CBDT posts three CITs as OSD in Board - Mr Sharat Chandra + Mr D P Semwal + Mr Ashutosh Dixit of 1987 batch;

Govt to make services accessible to common man through e-goverance: Raja;

President appoints four full-time Judges in Madras HC;

2007-TIOL-414-ITAT-BANG.doc + bank story.doc

Income Tax - Assessee is a bank and makes provision for standard assets as per RBI guidelines - Claims deduction for the same as expenditure - AO does not find it allowable either u/s 36(1)(viiia) or under Sec 37(1) - CIT(A) disallows the same after giving reasoned order - A provision can be allowed as a charge on profits only when the assessee establishes that it has incurred the liability - Since the assessee did not incur any specific liability, such provision cannot be allowed - Assessee's appeal disallowed: BANGALORE ITAT;

2007-TIOL-413-ITAT-DEL.doc

Income Tax - Assessee gets into maintenance service contracts for 1-3 years and collects total payments as one-time deposit - shows payments related to the FY as income and the rest as deposits - AO makes addition for unexpired portion of maintenance service contracts - CIT(A) deletes it - Since such a system was alwasy accepted by the Revenue in the past, and a similar system of accounting has been upheld by the Tribunal in the case of HCL Ltd, there is no infirmity in the CIT(A) order:DELHI ITAT;

AO disallows order procurement commission on the ground that it pertained to previous FY - CIT(A) deletes the disallowance - Since the assessee has been regularly following this system of accounting as per which the liability on this account is entered in the books only after the bills received are approved by the assessee company and this fact has not been disputed and the Revenue has always accepted this system in the earlier years - CIT(A) order allowed:DELHI ITAT;

2007-TIOL-412-ITAT-DEL.doc

Income Tax - Assessee claims deduction u/s 43B for contribution made to PF & ESIC - AO disallows payments made after due date - CIT(A) deletes the disallowance - Deduction to be allowed only when payments are made on or before the due date as defined in explanation to clause (va) of sub section (1) of section 36 - AO directed to allow even those payments which are made during the grace period but not the payments which were made beyond the grace period - Revenue's appeal partly allowed:DELHI ITAT;

2007-TIOL-411-ITAT-DEL.doc

Income Tax - Assessee is into buy and sale of shares - Due to unstable market conditions the assessee does not transaction during the relevant FY but claims staff and conveyance expenditure - AO disallows - CIT(A) allows it - Merely because the assessee prefers to remain dormant and does no transactions because of uncertain nature of the market, the expenditure incurred to run the office cannot be disallowed - Revenue's appeal disallowed:DELHI ITAT;

CENTRAL EXCISE SECTION

2007-TIOL-217-SC-CX.doc + sc story.doc

Central Excise - manufacture - As to what constitutes manufacture would depend upon the facts of each case. Condensing units were manufactured by the appellant at its factory at New Delhi and the cooling units were procured from the local market for which the electrical motors were supplied by the appellant. Neither the condensing unit nor the cooling unit by itself is a complete air conditioner. It is only when these two, i.e. condensing unit and cooling units are put together the complete unit of air conditioner fit for use came into existence at the Kanjumarg workshop. Air conditioner is a commercially new article than either the condensing unit or the cooling unit:SUPREME COURT;

2007-TIOL-1862-CESTAT-MUM.doc

Section 11B & 11BB are to be read together - Appellant filed a refund claim in June 1997 disputing the amount paid by him at the insistence of the C.Ex officers - issue finally settled in August 2005 by the Tribunal - refund granted within three months of the Tribunal order - Interest payable for the period after three months from filing the refund claim at rates prevailing during the period in view of LB decision in Jayanta Glass Ltd., and Rajasthan HC decision in the case of J.K. Cement Works.:MUMBAI CESTAT;

2007-TIOL-1861-CESTAT-BANG.doc

Central Excise - SSI exemption - It is established that appellants during the relevant period have not crossed the exemption limit. Hence demand not sustainable. (para 11)

Clandestine clearance - Evidence - Demand is based solely on private records. No direct or indirect evidence adduced by department by way of procurement of raw materials /sale of finished goods / consideration received for sale. No evidence to conclude clandestine clearance. Suspicion is no substitute for evidence. Demand set aside due to lack of evidence:BANGALORE CESTAT;

2007-TIOL-1860-CESTAT-MUM.doc

'Motor Spirit' blended with 5% ethanol - Duty for the period 01/07/2004 to 03/08/2004 - as Section 11C notification has been issued, no cause for confirmation of duty demand & imposition of penalty/interest - Appeals allowed:MUMBAI CESTAT;

SERVICE TAX SECTION

2007-TIOL-1866-CESTAT-MUM.doc + catering story.doc

Outdoor Catering Services provided in the company canteen whether indirectly assists manufacturing activities - Cenvat Credit eligibility - No prima facie case for complete waiver of amounts - Tribunal orders pre-deposit:MUMBAI CESTAT;

2007-TIOL-1865-CESTAT-BANG.doc

Service Tax is not leviable when a foreign company has transferred technology to the Indian Company for valuable consideration:BANGALORE CESTAT;

CUSTOMS SECTION

2007-TIOL-1864-CESTAT-MUM.doc + dumping story.doc

Anti-dumping duty during the "interregnum period" - Matter referred to Larger Bench of Tribunal in view of conflicting decisions in Harsh International 2007-TIOL-1232-CESTAT-MUM & Bansilal Leisure Parks Ltd. 2007-TIOL-1388-CESTAT-DEL:MUMBAI CESTAT;

2007-TIOL-1863-CESTAT-BANG.doc

Customs - Imports - Classification / Valuation - Principles of natural Justice - Commissioner (Appeals) has not given any findings and merely accepted the OIO by agreeing with the findings of the original adjudicating authority. Commissioner (Appeals) is required to examine every submission and evidence adduced. Failure to do so results in a non-speaking order and violates the principles of natural justice. Matter remanded to Commissioner (Appeals).:BANGALORE CESTAT;

ddt 05 dec.doc

Service Tax in Jammu and Kashmir;

Money Laundering Adjudication Authorities – Supreme Court stays selection process – OM shanti OM;

spl down.doc

Ambit of BAS enlarged but scope of auxiliary and incidental services restricted within BAS;

mbuzz115.doc

Govt modifies Technology Upgradation Fund Scheme;

mbuzz114.doc

EPIC Energy launches GSM-enabled Remote Energy Management Systems;

mbuzz113.doc

OECD hails tax information exchange pact between UK and Bermuda;