Inflation not responding to fiscal antidotes; soars to 42-month high of 7.57 %;

House Panel disfavours unregulated access to parliamentary records under RTI Act

FM approves 15 FDI proposals worth Rs 309 Crore, including Rs 219 Cr proposal of NYSE Euronext, USA;

Cabinet gives nod to establishment of National Police University & Indian Institute of Corporate Affairs + LLP Bill, 2008 + Code of Criminal Procedure (Amendment) Bill, 2006;

FM-Bankers meet: Interest rates to remain stable in near future;

2008-TIOL-256-HC-P&H-IT.pdf

CIT, Ludhianan-I Vs Budhewal Cooperative Sugar Mills Ltd (Dated : April 1, 2008)

Income Tax - Penalty u/s 271(1)(c) - Assessee, a cooperative society, files Nil return by claiming deduction u/s 80P(2)(a)(iii) - Scrutiny u/s 143(2) - Exemption disallowed - Penalty imposed - Since the explanation furnished by the assessee is not found to be false, and the assessee has also established the bona fide nature of its claim besides disclosing all the particulars of the computation of its income - Revenue's appeal dismissed :P & H HIGH COURT ;

2008-TIOL-255-HC-DEL-IT.pdf

Mrs Krishna Gupta Vs ACIT, Delhi (Dated: April 7, 2008)

Income Tax - Assessee declares gross profit at 1.5% - AO issues summons to dealers to submit ledgers - Assessee fails to do so - AO increases the Gross Profit rate to 10% - CIT(A) reduces it to 5% - Tribunal dismisses cross-appeals - No element of unreasonableness in tribunal's order which upheld the CIT(A) order calculated on the basis of 11 months GP rate - Assessee's appeal dismissed :DELHI HIGH COURT ;

2008-TIOL-254-HC-P&H-IT.pdf

CIT-II, Amritsar Vs M/s Rai Bahadur Kishore Chand & Sons (Dated : February 13, 2008)

Income Tax - scrutiny - penalty u/s 271(1)(c)  for concealing particulars of income - Assessee argues on the point of limitation for service of notice - Tribunal allows the assessee's appeal on limitation - In view of Tribunal's categorical findings based on facts, Revenue has no case - Revenue's appeal dismissed :P & H HIGH COURT ;

2008-TIOL-253-HC-DEL-IT.pdf

CIT, Delhi II Vs M/s Madhsy Films Pvt Ltd (Dated : March 25, 2008)

Income Tax - Notice u/s 143(2) - Assessee does not respond - AO disallows certain expenses - Assessee claims non-service of notice - CIT(A) upholds AO's order - Tribunal quashes the notice on the ground of limitation - section 27 of the General Clauses Act, 1897 - In the absence of records that the notice sent by speed post was received back by the Revenue, the general presumption is that the notice has reached the assessee and this presumption has not been rebutted by the assessee - Revenue's appeal upheld :DELHI HIGH COURT ;

CENTRAL EXCISE SECTION

2008-TIOL-668-CESTAT-BANG.pdf

M/s Alfred Herbert Ltd Vs CCE(A), Bangalore (Dated : February 18, 2008)

Central Excise - CENVAT -  Once there is an element of manufacture, cenvat credit not to be denied. Matter remanded to original authority to examine this aspect. : BANGALORE CESTAT;

2008-TIOL-667-CESTAT-MUM.pdf

M/s Hercules Hoists Ltd Vs CCE, Mumbai III (Dated : February 25, 2008)

Advertisement expenses borne by the Authorized Marketing Associates (AMAs) – On prima facie reading of the Valuation provisions w.e.f 01.07.2000 it appears that the advertisement expenses will from part of the transaction value and therefore are includible in the assessable value – no case of waiver of pre-deposit – Stay application rejected. : MUMBAI CESTAT;

2008-TIOL-666-CESTAT-KOL.pdf

CCE, Kolkata III Vs M/s Eletrosteel Castings Ltd (Dated : March 18, 2008)

Central Excise – payment of 8% amount under Rule 6 of the Cenvat Credit Rules on exempted goods – revenue in appeal against non-inclusion of transportation and inspection charges in the value - the adjudicating authority held that these charges are reimbursable expenditure - the findings of the Adjudicating Authority below remained un-impeached without any cogent evidence either led by Revenue - it is settled law that the factual finding of Authority below cannot be upset or disturbed unless there was perversity or impeachable by any credible evidence - the adjudication order does not suffer from any legal infirmity or any irrationality. : KOLKATA CESTAT;

SERVICE TAX SECTION

stgst.pdf

Service Tax: Neither foreign banks nor recipient of services paying tax on import of services!

2008-TIOL-671-CESTAT-DEL.pdf + st security story.pdf

M/s Magnum International Vs CC & CE, Bhopal (Dated : April 3, 2008)

Security Agency Services – Tax cannot be assessed on assumptions and presumptions - just by looking at the returns no one can state whether the appellants were paying tax on the gross amounts or supervision charges – Demand not hit by limitation : DELHI CESTAT;

2008-TIOL-670-CESTAT-MAD.pdf

R Kanagalakshmi Vs CCE, Madurai (Dated : February 14, 2008)

Service tax – stay / dispensation of pre-deposit – show cause notice was issued without invoking proviso to Section 73(1)(a) of the Finance Act – prima facie case on the ground of limitation – pre-deposit waived. : CHENNAI CESTAT;

CUSTOMS SECTION

NOTIFICATION

ctariff08_058.pdf

Anti-dumping Notification No 59/2007 rescinded;

ctariff08_057.pdf

Anti-dumping duty : CBEC notifies provisional assessment for consignments coming from a couple of exporters;

CASE LAWS

2008-TIOL-86-SC-CUS.pdf + sc story.pdf

Orient Ceramic Inds Ltd Vs CC, New Delhi (Dated : April 29, 2008)

Customs Classification: While porcelain unglazed tiles are almost completely vitrified and would absorb no water (impermeable) glazed tiles have a porous body permeable to water classification as glazed tiles and penalty upheld - While ceramics are made from minerals such as clay, feldspar, silica and talc, the porcelain is made out from a mixture of ingredients like kaolin, petuntse . Kaolin is a pure white clay and petuntse is a type of felt spar found only in China. It has not been proved by the appellants that the tiles imported by it were made from the mixture of ingredients like kaoline and petuntse . His case was that tiles imported by it were unglazed ceramic tiles. Since, the material which goes into production in the ceramic tiles and porcelain tiles is different, in the absence of any material to show that the tiles manufactured by the appellants were porcelain tiles made out of kaolin and petuntse , it cannot be held that the tiles imported by the appellants were other ceramic articles falling under tariff entry 6914.10. : SUPREME COURT ;

2008-TIOL-669-CESTAT-DEL.pdf

CC(Preventive), Amritsar Vs M/s Dee Bee Marketing Pvt Ltd (Dated : March 4, 2008)

Customs – confiscation – used computer monitors imported without obtaining licence as required under the Foreign Trade Policy – revenue appeals against the reduction in fine and penalty by the Commissioner (Appeals) - what should be the amount of redemption fine and/or penalty would depend on the facts and circumstances of the case, the nature of the goods, the nature of violation etc – no reason to interfere with the Commissioner (Appeals) order. : DELHI CESTAT;

2008-TIOL-665-CESTAT-MUM.pdf + diamond story.pdf

CCE, Belapur Vs C G International Pvt Ltd (Dated : February 1, 2008)

Consignment of Diamond Studded Jewellery destined for export from 100% EOU waylaid & robbed by an armed gang – No cause for effecting any recovery of duty in terms of Section 72 of the Customs Act : MUMBAI CESTAT;

ddt 02 may.pdf + letter.pdf

Refund of Special Additional Customs Duty – another view;

Payment of excise duty on broken grinding wheels – CBEC clarifies in yet another private clarification!

fdi.pdf

FM approves 15 FDI proposals worth Rs 309 Crore, including Rs 219 Cr proposal of NYSE Euronext, USA;

mbuzz576.pdf

TRAI releases Paper on allocation and pricing for 2.3-2.4 GHz, 2.5-2.69 GHz & 3.3-3.6 GHz bands ;

mbuzz575.pdf

PPP Appraisal Committee gives nod to 13 projects worth Rs 7946 Cr;

mbuzz574.pdf

CCEA gives nod to Rs 1170 Cr investment by Cayman Islands-based Agam SPV Six Ltd; waiver of Indian Cos dues on Cuba and production of coated fertilisers;

mbuzz573.pdf

Global food prices up by 75% in dollar terms since 2000: WB;