House Panel wants Govt to give CBI power like FBI and let it recruit officers to overcome shortages of manpower;

No of sick Micro, Small & Medium Enterprises declined from 1.4 lakh in 2007 to 1.32 lakh in 2007: Minister;

CBEC Members all set to see minor changes in their charges soon;

CBDT Chairman says MAT is here to stay;

Excise duty cut for pharma sector: NPPA issues guidelines for reducing MRP of non-scheduled formulations;

ORDER

CBDT Order 035 of_2008.pdf

CBDT transfers 3 CITs;

CBDT Order 036_2008.pdf

CBDT promotes five CITs as CCITs but issues transfer order of six;

cbdtorder037_2008.pdf

New CBDT Member Ajai Singh gets L&C Charge;

CASE LAWS

2008-TIOL-03-ARA-IT.pdf + ara story.pdf

Income Tax – Advance Ruling: NRO Deposits are FE assets: the NRO deposit to be made by the applicant with convertible foreign exchange in a banking company which is not a private company, shall be treated as 'foreign exchange asset ' under clause (b) of Section 115C of the Act;

Interest to be taxed at 20%: income by way of interest earned from the said NRO deposit shall be treated as 'investment income ' under clause (c) of Section 115C and shall be liable to be taxed at the rate of twenty per cent under section 115E; and

TDS at 20%: the banks paying interest on the NRO deposit of the applicant are required to deduct tax at source at the rate of twenty per cent: ADVANCE RULING AUTHORITY ;

2008-TIOL-138-HC-P-H-IT.pdf

Income Tax - Assessee is a brick kiln owner - files return - AO makes additions on the basis of an entry in the books of a purchaser but the same entry not shown by the assessee in his books - CIT(A) rejects the books and holds that Sec 145(3) was applicable - Tribunal partly allowed the case and reduced the GP rate from 14% to 10% - Since neighter the assessee nor the AO produced any instance of a comparable case from the same vicinity, the 14% GP rate was a little excessive and without any basis - Revenue's appeal dismissed: PUNJAB & HARYANA HIGH COURT;

2008-TIOL-137-HC-ALL-IT.pdf

Income Tax - Assessee is HUF - Transfer of immovable property - Mere book entry is not enough; a transfer can be valid only if executed through registered documents and any decree of compromise passed by a civil court not to be a binding on Revenue: ALLAHABAD HIGH COURT;

2008-TIOL-136-HC-P-H-IT.pdf

Income Tax - Assessee fails to file return - Notice u/s 148 - Return filed - Revenue levies penalty u/s 271B for failure to file audited report u/s 44AB in time - Assessee claims it did get the books audited before the due date and the same was disptached under postal cerificate - Tribunal deletes penalty - Since Revenue fails to repel the date of UPC, penalty not called for:PUNJAB & HARYANA HIGH COURT;

CENTRAL EXCISE SECTION

2008-TIOL-39-SC-CX.pdf + geo sc story.pdf

Central Excise- Demand limitation – revised Show cause Notice- It is to be noted that in the facts of the present case, earlier notice was issued which was withdrawn and the second notice was issued on 8.5.1996. Admittedly, when the first show cause notice was issued, the extended period of limitation was not resorted to. A notice should ordinarily be issued within a period of six months (as the law then stood) i.e. within the prescribed period of limitation but only in exceptional cases, the said period could be extended to five years.

“When in the original notice, such an allegation had not been made, the same could not have been made subsequently as the facts alleged to have been suppressed by the appellant were known to them.”

Bona fide: One further aspect cannot be lost sight of. The appellant as well as Konkan Railways raised a definite plea of bona fide. Such a plea had not been rejected. On the contrary, there was diversion of views and the issue was answered by different Benches of the CESTAT. That being so, the extended period of limitation could not have been invoked. As the facts alleged to have been suppressed by the appellant were known to the department, in that view of the matter the extended period of limitation under Section 11-A of the Act has no application. Invocation of Section 11-A, was impermissible, and therefore, we set aside the order of CESTAT which is the subject matter of challenge in Civil Appeal No.5305 of 2005. The appeal is allowed.

When demand is set aside on limitation, excisability is only academic: In view of the conclusions in C.A.5305 of 2005 there is no need to consider the question of marketability and/or excisability. The issue is academic.: SUPREME COURT;

2008-TIOL-140-HC-MUM-CX.pdf + tata story.pdf

Government dues do not have priority of claim over that of the secured creditors - Once the Petitioner has purchased the assets in an auction held under the SARFAESI Act, they will hold the assets free from any encumbrances – Liability of the earlier company cannot be recovered from the new buyer: BOMBAY HIGH COURT;

2008-TIOL-366-CESTAT-MUM.pdf + coromondal story.pdf

Review by Committee - Single Commissioner wearing two caps – Revenue fails to succeed before Tribunal even in ROA application.

Order-in-appeal against which the Revenue had filed an appeal had merged with the earlier order of the Tribunal & as such the ROA application is devoid of merits & liable to be dismissed view of the Tribunal decision in CC (Preventive), Shillong vs. Johny Choudhury [2006-TIOL-1971-CESTAT-KOL]: MUMBAI CESTAT;

2008-TIOL-365-CESTAT-BANG.pdf

Central Excise –Server is also a computer: BANGALORE CESTAT;

2008-TIOL-364-CESTAT-MAD.pdf

Central Excise – demand of duty on free replacements during the warranty period - Larger period could not be invoked as the assessee had followed the excise formalities scrupulously and kept the department fully informed of all the relevant information – the appellants agreed to pay duty for the normal period

Show Cause notice - SCN had not invoked Rule 9 B which the Commissioner resorted to in confirming the demand – it is settled law that the adjudicating authority cannot make out a case in the adjudication order against the assessee without putting it on notice -the impugned order is not sustainable in law. However, the assessee shall pay duty due demanded within the normal period in respect of the impugned clearances as undertaken by it during hearing: CHENNAI CESTAT;

SERVICE TAX SECTION

2008-TIOL-362-CESTAT-BANG.pdf

ST – Meter Reading, Billing, Ledger posting – not Chartered Accountant Service – Joint appeal against several respondents, not permissible: BANGALORE CESTAT;

2008-TIOL-361-CESTAT-BANG.pdf

Service Tax - Collecting entrance fee at airports and remitting it to Airport Authority – no service and no ST payable - the appellant is authorized to collect entrance fee from the visitors for entering the lounge and availing the various facilities. Just because the appellant is authorized to collect the fee and remit it to the Airport Authority of India. We cannot say that the service is provided by the appellant. Appellant is only collecting agent and whatever is collected after giving the licence fee he retains it. In this case, in our view, the actual liability is only rests with the AAI. In terms of the agreement, AAI may ask the appellant to collect the service tax also. But ultimately the liability rests only with the AAI who is actually providing the services. A person who simply collects the entrance fee cannot be equated with the service provider.: BANGALORE CESTAT;

CUSTOMS SECTION

2008-TIOL-139-HC-DEL-CUS.pdf

Customs - Misdeclaration of imports - Importer's premises searched - Arrests - adjudication and criminal proceedings initiated simultaneously - Petitioner is exonerated in adjudication proceedings but the department continues with criminal proceedings - Petitioner contends that once he is exonerated in adjudication proceedings, then prosecution on same subject matter will not lie - It is settled legal position that where adjudication and criminal procedings are initiated simultaneously on the same subject matter and the accused is exonerated in adjudication proceedings, then the reasons for exoneration have to be seen to determine whether criminal prosecution will continue or not and where exoneration is on account of some technical ground or benefit of doubt then it will not have a bearing on criminal proceedings but if it's done on merits then criminal proceedings can't continue - In the instant case adjudication proccedings were decided in favour of petitioner on merits and thus criminal prosecution can't continue: DELHI HIGH COURT;

2008-TIOL-363-CESTAT-BANG.pdf

Customs - imports - MRI system and CT Scanner - Capital goods: BANGALORE CESTAT;

ddt 11 mar.pdf + e-mode.pdf

Seizure of goods – disposal of perishable or hazardous goods – sandalwood added to list;

Life turned upside down – because of the Taxman's blunder – for a paltry 88 pence!;

Large payments – mandatory through e-mode – RBI instructions;

rbi story.pdf + atm_cus_crgs.pdf

Good news for bank customers; RBI directs banks to make cash withdrawal and balance inquiries free with immediate effect;

rbi07cir031.pdf

Exim Bank's Line of Credit of USD 45 million to the Government of the Socialist Republic of Vietnam;

mbuzz421.pdf

Hyderabad Airport to charge Rs 1000 as User Development Fee from pax going overseas ;

mbuzz420.pdf

Govt says no plan to levy 'user fee' on higher education;

mbuzz419.pdf

Dasmunsi says Headend-in-the-sky scheme is being finalised;

mbuzz418.pdf

Govt taking steps to enhance cyber security of IT infrastructure;