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Govt conducting study on status of women in consulting world; Govt in dialogue with industry on import of re-manufactured goods; definition to be inserted in FTP: MoC; IMF predicts 8.75% growth rate for Indian Economy this fiscal; |
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| Dear Member, Sending you following files. |
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2008-TIOL-60-ITAT-DEL.pdf + Van Oord story.pdf Income Tax - Assessee, a wholly owned subsidiary of VOAMC (Netherlands), claims an amount reimbursed to VOAMC in the nature of mobilisation and demobilisation expenses - A.O. disallows on the ground of non-deduction of TDS - Assessee objects on the ground that reimbursement was on actual basis and did not constitute income in the hands of VOAMC - As per Sec.195, TDS is to be deducted on any payment made to a non-resident without going into the nature of payment and its taxability which is A.O.'s duty and failure to do so attracts Sec.40(a)(i) under which claim of deduction is to be disallowed - Assessee failed to deduct TDS on reimbursed amount thus rightly disallowed deduction - Assessee's appeal disallowed: DELHI ITAT; Income Tax - Reassessment - Assessee objects on the ground that no nexus exists between reasons for reopening and the belief formed for escapement of income which is a pre-requisite for initiating reassessment proceedings u/s 147 - The amended provisions of Sec.147 w.e.f. 1.4.89 which is applicable in the instant case simply requires that reassessment proceedings can be initiated if A.O. has reasons to believe that income chargeable to tax has escaped assessment and such belief can be formed on the basis of any material and only requirement is that A.O. should act judiciously and it is also immaterial whether during reassessment escapement of income is actually found or not - In the instant case there was enough material on record of A.O. to form a reasonable belief by a reasonable person of escapement - Assessee's appeal dismissed: DELHI ITAT; Income Tax - Assessee claims depreciation on UPS and a deduction u/s 80HHC - A.O. allows depreciation at a lower rate then claimed and reduces loss suffered in export of trading goods from profit on export of manufactured goods in computing deduction u/s 80HHC and subsequently imposes penalty u/s 271(1)(c) for furnishing inaccurate particulars of income - Claims made in the instant case are debatable and were based on certain judgements and just because A.O. disallows a higher claim made by assessee or takes a different view on a particular claim doeas not lead to an inference of furnishing of inaccurate particulars of income - Revenue's appeal dismissed: DELHI ITAT; Income Tax - Aassessment reopened on the ground that income escaped assessment on account of capital gains arising out of hiving off of one of the units at the time of original assessment - Assessee objects on the ground that it is a mere change of opinion as all facts were in fornt of the A.O. at the time of original assessment - Assessment can be reopened u/s 147 only in case of escapement of income from assessment on the basis of fresh material or information which comes to the knowledge of A.O. after the original assessment is completed and not merely on reappraisal of same facts which amounts to change of opinion and is not a valid basis for reopening of assessment u/s 147 - In the instant case, A.O. was aware of hiving off at the time of original assessment and had all primary information related to assessment before him thus its a case of change of opinion and reopening is invalid -Assessee's appeal allowed: BANGALORE ITAT; |
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2008-TIOL-189-CESTAT-AHM.pdf + castrol story.pdf It is not open to the Excise authorities to doubt the decision of the competent authority under SWAM - 210 litres Barrel of Lubricating Oil not to be assessed under Section 4A of the CEA'44: AHMEDABAD CESTAT; When dealing with a case of the refund claim preferred by the buyer, the buyer cannot be required to challenge the assessment order at the other end: AHMEDABAD CESTAT; Central Excise – Cenvat Credit – Fuel: in respect of fuel, the cenvat credit rules has made special dispensation; inputs are required to be used within the factory of generation of electricity where the credit has been taken;, use of surplus electricity in other units of the same company or its subsidiary, should not lead the denial of credit taken and availed by the unit generating electricity.: AHMEDABAD CESTAT;
SERVICE TAX SECTION Service Tax – Management consultancy, IIM Calcutta: Firstly, the appellants are themselves admitting tax-liability of Rs. 17.98 lakhs and there is no satisfactory reason as to why they have not predeposited even this amount and why they are asking for waiver of this amount. Secondly, IIM Calcutta is not pleading any financial hardship for making the predeposit required under the law, nor they have submitted any documentary evidence showing any financial difficulty. Thirdly, it is a contradictory stand on the part of IIM Calcutta to plead on the one hand that they are a premier institute for teaching management including financial management and plead on the other hand that they were ignorant regarding the liability to pay Service Tax under the Service Tax Law. It is also ridiculous on the part of such a premier institution to argue that since they are exempt from income tax, they were under the impression that they are automatically exempt from payment of Service Tax. No arguments have also been advanced on behalf of the Institute to counter the finding of the Adjudicating Commissioner that the Institute has suppressed material facts under the provisions of Service Tax Law with intent to evade payment of tax. In any case, the penalty under Section 76 of the Finance Act, 1994 is mandatory in every case of delay in payment of Service Tax and is not dependent on intention to evade tax.: KOLKATA CESTAT; ST - Pre-deposit - Import of services - Demand raised for period Nov 1999 to March 2002 - Assessee pleads tax is leviable from 18.4.2006 - Stay granted: DELHI CESTAT; ST - C & F Agent - Asst Commissioner does not levy penalty but Commissioner does so in revision order - Going by the AC's findings and the decision to invoke Sec 80, the revision order is not sustainable: DELHI CESTAT;
CUSTOMS SECTION NOTIFICATION Once again no change in tariff value of palm oil but value revised for brass scraps; CASE LAWS 2008-TIOL-13-SC-CUS-LB.pdf + sc cus story.pdf Customs – goods cleared from warehouse for home consumption on payment of duty – duty paid goods retained in the warehouse as they are highly inflammable – subsequent increase in duty not applicable to these goods as they are no more warehoused goods. Since the entire duty required to be paid by the importer has been paid and an out of charge order had been passed by the Customs Authorities, nothing more remained to be paid by the importer. In this view of the matter, the question of applicability of provisions of Section 15(1 )( b) becomes irrelevant. The goods would be more appropriately governed under Section 15(1 )( a) which provides that in the case of goods entered for home consumption under Section 46, the duty leviable would be as on the date on which the bill of entry in respect of such goods is presented. In this case, the bill of entry was presented by the respondent on 20th of May, 1998 and 28th of May, 1998 and full duty was paid. The goods were got cleared on the payment of the entire duty as applicable on that date. Once, goods are cleared for home consumption, the duty payable would be on the date on which the Bill of Entry in respect of such goods is presented, under Section 46: SUPREME COURT; Customs – exemption under Notification 21/2002-Cus dt.1.3.2002 and Notification No.66/2004-Cus dt.9.7.2004 to crude palm oil for manufacture of industrial fatty acids – the appellant produced palm fatty acid distillate as by product to the extent of only 25% and 75% emerged as refined palm oil – palm fatty acid distillate is industrial fatty acid and the appellant is eligible for exemption – the notification does not stipulate that the yield of industrial fatty acid should be 100% - impugned order set aside. It is well settled principle of interpretation that the plain words of exemption notification have to be adhered to and the scope of the same cannot be narrowed down by introducing anything extraneous to the same. Hon'ble Supreme Court in the case of Gujarat State Fertilizers Co. 1997 (91) ELT 3 (SC), while dealing with the exemption notification No.40/1985, extended the benefit of the same and observed that it is the express language of the notification which should be seen by the Court and the intention of the legislature is not relevant (Para 10) When we read the notification, we find that the same lays down that imported crude palm oil must be used for industrial fatty acid. It does not mean that yield of industrial fatty acid should be to the extent of 100%. Admittedly, the said crude palm oil has been used for the manufacture of industrial fatty acid. The Revenue's objection that such industrial fatty acid is only to the extent of 25% and as such the appellants would not be entitled to the benefit of the notification is not in accordance with the plain language implied in the notification. It is nowhere suggested in the notification about the percentage yield of industrial fatty acid. As we have already observed in the preceding paragraph that a notification has to be seen and interpreted on the basis of clear plain language used and no extra materials can be read into the same. In as much as no percentage yield stands mentioned in the notification, the Revenue's objection can not be sustained: AHMEDABAD CESTAT; |
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Pass speaking orders - Supreme Court tells High Courts: If Supreme Court can pass one line orders, can't High Courts do the same? Withdraw exemption given to software services;Financial Inclusion Panel calls for launch of National Rural Mission to rope in 56 mn excluded households in mainstream banking; Global Congress summit against counterfeiting and piracy takes off on colourful note; WCO Chief says time is now to take action! Pass speaking orders - Supreme Court tells High Courts : SUPREME COURT; DRI books Hyderabad-based importer for illicit import of ozone depleting gases; seizes cylinders worth Rs 60 lakhs ; RIL gets Govt nod for CDMA services in N-E; Tata Power announces financial closure of 1050 MW Maithon project; Indian Army going for 'Brazen Chariots'; to unfold warfare doctrine in desert; IMF praises India's structural reforms and success in reducing poverty; |
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