FM yet to move amendments to Finance Bill, 2008 in Lok Sabha; Debate is on;

CBDT issues posting order of 44 IRS probationers (Order Uploded on site; to be sent tomorrow in email)

Edible Oil Industry appeals to Govt to remove ban on exports as it may hurt overseas markets;

VRS Scheme : SC rules an employee does not have automatic right to avail it;

ISRO to launch 10 satellites, including PSLV-C9 today;

2008-TIOL-248-HC-ALL-IT.pdf + diamond story.pdf

Shri Pratap Narain Agarwal Vs ACIT (Dated : March 25, 2008)

Re-opening of assessments - the finding to the effect that the assessee has failed to disclose truly and fully all material facts necessary for the assessment has to be objective one and not a subjective; it cannot be based upon a mere change of opinion on the material which was available at the time of original assessment, and it cannot be based upon a mere suspicion of income having escaped assessment.

'Reasons to believe' must be recorded, before issuing notice for reassessment. formation of belief by the assessing officer is within the realm of subjective satisfaction and at the stage of issuance of notice the only question is whether there was relevant material upon which a reasonable person could have formed requisite belief or not. Beyond this there is no scope of judicial review in such matters. Remedy under Article 226 of the Constitution of India is discretionary and even if there is some irregularity or illegality, the Court is not bound to exercise discretion at the instance of the petitioner if it is satisfied that it is not otherwise a fit case warranting exercise of discretionary jurisdiction under Article 226 of the Constitution. : ALLAHABAD HIGH COURT ;

2008-TIOL-247-HC-MAD-IT.pdf

CIT, Chennai Vs S & S Power Switchgear Ltd (Dated : March 17, 2008)

Income Tax - Assessee sets off business loss of prior years and unabsorbed depreciation against short term capital gains - Tribuna allows - As per the amended provisions of Sec 32(2) w.e.f 1.4.1997, such set off is allowable - no infirmity in the Tribunal's order - Revenue's appeal dismissed :MADRAS HIGH COURT ;

2008-TIOL-246-HC-ALL-IT.pdf

ACIT Vs M/s Vikram Tractors (Dated : April 3, 2008)

Income Tax - Assessee is a dealer of tractors, motorcycle and their spare parts - gives discount to its customer - AO disallows discounts on the ground of certain discrepancies in some of the vouchers - CIT(A) upholds disallowance - Tribunal deletes the additions - Revenue fails to establish that the Tribunal's findings are perverse and based on no material - Revenue Appeal dismissed : ALLAHABAD HIGH COURT ;

2008-TIOL-245-HC-RAJ-GT.pdf

CIT, Jodhpur Vs Padam Singh Chouhan (Dated : February 6, 2008)

Gift Tax - AO disallows the claim on the ground that the deposits were made just before the gift was given and there is no relationship between the donor and the donee - Tribunal upholds the CIT(A) order rejecting the AO's contention - For a gift to be genuine there is no need for a blood relationship as it can be done out of love and affection; and when the assessee has produced the copies gift deeds and affidavits of the donors, there is no infirmity in the Tribuanl's order - Revenue's appeal dismissed : RAJASTHAN HIGH COURT ;

2008-TIOL-243-HC-DEL-IT.pdf

M/s Nulon India Ltd Vs ITO, Delhi (Dated : March 24, 2008)

Income Tax - Notice u/s 143(2) - Service of notice - AO sends it by Speed Post - Assessee alleges limitation - CIT(A) and Tribunal allow the Revenue's appeal that the notice sent on the address given in the return was re-directed to the assessee's new address - Since the AO is not sure about when the notice was actually served on the assessee, the mandatory requirement of notice u/s 143(2) not fulfilled - Assessee's appeal upheld : DELHI HIGH COURT ;

CENTRAL EXCISE SECTION

2008-TIOL-244-HC-RAJ-CX.pdf + credit story.pdf

Kamra Bottling Co Vs CCE, Jaipur (Dated : April 3, 2008)

Central Excise - Cenvat credit on inputs used for dutiable and exempted final products – Credit reversed after clearance – Chandrapur Magnets not applicable and exemption not available - Tribunal had found that in Chandrapur Magnet Wire's Case, the Supreme Court considered the case of an SSI unit, which availed the benefit of SSI exemption, in respect of final product after reversing the input credit, which they had earlier taken. In the instant case, the reversal of input-credit was, admittedly, made after clearance of the final product, under the exemption notification, and therefore, it was found, that ratio in Chandrapur Magnet case is not applicable to the instant case. : RAJASTHAN HIGH COURT ;

2008-TIOL-640-CESTAT-MUM.pdf + objection story.pdf

CCE, Pune II Vs M/s Kay Pulp & Paper Mills Ltd (Dated : March 28, 2008)

Non-filing of Cross-Objections proves costly as plea during hearing is not entertained by Tribunal : MUMBAI CESTAT;

2008-TIOL-639-CESTAT-MAD.pdf

M/s Automotive Coaches & Components Ltd Vs CCE, Chennai (Dated : Feb 26, 2008)

Central Excise – stay / dispensation of pre-deposit – denial of benefit of exemption under Notification 6/2002 CE on the ground that credit was availed on the inputs – credit taken was reversed partly before clearance of the final products and partly thereafter – pre-deposit waived. : CHENNAI CESTAT;

2008-TIOL-638-CESTAT-BANG.pdf

M/s Anglo-French Drugs & Industries Ltd Vs CCE, Bangalore (Dated : February 12, 2008)

Larger Bench decision in favour of Revenue is not enough to allege suppression : BANGALORE CESTAT;

2008-TIOL-637-CESTAT-MAD.pdf

M/s Shinhan Plasto (I) Pvt Ltd Vs CCE, Chennai (Dated : Febraury 6, 2008)

CE – Cenvat Credit on Capital Goods – Credit on capital goods cannot be denied to the user merely for wrong classification – Classification of the goods at the supplier's end has to be accepted : CHENNAI CESTAT;

2008-TIOL-636-CESTAT-MAD.pdf

M/s Tansi Tool & Engineering Works Vs CCE, Madurai (Dated : February 26, 2008)

Central Excise – stay / dispensation of pre-deposit – clearance of cut bits of MS rods, channels etc without payment of duty – no prima facie case for waiver of pre-deposit. : CHENNAI CESTAT;

2008-TIOL-635-CESTAT-MAD.pdf

M/s National Polyplast India Ltd Vs CCE, Pondicherry (Dated : February 5, 2008)

Central Excise – stay / dispensation of pre-deposit – cenvat credit of service tax paid on outward freight – prima facie case for waiver of pre-deposit in view of the stay order passed by the Division Bench earlier : CHENNAI CESTAT;

SERVICE TAX SECTION

2008-TIOL-643-CESTAT-MUM.pdf + rpg story.pdf

M/s RPG Enterprises Ltd Vs CCE, Mumbai-IV (Dated : April 4, 2008)

Revenue has a reason to smile - RPG Enterprises Ltd loses Rs 5 Cr Service Tax case – Tribunal upholds demand by holding that they are Management Consultants : MUMBAI CESTAT;

2008-TIOL-642-CESTAT-MAD.pdf

M/s RPG Cellular Services Ltd Vs CCE, Chennai (Dated : February 20, 2008)

Service tax – sale of SIM cards – no service tax is payable as service tax is leviable on services only and not on goods on which sales tax has been lawfully levied. : CHENNAI CESTAT;

2008-TIOL-634-CESTAT-BANG.pdf

M/s India Gateway Terminal (P) Ltd Vs CCE, Cochin (Dated : February 26, 2008)

Service Tax – Irregular maintenance of documents cannot be a ground, when the documents submitted contain all the details required – credit cannot be denied – Pre-deposit reduced – matter listed for out of turn hearing : BANGALORE CESTAT;

CUSTOMS SECTION

NOTIFICATION

dgft08not006.pdf

Refund of 4% Addl duty of Customs : CBEC lays down procedure;

dgft08cir003.pdf

Admissibility of 5% Entitlement Rate under VKGUY Scheme, for shipments under Duty Drawback Scheme where the Drawback Rate is up to 1% only (including both Customs & Excise components).

ctariff08_053.pdf

Indo-B'desh train service : CBEC exempts spares & components carried for maintenance;

cuscir08_06.pdf

Procedure to be adopted for refund of 4% Additional Duty of Customs in pursuance of Notification No.102/2007-Customs dated 14.9.2007 – regarding;

CASE LAWS

2008-TIOL-641-CESTAT-BANG.pdf

M/s Big Apple Manufacturing Vs CC & CE(A), Hyderabad (Dated : January 2, 2008)

Customs – Importation of goods – valuation – transaction value declared by the importer cannot be rejected or enhanced without any material evidence under Rule 4(2) of the Customs Valuation Rules : BANGALORE CESTAT;

ddt 28 apr.pdf + eoustp.pdf

Modern Panchatantra story : Will the kind Revenue Board look into it?

E.Cess can be utilized for payment of E.Cess relating to Output Service only – FAQ answer becoming pet audit objection;

EOUs – where to claim refund of unutilised Cenvat Credit? – CBEC issues another secret clarification.

top guest.pdf

Indirect taxation of 'IT Software' perhaps needs a relook?

guest column.pdf

Service Tax on services consumed outside SEZ: Avoidable imbroglio continues!

culture article

Global market for cultural goods & services is worth a trillion dollar but India is yet to catch fancy of!

mbuzz561.pdf

Reliance Energy is now Reliance Infrastructure Ltd;

mbuzz560.pdf

Law Commission recommends 10.5 to 50 judges per million population;

mbuzz559.pdf

Govt says 100% FDI through automatic route allowed in education sector;