UK proposes hike in immigration fee; to revamp border security in next 12 months;

New SEBI Chief by Feb 10 : Govt may spring a surprise!;

ACC posts S P Gaur from UPSC to Inland Waterways Authority as Chairman + U N Panjiar as Secy of Water Resources + three-yr extension to N S Sisodia as Director of Institute of Defence Studies & Analysis;

SC rules no leniency to be shown in heinous offences like money-laundering, dacoity and moral turpitude;

Mr A K Raha retires; Mr J K Batra joins CBEC as new Member this evening;

Govt says VSNL, Reliance & Bharti Airtel are in touch with Telecom Egypt to repair damaged internet cable;

SEBI Chief promises exchange for SMEs by year-end;

2008-TIOL-11-SC-IT.pdf + SC it story.pdf

Income Tax - Search & seizure u/s 132 - Restraint order u/s 132(3), preventing the assessee from using bank accounts - Assessee claims all the bank accounts and lockers declared in the regular books - Petition for removal of order as the same was hampering normal functioning of business - No reply given by Revenue - Limition of 60 days u/s 132(8A) expires - Assessee intimates bank for allowing it to operate the accounts - Fresh authorisation of warrants - Cash withdrawn from accounts by Revenue - Petition to adjust part of seized money towards self-assessment and also advance tax and release the rest - No reply from Revenue - Writ filed and HC dismisses the same - Assessee moves the Apex Court which holds,

Money, when paid into a bank, ceases altogether to be the money of the owner , it is then the money of the banker, who is bound to return an equivalent by paying a similar sum to that deposited with him when he is asked for it. The money paid into the bankers, is money known by the customer to be placed there for the purpose of being under the control of the banker; It is then the bankers money; he is known to deal with it as his own; he makes what profit on it he can, which profit he retains to himself, paying back only the principal, according to the custom of bankers in some places, or the principal and a small rate of interest, according to the custom of bankers in other places. He is guilty of no breach of trust in employing it, he is not answerable to the customer if he puts it into jeopardy, if he engages in a hazardous speculation; he is not bound to keep it or deal with it as the property of the customer, but he is, of course, answerable for the amount because he has contracted, having received that money, to repay to the customer, when demanded, a sum equivalent to that paid into his hands. That has been the subject of discussion in various cases, and that has been established to be the relative situation of banker and customer. That being established, to be the relative situation of banker and customer, the banker is not an agent or factor, but he is a debtor.

It is to be clarified about the impermissibility to convert assets to cash and thereafter impound the same. : SUPREME COURT ;

2008-TIOL-55-ITAT-MAD.pdf

Income Tax - Sec 80HHC benefits - Assessee claims deduction for exchange rate fluctuation and excludes sales tax and excise duty from total turnover - Since the gains arising out of exchange rate fluctutaion is a part of sales proceeds and is to be allowed but it also forms a part of export turnover and total turnover - the issue of exclusion of sales tax and excise duty from total turnover is no longer res integra as it is settled in favour of the assessee - Revenue's appeal partly allowed :CHENNAI ITAT ;

2008-TIOL-54-ITAT-BANG.pdf

Income Tax - Assessee seeks interest on refund of excess payment of self assessment tax in pursuance of appellate order - A.O refuses on the ground that interest is payable only on refund of tax paid in response to demand notice - Any refund payable to assessee as a result of appellate order is to be made with interest as the amount refunded is no more advance tax or self assessment tax but a portion of amount treated and dealt as income tax and its nature is the same as amount paid in response to notice of demand u/s 156 - Assessee's appeal allowed : BANGALORE ITAT ;

2008-TIOL-53-ITAT-DEL.pdf

Income Tax - Assessee, engaged in the export of automobile parts, claims deduction on account of commission paid to a Co. on total export sales and also claims sale promotion expenses - Revenue reduces a part of commission which pertained to export orders procured through services of other agents in which the said Co. rendered no service and reduced sale promotion expenses on the ground of non furnishing of details of persons to whom such gifts for promotion were made - Commission paid to the Co. for export sales not procured through it is unjustified as there was no agreement to pay commission on entire sales but disallowance of certain expenses on sales promotion merely on non-furnishing of details is invalid and based on surmises - Assessee's appeal partly allowed : DELHI ITAT ;

CENTRAL EXCISE SECTION

2008-TIOL-172-CESTAT-MAD.pdf + Indo Germa Story.pdf

The logic and object behind disentitling a manufacture using another's brand name from SSI exemption is to ensure that the SSI benefit reached only the small manufacturers who not do sell branded products which enjoy carrying considerable goodwill in the market. The appellant in no way obtained any advantage of its association with a reputed manufacturer when that brand is not known in India. The appellant is eligible for SSI exemption for the impugned clearances and the demand for duty on this ground is not sustainable.

The differential installation charges collected from the buyers cannot be made part of the assessable value. CBEC circular dt clarified that when a machine was cleared from a factory on payment of appropriate duty and later taken to the premises of the buyer for installation and commissioning into an immovable property no further duty was be payable.

Clearances of manufactured goods found to have been cleared on sale without payment of duty, the liability has to be reunified allowing abatement in terms of Section 4(4) (d) (ii) of the Central Excise Act. The assessee should also be allowed credit of duty paid on raw material used in the items since found to be dutiable.

Assessee's appeal allowed by way of remand to the adjudicating authority. The assessee should establish its claim for relief with reliable evidence that was at the time of initial adjudication. The assessee shall be afforded a reasonable opportunity of being heard before the issues are re-adjudicated. The Revenue appeal is dismissed. : CHENNAI CESTAT;

2008-TIOL-171-CESTAT-MAD.pdf

Central Excise - Duty paid before issue of Show Cause Notice - No penalty when duty is paid before SCN : CHENNAI CESTAT;

2008-TIOL-170-CESTAT-MAD.pdf

Central Excise – Cenvat Credit on fuel used for generation of electricity and steam which are diverted outside the factory – credit not admissible in view of the apex Court Ruling.

Demand – limitation - the demand invoking larger period has to be appropriately requantified with reference to the actual date when the appellants informed the department about the removal of steam and power outside the factory.

Interest - interest demanded without invoking the provisions of Section 11AB in the Show Cause Notices cannot be sustained . : CHENNAI CESTAT;

SERVICE TAX SECTION

2008-TIOL-169-CESTAT-DEL.pdf

ST - Erection, commissioning or installation service - Assessee provides electrical work - Since electrical work which is not civil work was covered under taxable service only w.e.f 16.06.05, demand is not sustainable : DELHI CESTAT;

2008-TIOL-168-CESTAT-DEL.pdf

ST - BAS - Assessee enters into turnkey contract with State Transport Department for automation so that driving licence could be issued in the form of smart card - Revenue demands tax on gross amount under Business Auxiliary Service - Assessee admits their service covered under IT Service but not BAS - Since assessee not given a hearing opportunity, it amounts to violation of natural justice - Matter remanded : DELHI CESTAT;

2008-TIOL-167-CESTAT-KOL.pdf

ST - Cargo Handling Service - Assessee partly provides escavation and transport of iron ores and partly machanical transfer of coal from coal face to tippers - Such activities not covered under : KOLKATA CESTAT;

CUSTOMS SECTION

Import of Liquid bulk cargo - Since Board Circular 06/2006-Cus is not contradictory to the earlier Circular 96/2002-Cus, the same will hold good for past imports also : MUMBAI CESTAT;

ddt 01 feb.pdf

Trinamool Court - Gram Nyayalayas;

Foreign posting – CBEC all ready to mess up again?

Morbi tiles and morbid tales - many heads may roll soon!

brunup.pdf

Capital dredging, which forms substantial part of cost of building a new port, should be exempted from service tax?

mbuzz297.pdf

House Panel meets; FM says tax : GDP ratio up to 11.8% this fiscal ;

mbuzz296.pdf

Exports between April - Dec, 2007 registers 22% growth rate;

mbuzz295.pdf

China's sustained 9% growth reduces poverty from 60% to less than 10% but ...;