President appoints three Addl Judges for Rajasthan HC;

Possible measures to curb price rise - Split within Cabinet - CCP meet postponed;

FMs of many countries focus attention on soaring food prices;

Edible oils imports : Volume under FTA goes down; Lankan imports hit;

Singapore gets investments worth USD 10 bn from India between April-Dec, 2008 : RBI;

2008-TIOL-73-SC-IT-LB.pdf + sahara story.pdf

M/s Sahara India (Firm), Lucknow Vs CIT (Dated : April 11, 2008)

Special Audit u/s 142( 2A ) – principles of natural justice - the twin conditions of "nature and complexity of the accounts" and "the interests of the revenue" are the prerequisites for exercise of power under Section 142 ( 2A ) of the Act. Undoubtedly, the object behind enacting the said provision is to assist the Assessing Officer in framing a correct and proper assessment based on the accounts maintained by the assessee and when he finds the accounts of the assessee to be complex, in order to protect the interests of the revenue, recourse to the said provision can be had. the exercise of power under Section 142 ( 2A ) of the Act leads to serious civil consequences and, therefore, even in the absence of express provision for affording an opportunity of pre-decisional hearing to an assessee and in the absence of any express provision in Section 142 ( 2A ) barring the giving of reasonable opportunity to an assessee, the requirement of observance of principles of natural justice is to be read into the said provision. : SUPREME COURT;

2008-TIOL-220-HC-DEL-IT.pdf

Li And Fung India Pvt Ltd Vs CIT, New Delhi (Dated : April 2, 2008)

Income Tax - Sec 80-O benefits - Assessee claims to have provided technical services to non-resident - AO disallows by terming it only managerial service - CIT(A) allows it by describing it as professional & technical service as defined u/s 9(i)(vii) - Tribunal restricts the benefits to 70% - Since the contract was for providing information and rendering services to a foreign client and the payment was received in convertible foreign exchange, the assessee is entitled to full claim of deuction u/s 80-O - Assessee's appeal allowed : DELHI HIGH COURT;

2008-TIOL-219-HC-DEL-IT.pdf

National Small Industries Corporation Ltd Vs CIT (Dated : January 22, 2008)

Sec. 41(1) of the Act applies if the following conditions and circumstances are satisfied :

In the assessment for the relevant year an allowance or deduction has been made in respect of any loss, expenditure or trading liability incurred by the assessee. This is the first step. Coming to the next step the assessee must have subsequently ( i ) obtained any amount in respect of such loss or expenditure or (ii) obtained any benefit in respect of such trading liability by way of remission or cessation thereof. In case either of these events happen, the deeming provision enacted in the closing part of sub-s. (1) comes into play. Accordingly, the amount obtained by the assessee or the value of benefit accruing to him is deemed to be profits and gains of business or profession and it becomes chargeable to income-tax as the income of that previous year : DELHI HIGH COURT;

2008-TIOL-218-HC-DEL-IT.pdf

CIT, Delhi II Vs M/s Jai Parabolic Springs Ltd (Dated : April 7, 2008)

Income Tax - Assessee is into manufacturing and marketing of springs for auto sector - incurs expenses towards customer introduction charges debited as 'deferred revenue expenses'' - the same is written off over a period of five years - AO allows a part of it - Dissatisfied with the assessment order, the assessee makes a fresh ground before the CIT(A) and claims the entire sum as deduction - Appeal allowed - Tribunal remands the order - AO passes an order u/s 254 and disallows a major component of the expeneses on the ground that it was not claimed in its return of income - CIT(A) allows the appeal - Tribunal does the same - Tribunal has powers u/s 254 to allow such deduction even if not claimed in the original return after hearing both the parties - Revenue's appeal dismissed : DELHI HIGH COURT;

CENTRAL EXCISE SECTION

NOTIFICATION

etariff08_24.pdf

CBEC grants more procedural relief to EoUs / STPs; half-processed goods can be taken out of India and clear for exports without bringing the same back;

CASE LAWS

2008-TIOL-575-CESTAT-MAD.pdf + lb story.pdf

M/s Lucas TVS Ltd Vs CCE, Chennai (Dated : February 25, 2008)

Central Excise – Duty - Supplementary invoice due to revision in prices – Interest payable? – Matter referred to Larger Bench –

++ Whether, in the facts of these cases, the additional amount paid by the buyer towards price of the goods in terms of the supplementary invoice issued by the assessee after removal of the goods can be considered to be part of the ‘transaction value' under Section 4 of the Central Excise Act;

++ Whether the payment of duty under the supplementary invoice by the assessee is covered by sub-section (2B) of Section 11A of the Act;

++ Whether, on the amount of duty paid under the supplementary invoice, interest is leviable under Section 11AB from the first date of the month succeeding the month in which duty was paid in the first instance in terms of the original invoice. : MUMBAI CESTAT;

2008-TIOL-574-CESTAT-AHM.pdf

CCE, Ahmedabad Vs M/s Shayona Enterprises (Dated : February 19, 2008)

Deposits made during the investigations are in the nature of provisional deposits and if the said deposit is not appropriated towards any final demand of duty or penalty, the same cannot be called to be deposit of duty, in which case the limitation provisions will not come into action – no infirmity in order of Commissioner(A) – Revenue appeal rejected. : AHMEDABAD CESTAT;

2008-TIOL-573-CESTAT-MUM.pdf

CCE, Mumbai IV Vs Tata Honey Well Ltd (Dated : March 25, 2008)

Software manufactured for specific & exclusive use in functioning of PLC & DCS are application software – exemption under notification 48/94CE available when cleared independently.

Terms software and computer software are nowhere defined separately either in any technical dictionary or any other authoritative text book - software manufactured by the respondents is specifically and exclusively used for functioning the various systems i.e. Programmable Logic Controllers (PLC) and Distributed Control System (DCS) and was not at all used for functioning of the computers and has therefore to be treated as an application software only - exemption under notification 48/94 dated 1.3.94 available – Revenue appeal rejected. : MUMBAI CESTAT;

2008-TIOL-572-CESTAT-MUM.pdf

M/s Nestle India Ltd Vs CCE, Goa (Dated : February 26, 2008)

Appellant claiming exemption under 6/2002CE on the ground that “Milky Bar Choo” is other than White chocolate - Test of common parlance and understanding whether applies – Prima facie whether decision in Little Star Foods 2006-TIOL-985-CESTAT-BANG applies is arguable – Pre-deposit ordered. : MUMBAI CESTAT;

SERVICE TAX SECTION

2008-TIOL-570-CESTAT-DEL.pdf

M/s India Glycols Ltd Vs CCE, Meerut II (Dated : February 20, 2008)

Credit availed on the basis of TR-6 challan before the same was notified as cenvatable document by notification 28/2005CE(N.T) - TR-6 Challans submitted by the appellant should have been taken to be adequate proof/evidence of payment of Service Tax entitling the appellant to claim cenvat credit – Since Commissioner has not dealt with this issue, matter remanded. :DELHI CESTAT;

2008-TIOL-569-CESTAT-MUM.pdf

M/s MRF Ltd Vs CCE, Goa (Dated : February 28, 2008)

Notification 28/2005-CE(NT) w.e.f 16.06.2005 - GTA Service Tax credit for the period 01.01.2005 to 15.06.2005 on basis of TR-6 challans – Issue settled in favour of assessee by Tribunal decisions in Essel Pro-Pack Ltd., 2007-TIOL-1643-CESTAT-MUM & Puja Ferro Alloys Ltd. 2008-TIOL-220-CESTAT-MUM . :MUMBAI CESTAT;

CUSTOMS SECTION

NOTIFICATION

ctariff08_049.pdf + ctariff08_048.pdf

Govt imposes anti-dumping duty on Sulphur Black + extends it on Sodium Nitrite;

ctariff08_047.pdf

CBEC grants more procedural relief to EoUs / STPs; half-processed goods can be taken out of India and clear for exports without bringing the same back;

CASE LAWS

Anirush Singh Katoch Vs UoI (Dated : March 20, 2008)

Import of fire-arm by NRI returning on Transfer of Residence – only one fire-arm allowed : DELHI HIGH COURT;

2008-TIOL-571-CESTAT-MUM.pdf + ghost story.pdf

CC (Import), Nhava Sheva Vs M/s Philoden Agrochem Pvt Ltd (Dated : January 11, 2008)

Duty paid on 'ghost' goods received in a container – Refund not hit by vires of Section 28D of Customs Act – well reasoned order of Commissioner(A) upheld by Tribunal :MUMBAI CESTAT;

ddt apr 15.pdf + club.pdf

Service Tax on club or association membership service – Board wants tax compliance;

tiol cricket.pdf

BCCI & IPL beware : You are under Service Tax Watch!

icecube.pdf

NMP 2008 : Union Govt should work for national consensus on minerals!

mbuzz523.pdf

RBI asks banks to protect interests of small depositors

mbuzz522.pdf

'Sir, I want to work with DRI', pleads taxman from ICU!

mbuzz521.pdf

Govt sanctions Rs 5 Cr for developing Wagah border as tourist destination;

mbuzz520.pdf

L&T bags Rs 2000 Cr Bombay Dying contracts for projects in Mumbai;