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Mundra Ultra Mega Power Project transferred to Tata Power; SC says no to vacation of stay on OBC quota; Rupee further gains; reaches 9-yr-high against Dollar; Bill Gates says next great success in software sector will come from Asia; Union Power Minister to address Chief Secretaries and Power Ministers of States; India, Algeria to strengthen coopertion in oil sector; |
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| Dear Member, Sending you the following files: |
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Probationers posted; 2007-TIOL-207-HC-MUM-IT.doc + salary story.doc Voluntary retirment - Availment of twin benefits u/s 10(10C) and u/s 89(1) - Revenue argues voluntary retirement is not termination of employment and any sum paid under such a scheme is ex-gratia amount and denies rebate u/s 89(1) - Second Provisio of Sec 10(10C) does not put embargo on availment of benefits under other sections, and even if the sum paid under such a scheme is ex-gratia it is covered under the inclusive definition of income u/s 17(3) and the assessee is eligible for rebate u/s 89 even after availing the exemption u/s 10(10C) : Bombay HC; Assessee's premises searched under the Prevention of Corruption Act - Revenue requisitions the documents and assets seized by the Lokayut under Sec 132A - Validity of authorisation issued under Sec 132A questioned - Division of opinion in the tribunal and third Member upholds the validity of Revenue's action - Since action taken u/s 132A cannot be a subject matter of assessment, neither the AO nor the appellate authorities question the justifiability of such an action : MP HC; Block assessment - Assessee claims deduction for unabsorbed depreciation and business loss - Provisions of Chapter XIV-B - Block assessment is separate and independent of regular assessment - No set off of brought forward losses or unabsorbed depreciation u/s 32(2) can be allowed against undisclosed income under block assessment : Madras HC; |
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2007-TIOL-534-CESTAT-MUM.doc + mahindra story.doc Section 9(1) of the IDR Act, 1951 makes it clear that Automobile cess is nothing but duty of excise. Similarly Education cess is also very much a duty of excise as Section 93 of Finance Act, 2004 specifically says so. As regards the question whether tractors on which automobile cess and education cess is payable can be considered as exempted from the whole of duty of excise thereon or chargeable to nil rate of duty as required under rule 2(d) of Cenvat Credit Rules, the term exempted goods has been defined under Section 2(d) of the Cenvat Credit Rules 2002/2004 as under:- "Exempted goods" means goods which are exempt from whole of duty of excise leviable thereon and includes goods which are chargeable to nil rate of duty." It is pertinent to note that the word used is 'duty of excise ' and not 'duties of excise '. The expression 'whole of duty of excise' and 'chargeable to nil rate of duty' is singular expression referring to one duty of excise' and not all duties of excise. Section 2A of the Central Excise Act, 1944 uses four terms 'duty', 'duties', 'duty of excise' and duties of excise' which means that there is a difference between them. If the intention of the legislature was that it should be exempted from all duties of excise, then the words used should have been 'from whole of duties of excise and not duty of excise' . Further Rule 3 of the Cenvat Credit Rule 2002/2004 allows a manufacturer credit of all duty of excise and also of education cess, National Calamity Contingent Duty etc. but duty of excise has been referred to in Rule 3(1)(i) and Rule 3(1)(ii) and no where else, and in fact education cess has been separately referred to. Since the tractors are exempted from duty of excise specified both in first schedule of the Tariff Act and second schedule to the Tariff Act, it has to be considered as exempted and not dutiable as is being contended by the appellants. In view of the same the appellants are required to follow the provision of Rule 6(2) and 6(3) of the Cenvat Credit Rules. The next issue whether in terms of existing Rule 6(2), the appellants are eligible to take credit even in respect of non common inputs i.e. inputs which exclusively go into the manufacture of exempted final products,has been dealt at length by the Tribunal in the case of Hetero Labs Ltd. and it has been held, in all the decisions which followed it, that the credit will be available even on non-common inputs used exclusively for the manufacture of exempted final products. Cenvat Credit - Use of LSHS oil and lubricants in manufacture of finished goods - Commissioner (A)'s finding is contrary to the assessee's claim - Waiver from pre-deposit denied :Cestat; Shortage and excess of various finished goods - Duty with penalty demanded - Assessee claims at the time of inspection the shortage goods were lying on the finishing floor of the factory - Since such claims cannot be substantiated, demand is upheld - Since demand is based on the assessee's own statutory records, penalty u/s 11AC set aside but under Rule 173Q upheld :Cestat;
SERVICE TAX SECTION Service Tax on tour operators - A clarification; ST - Airport Service - Assessee runs and maintains 'Executive Lounge & Snack Bar' at Delhi Airport - Just because services like cable TV and telecom service are provided at Airport, the character of such services would change into airport service - Such a service is prima facie hospitality service and not liable to tax - Stay granted:Cestat; ST - C & F Service - Adjudicating authority raises demand for Business Auxiliary Service - Commissioner holds it as C & F Service - Ensuring proper loading, proper filing of bills and following upon tanker movements to prevent theft are not in nature of C & F Service :Cestat;
CUSTOMS SECTION 2007-TIOL-533-CESTAT-DEL.doc + nexus story.doc No restriction of nexus between the goods imported and services rendered thereof in the corresponding exemption notification and the DFCEC- Customs cannot reduce the scope of such imports by pressing the ground of nexus:Cestat; |
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Publication of names of Prospective Offenders; Management of Court Cases at the Trial, and at the Appellate Court Level; Sec 37E of Central Excise : Lethal Libel; Close nexus between drugs and terrorism established; DRI Delhi Zonal Unit arrests one with 8 kg heroin, pistols, live catridge and fake Indian currency; RBI puts in abeyance overseas foreign currency borrowings policy; Tax sops induce Maruti to lower prices; Indian Bank posts 50% profit; SPV to facilitate Tatas execute Mudra Power Project; Arcelor Mittal acquires Mexican Sicartsa; Wockhardt ties up with Italian pharma company; SAIL and RINL plan domestic investments; UAE largest theme park seeks Indian investment; ABN Amro sells out to British Barclays; |
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