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Indo-USA Taxation Treaty : Does tax also include surcharge? (Look for HC decision tomorrow in 'Breaking News') Govt receives proposal from EC to ban exit polls; Sahar Airport Customs seizes RAM + LMV worth Rs 49 lakhs from two bags abandoned on conveyor belt; Govt may go for export duty on iron ore on value basis; Inflation : FM says no PM or FM can roll back prices of essential imported goods; Nath warns steel industry and says Govt may bring it under ESMA & ban futures trading; MoF sets up six-member Pay Commission Implementation Cell in Dept of Expenditure; India invites Arabs to invest in India; Arabs ask for easing of investment framework; |
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| Dear Member, Sending the following files: |
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2008-TIOL-229-HC-P&H-IT.pdf + audit story.pdf CIT Vs Mathana Model Co-op Credit & Service Society Ltd (Dated : February 1, 2008) Income Tax – mandatory audit could not be done by coop-society as govt did not appoint auditor- No penalty ; Though the explanation was not accepted by the Assessing Officer and Commissioner of Income-tax (Appeals), but the Income-tax Appellate Tribunal found that the said explanation was satisfactory. In view of the provisions of section 273B of the Act, no penalty should have been imposed on the person or the assessee if he proves that there was a reasonable cause for delay in complying with the provisions under section 271B of the Act. Once the explanation given by the assessee was found to be satisfactory, the benefit of section 273B was available to the assessee. The said finding is a pure finding of fact based on the material available on the record which does not require any interference in these appeals. P & H HIGH COURT ; M/s P G Foils Ltd Vs Income Tax Settlement Commission, Chennai (Dated : February 11, 2008) Income Tax - Re-opening of assessment – observations of Settlement Commission in another party's case cannot be conclusive proof : MADRAS HIGH COURT ; Rajesh Surana Vs CIT, Jodhpur (Dated : January 18, 2008) Income Tax - Long term capital gains – sale of plot with a garage-cum-room cannot be called sale of residential house - Assessee's appeal dismissed : RAJASTHAN HIGH COURT ; CIT-XVI, Mumbai Vs M/s Willingdon Sports Club (Dated : March 18, 2008) Income Tax - Assessee is a club - offers many kinds of membership - charges entrace fee and annual subscription fee from Members - Revenue wants to treat it as revenue receipt - Tribunal holds the entrace fee received by the assessee is capital receipt not chargeable to tax as the principle of mutuality applies - Even if there are temporary or Honorary members who are not entitled to vote, the assessee would not cease to be governed by the principles of mutuality, and once the assessee is governed by the principles of mutuality, its income earned would not be income which would be assessable to tax - Revenue's appeal dismissed : BOMBAY HIGH COURT ; CIT Vs Lakhanpal National Ltd (Dated : February 26, 2008) Income Tax - Deduction u/s 80-I - new unit - AO says new assembly lines are dependent on the earlier existing facilities and not capable of functioning on their own without seeking assistance from the old facilities - CIT(A) and Tribunal allow the benefits - Even if clause (ii) of sub-s. (2) of s. 80-1 of the Act is loosely read, benefits cannot be denied as only negligible portion of existing facilities was used - Revenue's appeal dismissed : GUJARAT HIGH COURT ; |
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2008-TIOL-603-CESTAT-MUM.pdf + Karnataka Ginning Story.pdf M/s Karnataka Ginning & Pressing Factory Vs CCE, Thane II (Dated : February 13, 2008) Textile Processors – Annual capacity of production – HASITP(ACD) Rules, 1998 – by the time the order was passed on remand by the CCE, Section 3A was omitted & secondly rule 3 is held ultra vires Section 3A – on both counts order unsustainable – Majority Decision : MUMBAI CESTAT; 2008-TIOL-602-CESTAT-MUM.pdf + scrap story.pdf Ispat Industries Ltd Vs CCE & C, Aurangabad (Dated : February 26, 2008) Central Excise – manufacture of dutiable and exempted goods – demand of 10% amount on the exempted goods on the ground of non-maintenance of separate accounts - once the credit on the inputs is reversed there is no requirement of payment of duty under Rule 6(3) of Cenvat Credit Rules. : MUMBAI CESTAT; CCE, Nagpur Vs M/s Mahindra & Mahindra Ltd (Dated : February 1, 2008) Central Excise – manufacture of dutiable and exempted goods – demand of 10% amount on the exempted goods on the ground of non-maintenance of separate accounts - once the credit on the inputs is reversed there is no requirement of payment of duty under Rule 6(3) of Cenvat Credit Rules.: MUMBAI CESTAT; 2008-TIOL-597-CESTAT-MUM.pdf + property story.pdf Mrs Nidhi N Gupta Vs CCE, Mumbai V (Dated : April 3, 2008) Attachment of property – legal heir of the deceased Director claims that the property is in the name of the late Director and not the company & hence cannot be attached – Tribunal restrains the Dept. from taking further action. : MUMBAI CESTAT; Pudumjee Plant Laboratories Ltd Vs CCE, Pune I (Dated : March 5, 2008) Cut flowers produced in 100% EOU being non-manufactured and hence not excisable goods shall not be liable to duty under the provisions of Section 3 of the Central Excise Act, 1944 so far as DTA clearances are concerned – Tribunal decision in Cosco Blossoms Pvt. Ltd. 2004-TIOL-09-CESTAT-DEL followed. Cut flowers are not imported goods & hence Customs duty cannot be demanded – Appeal allowed. : MUMBAI CESTAT;
SERVICE TAX SECTION M/s Steel Craft (India) Vs CCE, Jalandhar (Dated : January 1, 2008) ST - Business Auxiliary Service - Assessee provides jobwork service - Revenue demands tax and imposes penalties - Assessee admits tax liability not under BAS but under Jobwork Service w.e.f 10.9.2004 and pays tax with interest before passing of the adjudication order - Assessee argues that since it was under bona fide belief that it was eligible to avail the exemption under Notification No 25/2004-ST, it did not register with the Revenue - Since there was no willful suppression of facts to evade tax, it is a fit case for invocation of Sec 80 - Penalties set aside - Assessee's appeal allowed : DELHI CESTAT; CCE, Raipur Vs M/s Jindal Steel & Power Ltd (Dated : March 7, 2008) ST - Business Auxiliary Service - Assessee avails services of overseas commission agent - Revenue raises demand for receiving service under Rule 2(1)(d)(iv) - Assessee argues it is not liable to tax as the charging section 66A came into effect only from 2006 - Issue was settled against the Revenue in Foaster Wheeler case ( 2007-TIOL-785-CESTAT-AHM ) : DELHI CESTAT;
CUSTOMS SECTION NOTIFICATION Benefits under VKGUY and Focus Market Scheme denied to export of skimmed milk; Govt withdraws DEPB benefits to export of skimmed milk products; CASE LAWS M/s Paper Products Ltd Vs CC(Import), Mumbai I (Dated : March 10, 2008) Unjust enrichment - documents produced for examination are insufficient and unsatisfactory and do not conclusively establish that the incidence of duty, which was claimed as refund, has not been passed on to any other person – appellant ordered to pre-deposit Rs.50,000/- - Stay ordered. : MUMBAI CESTAT; M/s Hazoor Sahib Chemicals Ltd Vs CC, Kandla (Dated : January 29, 2008) Customs – classification of petroleum product imported as Naphtha under exemption - revenue reclassified the goods based on the test report of the Chemical examiner and denied the exemption – the appellants were also given samples to test at the laboratories of their choice, but it is not clear whether they got the samples tested or not – opportunity of cross examination of the chemical examiner was also not provided - it is not clear whether the test report has been conducted as per ASTM D 86 method prescribed under Note 4 of Chapter 27 – matter remanded. : AHEDABAD CESTAT; |
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On-board visa checking, joint customs inspection for Maitree – Bangladesh suggests to India ; Service Tax & Sovereign Powers; FTP - Time to unleash industrial growth through SEZs; Centre gives direction to implement 27% quota for OBCs without reducing seats for unreserved category; Concept of 'natural justice' and the principles governing its application ; Only IIM-A has hiked fees by 175%: Govt; L&T to develop Rs 3500 Cr commercial complex at Seawoods, Navi Mumbai ; Civil Service Day: PM for better remuneration for civil & defence services ; Civil Service Day : PM to give away awards to 13 outstanding initiatives ; TRAI revises bouquet rates & a-la-carte rates of pay channels for cable operators in non-CAS areas ; |
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