Fire scare at CBI Hqs on sixth floor; Not much damage done;

Farm loan waiver : Every suggestion to expand ambit of scheme under examination;

Australia's new visa policy allows students to work part-time;

CBEC Chief Commissioners' transfer file finds multiple legs to move faster; may be out soon;

Cabinet okays proposal to introduce Gram Nyayalayas Bill + Merger of BRl with SAIL + Mines Amendment Bill + electoral reforms by amending RPA;

2008-TIOL-239-HC-MUM-WT.pdf + wealth story.pdf

CWT, Bombay City-1 Vs M/s Sona Properties Pvt Ltd (Dated : April 7, 2008)

Wealth Tax – After assessments are completed, valuation officer's report cannot be called for and the report cannot be used for re-opening assessments. It is not open to call for the report of the Valuation Officer after the assessment proceedings are completed and use that report to commence proceedings for reassessment. The law in such cases would be that the jurisdiction conferred on the Valuation Tax Officer is limited to calling for the report when the proceeding are pending and not when the Wealth Tax Officer becomes functious officio. It is therefore, a discretion to be exercised in the course of exercise of quasi judicial powers of W.T.O. Such exercise cannot be resorted to after the assessment is completed as it would be without jurisdiction.A report called by an authority having no jurisdiction would be a nullity at law and consequently proceedings based solely on such report considering the requirement of section 17 would be illegal and will have to be quashed. The report of the D.V.O. in such circumstances can not constitute "reason to believe" to reopen a concluded assessment.

Report called for but not received before assessment: The Wealth Tax Officer has to in some circumstances, complete the proceedings for assessment within the time limit set out under the Act. In these circumstances, if the report is called for and the report is not received, the time for completing the assessment proceedings is not saved. The Wealth Tax Officer in such circumstances if completes the order of assessment before the report is received cannot be precluded from considering the said report as information for the purpose of issuing notice for reassessment under Section 17(1). This would also be the position in a case where assessment is completed before the report is received irrespective of the issue of limitation for completing the assessment. From a reading of Section 16A (4) and (5), it is clear the report, which is submitted is after giving an opportunity to the assessee who also is entitled to lead his evidence before the Valuation Officer, before he proceeds to value the property. Such a document will have to be treated as information giving rise to reason to believe that the Wealth has escaped assessment. : BOMBAY HIGH COURT ;

2008-TIOL-238-HC-AHM-IT.pdf

CIT Vs Shree Shantinath Silk Mills (Dated : February 26, 2008)

Income Tax - The amount credited to the reserve account having already been utilized for the purposes of acquiring new machinery and plant, there can be no further utilization of the same amount only because a corresponding credit entry is made to the capital account of the partners while debiting the investment allowance reserve account. Making of a mere entry cannot constitute utilization by way of distribution of profits to the partners. In fact, even on this count, there is a finding based on facts and appreciation of evidence on record, to the effect that the said amount credited to the capital account of the partners has thereafter not been dealt with in any manner whatsoever by the partners. Furthermore, cl. (c) stipulates utilisation of investment allowance reserve for any other purpose which is not a purpose of the business of the undertaking. Here, purchase of plant and machinery cannot be stated to be a purpose which is not a purpose of the business of the undertaking : GUJARAT HIGH COURT ;

2008-TIOL-159-ITAT-DEL.pdf

DCIT, New Delhi Vs Kanchanjungha Advertising Pvt Ltd (Dated : January 4, 2008)

Income Tax - Assessee is into financing, money-lending and advertising business - deposits a sum as share application money - Shares not allotted by the investment company - Plea for converting the same into loan - Investment company does not agree to that as well - Assessee finally writes it off in its books and claims deduction u/s 36(1)(vii) - AO disallows by treating it as capital loss - CIT(A) deletes the additions - Since the deposit was not made during the course of any of its business activities nor the same was agreed upon to convert it into loans, mere entry in the assessee's book without the consent of the other party as loan not to change the character of the share application money, and the sum cannot be treated as a proper debt of revenue nature or incurred in the regular course of money-lending business - Sec 36(1)(vii) benefits cannot be allowed - Revenue's appeal allowed : DELHI ITAT;

2008-TIOL-158-ITAT-MUM.pdf

Shri Sanjay M Thapar Vs ITO, Mumbai (Dated : March 26, 2008)

Income Tax - agriculture income - claims exemption on amount received as compensation for use of land by BPCL - AO treats it to be a casual and non-recurring income which falls within the character of income received u/s 10(3) - CIT(A) rejects appeal on ground that the assesseee is still the owner of the land - Since the compensation was for the permanent loss of income to the assessee, it is capital receipt - Assessee's appeal allowed : MUMBAI ITAT;

CENTRAL EXCISE SECTION

2008-TIOL-240-HC-DEL-CX.pdf + penalty story.pdf

K P Pouches (P) Ltd Vs UoI (Dated : January 31, 2008)

Central Excise – penalty under Section 11 AC – in cases where duty and interest are paid within 30 days of the adjudication order, the penalty is only 25% of the duty confirmed as per the first proviso to Section 11 AC - if the adjudicating authority imposes 100% penalty, the benefit of reduced penalty can not be denied on the ground that the second proviso to Section 11 AC was not complied with. : DELHI HIGH COURT ;

2008-TIOL-626-CESTAT-MAD.pdf

CCE Chennai Vs Godrej & Boyce Mfg Co Ltd (Dated : February 25, 2008)

Central Excise - Heavy duty system - excisability - revenue appeal against the Commissioner (Appeals) order vacating the demand and penalties - The appellate Commissioner's finding on the question of suppression of facts was not challenged by the revenue and the case against the demand on the ground of limitation stands conclusively decided - revenue appeals are dismissed. : MUMBAI CESTAT;

2008-TIOL-625-CESTAT-MUM.pdf

M/s Emcure Pharmaceuticals Ltd Vs CCE, Pune-I (Dated : February 21, 2008)

Inputs received from 100% EOU - Merely because there is no formula prescribed in the Cenvat Credit Rules in respect of Education Cess, credit cannot be denied thereof – decision of co-ordinate bench of Tribunal in appellant's own case 2008-TIOL-226-CESTAT-MUM followed . : MUMBAI CESTAT;

2008-TIOL-624-CESTAT-MUM.pdf

CCE, Pune-I Vs M/s Kalyani Forge Ltd ( Dated : March 03, 2008)

Appeal against certain observations of the Tribunal – since the Tribunal's order upholding demand against non inclusion of design and drawing charges in the value of dies & forgings has not been challenged by the assessee, there was no real requirement of Revenue filing an appeal – appeals dismissed as infructuous. : MUMBAI CESTAT;

2008-TIOL-623-CESTAT-MAD.pdf

CCE, Coimbatore Vs Texmo Industries (Dated : February 25, 2008)

Central Excise – valuation – 5% discount given to the dealers by way of credit notes - the discount granted to buyer of excisable goods described by whatever name was not to be included in the assessable value provided that the discount was known at or prior to removal of the goods on sale. : MUMBAI CESTAT;

SERVICE TAX SECTION

2008-TIOL-629-CESTAT-BANG.pdf + Deloitte Tax Story.pdf

CCE, Hyderabad-IV Vs Deloitte Tax Services India Pvt Ltd (Dated : March 13, 2008)

Service Tax – back office service not information technology: the services rendered would not amount to Information Technology Service; therefore, they are not excluded from the scope of Business Auxiliary Service which is taxable.

Refund of unutilized credit: Once it is held that they are taxable and the credit taken on the input services has not been utilized for payment in respect of output services, they are entitled for the refund of the credit in terms of the Cenvat Credit Rules.

Scope of input service very wide: the scope of input services as given in the definition is very wide and the services availed by the Respondent as input services are indeed input services. Moreover, the department's objection with regard to the Input Services, entitlement of credit is also not correct because they are very necessary for providing output services and they satisfy the condition of the input services as given in the Cenvat Credit Rules.

Amendment to Rule not to deny refund: Further, Rule 5 allows refund in respect of the tax paid on the input services and the grounds taken by the Revenue that they would be available only in respect of exports made after 14.3.2006 is not sustainable. : BANGALORE CESTAT;

2008-TIOL-628-CESTAT-BANG.pdf

M/s. Synergy Audio Visual Workshop (P) Ltd Vs CST, Bangalore (Dated : January 4, 2008)

Service Tax – stay/dispensation of pre-deposit – advertising agency service – demand of service tax on income earned from service rendered to another advertising company – prima facie the issue is covered by the judgements in appellant's favour – stay granted. : BANGALORE CESTAT;

CUSTOMS SECTION

NOTIFICATION

cnt08_038.pdf

CBEC notifies Patil, Gurgaon for loading/unloading of exports goods;

dgft08cir004.pdf

Entitlement of DEPB prior to withdrawing the benefit under the Scheme;

CASE LAWS

2008-TIOL-241-HC-DEL-CUS.pdf + cus story.pdf

Ajay Gulati Vs UoI (Dated : April 3, 2008)

Customs – prosecution: where the accused persons are exonerated by the competent authorities/Tribunal in adjudication proceedings, one will have to see that reasons for such exoneration to determine whether these criminal proceedings could still continue. If the exoneration in departmental adjudication is on technical ground or by giving benefit of doubt and not on merits or the adjudication proceedings were on different facts, it would have no bearing on criminal proceedings. If, on the other hand, the exoneration in the adjudication proceedings is on merits and it is found that allegations are not substantiated at all and the concerned persons(s) is/are innocent, and the criminal prosecution is also on the same set of facts and circumstances, the criminal prosecution cannot be allowed to continue. The reason is obvious; criminal complaint is filed by the departmental authorities alleging violation/ contravention of the provisions of the Act on the part of the accused persons. However, if the departmental authorities themselves, in adjudication proceedings, record a categorical and unambiguous finding that there is no such contravention of the provisions of the Act, it would be unjust for such departmental authorities to continue with the criminal complaint and say that there is sufficient evidence to foist the accused persons with criminal liability when it is stated in the departmental proceedings that ex-facie there is no such violation. The yardstick would, therefore, be to see as to whether charges in the departmental proceedings as well as criminal complaint are identical and the exoneration of the concerned person in the departmental proceedings is on merits holding that there is no contravention of the provisions of any Act. : DELHI HIGH COURT ;

2008-TIOL-627-CESTAT-MAD.pdf

Mihir Enterprises Vs CC, Mumbai (Dated : January 10, 2008)

Value of contemporaneous imports cannot be taken as the basis for determination of assessable value if the imports are not on the same commercial level.

Insurance memos also cannot be relied upon for the purpose of holding that the goods were under valued in the light of the Tribunal's orders in Nina Chaka Pvt. Ltd. and Orient Enterprises. : CHENNAI CESTAT;

ddt 25 apr.pdf

Delhi Service Tax Commissionerate – back into illegal publication of names – Disobedience of law right under the nose of the Board ?

pvt airport.pdf

Cabinet gives nod to liberalise norms for construction of pvt airport for pvt use; Policy for greenfield airports also approved;

mbuzz555.pdf

Raja says Govt waiting for TRAI recommendations before 3G Spectrum is rolled out;

mbuzz554.pdf

70000 income tax cases pending before ITAT : Law Minister;

mbuzz553.pdf

India becomes second largest wireless network in world with 300 mn subscribers;

mbuzz552.pdf

TRAI fresh recommendation on tele directory for fixed lines;

mbuzz551.pdf

Vice President recommends seven ways to tackle corruption in public life;