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Exports from SMEs all set to exceed USD 50 bn this fiscal; Govt contracts can be subjected to judicial review for fair competition : SC; House Panel raps Laloo's Railways for arbitrary and thoughtless creation of new Railway Zones; Even Zonal officers not appointed for four years! Ministry of Commerce suggests duty-free papers in place of DEPB but MoF yet to apply its mind to its compability with WTO norms; SEBI not averse to hedge fund but insists on compliance with FII Rule Book; Mid-term poll fever picks up; Khurshid for joining hands with SP & BSP; |
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| Dear Member, Also sending you the following files: |
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ORDER CBDT promotes Durgesh Shankar as CCIT; CBDT rotates two CITs posted with Settlement Commission; CBDT issues long-pending transfer order of 14 CCITs; INSTRUCTION Loss of revenue due to incorrect allowance of depreciation : CBDT directs AOs to take immediate steps for recovery; CASE LAWS 2007-TIOL-296-ITAT-DEL.doc + BHP story.doc Income Tax - Assessee, a foreign Co. engaged in the business of extraction and processing of mineral ores, claims expenditure u/s 37(1) on account of project report for seeing the possibility of commercially viable minerals - A.O. disallows treating it as capital expenditure on the ground that expenditure is in the nature of pre-commencement expenses - Allowability of expenditure as revenue depends on setting up of business and unless it can be said that the business has been set up i.e it is ready to commence the business/function for which it has been set up - expenditure u/s 37(1) cannot be allowed - In the instant case main business activity of the assessee was extraction, development and processing of minerals and it cannot be said that the assessee had the necessary infrastructure to carry out these activities thus it had not set up its business but infact had abandoned the project and expenditure on project report was not for more efficient running of the existing business of asseessee but if accepted would have entailed capital expenditure for bringing assets into existence for business and thus expenditure was attributable to capital account - Revenue's appeal allowed : ITAT; Income Tax - Assessee makes an application u/s 129 to be reheard before passing of order by succeeding officer which is given but the officer stands transferred before passing the order - Second succeeding officer again gives rehearing opportunity to the assessee on the same application and passes an order - Assessee challenges the order on the ground that it is barred by limitation - Revenue contends that the time got extended due to assessee's application - Proviso of Sec.129 are applicable only if the assessee is intimated by the succeeding officer of change of incumbent so that assessee can exercise his right of reopening of any previous proceedings or rehearing before passing of final order - In the instant case application filed before earlier officer cannot be treated u/s 129 as the assessee was not intimated by the officer of change of incumbent - Revenue's appeal dismissed : ITAT; Gift Tax - Assessees make a family arrangement of joint family properties in order to avoid future disputes and allot a property to an unmarried daughter which is previously in the name of other family memebers but divested to her at the time of marriage by way of stridhan settlement - A.O. seeks to treat it as a gift and imposes tax on the ground that it is a transfer without consideration - As per the Hindu Succession (Tamil Nadu Amendment) Act, 1989 girls have been given coparcenary rights in the joint family property thus transfer of daughter's property to her at the time of marriage by stridhan settlement did not amount to gift as it was merely relinquishing of rights by other members in pursuance of family settlement which was absolutely valid in terms of Hindu Succession Amendment Act - Revenue's appeal dismissed : ITAT; Income Tax - Deduction claimed for sub-brokerage payment - AO disallows on the ground that there was a mismatch in the statement of the assessee and the sub-broker - CIT(A) deletes the additions - Since the onus to prove the payment was on the assessee which failed to establish the sub-broker as a creditor particularly in the light of the fact that an FIR was lodged against the sub-broker for some delivery-related payments, deletion by the CIT(A) is not valid - Revenue's appeal allowed : ITAT; |
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NOTIFICATION Rule 9 of Cenvat Credit Rules amended to conditionally disallow credit for Addl Customs duty Central Excise (Fourth Amendment) Rules, 2007 amends rule 11 for indicating admissibility of Addl Customs duty on invoice by first stage and second stage dealers of imported goods; CASE LAWS 2007-TIOL-1373-CESTAT-MAD-LB.doc + surana Story.doc Compounded Levy - Rule 96ZO/ZP survives even after omission of section 3A - There cannot be a greater all pervasive saving clause than Section 38A :Cestat; Clandestine removal - No reduction in penalty called for when statements recorded corroborate the investigation - since clandestine activities undertaken under the directions and due knowledge of the partners, imposition of penalties justified :Cestat; The appellants are treated as producer of newsprint by virtue of getting notification dated 23.2.99 - For the earlier period, they cannot be treated as producer of newsprint, specified in the Schedule 1 (3) of Newsprint Control Order - During this period the products manufactured and cleared by them cannot be held to be falling under Chapter 4801 of the Central Excise Tariff Act in the light of Chapter Note 3 to Chapter 48 :Cestat; M/s Bela Plastics manufacturing goods and the same supplied under invoices to appellant by M/s Bela Instruments, a Division of the company without getting itself registered as a dealer - Modvat Credit cannot be availed on such documents :Cestat;
SERVICE TAX SECTION NOTIFICATION Service Tax refund granted on four services linked to exports; Hard work pays - Nath convinces MoF to grant service tax refund on four Services loosely linked to exports; CASE LAWS ST - Business auxiliary service - Assessee provides repair and maintenance service which was notified on 16.06.2005 - Revenue raises demand for prior period terming their service as BAS - Since there has been no change in the definition of BAS after 16.06.'05, deposits made are adequate for hearing the case - Stay granted :Cestat; 2007-TIOL-1366-CESTAT-BANG.doc Service Tax - Consignment Agent is not C & F Agent :Cestat;
CUSTOMS SECTION NOTIFICATION Delegation of power in respect of National Highways Authority of India (NHAI) to sign the Customs/ Central Excise Exemption Certificate for projects financed by the World Bank, ADB or other international agency; Classification of Boric Acid and separate chemically defined compounds for the purpose of Customs & Central Excise; Classification of Digital LCD / Flat panel Monitor - CBEC clarifies notification benefits Classification of Digital Still Image Video Camera : Notification benefits extended Amends 62/94 to insert Ranpar in Maharashtra; Amends Notification no 45/2005 to sort out Addl Customs duty related issues; Anti-dumping duty levied on import of phosphoric acid from China; Anti-dumping duty levied on ductile iron pipes from China; Exempts goods falling in the First Schedule to the Customs Tariff from the whole of the additional duty of customs; Govt allows export of milk power to B'desh by GCMMF, Gujarat; Govt allows export of 1000 tonnes of pulses to Mauritius; CASE LAWS 2007-TIOL-1369-CESTAT-MAD.doc +restricted story.doc Restricted goods are prohibited goods; redemption may be allowed :Cestat; Imported Heavy Melting Scrap of 116 MT containing 480kgs of war material/explosive material - while granting pre-inspection certificate, SGS has not done a thorough job or the norms adopted by them for categorizing any material as explosive material were different from what was adopted in this case by the customs authority - absolute confiscation of 480kgs of explosive material upheld. Confiscation of entire consignment of Heavy Melting Scrap & imposition of penalty set aside. Registration of Inspecting Agency as envisaged in Public Notice dated 10.02.2005 of DGFT authorities cannot be applied retrospectively as inspection carried out in October 2004:Cestat; |
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Customs Valuation - amended provisions of Customs Act to be effective 10 th October 2007; guest column.doc + export_valuation.xls + import_valuation.xls Valuation of import goods - Desirable clarity in new provisions! Indian Customs and the euthanasia of Red Books! Draft for amendment in investment pattern for Non-Govt PF; Hindustan Sanitaryware - Rs 210 Cr expansion plan for new unit in AP; |
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