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In This Issue [No.83]                                                                            April 20, 2004 International SEBI CBEC Customs Tariff Department of Economic Affairs RBI DGFT Department of Commerce Supreme Court High Courts Site Links Roundup Archives Free Trial Contact us   To keep you informed about the latest Legislative and Regulatory information manupatra.com publishes this e-roundup highlighting the recent changes brought about by the Notifications/Acts/Bills /Ordinances etc. About manupatra.com ../ provides comprehensive and easy to use legal and related information over the Internet .Our database covers Central Laws , Judgments of Supreme Court and High Court (full text of the judgments from 1950 onwards ), Orders of Tribunals , Bills , Notifications, Circulars and more Key features of manupatra are Content is derived from reliable primary and secondary sources Database is updated on a daily basis Electronic Ready Reckoner to view the judgments under a particular section of an Act / Subject Powerful search engine with user friendly interfaces Search in any one court/year or multiple courts/year Hyper-linking of documents Updated modules on WTO, Anti Dumping, Arbitration, Investment Destinations Abroad, Capital Markets, Taxation, Environment, Cyber & IT Laws, IPR, Corporate Laws, Industrial Policies, Foreign Trade, Forex & Banking and more For subscription to manupatra.com or for more details please log onto ../ or call us at 0120 2531811 or send an email to : contact@manupatra.com If at any stage you wish to stop receiving the e-roundup please click here to unsubscribe.       International Legal News Cases Source: Westlawinternational.com Torts: Smoker's evidence supported fraud verdict against tobacco companies. A smoker with lung cancer recovered a fraud verdict against two tobacco companies. There was substantial evidence supporting the verdicts. Defendants and their agents knowingly engaged in a deliberate scheme to deceive the public, individual smokers and potential smokers, including children and adolescents. The deception concerned the health effects of smoking, and plaintiff heard of and reasonably relied on the false assurances and denials and was led to believe, as defendants intended, that smoking cigarettes was "safe." Whiteley v. Philip Morris Inc. Native Americans: Social services agency failed to comply with Indian Child Welfare Act notice requirements in dependency case. The social services agency's failure to comply with the Indian Child Welfare Act (ICWA) notice requirements in dependency proceedings was not cured by subsequent notices sent to the Bureau of Indian Affairs (BIA) and the tribe. The tribe could not conduct a meaningful search to determine the minor's tribal heritage since the notices contained misspelled and incomplete names, provided information about the child's maternal great grandmother in the wrong part of the form, and did not provide the birthdates for the minor's grandmother or great grandmother. In Louis S. Legal Services: "Suit within a suit" is not exclusive method of proving causation element of legal malpractice. Proof, in a legal malpractice action, of the recovery which the client would have obtained in the underlying action if malpractice had not occurred may proceed in any number of ways depending on the issues, such as a "suit within a suit" or any reasonable modification thereof, or proof through expert testimony. There is no hierarchy among the various approaches, and no presumption that "suit within a suit" is the preferred approach. Rather, the proper approach in each case will depend upon the facts, the legal theories, the impediments to one or more modes of trial, and where two or more approaches are legitimate, plaintiff's preference. Garcia v. Kozlov, Seaton, Romanini & Brooks, P.C. Labor and Employment: Church did not waive exemption to Human Rights Act's prohibition of sexual orientation discrimination. The exemption for religious organizations from the prohibition against employment discrimination and retaliation based on sexual orientation in the Minnesota Human Rights Act could only be waived by a specific and unequivocal statement. Consequently, a church did not waive the exemption when it drafted a non-discrimination policy for church employment that included discrimination based on sexual orientation. Egan v. Hamline United Methodist Church Government: Sealing of official record after not guilty finding does not violate public's constitutional rights. The sealing of official records after not a guilty finding or a dismissal of the complaint does not violate the public's constitutional right of access to public records. The statute governing the application to have court records sealed does not restrict the media's right to publish truthful information relating to the criminal proceedings that have been sealed. The media's right to report on court proceedings is not diminished and the public's access to the records is unrestricted until a decision is made to seal records. The only function of the statute is to allow a court, after balancing the public and private interests, to limit the life of a particular record. State ex rel. Cincinnati Enquirer v. Winkler Education: Private school, as non-profit entity, can be charged with sexual abuse under Child Sexual Abuse Act. The Court determined that a private boarding school operating as non-profit corporation was a person within meaning of Child Sexual Abuse Act (CSAA) and, thus, could be charged with child sexual abuse under secondary liability provisions of CSAA. The Court reasoned that, among other things, such schools operate in loco parentis capacity with respect to their students, and that the legislature did not specifically exclude corporate persons from CSAA's reach. Additionally, the Court determined that the Charitable Immunity Act (CIA) was inapplicable to persons, non-profit corporations, whose liability is premised upon the secondary liability provisions of CSAA, reasoning that the child's fundamental right to bodily integrity could not be found secondary to a charity's well-being. Hardwicke v. American Boychoir School Civil Rights: Privity may exist from two lawsuits against same public officials for acts in their official roles. For purposes of res judicata, privity between defendants is established where a plaintiff brings two lawsuits against the same public officials for acts performed in their official roles. Privity is established even though the defendants are sued in their official capacities in one lawsuit and in their individual capacities in the other. Kirkhart v. Keiper Torts: Sexual consent of woman wanting children was not vitiated by statement of boyfriend with vasectomy. A former girlfriend's consent to have sexual intercourse was not vitiated by her former boyfriend who stated, after several dates, that he had been told by a fortune teller that he would have six children, where parties had no discussions about having children together, or marriage. Thus, the boyfriend was not liable for battery, even though he previously had had a vasectomy and the girlfriend felt that she wasted her time with the boyfriend because her biological clock was running. Rather than being an inducement to intercourse, the boyfriend's statement was an inducement to continue dating. Conley v. Romeri Judicial Administration: Prospective jurors may not be selected in sequential alphabetical order. The jury selection procedures enumerated in the statute providing for random selection of juror names do not permit prospective jurors to be selected in sequential alphabetical order. The plain language of the statute does not authorize a method of prospective juror selection other than the procedures delineated therein. State ex rel. Stanley v. Sine Health: Oral deposition of party could not be taken during stay of discovery. The Texas Medical Malpractice Act precluded the taking of the oral deposition of a party defendant prior to the plaintiff's filing of the required expert's report. The statute included a stay of discovery pending the plaintiff's filing of the expert report. Although the statute permitted some discovery to take place during the stay, the statutory provision that limited to two the number of depositions that could be taken prior to the filing of the expert report could not be interpreted to permit the taking or oral depositions of the parties, because oral depositions were not otherwise permitted during the stay in discovery. In re Miller Family Law: Severance package was not joint property subject to equitable division. A severance package received by a husband when he was laid off by his employer was not joint property so as to be subject to equitable division in the parties' divorce. The severance package was not a life savings vehicle, such as a pension plan, purchased through the parties' joint efforts during the marriage. Instead, the severance package was designed to replace future wages the husband would have earned before reaching retirement age, and after the divorce, if he had not been laid off. Davis v. Davis News Bishop refuses to appeal hit-and-run conviction Bishop Thomas O’Brien, expressing "deep regret" over the case, says he won't appeal his conviction in a deadly hit-and-run accident in which he was convicted in February when he left the scene of the accident that killed 43-year-old pedestrian Jim Reed. Superior Court Judge Stephen A. Gerst sentenced O'Brien to four years' probation and ordered him to spend 1,000 hours of community service ministering to the sick and dying. The bishop resigned as head of the Phoenix Diocese within days of the fatal accident. He's believed to be the first Roman Catholic bishop in U.S. history to be convicted of a felony. Microsoft hit with antitrust suit, this time over IM South Korea's largest ISP has filed a $10m (£4.9m) lawsuit against the world's largest software company, claiming that Microsoft is once again on the wrong side of antitrust laws - this time over instant messaging. The ISP, Daum Communications, has filed a suit claiming that Redmond's practice of bundling the IM software with Windows XP breaches competition laws. Daum is seeking damages on the grounds that it believes that Microsoft is using its dominance to unfairly control the IM market and is hoping that the landmark EU antitrust ruling will lend weight to its complaint. Child Traffic Ring Broken By Madagascar Police Madagascar Police has rescued 11 babies between the ages of three weeks and nine months who were in the process of being sent abroad. Child trafficking is on the increase in Madagascar. The illicit acquisition and adoption of babies has increased during the last four years in Madagascar, according to Director of Judicial Police. The eight accused Malagasy men are alleged to be part of an illegal adoption ring that offers financial incentives of up to $800 for every young baby they find. The cause for this can be partly attributed to poverty as poor young single mothers are prepared to give up a child in return for cash. According to the police, the majority of babies are destined to be adopted by couples from France who are often unaware of the illegality as genuine documents are usually provided by corrupt government officials working with the traffickers. Ernst & Young Barred from Adding Clients A judge suspended Big Four accounting firm Ernst & Young LLP <ERNY.UL> from accepting new, SEC-registered audit clients for six months in a case involving software group PeopleSoft Inc <PSFT.O>. Securities and Exchange Commission Chief Administrative Law Judge Brenda Murray also ordered Ernst & Young (E&Y) to pay $1.7 million in disgorgement, to refrain from future violations and to hire an outside consultant to review its policies. The $1.7 million that E&Y will have to pay roughly equals the amount of audit fees it charged PeopleSoft for fiscal years 1994 through 1999. The judge ruled "that E&Y engaged in improper professional conduct because it violated applicable professional standards for auditors by conduct that was both reckless and negligent." Retrial Sought By Lawyers For Stewart's Broker, Jurors May Have Discussed News Stories Lawyers for Peter Bacanovic, the former Merrill Lynch broker who was convicted with Martha Stewart last month, say alleged misconduct by some jurors warrants a new trial for their client. A juror told Bacanovic attorney Richard Strassberg that several jurors discussed media coverage of the trial before reaching their verdict, disobeying the trial judge's orders not to watch or read news reports about the case, according to court papers Strassberg filed with his motion for a new trial. Jurors privately discussed news stories about the $ 6,000 handbag that Stewart brought to court and the high cost of her legal counsel, according to the court documents. Neither subject was part of the trial testimony. Stewart and Bacanovic were convicted on charges of lying to investigators about Stewart's sale of ImClone stock in 2001. Nevada Supreme Court Decision Has Seniors Fearful Of Losing Homes To Medicaid Liens Some Nevada senior citizens say they fear losing their homes to the state after the Nevada Supreme Court upheld state liens on the estates of people who received Medicaid health care costs. It was ruled by Justices on April 1 that the Welfare Division can continue to put liens on homes of widows and widowers to ensure the recovery of some health care costs provided for their spouses. State Human Resources Director Michael Willden said taxpayers should not have to cover medical costs to enable a person to pass valuable property to descendants. Justices ruled that surviving spouses can remain in their homes as long as they live, but put the state first in line to recover its costs when they die. Light Cigarette Class Actions By Smokers In Washington State Court Two class action lawsuits filed in the King County Superior Court claim that tobacco companies Philip Morris USA and R.J. Reynolds Tobacco Co. defrauded Washington smokers into believing "light" or "low-tar" cigarettes are less harmful than regular brands and falsely marketed their light cigarettes as less harmful alternatives to regular cigarettes. The plaintiffs claim that the defendants misrepresented the tar and nicotine delivery of their light cigarettes. They seek to represent classes of all people who purchased for personal consumption in the State of Washington between the first date light cigarettes were placed in the stream of consciousness and the date of trial. The plaintiffs seek economic damages and declaratory and injunctive relief under the Washington Consumer Protection Act and additional damages for civil conspiracy. AMD Settles Patent Suit with Intergraph; License Extends to Systems Using AMD Processors AMD (NYSE:AMD) announced that it has settled patent claims with Intergraph Corporation relating to AMD's microprocessors. Under terms of the agreement, AMD will receive a license under Intergraph's "Clipper" microprocessor patents and the patent lawsuit in the United States District Court for the Northern District of California will be dismissed. The agreement provides pass-through rights to AMD customers for systems that include an AMD microprocessor. Additionally, Intergraph will drop all claims of infringement against systems utilizing AMD processors including in its pending lawsuits. AMD will pay Intergraph $10 million, plus 2% of profits from its microprocessor sales for three years (2005-2007). These payments are capped at $5 million per year and the total of all payments under the agreement are capped at $25 million. SEBI Primary Market Division Amendments to the SEBI (Disclosure and Investor Protection) {DIP} Guidelines, 2000 Circular No. SEBI/CFD/DIL/DIP/12/2004/8/4 Dated 08.04.2004 : SEBI has, to ensure transparency and efficiency in the market and also to streamline and simplify the existing procedures, modified the SEBI (Disclosure and Investor Protection) {DIP} Guidelines, 2000. Amendments have been incorporated with regard to : 1.Guidelines for Issue Advertisements has been changed Now according to new requirement in place of the TV advertisement, which scrolls risk factors on the screen so fast that they are not readable / legible, a statement advising the prospective investors to refer to the Red Herring Prospectus / Offer document for details, should appear. 2. Introduction of the facility of Shelf Prospectus 3. The guidelines pertaining to preferential allotment have been amended to restrict sale of shares by shareholders who are allotted shares on preferential basis, to impose lock-in on pre preferential shareholding from the relevant date till six months after date of allotment, to reduce the period for allotment from existing 30 to 15 days, to facilitate corporate debt restructuring schemes etc. The amendments have come into force with immediate effect. Regulations Securities and Exchange Board of India (Foreign Venture Capital Investors) (Amendment) Regulations, 2004 Notification No. SO469(E) Dated 05.04.2004 : Amendments have been made into the Securities and Exchange Board of India (Foreign Venture Capital Investors) Regulation, 2000 and the same has been made effective from 06.04.2004. According to the amendments :- In regulation 2, in sub-regulation (1), in clause (f), in the definition of "equity linked instruments" the words "or optionally" have been inserted. Now the conversion of the instruments into equity share or share warrants, preference shares, debentures compulsorily or optionally shall be considered as equity linked instruments. Investment Criteria for a Foreign Venture Capital Investor has also been amended. Press Releases Reconstitution of the Board of Directors of Pune Stock Exchange Limited Press Release No. PR No.83/2004 Dated 08.04.2004 : SEBI had superseded the Board of Directors of Pune Stock Exchange Limited, for a period of one year, w.e.f. April 4, 2003, and appointed Shri B D Banerjee as the Administrator to exercise and perform all the powers and duties of the Board. CBEC Customs Tariff Amendment in the Procedure for Filing of Advance Import General Manifest Circular No. 30/2004 Dated 16.04.2004 : A detailed procedure was prescribed for filing advance Import General Manifest (IGM) under section 30 of the Customs Act, 1962 vide Circular No. 110/2003-Cus, dated 22.12.2003. Now some amendments have been made in the procedure for smooth implementation. Some of the important amendments are :- 1. The Bond and Bank Guarantee prescribed in para (i) of Circular No. 110/2003-Cus, dated 22.12.2003 has been dispensed with. 2. At the time of registration, the requirement stipulated in the para 5 of "FORM V" and "FORM VI" of the Import Manifest (Aircraft) Regulations, 1976 and Import Manifest (Vessels) Regulations, 1971 respectively, which requires applicant to submit copy of contract or MOU or agreement entered into with the foreign authorizing agent, need not be insisted 3. Access to the system for filing IGM details will be allowed after the receipt of the applications in the Annexure "A" to the said circular by the jurisdictional Commissioner . 4. In the case of Chartered flights, the consol agents will have to be registered with the Customs as airline agent and will be allotted an ad-hoc/ temporary Code (accepted by system), as per existing format for each such flight. 5. As a transitional measure no penalty is to be imposed under Section 116 of the Customs Act, 1962 for a period of three months ,i.e., upto 31.7.2004, in case of amendments in IGM's of short haul flights and short haul voyages. Clarification Regarding Inclusion of Barging/ Lighterage Charges in the Assessable Value Circular No. 29/2004 Dated 13.04.2004 : the matter of inclusion of the Barging / Lighterage charges in the assessable value of the imported goods as "extended cost of transportation" has been considered by the Board in consultation with the Ministry of Law. The Law Ministry has observed that the Hon'ble Supreme Court's observations in the case of M/s. Garden Silk Mills Limited Vs. Union of India reported in 1999 (113) E.L.T. 358(S.C) appears to be more relevant that the value of goods is deemed to be the price at which such goods are ordinarily sold or offered for sale, for delivery at the time and place of importation in the course of international trade. The importation is complete when the goods reach the landmass of the Country and not at the outer anchorage point. In other words, all the expenses incurred by the importer in bringing the goods to the landmass of the country will be includible in the assessable value. It is understood that some of the importers are filing declaration of value as CIF/C&F in spite of the fact that the said "freight" paid by the Shipper does not include the barging/ lighterage charges. Taking a cue from the Supreme Court judgment in the Garden Silk Mills case cited above, the charges borne by the importer in bringing the goods from the outer anchorage to the land mass has to be included in the assessable value as "extended cost of transportation" under Rule 9(2)(a) of Customs Valuation Rules, 1988. The 1% landing charges collected by the department under rule 9(2)(b) of Customs Valuation Rules, 1988, are towards the loading, unloading and handling charges at the place of importation, which is the land mass of the Country. Mis-declarations, if any, may be proceeded against in accordance with law. Department of Economic Affairs Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Removal of Difficulties) Order, 2004 Order No. SO466(E) Dated 06.04.2004 : The Central Government has made the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Removal of Difficulties) Order, 2004. the order has been franed to make the provisions for levying of the fee for filing of appeals under sections 17 and 18 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. the order has been made effective from 06.04.2004. RBI Trade Credits for Imports into India - Review and Simplification Circular No. A.P.(DIR Series) Circular No. 87 Dated 17.04.2004 : The RBI has reviewed the present instructions on credits for imports in the light of experience gained and recent developments. Consequently, it has been clarified that the extant guidelines covering such credits for imports of all items (permissible under the EXIM Policy) up to USD 20 million per import transaction with a maturity period up to one year remain unchanged. Credits up to USD 20 million per import transaction with a maturity period exceeding one year but less than three years would now be permitted only for import of capital goods. The reporting arrangements for such credits have been further simplified. Since September 27, 2002, ADs were permitted to approve Short-Term Credit (STC) up to USD 20 million per import transaction for a period less than three years (vide A.P. (DIR Series) Circular No. 25 dated September 27, 2002). STC exceeding USD 20 million per import transaction required prior approval of the Reserve Bank. FEMA 1999 - Current Account Transactions - Remittance for Maintenance of Close Relatives Abroad- Requests of Indian Nationals on deputation to India from Overseas Companies Circular No. A.P.(DIR Series) Circular No. 86 Dated 17.04.2004 : It has been decided to extend the facility of remittance of salary for maintenance of close relatives abroad which is already available to foreign nationals (other than Pakistani nationals) to Indian nationals employed by an overseas company, on deputation to India. Accordingly, it will be in order for the Authorised Dealers to allow remittance of net salary (after deductions of taxes, contribution to provident fund and other deductions) of a citizen of India, who is on deputation to the office or branch or subsidiary or joint venture in India of such overseas company, for the maintenance of close relatives residing abroad. Exim Bank's Lines of Credit of USD 10 Million Each to Government of Zambia and to Bank Gospodarstwa Krajowego, Poland Circular No. A.P.(DIR Series) Circular No. 85 Dated 16.04.2004 : The Credit Agreements of USD 10 Million each between EXIM Bank and Government of Zambia and to Bank Gospodarstwa Krajowego, Poland have become effective from March 18, 2004 and March 15, 2004 respectively and are available for financing export of eligible Indian goods and services to Zambia and Poland under the respective LOCs. The last dates for opening Letters of Credit and disbursements are March 17, 2006 and September 17, 2006, respectively in respect of the LOC extended to Government of Zambia. In respect of LOC extended to BGK Bank, Poland, the last dates for opening letters of credit and for disbursements are March 14, 2006 and September 14, 2006 respectively. Exim Bank's Line of Credit for USD 10 million to Bank TuranAlem, Kazakhstan Circular No. A.P.(DIR Series) Circular No. 84 Dated 16.04.2004 : The Credit Agreement for USD 10 million between the EXIM Bank and Bank TuranAlem, Kazakhstan has become effective from March 24, 2004 and is available for financing export of equipment, goods and services and any other items eligible for being exported under the 'Exim Policy' of Government of India that may be agreed upon between Exim Bank and Bank TuranAlem to buyers in Kazakhstan. The last dates for opening Letters of Credit and disbursement of credit are March 23, 2006 and September 23, 2006 respectively. Exim Bank's Letter of Credit Refinancing Facility of USD 20 Million to Bank Markazi Jomhouri Islami Iran Circular No. A.P.(DIR Series) Circular No. 83 Dated 12.04.2004 : The Credit Agreement of USD 20 Million between Exim Bank and Bank Markazi Jomhouri Islami Iran has been made effective from February 28, 2004 and is available for financing export from India to Iran for a period of 24 months i.e. upto February 27, 2006. Bank Markazi has designated Bank Mellat, Bank Melli, Bank Sepah, Bank Saderat, Bank Tejarat and Bank of Industry & Mine as Issuing Banks for the above credit, Exim Bank has designated Bank of Maharashtra, Union Bank of India and UTI Bank as advising/negotiating banks from the Indian side. Shipments under the credit will have to be declared on GR/SDF Forms as per extant instructions. It has been cleared out that No agency commission shall be payable in respect of exports financed under the above line of credit. Exclusion of Bank Muscat (S.A.O.G.) from the Second Schedule to the Reserve Bank of India Act, 1934 Notification No. DBOD. Ret. BC No. 73 /12.06.115/2003-04 Dated 02.04.2004 : The name of "Bank Muscat (S.A.O.G.)" has been excluded from the Second Schedule to the Reserve Bank of India Act, 1934 with effect from 21st February 2004. Detection of Forged Notes -Issue of Receipt to Tenderers Circular No. DCM (FNVD) No. G. 31 /16.01.01/2003-04 Dated 08.04.2004 : It has been decided that, as and when a currency note tendered at the counter of a bank branch is found to be forged, and the same is impounded by branding with a stamp "FORGED NOTE", an acknowledgement receipt in the specified format should be issued to such tenderers. The receipt book should be printed in duplicate with running serial numbers and each receipt should be authenticated by the cashier at the counter as well as by the tenderer. Master Circular- Management of Advances Circular No. UBD.BPD(PCB)MC.No.10 /13.05.00/2003-04 Dated 12.04.2004 : A master circular has been issued containing all instructions relating to management of advances earlier issued by RBI from time to time. RBI Rationalises Non-Resident Deposit Schemes Press Release No. 2003-2004/1235 Dated 17.04.2004 : On a review of the existing non-resident deposit schemes, it has been decided to implement the following measures with immediate effect :- 1. It has now been decided that, until further notice, the interest rates on Non-Resident (External) Rupee (NRE) deposits for one to three years, contracted effective close of business in India on April 17, 2004, should not exceed the LIBOR/SWAP rates for US dollar of corresponding maturity. 2. With a view to aligning the interest rates on various categories of NRE deposits, it has been decided to link the interest rate on NRE savings deposits also to LIBOR/SWAP rates with effect from close of business in India on April 17, 2004. The interest rates on NRE savings deposits should not exceed the LIBOR/SWAP rates for six-month maturity on US dollar deposits. The interest rate on NRE savings deposits may be fixed quarterly on the basis of the LIBOR/SWAP rate of the US dollar on the last working day of the preceding quarter. For the quarter April-June 2004, the US dollar LIBOR/SWAP rate as on the last working day of March 2004 would be applicable. 3. It has been clarified that since the account holder can withdraw savings deposits at any time, banks should not mark any type of lien, direct or indirect, against these deposits. Forex Reserves Includes India's RTP in the IMF Press Release No. 2003-2004/1204 Dated 10.04.2004 : In keeping with the international best practice, the Reserve Bank of India has, from the week ended April 2, 2004, included India's reserve position in the International Monetary Fund (IMF), called the Reserve Tranche Position (RTP) in the foreign exchange reserves. Foreign assets held in the form of Reserve Tranche Position (RTP) with the IMF are akin to other components of foreign exchange reserves and are given a rate of return by the IMF. They can also be used, when required, to deal with any balance of payments needs. The IMF includes RTP as part of a member country's international reserves. TDS not Applicable on 8% Savings (Taxable) Bonds Press Release No. 2003-2004/1201 Dated 10.04.2004 : The RBI has asked agency banks not to deduct tax at source on either the interest or the maturity proceeds of the 8% Savings (Taxable) Bonds, 2003. It may be recalled that as per the original scheme for the 8% Savings (Taxable) Bonds, 2003, agency banks were required to deduct tax at source on the interest payable or due and on maturity proceeds of these bonds. The Government of India, in January this year, withdrew this requirement. As such, banks will no longer be required to deduct tax at source on either the interest or the maturity proceeds of the 8% Savings (Taxable) Bonds, 2003. DGFT Notification No. 29 dated 28.1.2004 - Consequences thereof for Duty Free Import of Gold for Exports Circular No. 32 (RE-2004)/2002-2007 Dated 16.04.2004 : The import of gold and silver was made free subject to RBI regulations vide Notification No. 29 dated 28.1.2004. On the queries from the trade and other stakeholders whether the erstwhile system of imports through nominated agencies and banks would continue to be operational, it has been clarified that Exporters will continue to have the option to import duty free gold and silver for exports through the nominated agencies or directly under the Advance Licensing Scheme. Department of Commerce Anti Dumping Cases Notification No. 15/1/2003-DGAD Dated 06.04.2004 : Anti Dumping Investigations Concerning Sunset Review of Anti-dumping Duty on Imports of Calcium Carbide from China PR and Romania--Final Finding Notification No. 15/9/2003-DGAD Dated 29.03.2004 : Initiation of Sunset Review of the Definitive Anti-dumping Duty Imposed on Import of Sodium Cyanide Originating in or Exported from the US, the EU, the Czech Republic and Korea RP Notification No. 15/5/2004-DGAD Dated 29.03.2004 : Initiation of Mid-term Review of Anti-dumping Duty Imposed on Imports on (Acrylonitrile Butadiene Rubber) NBR Originating in or Exported from Germany and Korea RP Notification No. 14/36/2002-DGAD Dated 19.03.2004 : Anti-dumping Investigation Concerning Import of Ammonium Nitrate Originating in or Exported from Russia and Iran - Final Findings Notification No. 14/30/2002-DGAD Dated 19.03.2004 : Anti-dumping Investigation Concerning Imports of Ball Bearings (up to 50 mm bore dia) from China PR, Poland, Russia and Romania-Final Findings Notification No. 15/7/2004-DGAD Dated 16.03.2004 : Initiation of Review Regarding Anti-dumping Duty Imposed on Black and White Photographic Paper Including both Resin Coated/Fibre Based from UK, France and Hungary Notification No. 14/51/2002-DGAD Dated 15.03.2004 : Anti-dumping Investigation Concerning Import of Titanium Dioxide Originating in or Exported from People's Republic of China - Final Findings Supreme Court Zahira Habibulla H. Sheikh and Anr. Vs. State of Gujarat and Ors. In the case, commonly to be known as ""Best Bakery Case"", one of the appellant Zahira who claimed to be an eye-witness to macabre killings allegedly as a result of communal frenzy made statements and filed affidavits after completion of trial and judgment by the trial Court, alleging that during trial she was forced to depose falsely and turn hostile on account of threats and coercion. That raised an important issue regarding witness protection besides the quality and credibility of the evidence before Court. The other rather unusual question interestingly raised by the State of Gujarat itself related to improper conduct of trial by the public prosecutor. Last, but not the least that the role of the investigating agency itself was perfunctory and not impartial. The Appeal before the Supreme Court was against judgment of the Gujarat High Court upholding acquittal of respondents-accused by the trial Court. In addition a prayer was made for retrial and adduction of Additional evidence. The Supreme Court held that High Court erred in refusing to accept application for adduction of additional evidence in the facts and circumstances of the case. That if the acquittal is unmerited and based on tainted evidence, tailored investigation, unprincipled prosecutor and perfunctory trial and evidence of threatened/terrorised witnesses, it is no acquittal in the eye of law and no sanctity or credibility can be attached and given to the so-called findings. When the circumstances clearly indicated that there was some truth or prima facie substance in the grievance made, appropriate course for the Courts was to admit additional evidence for final adjudication so that the acceptability or otherwise or evidence tendered by way of additional evidence could be tested properly and legally tested in the context of probative value of the two versions. The case was held to be fit and proper case, for retrial in the background of the nature of additional evidence sought to be adduced and the perfunctory manner of trial conducted on the basis of tainted investigation. The Court therefore gave direction for retrial in a competent court in the jurisdiction of Bombay High Court and appointment of another public prosecutor. Mardia Chemicals Ltd. Etc. Etc. Vs. Union of India (UOI) and Ors. Etc. Etc. In the case the validity of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002) (for short 'the Act') had been challenged. The main contention challenging the vires of certain provisions of the Act was that the banks and the financial institutions have been vested with arbitrary powers, without any guidelines for its exercise and also without providing any appropriate and adequate mechanism to decide the disputes relating to the correctness of the demand, its validity and the actual amount of dues, sought to be recovered from the borrowers. The offending provisions as contained under the Act, are such that, it all has been made one sided affair while enforcing drastic measures of sale of the property or taking over the management or the possession of the secured assets without affording any opportunity to the borrower. The Supreme Court observed that the banks and the financial institutions have heavily financed the petitioners and other industries and that a large sum of amount remains unrecovered. Normal process of recovery of debts through courts is lengthy and time taken is not suited for recovery of such dues. For financial assistance rendered to the industries by the financial institutions, financial liquidity is essential failing which there is a blockade of large sums of amounts creating circumstances which retard the economic progress followed by a large number of other consequential ill effects. Considering all these circumstances, the Recovery of Debts Due to Banks and Financial Institutions Act was enacted in 1993 but the same did not bring the desired results. In the present day global economy it may be difficult to stick to old and conventional methods of financing and recovery of dues. Hence, it could not be said that a step taken towards securitisation of the debts and to evolve means for faster recovery of the NPAs was not called for or that it was superimposition of undesired law since one legislation was already operating in the field namely the Recovery of Debts due to Banks and Financial Institutions Act. The idea had not erupted abruptly to resort to such a legislation. A thought was given to the problems and Narasimham Committee was constituted which recommended for such a legislation keeping in view the changing times and economic situation whereafter yet another expert committee was constituted then alone the impugned law was enacted. However, it was held that the procedure should be fair, reasonable and valid, though it might vary looking to the different situations needed to be tackled and object sought to be achieved. It was further held that the borrowers would get a reasonably fair deal and opportunity to get the matter adjudicated upon before the Debt Recovery Tribunal. The effect of some of the provisions may be a bit harsh for some of the borrowers but on that ground the impugned provisions of the Act could not be said to be unconstitutional in view of the fact that the object of the Act is to achieve speedier recovery of the dues declared as NPAs and better availability of capital liquidity and resources to help in growth of economy of the country and welfare of the people in general which would subserve the public interest. The Supreme Court thus upheld the validity of the Act and its provisions except that of sub-section (2) of Section 17 of the Act, which was declared ultra vires of Article 14 of the Constitution of India as it asks the borrower to deposit 75% of the amount claimed by the secured creditor before his appeal can be entertained. High Courts  Delhi Delhi Transport Corporation Vs. N.L. Kakkar Presiding Officer, Industrial Tribunal No. 1 and Karan Singh, Conductor The Petitioner (DTC) was aggrieved by orders passed by the Additional Industrial Tribunal and the Industrial Tribunal No. 1 in an application under Section 33(2)(b) of the Industrial Disputes Act, 1947 vitiating the domestic inquiry on the grounds that the evidence had not pointed the guilt of the conductor and the two passengers who said they saw the conductor throwing tickets on the floor of the bus when the checking staff arrived, could not be produced as witnesses before the enquiry officer. The Court held that the production of passengers witness either in a domestic enquiry or before the Labour Court in an industrial dispute was not necessary because it would be highly impractical to trace out, chase and bring the passengers before the enquiry officer or the Labour Court causing them unnecessary inconvenience. The Court must take a common sense approach to the whole problem and should not allow legal technicalities to come in the way. As there was evidence before the Inquiry Officer in the form of the statements of the two passengers and the report prepared by them that had high probative value and that had nexus with the events of the case, there was no occasion for DTC to lead evidence before the learned Tribunal to establish the guilt of the conductor and held that the learned Tribunal erred in holding that the domestic inquiry was vitiated.  Madras The General Manager, Telecommunications and Ors. Vs. K. Natrayan The Petitioner filed this revision petition under Article 227 of the Constitution of India against the common order passed by the learned District Munsif, Karur and challenged the jurisdiction of the civil courts in the cases of telephone disconnections for non payment of dues. The Court held that according to Section 7-B (1) and (2) of the Act as well as Section 9 of CPC, dispute relating to telephone line, appliance or apparatus arises between the telegraph authority and the person for whose benefit the line, appliance or apparatus had been provided, the dispute would be determined by arbitration and the same could not be agitated before the civil Court. Though the sub-section (1) provided for the concerned authority to refer the dispute for an arbitration, if there was any doubt or dispute regarding the subject provided under sub-section (1), the subscriber could also request the authority concerned to refer the question for adjudication by way of arbitration proceedings. Therefore, the only remedy for the affected person to resolve the same was by way of arbitration proceedings and the civil Court had no jurisdiction to entertain the suit of this nature. 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