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Sahar Airport Customs seizes 320 pieces of gold jewellery worth about Rs 12 lakh from pax coming from Dubai; DRI Delhi Zonal Unit seizes 14 kg heroin + fake currency worth Rs 8 lakh and 800 CFC cylinders in two different cases; Pak Judge declines to hear suspended CJ case; Confusion about date of Presidential assent to Finance Bill : Highly-placed official in Ministry of Law says it was given on May 11 th, TIOL to upload full text of Finance Act 22 of 2007 soon; DMK internal feud : Maran resigns from Union Cabinet; Loss of face for Cong in UP polls : HRD Minister faces flak for raising OBC bogey; A P Kala joins as new DG of CEIB; CBEC forwards Rakesh Sharma's name for DG DRI slot; |
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| Dear Member, Like the last year there has again been some confusion about the date of Presidential assent. Going by the Ministry of Finance it is 12th (see our Notifications) and, however, when TIOL spoke to Ministry of Law today they said it is 11 th but Gazetted Copy of the Finance Act 22 of 2007 is yet to be printed and made public. In this background we advise our Members to go by 11 th and play safe. We hope to make the copy of the Finance Act available which alone can put this confusion at rest may be by tomorrow (See our 'Editorial' for more details). CBDT is also expected to issue the new ITR Forms today and we will be sending you the same by this evening. Pl find the following files : |
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2007-TIOL-251-HC-KERALA-IT-LB.doc + hc lb story.doc Revenue expenditurew vs capital expenditure - AO disallows expenditure incurred on installation of water treatment and fume extraction plants - CIT (A), Tribunal and Division Bench of HC disagree on ground that such capital expenditure does not have any effect on production - Since the non-compliance with pollution norms may lead to closure of the plant and the benefits are enduring, it is capital expenditure - Revenue's appeal upheld: Kerala HC Larger Bench Purchase and sale of mutual funds cum dividend units - Loss adjusted against business profits - AO finds the transactions genuine and allows adjustment - Dividend stripping - CIT invokes powers u/s 263 - Since a gap existed in the Sec 94 and the same was corrected with effect from AY 2002-03, assessee exploited it and all such transactions were valid before the amendment - Tribunal's order upheld and no point of law found involved - Revenue's appeal dismissed: Delhi HC; Exemption u/s 10(22) - New Ss 11, 12 & 12AA inserteed by Finance Act, 1998 - AO denies exemption for violation of Sec 13(1)(d) - Assessee claims it was in possession of shares of Ltd company since 1983 - Writ under Article 226 - Since the issue is factually disputed, it cannot be considered under judicial review - Assessee needs to pursue appellate remedy provided by the statute : Madras HC; Assessee claims deduction u/s 10(26B) - Revenue and Tribunal reject the same - Going by the background under which the assessee corporation was set up after taking into account the provisions under Articles 46 & 47 of the Constitution, the corporation was set up to uplift the conditions of tribal population of the State and benefits of Sec 10 cannot be denied - Revenue's appeal rejected : Guwahati HC; |
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Fifth Cenvat Credit rules amended - Sec 5B inserted; 2007-TIOL-82-SC-CX.doc + sc aluminium story.doc Conversion of Aluminium Ingots into Aluminium Billets amounts to manufacture : SC; 2007-TIOL-630-CESTAT-KOL.doc +excise story.doc Dumb figures and plethora of documents alone cannot be evidence - clandestine removal has to be proved by Revenue; J&K Exemption - Education cess paid through excise duty credit - refund eligible : Cestat; Condonation of delay - Commissioner(A) declines to do it as it was filed beyond the stipulated period - Tribunal says no in view of the Delhi HC order that any delay not condoned by the Commissioner (Appeals) is not condonable by the Tribunal - Assessee asked to deposit entire amount of duty and penalty : Cestat; Dumb figures and plethora of documents alone cannot be evidence - clandestine removal has to be proved by Revenue : Cestat;
SERVICE TAX SECTION Service Tax rule 3 - Chief Commissioner of Customs to act as Chief Commissioner of Central Excise for formation of Committee under sub-section (1A) of Sec 86; Chief Commissioners' committees formed for review cases; Commissioners' committe formed for review cases; Late deposit of service tax with interest - Penalty under Ss 76 & 77 imposed - Since it was a new levy and there was confusion during the initial months as to its applicability, a reasonable cause existed for late payment and Sec 80 mandates a waiver for the same - Revenue's appeal dismissed : Cestat; ST - Management Consultancy Service - Assessee has partnership agreement and obtains orders, procures materials and finds foreign buyers and none of these activities are covered under the taxable service - Demand set aside :Cestat; Service Tax - Business Auxiliary Service - helping the clients organize meetings of investors - prima facie, partakes the character of "promotion or marketing of services - Pre-deposit of Rs. 15 lakhs ordered :Cestat;
CUSTOMS SECTION Anti-dumping duty on vitrified and porcelain tiles extended by one year; 2007-TIOL-83-SC-EXIM.doc + sc expt story.doc Failure to fulfill export obligation - DGFT's order upheld - penalty reduced to 20 Lakhs from 45 lakhs; Import of vanaspati from Nepal - Exemption from SAD granted - Later Revneue changed its mind and demanded SAD - Since Revenue had granted exemption to two other parties, it cannot be denied the same benefit - Demand set aside :Cestat; Seizure of Chinese calculators - Since it is a notified good under Sec 123 of the Customs, onus put on the assessee to prove the legal import of goods - Purchase invoice furnished - Sellers also file papers of licit purchase from an importer - Copy of BE filed but complete description of goods not given - Just because details of goods not given in the invoice it cannot be concluded that the goods were smuggled and nothing prevented Customs from further investigation by calling the importer for examination : Cestat; |
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If goods become non-dutiable, credit already taken need not be reversed - New Section 5B; A Gold Cyanide scam in the making in Electronics Industry ! When was the Finance Bill enacted? Refund of Service Tax to IT, ITES : A lingering procedural illusion ! Finance Bill enacted - SHE effective from 11 th - Penalty for late filing of service tax returns quantified; Sonata launches enhanced suite of SonnetBI; LIC Housing to give 30% dividend; Kerala Govt signs deal for smart city IT Park; TVS to invest in West Java; |
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