Kozhikode DRI seizes 7333 computer RAMs worth Rs 74 lakh from two pax coming from Singapore but Lankan Airlines;

Union Cabinet okays proposal to set up CoS to process recommendations of 6th Pay Commission;

Cabinet approves air services pacts with Mexico & Chile;

Tornados strike southern USA; cause major damage to life & property;

Inflation leapfrogs to 7.41% - the three-year high;

WCO meet in Delhi : India to make presentation on commercial fraud;

Nath : India to target 5% of world trade by 2020; Exports target fixed at USD 200 bn for 2008-09;

Industrial Park Scheme : IT & ITes to be integrated;

Focus Products Scheme : 2.5% addl benefits for manufactured items;

Export Promotion Council for Telecom to be set up;

Customs duty under EPCG Scheme reduced from 5% to 3%;

Exports benefits on cement and primary steel withdrawn to curb inflation;

100% EoUs : Sec 10B exemption to be extended upto 2010;

2008-TIOL-211-HC-MAD-IT.pdf + apollo story.pdf

ACIT, Chennai Vs Apollo Hospitals Enterprises Ltd (Dated : March 10, 2008)

Income Tax - Hospital, not industrial undertaking; Review of assessment orders - If wrong claims availed, quoting wrong application of law not allowed to be reviewed, a chaotic situation will arise, putting a big dent to exchequer – disciplinary action against officers directed : MADRAS HIGH COURT;

2008-TIOL-210-HC-MUM-IT.pdf + yarn it story.pdf

CIT, Bombay Vs M/s Emptee Poly-Yarn Pvt Ltd (Dated : February 27, 2008)

Section 80HH , 80I and 80IA : Manufacture- twisting of POY : From the material considered it would be clear that POY has different physical and chemical properties and when POY chips undergoes the process of texturising and/or twisting, the yarn i.e. twisted and/or texturised or both results in a product having different physical and chemical properties. In other words the process applied to POY either for the purpose of texturising or twisting constituted manufacture as the article produced is recognised in the trade as distinct commodity pursuant to the process it undergoes and which amounts to manufacture. Under the Central Excise Act, the Union of India itself treat the POY as distinct from POY , drawn twisted or textured or both. From all the material we have no hesitation in arriving at a conclusion that the process which POY undergoes in the process of texturising and twisting results into a new and distinct product and regarded in the Trade as distinct from the commodity involved in the manufacture. The process amounts to manufacture as the original commodity loses its identity. : BOMBAY HIGH COURT;

2008-TIOL-209-HC-MUM-WT.pdf

CWT, Mumbai Vs HUF of H H Late Shri J M Scindia (Dated : February 5, 2008)

Wealth Tax - Time limit applicable : When the Assessing Officer invokes section 17, the provision of section 14 and 16 to the extent applicable, for the purpose of making an order of reassessment will have to be followed which will include the time limit for notice under section 16(2). Once the language of section 17 itself requires that other provisions to the extent applicable would apply considering the return as filed under Section 14, it contemplates that both procedural and substantive provisions will apply. In our opinion, therefore, while invoking powers under section 17, the Assessing Officer is bound by the mandate of the proviso to Section 16 (2) and on failure the order of reassessment will be without jurisdiction and consequently the order of reassessment will have to be set aside : BOMBAY HIGH COURT;

2008-TIOL-208-HC-DEL-IT.pdf

DIT (Exemption), Delhi Vs Jaipur Golden Charitable Clinical Laboratory Trust (Dated : April 3, 2008)

Income Tax - the voluntary contributions did not constitute income in the hands of the recipient trust. The Assessee had received voluntarily contribution towards corpus of the fund and consequently the sum of Rs.6 ,10,000 /- could not be treated as income of the Assessee. : DELHI HIGH COURT;

CENTRAL EXCISE SECTION

2008-TIOL-558-CESTAT-BANG.pdf

M/s NCS Distilleries Pvt Ltd Vs CCE, II Vizag (Dated : January 18, 2008)

Education cess is not liable to be paid on products, which are not liable to Central Excise duty : BANGALORE CESTAT;

2008-TIOL-557-CESTAT-MAD.pdf

M/s Dattatreya Textiles (P) Ltd Vs CCE, Madurai (Dated : December 12, 2007)

Insulation material used in humidification plant – capital goods credit allowed :CHENNAI CESTAT;

2008-TIOL-556-CESTAT-DEL.pdf

M/s HMT Ltd Vs CCE, Panchkula (Dated : January 30, 2008)

Tractors exempted vide notification 23/2004CE dt. 9.7.2004 - Whether the Cenvat Credit involved on the inputs lying in stock as such or contained in the work in process or used in the manufacture of tractors lying in stock is required to be reversed – In view of conflicting orders passed by the coordinate benches of the Tribunal, matter referred to Larger Bench. : DELHI CESTAT;

SERVICE TAX SECTION

2008-TIOL-554-CESTAT-DEL.pdf

M/s Nova Chemicals (International) S A Vs CCE, Kanpur (Dated : March 13, 2008)

ST - Consulting Engineer Service - Assessee is a patent holder - Signs supplementary agreement with its client for enhancing production capacity and provide technical services for the same - Revenue demands tax and imposed penalty - Assessee argues that since IPR Service has been brought under tax only from 10.9.2004, the same cannot be treated as consulting engineer service for the prior period - Since it is a relationship between a licensor and a licensee, it is prima facie a fit case for waiver of pre-deposit : DELHI CESTAT;

2008-TIOL-553-CESTAT-MUM.pdf

First Flight Couriers Ltd Vs CST, Mumbai (Dated : February 27, 2008)

ST - Courier Service - Modification of stay application - Waiver of pre-deposit of penalty of Rs 200 per day - Since entire demand with interest paid, pre-deposit of penalty waived off and recovery stayed : MUMBAI CESTAT;

CUSTOMS SECTION

NOTIFICATION

dgft08pn001.pdf

Annual Supplement to FTP to come into force from April 1, 2008;

dgft08not001.pdf

FTP notified;

CASE LAWS

2008-TIOL-212-HC-MUM-CUS.pdf + customs hc story.pdf

Jayant Hansraj Shah Vs UoI (Dated : February 29, 2008)

Customs – seizure – provisional release of seized goods – once the provisional release order is issued under Section 110A of the Customs Act, the six month limitation to issue notice under Section 124 is not applicable - It is only in the case where no provisional order is passed for release of the seized goods and if no notice is issued under Section 124(a) for confiscation of the goods then only would Section 110 (2) apply.

Any other reading of the Section would mean that a person whose goods are seized would seek a provisional release of the goods, get an order of provisional release, allow the authorities to proceed to believe on that basis that such person seeks to release the goods provisionally and on the expiry of the period of six months if notice is not issued under Section 124(a) then contend that the terms for provisional release of the goods are no longer binding as the period of six months has expired and no notice has been served. If there be a provisional release order it is not within the jurisdiction of the respondents to proceed to issue the notice under Section 124. : BOMBAY HIGH COURT;

2008-TIOL-555-CESTAT-BANG.pdf

M/s Siddharth Exports Vs CC, Cochin (Dated : November 15, 2007)

Over-Valuation of export goods – Penalty justified : BANGALORE CESTAT;

ddt 11 apr.pdf

CAG'S ADVICE (read rap) TO REVENUE;

Amendment to Section 2(f) of Central Excise Act, 1944 to include refining of Chemicals;

editorial.pdf

Sec 10B benefits to EoUs; DEPB till May, 2009 and no sops for steel & cement : Kamal Nath indeed does his best!

sec2f.pdf

Amendment to Section 2(f) of Central Excise Act, 1944 to include refining of Chemicals;

2008-TIOL-71-SC-CT .pdf + UP story.pdf

CTT, UP Vs M/s J U Pesticides & Chemicals P Ltd (Dated :February 26, 2008)

If fact finding authority comes to certain conclusions honestly and bonafide the mere fact that Court may have a different perspective of that question, cannot be a ground to interfere with the finding even though another view may be possible. : SUPREME COURT ;

post_brpl.pdf

BRPL looking for Dir (Fin);

ftp_speech08.pdf + ftp_procedures08.pdf + ftp2008.pdf +annual_supp08.pdf

FTP 2008-2009 - Annual Supplement + Kamal Nath's Speech etc;

RBI Notifi For Differential Rate.pdf

RBI fulfills one more promise made in Budget Speech by FM; Income limits revised for availing differential rate of interest scheme;

mbuzz513.pdf

Air Services pacts with Chile & Mexico get Cabinet nod;

mbuzz512.pdf

Cabinet gives nod for conservation of only marine-based herbivorous mammal;

mbuzz511.pdf

Hyderabad Nizam's huge funds locked up in Nat West Bank in London : Cabinet okays move for out-of-court settlement with Pakistan;

mbuzz510.pdf

Internet subscribers-base crosses 10.4 mn by Dec-end;