Maize Starch – not exempted before 30 th April 2008? (See 'DDT')

Sino-India trade relations go sour; Opening of Nathu La border postponed;

Govt appoints seven Addl Judges for Allahabad HC;

Rising vacancies in CBI: House Panel pulls up DoP&T;

CBDT clarifies Service tax is not to be included for computing the TDS on rental income (See 'DDT')

2008-TIOL-166-ITAT-DEL.pdf + server story.pdf

M/s Millennium Infocom Technologies Ltd Vs ACIT, Delhi (Dated : January 31, 2008)

The payments made on account rentals for hosting of websites on servers are not in nature of interest or royalties or fee for technical services or other sum chargeable to tax in India . Central Board of Direct Taxes has revised the procedure for deduction of tax at source on remittances made out of the country. The provisions DTAA are also in favour of the assessee. Accordingly the assessee was not required to deduct tax at source u/s 195 of the Act while making payments outside India .

Loans to employees written off: The amount has been claimed on account of business expediency. The cases relied upon by the assessee relate to amount written off at the time of voluntary retirement as retrenchment compensation paid or amount paid under settlement with the trade unions. Nothing has been brought on record that the amount was written off on account of implementation of voluntary retirement scheme or was part of retrenchment compensation based on the agreement arrived at with the trade unions. The amount written off represents the loans advanced in earlier years. No material has been brought on record to prove the business expediency and therefore the loan given to various employees in earlier years and writing off the same will not constitute the expenditure incurred for the purpose of section 37(1) of the Act. :DELHI ITAT;

2008-TIOL-165-ITAT-MUM.pdf

DCIT Vs EXIM, Mumbai (Dated : March 12, 2008)

Income Tax - What in an integrated transaction accrued to the assessee is only the net interest and only that amount could be taxed in the hands of the assessee; Interest tax cannot be levied on interest earned on securities, bonds and debentures :MUMBAI ITAT;

2008-TIOL-164-ITAT-DEL.pdf

DCIT, Delhi Vs M/s Ajanta Offset & Packaging Ltd (Dated : February 15, 2008)

Income Tax - Refund - AO fails to grant setoff for MAT credit - CIT(A) directs AO to recalculate the refund amount in view of sub-section 4 of Sec 115JAA - MAT credit to be allowed first before tax payable is computed, and it is to be allowed in the same year of tax payable and TDS to be deducted only on the balance sum - Interest also to be paid on the refund amount as per the provisions of Ss 234B & 234C - Revenue's appeal rejected :DELHI ITAT;

2008-TIOL-163-ITAT-DEL.pdf

JCIT, Dehradun Vs ONGC (Dated : February 29, 2008)

Income Tax - Misc application - Assessee is a non-resident - seeks amendment in the order on the ground that its order was relating to non-resident companies whereas he was a non-resident individual - Since the decision was based on interpreation of statutory provisions of law that the services related to mining activities cannot be treated as technical services u/s 44D and it is covered u/s 44BB(1), there is no mistake apparent and the appeal seeking review of the order is dismissed as the scope of Sec 254(2) does not permit so :DELHI ITAT;

CENTRAL EXCISE SECTION

2008-TIOL-664-CESTAT-MUM.pdf + refund story.pdf

Notification 11/2002CE(N.T) - Refund filed in terms of rule 5 of Cenvat Credit Rules on a quarterly basis – Percentage of export clearances not an impediment for claiming refund – Revenue appeal rejected : MUMBAI CESTAT;

2008-TIOL-663-CESTAT-BANG.pdf

M/s United Telecoms Ltd Vs CCE, Bangalore (Dated : February 26, 2008)

Pre–loaded software – goods which are not excisable if transplanted into goods which are excisable would not together make the same excisable goods so as to make the assessee liable to pay excise duty on the combined value of both- waiver of duty, penalty and interest thereon – matter posted for early hearing : BANGALORE CESTAT;

2008-TIOL-662-CESTAT-BANG.pdf

CCE, Belgaum Vs M/s Bellary Steel And Alloys Ltd (Dated : January 1, 2008)

Credit on cost of PVC Pipes [Capital Goods] is allowed – PVC pipes form a pipeline from the water source outside to the factory premises, though the pipeline from water source is outside the factory premises. : BANGALORE CESTAT;

2008-TIOL-661-CESTAT-MAD.pdf

M/s Chennai Petroleum Corporation Ltd Vs CCE, Chennai (Dated : February 26, 2008)

Central Excise – Stay / dispensation of pre-deposit – demand of duty on Furnace Oil cleared without payment of duty to Nagapattinam refinery which is clarified by the CBEC as warehouse only for crude oil – all the clearances prior to the said clarification were without payment duty and no duty was demanded – assessee's application for waiver of pre-deposit is favorably considered. : CHENNAI CESTAT;

SERVICE TAX SECTION

2008-TIOL-659-CESTAT-MAD.pdf

M/s Madras Vanaspati Ltd Vs CCE, Pondicherry (Dated : February 12, 2008)

Service tax – stay / dispensation of pre-deposit – Banking and financial services – the appellants are not any non-banking financial company and prima facie not covered by the expression body corporate used in the definition. : CHENNAI CESTAT;

2008-TIOL-658-CESTAT-MAD.pdf

Hitech Publicities Vs CCE, Madurai (Dated : February 19, 2008)

Pre–loaded software – goods which are not excisable if transplanted into goods which are excisable would not together make the same excisable goods so as to make the assessee liable to pay excise duty on the combined value of both- waiver of duty, penalty and interest thereon – matter posted for early hearing . : CHENNAI CESTAT;

CUSTOMS SECTION

NOTIFICATION

dgft08cir005.pdf

Customs not permitting utilisation of VKGUY scrips for imported goods : DGFT clarifies;

CASE LAWS

2008-TIOL-85-SC-NDPS.pdf + limitation story.pdf

Smt Heena Kausar Vs Competent Authority (Dated : April 24, 2008)

Only because at a later stage, a period of limitation was prescribed for initiation of proceedings for forfeiture of the properties, the same, by itself would not be sufficient to attract the wrath of Article 14 of the Constitution of India – Confiscation of Memon's properties upheld

Res judicata applicable to writs: “The principle of 'Constructive Res Judicata ', it is trite, applies also to a writ proceeding. Furthermore, admittedly such a contention has not been raised even in the second writ application. The documents which were necessary to be taken into consideration for determining the said question are also not before us. We, therefore, are of the opinion that it is not possible for us to go into the said question ..

Harsh laws required for drug offence: The statute deals with an economic aspect of the matter. The purported object for which such a statute has been enacted must be noticed in interpreting the provisions thereof. The nexus of huge amount of money generated by drug trafficking and the purpose for which they are spent is well known. Harsh laws, not only for punishing the drug traffickers but also for preventive detention, if the conditions therefor are satisfied, were made. Necessity was felt for introduction of strict measures so that money earned from the drug trafficking by the persons concerned may not continue to be invested, inter alia, by purchasing moveable or immoveable properties not only in his own name but also in the names of his near relatives.” This case, itself throws sufficient light as to why the Parliament thought it fit to exclude the applicability of the provisions of the period of limitation in the matter of initiation of proceedings for forfeiture of properties.

The Union of India and the State of Maharashtra have not been able to serve even the order of detention upon the husband of the appellant. There may be a large number of other cases of that nature. : SUPREME COURT ;

2008-TIOL-660-CESTAT-MUM.pdf

CC, Nhava Sheva Vs M/s KRBL Ltd (Dated : February 13, 2008)

Customs - Short landing of the two containers is an admitted fact on record - it cannot, therefore, be denied that the amount pertains to the duty paid for the goods that did not exist at the relevant time. Since there cannot be a buyer for the non-existent goods, it is normal logic that the duty could also not have been passed on to a non-existent buyer – Refund claim properly allowed – Revenue appeal rejected. : CHENNAI CESTAT;

ddt 01 may.pdf

Export duty on Steel items – since when?

cobweb.pdf

The software saga continues; This time it is Customs Valuation! - Many global players come under DRI scanner !

mbuzz572.pdf

Exports registers 26.6% growth rate last fiscal;

mbuzz571.pdf

Mr Mathoda assumes hot seat in CBDT;

mbuzz570.pdf

National recognition for Chhatisgarh; CHiPS CEO Aman Singh gets Geospatial Usage Award;

mbuzz569.pdf

CBI Director calls for formal cell within State CIDs for closer international cooperation;