Special Economic Zones – Guidelines for field formations - DGEP (See 'DDT')

Lok Sabha adjourned sine die four days before scheduled closure; Women's Bill left hanging in air;

TRAI releases paper on Mobile Network Operator;

Commendable recovery of Service Tax from foreigner – Board wants others to follow suit;

No ‘Protective Demand’ if Board’s order is followed!;

TRANSFER POLICY 2008.pdf

CBDT also amends Transfer Policy; makes some subtle changes;

CASE LAWS

2008-TIOL-89-SC-IT.pdf

M/s Kvaverner John Brown Engg (I) Pvt Ltd Vs ACIT, Bangalore (Dated : April 29, 2008)

Income Tax - Assessee claims deduction u/s 80-O at gross figure - AO allows deduction at net figure and effects adjustments in the assessment - Since there were conflicting rulings on this issue, the AO was not correct in applying adjustments contempted u/s 143(1)(a) and the assessee not liable to pay additional tax u/s 143(1A) - Assessee's appeal allowed : SUPREME COURT;

2008-TIOL-168-ITAT-DEL.pdf

ACIT, Faridabad Vs M/s Muthoot Bankers (Dated :January 18, 2008)

Income Tax - Assessee is into banking and financing business - acquires shares of a couple of companies - dividend income - exemption u/s 10(33) - AO disallows a part of interests paid as the shares were acquired out of borrowed funds - CIT(A) accepts the assessee's contention - It is true that the shares were acquired many years before the accounting year but it needs to be examined if it was purchased out of borowed funds and the same is still being repaid or it has already been reapid out of own funds of the assessee or out of borrowed funds etc - Matter remanded to the AO for fresh examination :DELHI ITAT ;

2008-TIOL-167-ITAT-HYD.pdf

M/s Sona Systems & Home Appliance Pvt Ltd Vs ACIT, Hyderabad (Dated : January 11, 2008)

It is observed that the assessee is selling the products almost at the same price at which it gets from the manufacturers in view of stiff competition in the market. On very few products, the assessee actually makes profit and the margin is so low as is evident from the profit and loss account. For the year under consideration it has earned a net profit of Rs.5.72 lakhs on a total turnover of about Rs.40 crores. Be that as it may, the crux of the matter is that the Assessing Officer misunderstood the entire gamut of the assessee's business. Since the assessee is selling most of the products at cost price, on verification of few bills the Assessing Officer felt that the assessee is valuing its closing stock after reducing the discount offered to the customers. However, the actual story is the other way round. The assessee has valued its closing stock on the net price paid by it to the manufacturers. It cannot be disputed that this only will be the cost price to the assessee and hence valuing the stock at cost price, that too consistently for years, cannot be faulted with : HYDERABAD ITAT ;

WorleyParsons Services Pty Ltd

Income Tax - Assessee is an Australian company - provides technical supervisory service to an Indian company through its PE as per contract - is it royalty income? - Since no technical knowhow transferred to the service recipient it is not royalty income as per Article 12 of the DTAA

Since the applicant had a PE in India and its personnel were here for more than 165 days, the payments received by the applicant as per the contract are business profits as per Article 7 of the DTAA, and only the profits attributable to the PE in India are liable to be taxed as per the provisions of the I-T Act : ADVANCE RULING AUTHORITY;

CENTRAL EXCISE SECTION

NOTIFICATION

exnt08_22.pdf

Metallised plastic film under Chapter 39 : If duty is paid, CBEC says no need to reverse Cenvat Credit utilised even though the process does not amount to 'manufacture'

CASE LAWS

2008-TIOL-683-CESTAT-MUM.pdf + eou story.pdf

M/s Chemfab Alkalis Ltd Vs CCE, Chennai (Dated : February 27, 2008)

Central Excise – stay – extension of – it is made clear that the stay of recovery will last till final disposal of the appeal. : MUMBAI CESTAT;

2008-TIOL-682-CESTAT-BANG.pdf

M/s Synergies-Dooray Automotive Ltd Vs CCE & CC, Visakhapatnam-I (Dated : February 22, 2008)

EOUs – proviso to Notification 22/2003 CE and 52/2003 Cus is applicable only if the final products are non-excisable – no need to pay the duty foregone on the raw materials imported if by-products cleared in DTA are non-excisable.

Revenue's appeal dismissed / assessee's appeals allowed : BANGALORE CESTAT;

2008-TIOL-681-CESTAT-MUM.pdf

Tata Motors Ltd Vs CCE, Pune-I (Dated : February 21, 2008)

Date appearing below the signature of the Assistant Commissioner has to be taken as the date of the order – Review order passed on 23.3.2000 is not barred by limitation.

Structurals for construction of additional factory building are excisable goods classifiable under heading 73.08 & liable to duty – No prima facie case for waiver – Pre-deposit ordered. : MUMBAI CESTAT;

2008-TIOL-680-CESTAT-MUM.pdf

CCE, Mumbai-II Vs Godrej & Boyce Mfg Co Ltd (Dated : February 20, 2008)

Rule 8 of Valuation Rules 2000 - Cenvatted Inputs, namely, CR coils, HR coils and MS plates (in coil form) cleared after cutting them to certain shapes/ sizes to their other plant on payment of duty - Central Excise duty paid, sales tax, octroi, etc., were not required to be included in the assessable value of goods captively consumed – earlier order of CCE, M-II stands accepted by Revenue – Remand order of CCE(A) upheld – Revenue appeal dismissed. : MUMBAI CESTAT;

SERVICE TAX SECTION

strecovery.pdf

Commendable recovery of Service Tax from foreigner – Board wants others to follow suit;

CASE LAWS

2008-TIOL-679-CESTAT-BANG.pdf

M/s Aurobindo Pharma LtdVs CCE & CC, Visakhapatnam (Dated : February 4, 2008)

Service Tax – Consulting Engineer – Scope of Show Cause Notice -  Demand of service tax made under the category of consulting engineer. Demand on other category of services beyond scope of show cause notice. (Para 6)

Out of Pocket expenses - ‘out of pocket expenses' reimbursed on actual basis are not includable in the value of the Service Tax. (Para 6) : BANGALORE CESTAT;

2008-TIOL-678-CESTAT-BANG.pdf

Mr Prabhat K Tyagi Vs CCE, Bangalore (Dated : February 22, 2008)

Service Tax – services provided from outside India – taxability - the enactment providing power to the Central Government for paying tax on the services provided abroad came into effect only from 18.4.2006. Therefore, it is very clear that during the relevant period, the appellants were not liable for payment of any Service Tax. : BANGALORE CESTAT;

CUSTOMS SECTION

NOTIFICATION

cnt08_040.pdf

CBEC revises tariff value of poppy seeds and brass scraps;

CASE LAWS

2008-TIOL-684-CESTAT-MUM.pdf + customs story.pdf

United Phosphorus Ltd Vs CC, Mumbai (Dated : March 10, 2008)

Customs authorities cannot refuse exemption when DGFT had no qualms about Advance licences issued by them – Stay granted in a multi-crore case :MUMBAI CESTAT;

ddt 05 may.pdf + dgep.pdf

Special Economic Zones – Guidelines for field formations - DGEP;

Commendable recovery of Service Tax from foreigner – Board wants others to follow suit;

TIOL top guest.pdf

Protective Demand' if Board's order is followed!

guest column.pdf

Cenvat Credit allowed only to make capital goods and not immovable structures!

mbuzz580.pdf

DRDO developing Underwater Vehicle; New Ordnance factory to be commissioned at Korwa by 2010: Antony;

mbuzz579.pdf

TRAI releases Paper on Mobile Virtual Network Operator;