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Bangalore bandh disrupts normal life but BPOs continue to function; After putting all SEZs on hold WB Chief Minister says Singur car project is irreversible; National Knowledge Commission row : Vice Chairman separately submits report on higher education to PM's office; Chennai Airport Customs seizes diamonds worth about Rs 35 lakh from pax heading for Bangkok; Also seized FC worth Rs 7.5 lakh earlier this week; India's forex kitty surpasses USD 180 bn; Deora says natural gas production may double to 190 million cubic metre per day by 2009; |
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| Dear Member, Sending you the following files: |
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2007-TIOL-18-SC-IT.doc + sc it story.doc AY 1996-97 - Return showing losses filed - Assessment order also shows losses - But penalty imposed for false claims as quantum of losses reduced during assessment - Tribunal deletes penalty but HC upholds attributing to the change in legal position vide insertion of Explanation 4 to Sec 271(1)(c) by Finance Act, 1996 - No change in legal position despite amendment as only the mehtod of calculation of quantum of penalty was prescribed - Conditions prior to 1976 and after remained the same and penalty can be imposed only the cases of positive income - Even insertion of Explanation 4(a) through Finance Act, 2002 is prospective : SC; 2007-TIOL-35-ITAT-AMRITSAR.doc + income tax story.doc In the absence of service of notice under Sec 148, reassessment proceedings are held as bad in law; Is interest earned by the assessee's minor son includable in the income of the assessee as per provisions of Sec 64(1)(iii)? - Revenue's appeal dismissed on ground of meagre tax effect:HC; Assessee makes cash purchases worth several lakhs - AO seeks explanation and diallows as per provisions of Sec 40A(3) - Though Sec 269SS is to curb menace of unaccounted money but genuine cash transactions supported by documentary bills and vouchers to be accepted:HC; |
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2007-TIOL-198-CESTAT-MUM.doc + LB story.doc Cenvat Credit - whether eligibility to be determined with reference to dutiability of the final products on the date of receipt of Capital goods - Conflicting views in Surya Roshni & Ace Timez - Matter referred to Larger Bench; Credit on Education Cess can be used only for paying Education Cess on finished goods – mistake happening during the initial days of introduction of E.C – exercise is revenue neutral, however penalty imposable as infraction of law is clearly established.; KVSS Scheme - when main noticee settled the case under KVSS Scheme, the penalties on the co-noticees does not survive; Cenvat Credit - Use of furnace oil in manufacture of exempted goods by a job worker - Rule 6(1) of Cenvat Credit Rules, 2002 - Credit not admissible on inputs used in manufacture of exempted goods except under certain conditions - Bangalore Bench allowing credit on fuel to jobwork which is also a manufacturer - Since Rule 6 are differently worded, the issue referred to Larger Bench; Clearances made by 100% EOUs are entitled to concessional rate of Customs duty provided under EPCG Schemes - Even though what is required to be paid is in the nature of central excise duty but through a legal fiction, clearances by 100% EOUs have been placed at par with the imports and it is for this reason that the duty required to be paid is equal to the aggregate of Customs duty payable on such like goods if produced or manufactured outside India and imported into India;
SERVICE TAX SECTION Delay of four years in making payment of Service Tax and interest – Penalty imposed u/s 76 @ Rs.100/- per day cannot be reduced further; Service Tax – Banking and other Financial Services – tax to be paid at the enhanced rates even if not collected from customers because of agreement.- Stay application dismissed – Entire tax to be deposited with in 3 months;
CUSTOMS SECTION DGFT amends SION for many product groups; Maize freely importable till Dec 31, 2007; Compounding of offences under Customs Act - Rs 10 lakh fixed as compounding amount - Assessee pleads it should be 20% of market value of goods - Rules are very clear and prescribe ''upto 20% of market value or Rs 10 lakhs whichever is higher - Petition dismissed :SC; Customs - valuation - the original price agreed between the Seller and the Buyer is to be taken as assessable value under Section 14 of the Customs Act, 1962 - Mutual reduction of price after import of goods into India by executing addendum of original agreement cannot be made the basis for the value of the vessel under the said Section; Customs – Import – Classification - Laptop Computers are not desk top computers – Laptop computer is classifiable under chapter heading 8471 – No additional duty leviable on Laptop Computers; |
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Pan masala – more Central Excise return; Service Tax - If lawyers and doctors can be taxed, why not film stars? Let's bring services of hiring, renting and leasing of immovable property under Service Tax net; Tamil Nadu VAT : Govt prefers not to learn from neighbours' experiences; 2007-TIOL-17-SC-CT.doc + crane story.doc Cranes used in construction of buildings - not industrial inputs - not eligible for concessional sales tax rate; CBI booked as many as 25 JS and above ranks officers last year despite poor 'sanctions' from Govt; Chief Justice says let's look for non-judicial ways of dispute resolution; Birlas move on the trajectory of Tatas to acquire world's Aluminium major; Vodafone surpasses Indian bidders to acquire Hucthinson Essar; Mukta Art's subsidiary ties up with Nokia for mobile film awards; Subex
says global mobile operators losing USD 77 bn due to avoidable leakage; |
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| Regards
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