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Govt says no evidence of cartelisation by steel-makers; no move to set up regulator; Uncertainty over CST rate cut; Maharashtra Govt asks dealers to continue collecting 3% on inter-state sales; Empowered Committee holds meeting with MoF; demands more compensation before CST rate is cut to 2%; Centre agrees to transfer revenue of 33 identified services; MoF all set to extend tax holiday to oil & gas exploration; Govt vows to break cement, steel cartel to curb inflation; Committee of Secretaries recommends excise duty cut on steel products + partial ban on exports; GoM to take final look late evening; |
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| Dear Member, Sending the following files: |
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2008-TIOL-77-SC-IT.pdf + sc it story.pdf Malayala Manorama Co Ltd Vs CIT, Trivandrum (Dated : April 10, 2008) Minimum Alternate Tax - The Assessing Officer while computing the income under Section 115-J has only the power of examining whether the books of account are certified by the authorities under the Companies Act as having been properly maintained in accordance with the Companies Act. The Assessing Officer thereafter has the limited power of making increases and reductions as provided for in the Explanation to the said section. To put it differently, the Assessing Officer does not have the jurisdiction to go behind the net profit shown in the profit and loss account except to the extent provided in the Explanation to Section 115-J. : SUPREME COURT ; M/s Intergrafica Print & Pack, GMBH Vs DDIT, Delhi (Dated : October 26, 2007) Income Tax - Assessee is a PE of Germany-based company - Assessee, a branch office, solicits business and with the help of its head office, fixes meetings between the supplier of printing machinery and customers in India - Attribution of profits - For a successful deal, the 60% of the commission paid was attributed to the Indian PE - AO invokes Sec 44C and allows only 5% of the total commission paid as attributable to the head office - CIT(A) makes it 75% for the PE and the rest for the head office - Since the follow-ups with the supplier and the customer in India and the final negotiation were done by the head office, attribution of 40% of the commission paid is quite justifiable - Assessee's appeal allowed : DELHI ITAT; ACIT, Delhi Vs M/s SRF Ltd (Dated : February 22, 2008) Income Tax - Assessee is into manufacturing of many products - creates one international business division - claims depreciation u/s 32 - AO disallows it on the ground that the assets were not put to any business use during the relevant year - Assessee argues once it bcomes a part of 'block of assets', the individual asset loses its identity - Since the the assets were kept ready for use and were passively used, and later merged with the 'block of assets', depreciation cannot be denied - Revenue's appeal dismissed Assessee claims 100% depreciation on 'temporary structure' - AO restricts it to 10% of furniture and fixtures required to be installed at leased premises - CIT(A) treats it as revenue expenditure and allows the entire sum - Since the CIT(A) has powers co-terminus to the AO and the expenses incurred on flooring and furnishing of a leased premise is very much revenue expenditure - Revenue's appeal dismissed : DELHI ITAT; M/s Essar Projects ltd Vs DCIT, Mumbai (Dated : January 8, 2008) Income Tax – valuation of leased plant - The Revenue cannot rewrite the commercial agreements which were entered into after deliberations between the parties. Although they are parties in the same group but the considerations which have led to the pricing are borne by all material considerations and the genuineness of the value is also certified by the Government of India Undertaking. : MUMBAI ITAT; |
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CCE, Cochin Vs M/s Teejan Foods (P) Ltd (Dated : January 11, 2008) CE – Cenvat credit – used capital goods – duty paid on transaction value – correct : BANGALORE CESTAT; M/s Eastern Steel & Allied Industries Vs CCE, Kolkata II (Dated : December 31, 2007) Adjudication Order did not deal with the contentions of the appellant - Natural justice demands that decision should be based on evidence of probative value.- Neither the Appellate Authority below could dispose the matter by a speaking and reasoned order nor have they examined various facts governing the issue - If the Public Authorities do not exercise their power for disposal of public grievances, public confidence would be lost on public servants : KOLKATA CESTAT; M/s J A Enterprises Vs CCE, Surat (Dated : January 7, 2008) Central Excise – classification of copper tubes or pipe fittings used in the manufacture of air conditioners - Merely because they are manufactured according to the specifications and sizes given by their customers who are air conditioner manufacturers, will not take out the goods from the category of copper tubes and pipes and would bring the same under the category of air conditioner part, especially when Heading 74.12 does not lay down any criteria as regards dimension of the goods – the impugned goods would fall under Ch 74. : AHEDABAD CESTAT;
SERVICE TAX SECTION Service Tax refund to exporter : CBEC puts monitoring system in place for speedy refund; CASE LAWS Service Tax – sale of constructed houses – liable to pay Service Tax under 'construction service' and not under 'works contract' : Advance Ruling M/s Kin-Ship Services (I) Pvt Ltd Vs CCE & C, Cochin (Dated : January 31, 2008) Service Tax – port service – stevedoring activity of loading and unloading of the cargo can not be considered as service rendered on behalf of port and is not taxable under port service – impugned order set aside. : BANGALORE CESTAT; M/s Terex Veetra Equipment (P) Ltd Vs CCE, Noida (Dated : February 12, 2008) ST - GTA Service - Assessee, a manufacturer, pays service tax on GTA Service as recipient of input service - utilises credit for paying tax on GTA Service - Revenue for allowing credit only for output services - Assessee claims exemption under Not no 32/2004-ST which allows payment of service tax on a value equivalent to 25% of the gross sum charged by GTA - Prima facie, such exemption is avaiable irrespective of the fact that whether the customer, the recipient or the GTA pays the tax - Waiver from pre-deposit granted :DELHI CESTAT;
CUSTOMS SECTION NOTIFICATION Tariff Value of Brass scrap increased; Actual User Condition for import of Sugar under Advance Authorisation Scheme – DGFT clarifies; CASE LAWS CC, Amritsar Vs Etco Telecom Ltd (Dated : February 7, 2008 Customs – DEPB benefit – telecom communication equipment Vs telecommunication transmission equipment – the CESTAT had earlier remanded the matter to Commissioner (Appeals) for the limited purpose of examining the eligibility of three items – Commissioner (Appeals) can not go beyond the remand order and decide the eligibility of other items or issues. Remand – scope of - Tribunal order was not an open remand nor the impugned order of the Commissioner was set aside - It was undoubtedly a limited remand - Having regard to the limited scope of the remand order, it was not open to the Commissioner to dwell upon and adjudicate other issues - if the respondent was not satisfied with the scope of the remand order and it thought that other issues should also be adjudicated by the Commissioner, on remand, it should have sought modification or clarification of the order from the Tribunal. :DELHI CESTAT; |
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Tariff Value of Brass scrap increased; Direct Receipt of Import Bills / Documents for Import of Rough Precious & Semi-Precious Stones – Liberalisation – RBI circular; WCO New Delhi Summit: India hammers the nail where it pains! 2008-TIOL-76-SC-CT.pdf + sc ct story.pdf M/s Mauri Yeast India Pvt Ltd Vs State of UP (Dated : April 10, 2008) Yeast is a chemical: ' Yeast ' , admittedly, has a chemical composition. It has a chemical formula. It was accepted to be a chemical by the assessing authority for a long time. Classification: It is now a well settled principle of law that in interpreting different entries, attempts shall be made to find out as to whether the same answers the description of the contents of the basic entry and only in the event it is not possible to do so, recourse to the residuary entry should be taken by way of last resort. It not only takes within its sweep as to what it would be, but what it can be or what it does. if there is a conflict between two entries one leading to an opinion that it comes within the purview of the tariff entry and another the residuary entry, the former should be preferred. The Executive Act of issuing a notification is a legislative action. The authorities are supposed to know the meaning of the word used therein. : SUPREME COURT ; Maharashtra Govt communication.pdf Uncertainty over CST rate cut; Maharashtra Govt asks dealers to continue collecting 3% on inter-state sales .; RBI Notification For Senior Citizens.pdf Senior Citizens Savings Scheme, 2004(SCSS) – Transfer of accounts from one Agency Bank to Another Agency Bank / Post Office- Accounting Procedure; Direct Receipt of Import Bills / Documents for Import of Rough Precious & Semi-Precious Stones – Liberalisation – RBI circular; Service Tax refund to exporters : CBEC puts monitoring system in place for speedy refund; CBI judge sentences bank official, his wife to jail term for defrauding Canara Bank; WCO Asia Pacific meet concludes on warm note; TRAI backs Govt proposal to reduce licence fee on DTH Service Providers; |
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