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FM asks State Govts to use PPP Projects for infrastructure development; Parliament approves amendments in Competition Commission Act + Tobacco (Prevention) Act by voice vote today; Direct taxes mop-up galloping; registers 42% growth; crosses Rs 61000-mark in five months; Govt intends to bring Food Safety and Standard Act into force by year-end; |
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| Dear Member, Also sending you the following files: |
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2007-TIOL-270-ITAT-PUNE-SB.doc + gutka story.doc Income Tax - Assessee claims deduction u/s 80I/80IA for new undertakings - AO disallows on the ground that the gutka, manufactured by the assessee, falls under Item No 2 of the Eleventh Schedule of the I-T Act - Conflicting decisions - Special Bench set up to decide the question of fact - "tobacco preparations" means a preparation using tobacco if the pharmacology of nicotine and physiological and psychological effects of nicotine are dominant and the properties of nicotine, a substance derived from tobacco, do not undergo any metamorphosis as a result of addition of other ingredients in the preparation - Though the qunatity of tobacco may be marginal but it is the property of tobacco which dominates the final taste of the product - The expression 'such as' used in Item No 1 in the Eleventh Schedule is merely illustrative and not exhaustive and does extend to gutka which is not eligible for Sec 80I/80IA benefits :ITAT; Income Tax - Assessee fails to calculate the correct amount of tax to be deducted from the salary of its employees and deposited the same to its convenience - A.O. imposes interest u/s 201(A) for violation of provisions of Sec.192(1) - Assessee objects to charging of interest - Levying of interest u/s 201(A) is mandatory and compensatory in nature which is levied for withholding of tax which rightly should have been in government exchequer thus there is no discretion if there is a default in deduction of tax and, moreover, in the instant case tax has been deducted and deposited by the assessee to his convenience without following any reasonable uniform method of estimation - Assessee's appeal dismissed :ITAT; 2007-TIOL-484-HC-MUM-IT.doc + tds story.doc Income Tax - Assessee and his brother hold 50% stake in partnership firm - Makes investments in shares and earns dividend income - TDS credit claimed - AO denies on ground that the shares belonged to the firm and only the firm can utilise such credit - CIT(A) and Tribunal uphold order - First proviso to Sec 199 read with Rule 30A - If dividend income is assessee in the hands of the assessee-shareholder, the first proviso to Sec 199 will have no application and TDS credit cannot be denied to the partners - Assessee's appeal allowed : HC; Income Tax - Petitioner sells a flat owned by him - Respondents serve a notice u/s 269UD(1) for undervaluation seeking to purchase the property and also discount the value of apparent consideration and deduct an amount from apparent consideration on account of liability for payment of transfer fees to the society - Petitioner challenges discounting of value of apparent consideration from the date of agreement to sell instead of date of payment of balance consideration and legality of deduction towards transfer fees - First issue no more res integra as discount of value of apparent consideration is to be done from the date of agreement to sell and not date of payment of rest of consideration - There can be no deductions from apparent consideration except for that is statutorily provided for and transfer fee to the society is not a statutory deduction - Petition allowed on this count : HC; |
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Additional charge arrangement in the grade of Commissioner of Customs & Central Excise; ORDER Additional charge arrangement in the grade of Commissioner of Customs & Central Excise; INSTRUCTION CESTAT, Larger Bench's decision in the case of Commissioner of Central Excise, Delhi-IV Vs. ILPEA Paramount Pvt. Ltd. [ 2007-TIOL-1017-CESTAT-DELHI-LB ]; CASE LAWS 2007-TIOL-155-SC-CX.doc + sc story.doc SSI exemption - brand name owner need not manufacture identical goods; it is enough if he is also eligible for the SSI exemption : SC; Credit availed on alleged bogus invoices - Burden is cast upon department to prove the same. Allegation
that credit availed on bogus invoices - owners of vehicles in which
goods were allegedly transported denying use of their vehicles -
no further investigation by verification either at the Toll post
or the octroi post, to establish that the vehicles had not actually
gone to Mumbai for transporting the consignments - Cross-examination
of the owners of the vehicles not allowed to the respondents - Burden
cast upon department not discharged - Appeals rejected :Cestat;
Central Excise - Appellant seeks stay of duty demand raised by revenue on account of wrong classification and suppression of facts - Law contemplates only suppression of facts with intention to evade duty for purpose of raising demand beyond normal period and not suppression of law - Prima Facie demands not sustainable - Stay application allowed :Cestat; Central Excise - Modvat - In the absence of any efforts made by the assessee to prove with records that the transport documents accompanying the raw materials to their factory had borne an incorrect description owing to a clerical error, the assessee's claim cannot be accepted as a bonafide one-impugned order does not call for any interference :Cestat; Central Excise - excisability of storage tanks - tanks of various sizes fabricated at site and attached to earth from the stage of fabrication- neither can be removed without being dismantled nor separable without destructing the same, shall not be goods liable to duty- however small size tanks which are found to be marketable goods shall be dutiable - matter remanded to the Adjudicating authority :Cestat;
SERVICE TAX SECTION 2007-TIOL-1295-CESTAT-BANG.doc Service Tax - C & F Agents - Valuation - Godown rent, establishment expenses, incentives, STD calls are not required to be added for calculating Service Tax - Impugned order set aside :Cestat; ST - Management Consultancy Service - Assessee enters into composite agreement with bottlers to provide multiple services like selection of materials, process of bottling, obtaining of permission and use of trade mark against royalty - Since the demand is inflated, no justification for deposit of full demand :Cestat;
CUSTOMS SECTION NOTIFICATION CBEC allows import of coal, gypsum, FO and rubber tyres and export of cement from Muldwarka in Gujarat; CASE LAWS 2007-TIOL-1297-CESTAT-MAD.doc + titan story.doc Customs – button cells imported – CVD demanded by assessing the goods under MRP based assessment – demand set aside as the goods were imported in bulk - unless the provisions of SWMA required to declare the retail sale price on the packages containing the goods the CVD can not be demanded based on MRP :Cestat; Customs –application by revenue against the order of Commissioner (Appeals) for stay - the appeal and the prayer contained in the appeal memo do not make a cogent representation for any relief against the impugned order and the appeal does not make sense. The stay application as well as the appeal is dismissed :Cestat; |
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Mandatory penalty – Happy Board commends CESTAT LB decision to the field; Rail gadi ki safar : Are we condemned to suffer even in post-reforms era? RBI Notification For Frauds In NBFCs.doc RBI issues fresh instruction on monitoring of frauds in NBFCs; Reliance Communications launches money transfer on mobiles; Tayo Rolls enters into engineering and forging segments; MRPL signs long-term product supply agreement with Shell; Sical Logistics signs agreement to raise USD 26 mn from Old Lane; |
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