India produced 4.662 MMSCM coal bed methane till Oct-end 2007;

Meeting of GoM on fuel prices scheduled for tomorrow postponed;

Cabinet gives nod to DTAT with Senegal + continuation of Textile Management Institute at Coimbatore + amendment in Gram Nyayalayas Bill, 2007 + introduction of Hospital patient care allowance for Group C & D Railwyas employees in Rlys clinics and hospitals;

2007-TIOL-433-ITAT-DEL.doc + alcatel story.doc

Income Tax - Bad debt u/s 36 (i)(vii) - Assessee supplied cellular exchange equipment to a telecom company which defaulted in meeting payment commitments - Assessee arrives at a settlement and writes off the balance sum - AO sees it as a device to evade tax and adds back to income - CIT(A) finds enough evidence and deletes the same - Since the debtor had defaulted in the past and the DoT had encashed the bank guarantee as its net assets were not enough to meet even the DoT claims, the assessee had enough ground to treat its outstandings as bad debt which need not be established

Deduction claimed for salary expenditure incurred on expatriate employees - AO and CIT(A) disallow as the expenses were related to previous years - Since the assessee was in know of its liability as per its understanding with its parent company it should have claimed the same in the respective financial years as it was following the mercantile system of accounting - If such an expenditure is allowed in this year, it would distort the figure of profit or loss which would be against the provision of Sections 4 & 5 of the Income Tax - Assessee's appeal disallowed : DELHI ITAT;

2007-TIOL-432-ITAT-DEL.doc

Income Tax - AO makes additions on basis of codified entries into a diary found at the premises of a third party - CIT(A) deletes the additions - Since the Revenue did not collect additional evidence to corroborate the charges of unexplained credit, additions cannot be made merely on basis of certain charges levelled by the CBI in their own charge-sheet - Assessee's appeal allowed : DELHI ITAT;

2007-TIOL-431-ITAT-DEL.doc

Income Tax - Assessee signs composite contract for charter hire of offshore rigs and other equipment - offers income to tax - AO taxes 1% of mobilisation and transportation charges for services performed outside India and @ 10% for services rendered in India - CIT revises assessment u/s 263 - Since the assessee and the AO agreed that the receipts for services rendered even outside India are taxable the CIT was justifiable in applying the mandatory rate of 10% u/s 44BB - Assessee's appeal dismissed : DELHI ITAT;

2007-TIOL-430-ITAT-DEL.doc

Income Tax - Assessees opt for Optional Early Retirement Scheme of RBI and claims exemption u/s 10(10C) - AO relies on RBI's clarification given as part of the Scheme that the income may be taxable - CIT(A) allows deduction - What is not chargeable to tax cannot become taxable just because of the admission of the assessee - such sums given out of voluntary reitrement scheme known by any nomenclature is exempted u/s 10(10C) upto Rs five lakh, and the excess receipts is entitled to relief u/s 89 - Assessees' appeal allowed: DELHI ITAT;

cbecorder135_2007.doc

CBEC issues single order - Prabhat Kumar, JC, retained in Delhi;

CENTRAL EXCISE SECTION

2007-TIOL-225-SC-CX.doc + sc story.doc

Waiver of pre- deposit: It is true that on merely establishing a prima facie case, interim order of protection should not be passed. But if on a cursory glance it appears that the demand raised has no leg to stand, it would be undesirable to require the assessee to pay full or substantive part of the demand. Petitions for stay should not be disposed of in a routine matter unmindful of the consequences flowing from the order requiring the assessee to deposit full or part of the demand. There can be no rule of universal application in such matters and the order has to be passed keeping in view the factual scenario involved. Merely because this Court has indicated the principles that does not give a license to the forum/authority to pass an order which cannot be sustained on the touchstone of fairness, legality and public interest. Where denial of interim relief may lead to public mischief, grave irreparable private injury or shake a citizens' faith in the impartiality of public administration, interim relief can be given.

Undue hardship - This is a matter within the special knowledge of the applicant for waiver and has to be established by him. A mere assertion about undue hardship would not be sufficient. It was noted by the Supreme Court in S. Vasudeva v. State of Karnataka and Ors. that under Indian conditions expression "Undue hardship" is normally related to economic hardship. "Undue" which means something which is not merited by the conduct of the claimant, or is very much disproportionate to it. Undue hardship is caused when the hardship is not warranted by the circumstances. For a hardship to be ' undue ' it must be shown that the particular burden to have to observe or perform the requirement is out of proportion to the nature of the requirement itself, and the benefit which the applicant would derive from compliance with it. : SUPREME COURT;

2007-TIOL-1913-CESTAT-MUM.doc + reliance story.doc

Notification 14/97-CE(N.T) - Retrospective effect given by Section 87 of Finance Act, 1997 to restrict credit on fuel to 10% cannot suo motu help Revenue in recovering excess credit - Demand required to be issued within 90 days - Inaction on the part of Revenue cannot be held against the assessee - Tribunal.

Limitation - Demand time barred in view of Tribunal decision in Bhagwandas Metals Ltd. In the absence of issuance of the show cause notice within the time frame given in the provisions of Section 87, it itself would debar the Revenue from invoking the proviso to Section 11A(1) of Central Excise Act, 1944 for the recovery of the amount : MUMBAI CESTAT;

2007-TIOL-1912-CESTAT-MUM.doc + av story.doc

Price at which the goods were contracted/agreed to be sold to Government hospital will form the AV of goods even if the same have been sold through dealers - Tribunal orders J&J to pre-deposit Rs.15 lakhs : MUMBAI CESTAT;

2007-TIOL-1911-CESTAT-BANG.doc

Central Excise - charges of clandestine clearances of Gutka - Commissioner (Appeals) order that the charges are not sustainable is upheld - benefit of exemption under Notification 8/2001 is available to Gutka bearing a brand name also :BANGALORE CESTAT;

SERVICE TAX SECTION

2007-TIOL-1908-CESTAT-BANG.doc

Travel agent not covered under BAS - The point at issue is very simple. The appellants are obviously rendering the services of travel agent which was brought under the Service Tax net only with effect from 10.9.2004. Since, Revenue has not put them to notice under this category, even though a part of the period of dispute covers the liability on the appellant, no tax can be collected without issue of a proper show cause notice. In these circumstances, the demand of Service Tax under the category of "Business Auxiliary Services" is not sustainable :BANGALORE CESTAT;

2007-TIOL-1907-CESTAT-DEL.doc

Service Tax - goods transport agency service - payment of service tax on goods transport agency service by the recipient from Cenvat credit - Commissioner (Appeals) order allowing the payment from Cenvat account needs no interference in view of the Division Bench ruling in case of M/s India Cements Ltd : DELHI CESTAT;

CUSTOMS SECTION

2007-TIOL-1910-CESTAT-BANG.doc

EOUs - diversion of raw material procured duty free under Notifications 52/2003 Cus and 22/2003 CE - demand of duty on the material diverted confirmed - penalty modified.

Demand of duty under Section 11 A of the Central Excise Act and Section 28 of the Customs Act and issue of time bar - In terms of the relevant provisions of the exemption notifications, the appellants are liable to discharge the duty. Hence, the question of time bar also does not arise. In view of these things, the objection that Section 28 / Section 11A have been invoked in the Show Cause Notice is not a very strong ground for setting aside the demand. There are many rulings which hold that invoking an incorrect provision of law would not vitiate a Show Cause Notice and demand. It is also to be borne in mind that the Adjudicating Authority has correctly invoked the provisions of the Notifications. Further when the goods obtained duty free are bonded in the bonded warehouse, diversions to domestic market unauthorizedly is also violation of the provisions of the Customs Act and duty is demandable under Section 72 (d) of the Customs Act, which the Adjudicating Authority has correctly invoked. (Para 6.4)

Taking concurrence with the development commissioner for confirming the demand in respect of EOUs - Board circular 122/95 Cus - The Board's Circular does not require the Commissioner to consult the Development Commissioner for all types of violations. On the contrary, the Board Circular dated 28.11.1995 in Para 2 clarified that "Board desires that in view of Circular No.21/95 Cus. Dated 10.3.1995 prompt action should be taken for issue of Show Cause Notices against units indulging in gross violations of law like illicit removal / non accountal / disappearance of goods and the like". Only in issues like the non-fulfillment of export obligation, action has to be initiated in consultation with Development Commissioner. The learned Commissioner in Para 83 of the impugned order has dealt with this issue. This is not a case for initiating action for non-fulfillment of export obligations. (Para 6.6) : BANGALORE CESTAT;

2007-TIOL-1909-CESTAT-BANG.doc

Customs - Imports - Exemption notification - Exemption Notification 21/2002-Cus dt. 01.03.2002 vide entry to Sl. No. 313 reads as follows: "8525.20 - Cellular Phones and Radio trunking terminals". - Since the imported item is a cellular phone having dual mode, one mode being satellite and another mode GSM system, there is no justification in denying the benefit of exemption notification as the item falls under CTH 852520, irrespective of the sub-heading. Appeal allowed. (para 4) : BANGALORE CESTAT;

ddt 13 dec.doc

Sub-Commission on Illicit Drug Traffic and Related Matters in the Near and Middle East;

TCW 13 dec.doc + 2007-TIOL-224-SC-MISC.doc

Judicial activism : Through the 'pedestrian' eyes of a layman!

vacancies.doc

Applications invited from IRS officers for empanelment under Central Staffing Scheme;

rbi07cir019.doc

Exim Bank's Line of Credit (LOC) to USD 15 million to Eastern and Southern African Trade and Development Bank (PTA Bank);

mbuzz143.doc

CCEA gives nod to development of Harbour Wall Berths at cost of Rs 353 Cr at Mumbai Port;

mbuzz142.doc

Cabinet approves UTI MF & SBI MF for investment of post office life insurance fund;

mbuzz141doc

CCEA gives nod to Rs 316 Cr Marketing Support & Services Scheme for exporters;

mbuzz140.doc

Fed rate cut and impact on Indian bourses; Dollar need not be written off, may bounce back;