demonstrate serious prejudice and loss. A technical objection of nature will not carry the case of either parties (sic) any further. It would mean that a speaking order or the record is disputed or challenged by oral complaints across the bar before this Court. Nothing is going to be achieved by such an approach and in the least by the revenue. In these circumstances and finding that the present appeals are brought by the revenue on frivolous complaint of breach of principles of natural justice, we are constrained to dismiss them with costs. That is because we are also wasting precious judicial time by hearing such appeals and perusing the record."
2. In M/s RGL Converters Vs Commissioner of Central Excise Delhi-I (2014-TIOL-2305-CESTAT-DEL), while upholding the taxpayer's appeal, the CESTAT felt compelled to award costs to the appellant and direct a copy of their order to be sent to the CBEC and Secretary (Revenue). This was a case involving failure of judicial discipline on the part of original and appellate officers of the department in not following a judicial precedent binding on them and the consternation of the Tribunal is clearly reflected in the following observations:
"10. It is axiomatic that judgments of this Tribunal have precedential authority and are binding in all quasi-judicial authorities (Primary or Appellate), administering the provisions of the Act, 1944. If an adjudicating authority is unaware of this basic principle, the authority must be inferred to be inadequately equipped to deliver the quasi-judicial functions entrusted to his case. If the authority is aware of the hierarchical judicial discipline (of precedents) but chooses to transgress the discipline, the conduct amounts to judicial misconduct, liable in appropriate cases for disciplinary action……
12. Nevertheless, the primary and the lower appellate Authorities in this case, despite adverting to the judgment of this Tribunal and without concluding that the judgment had suffered either a temporal or plenary eclipse (on account of suspension or reversal of its ratio by any higher judicial authority), have chosen to ignore judicial discipline and have recorded conclusions diametrically contrary to the judgment of this Tribunal. This is either illustrative of gross incompetence or clear irresponsible conduct and a serious transgression of quasi-judicial norms by the primary and the lower Appellate Authorities, in this case. Such perverse orders further clog the appellate docket of this Tribunal, already burdened with a huge pendency, apart from accentuating the faith deficit of the citizen/assessee, in departmental adjudication……
15. In the circumstances and since the Authorities below have adjudicated against the assessee, despite and clearly contrary to the binding precedent and thereby subjected the assessee to an avoidable litigative trauma and the accompanying expenditure, we allow the appeal with costs of Rs.1 0,000/- payable by Revenue to the appellant – assessee within one month from the date of receipt of this order.
16. We direct that copies of this order be communicated to the Central Board of Excise and Customs and to the Secretary (Revenue), Ministry of Finance, Government of India, for information."
3. Yet another example is furnished by the ITAT order in the case of ITO – 9(1)(4) vs. M/s Growel Energy Co. Ltd (ITA No. 338/Mum/2011). This was a departmental appeal filed against an order of Commissioner (Appeals) in which he had upheld the party's appeal against the AO's assessmentThe Tribunal found the appeal ill-considered, ill-prepared and baseless and dismissed it, with costs awarded to the assesse while making some stinging remarks on the AO who preferred it and the Commissioner who authorised it. To quote:
"At the outset, it may be mentioned that the Income Tax Officer, who is the appellant herein, as well as the Commissioner of Income Tax, who has authorized the AO to prefer an appeal, did not apply their mind in the correct perspective and in a very lacklustre and routine manner filed the appeal which, in turn resulted in wastage of time which would be highlighted at appropriate places……………………………………………………………………………. "
"A plain look at the findings of the CIT (A) clearly indicates that the AO was desperate to make an addition under Section 40(a)(ia) of the Act thereafter under Section 69C of the Act by stretching the language of the section to an extent where no person with a reasonable understanding of law would not have applied Section 69C in the said context. However, he chooses to file a further appeal and seeks permission of the Commissioner, who has immediately granted permission. At this juncture it may be noticed that the power is vested with the Commissioner of Income Tax and not with the AO because the Legislature, in its wisdom, thought that a superior/senior officer can take a more balanced decision so as to avoid filing frivolous appeal in a routine manner. However, even the Commissioner has not given his reasons as to why he has authorized the AO to file an appeal on this issue."
Noticing a basic error in the grounds of appeal on account of casualness in drafting, which led to an opposite meaning from the grounds of appeal being conveyed, the Tribunal observed:
"…., Neither the learned DR cared to look at the grounds, nor the AO intended to change the ground of appeal. Even if it is assumed that the AO seeks to challenge the order passed by the CIT (A) on this issue, even before us no material, whatsoever, was placed to show as to under which provision of law addition can be made…"
"Having heard the learned DR and the learned counsel for the assessee in this regard, we are of the firm view that the AO has raised a soul-less ground which deserves to be dismissed in-limine. We could have saved a lot of time had the Commissioner not given his authorization on such frivolous issues. On the contrary, it is incumbent upon the Commissioner, as a supervisory authority, to admonish the AO for making an addition without basic understanding of legal posiion…"
"Having regard to the circumstances of the case, we are of the firm view that the order passed by the learned CIT(A) does not call for any interference. We hold accordingly…"
"As we have already mentioned, on account of improper action on the part of the Commissioner of Income Tax, as well as the AO, the assessee had to engage a counsel and incur substantial expenditure to defend its case. Therefore, we award a token cost of Rs. 5000 upon the Commissioner of Income Tax who has given the authorization and cost of Rs. 10,000 upon the AO who has filed this appeal.
The said payment should be made to the assessee within one month from the date of receipt of this order. Registry is also directed to mark a copy to the Chairman CBDT so that in future the Income Tax Commissioners who are responsible for filing appeals before the Tribunal, would take proper care to scrutinise the issues before authorising the AO to file appeals before the Tribunal. With these observations, the appeal filed by the Revenue is treated as dismissed with costs."
Garlic Benefits And Importance In Diabetes
Any individual with diabetes realizes that the most ideal approach to live with the condition is to discover the most ideal approach to control their blood glucose levels. In case of type2 diabetes, there is hope in the utilization of garlic. Garlic diminishes glucose levels in diabetics in an effective manner. Additionally, garlic has different profits in treating this disease. If you are diabetic, then you can add garlic in your treatment together with the typical insulin and legitimate eating regimen.
What makes garlic unique?
Garlic is a common item and has above 400 chemical compounds. These compounds treat diverse wellbeing conditions such as diabetes and other disease. Three of the chemical components aid to increase insulin levels in the blood stream. It plays a role to activate the insulin in the liver, which implies that more insulin is available for utilization by the body.
Garlic is a common item and has above 400 chemical compounds. These compounds treat diverse wellbeing conditions such as diabetes and other disease. Three of the chemical components aid to increase insulin levels in the blood stream. It plays a role to activate the insulin in the liver, which implies that more insulin is available for utilization by the body.
In what form should garlic be taken?
The all forms of garlic; moderation is important before you use it. Garlic supplements are easily available in the market. Diabetics get all medical advantages present in the garlic. Crude or cooked garlic serves to control glucose level in the blood. Garlic extract could be utilized to either stop or lower diabetes entanglements that may develop. In addition, garlic fights from body contaminations, decreases cholesterol and supports the blood stream.
The all forms of garlic; moderation is important before you use it. Garlic supplements are easily available in the market. Diabetics get all medical advantages present in the garlic. Crude or cooked garlic serves to control glucose level in the blood. Garlic extract could be utilized to either stop or lower diabetes entanglements that may develop. In addition, garlic fights from body contaminations, decreases cholesterol and supports the blood stream.
If you are a diabetic, you look information on the most ideal approach to have control in your blood glucose levels. Your goal is to do everything possible to keep them at least near to ordinary. Thusly, you are keeping away the complications that accompany diabetes. What a better approach to do so than to incorporate garlic in your eating methodology? The best approach about garlic is that it is natural, which implies that since time immemorial, it has helped in the treatment of numerous diseases. The profits of garlic replace its side effects to a type 2 diabetic. The preference is that garlic is promptly available in its distinctive forms.
How can it help with diabetes?
Garlic is popular to build the measure of insulin discharged and manages blood glucose levels. A study distributed in the Journal of Medicinal Food discovered simply that — garlic was very effective in expanding one's insulin amount in the body and enhanced glucose resistance. Apart from that an alternate study distributed in the Journal of Agriculture and Food Chemistry demonstrated that garlic had the capacity to prevent your heart from diabetes-induced cardiomyopathy.
How can it help with diabetes?
Garlic is popular to build the measure of insulin discharged and manages blood glucose levels. A study distributed in the Journal of Medicinal Food discovered simply that — garlic was very effective in expanding one's insulin amount in the body and enhanced glucose resistance. Apart from that an alternate study distributed in the Journal of Agriculture and Food Chemistry demonstrated that garlic had the capacity to prevent your heart from diabetes-induced cardiomyopathy.
Around 8 million Americans are diabetic. A significant number of these diabetics will win the battle over diabetes; the individuals who want to know the best way to control the diabetes. They have the knowledge about it and as well as utilize it. Since you understand the profits of garlic, it is the time to take action according to the circumstances. Now you can use it, it is simple to use and helps you to control the blood sugar level.
It is imperative that you consult with your specialist before consolidating other treatment with garlic.
It is imperative that you consult with your specialist before consolidating other treatment with garlic.
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