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Petro Ministry to offer 57 oil and gas blocks in 7 th Round of bidding; PM to inaugurate Telecom 2007 on Wednesday; Petro Secretary says Govt exploring possibilities of excise duty cut + price hike to neutralise impact of spiralling prices of crude; Govt firm on promoting SEZ for manufacturing of renewable energy equipment; |
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| Dear Member, Also sending you the following files: |
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2007-TIOL-423-ITAT-BANG.doc + debeers story.doc Income Tax - Assessee is into the business of prospecting and mining of diamonds and other minerals - enters into an agreement with a non-resident company for conducting airborne geophysical survey and provide suitable data for selecting probable diamond targets - Payments made but the AO terms it as ''fees for technical services'' under the DTAA and declares the assessee as an assessee in default u/s 201 - CIT(A) disagrees with the AO - The non-resident service provider albeit performed the services using substantial knowledge and expertise but such technical experience, skill or knowledge was not made available to the assessee, and when the ownership of data was always with the assessee, there cannot be transfer of property from the service provider to the assessee and the payments are not covered under the Article 12(5)(b) of the DTAA: BANGALORE ITAT; Income Tax - Assessee claims deduction for foreign exchange loss - AO disallows it as he finds it contingent liability - CIT(A) deletes the disallowance - Going by the jurisdictional HC decision, the increase in liability on account of the fluctuation in the rate of foreign exchange rate is accrued liability but whether it is a Revenue or capital expenditure, to be decided afresh by the AO - Matter remanded: DELHI ITAT; Income Tax - Assessee has multiple manufacturing units - One of the units closes down and the property is let out - Assessee claims the same as business income - AO treats the same as income from house property - CIT(A) examines the facts and treats the same as business income - Since it was a case to two businesses being run by the same management and there are interconnections and interlacing of funds and unity of control by management and administration, the income from letting out of properties is to be treated as business income - Revenue's appeal dismissed: DELHI ITAT; Income Tax - Assessee is into banking business - has many overseas branches - makes provision for payment of taxes for foreign branches as per the local tax statutes - computation of book profits u/s 115JA, the MAT provisions - AO adds back into book profits the amount earmarked for provision of taxation of foreign branches - CIT(A) agrees with the AO - CoD approval sought - CoD advises the assessee to seek Advance Ruling on this issue - Going by the rationale behind the enactment of the MAT provisions and the fact that as per clause (a) of Explanation to sub-section (2) of section 115JA there is no distinction between the Indian Income and foreign income, the provision of tax made for foreign branches is required to be added to the book profit in terms of Sec 115JA: AUTHORITY FOR ADVANCE RULINGS; |
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2007-TIOL-724-HC-HP-CX.doc + cess story.doc Education cess is payable even if excise duty is exempted: HIMACHAL PRADESH HIGH COURT; Delay of 9 days in filing appeal before Commissioner(A) not condoned by the Tribunal as delay not satisfactorily obtained - Argument that the delay should have been condoned amounts to re-arguing of the appeal itself in the guise of an ROM application, which is not permissible - Application dismissed: MUMBAI CESTAT; Central Excise - Cenvat Credit - clearance of used capital goods - no requirement of payment of duty on the sale of used machinery - it can not be treated as clearance of capital goods as such - Board's Circular cannot override the statutory provisions: MUMBAI CESTAT; Limitation - Departmental Audit report merely pointed out some instances where the credit was not reversed from which it cannot be concluded that the appellants will keep on indulging in such non-reversal of credit in future also and the department should be on the constant track of the assessee looking into such instances - Extended period rightly invoked. Once there is suppression, full period of five years is available for issuing show cause notice in respect of the period prior to the date when the matter comes to the knowledge of the department. Modvatable Inputs transferred to sister concern/dealers - There is a positive statement from the officers of the company that in respect of delivery challans which do not bear an endorsement that credit has not been availed, credit has been taken by them but since on a scrutiny it was found that the credit has not been reversed, the demand on this count cannot be faulted with. On some delivery challans they have stamped 'credit not availed' , yet the duty of Rs.14 lakhs is demanded - Matter remanded for the limited purpose of ascertaining the duty demand of Rs.14 lakhs - Penalty also to be quantified afresh after conducting the exercise.: MUMBAI CESTAT;
2007-TIOL-1891-CESTAT-MUM.doc+ st story.doc Service Tax - Section 76 is also subject to provisions of Section 80 -Commissioner(Appeals) has discretion in reducing penalty - Revenue appeal dismissed: MUMBAI CESTAT; ST - GTO service - Period 1997-98 - Assessee pays tax but Revenue demands interest u/s 75 and levies penalty u/s 76 - In view of Apex Court decision in L H Sugar case ( 2005-TIOL-105-SC-ST ) and later in Gujarat Ambuja case ( 2005-TIOL-53-SC-ST ) , where it was held that if the assessee pays tax within the time, no interest is leviable, the benefits are available to the assessee: CHENNAI CESTAT;
CUSTOMS SECTION CIRCULAR Grant of exemption from furnishing Bank guarantee by Central/ State Government Undertakings for inter-city transfer of goods from one bonded warehouse to another; NOTIFICATION Export of non-basmati rice to B'desh: Exports restrictions not to apply for 50000 MT; DGFT amends SION of plastic and chemical group products; CASE LAWS Applicant being a charitable trust and running a heavy loss, the applicant may face grave financial hardship, if directed to pre-deposit the amounts involved - Pre-deposit of entire amounts of duty and penalty waived: MUMBAI CESTAT; A refund claim is not maintainable unless the assessment order in pursuance of which the duty paid is challenged and modified/set aside - LB decision in Eurotex Industries & Exports followed. |
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ddt 10 dec.doc + guidelines.doc Supplies to SEZ - Drawback - Who sanctions? Standing counsels for Indirect taxes cases in High Courts; CESTAT President Justice Abichandani retires; My 'Brush' with the 'Cushtoms' Department! Is FBT payable on ESOPs involving foreign shares? Nicholas Piramal gets US Patent for cancer product; Maytas lnfra signs MoU with Vedanta for Rs 232 Cr township in Orissa; OECD initiative to test safety of manufactured nano materials; GAIL, RGTIL sign gas transmission pact; |
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