Govt manages to table Women Quota Bill in RS amidst rows;

Soaring oil prices: USA now blames high demand from India + China

Rajya Sabha also adjourned sine die but Govt manages to table Women's Bill;

How much Service Tax is collected? – No data really! (See 'DDT')

Executive profile of IRS officers – Even Chief Commissioners and Commissioners don't give info (See 'DDT' + Pitara)

Guidelines for Rechecking.pdf

Guideline for re-checking executive profiles;

CASE LAWS

2008-TIOL-06-ARA-IT.pdf + education story.pdf

KnoWerX Education India Pvt Ltd (Dated : April 30, 2008)

Income Tax - Assessee promotes certification programmes of foreign isntitutes & societies - collects exam fees and remits the same after deducting administrative costs and commission - Are such payments received on behalf of non-resident bodies taxable in India? - Should TDS be deducted? - Revenue argues that since the foreign institutes are tax exempt they cannot be considered as tax resident, and thus not eligible for benefits under DTAA - Since the foreign institutes are exempted from payment of tax under section 501 (c) (6) under the Internal Revenue Code (IRC), by virtue of their belonging to certain specified categories, such an exemption is permissible under paragraph 2 of article 1 of the DTAA.

Dependent Agency as PE : Since the applicant cannot conclude any contract on behalf of the foreign institutes nor there is any sort of financial, managerial or any other type of participation from them in it, the applicant which has the freedom to enter into relationship with other foreign entities has an independent status and cannot be deemed as a PE of the foreign agencies in terms of Para 5 of Article 5 of DTAA - Thus payments received by the applicant is not chargeable to tax in India nor TDS : ADVANCE RULING AUTHORITY;

2008-TIOL-171-ITAT-BANG.pdf

Shri Abdul Kareem Ladsab Telgi Vs ACIT, Bangalore (Dated : April 9, 2008)

Income Tax - Revenue quantifies tax with interest under Ss 234A, 234B & 234C - CIT(A) dismisses appeal as tax not paid as per provisions of Sec 249(4)(a) - Asessee argues that many of his properties were attached and auctioned by the Revenue and if the considerations received in auctions could have been adjusted against the demand fo other years, it would have complied with the provisions of Sec 249 - The amount that has been realized by auctioning the properties of the assessee should have been adjusted for this AY on account of tax on income returned by the assessee and it is to be treated as tax paid and matter remanded to the CIT(A) on decide it afresh on merits : BANGALORE ITAT;

2008-TIOL-170-ITAT-DEL.pdf

Bharat Udyog Vs ACIT, New Delhi (Dated : Janaury 11, 2008)

Income Tax - AO disallows certain reimbursements of expenses and misc income - also imposes penalty u/s 271(1)(c) - CIT(A) disagrees with the AO - Since a persual of the assessment order reveals that a satisfaction in relation to concealment of income or in relation to furnishing of inaccurate particulars of income is not discernible from the assessment order, penalty cannot be imposed - Assessee's appeal allowed : DELHI ITAT ;

2008-TIOL-169-ITAT-HYD.pdf

Golkonda Engineering Enterprises Ltd Vs ITO, Hyderabad (Dated : January 29, 2008)

Income Tax - TDS - Assessee has paid rent to Surana Steels Ltd. which happens to be the sister concern of the assessee. Therefore, the assessee is expected to know that the payee will not have any tax liability in view of huge brought forward losses. The assessee can also legitimately expect that the return would be filed in time by Surana Steels Ltd. Under these circumstances, the assessee before us can harbour a legitimate belief that since there is no tax liability on Surana Steels, it need not deduct any tax at source. This does not tantamount to taking law in one's own hands. The clear facts on record justify the belief of the assessee. Therefore, on this ground we do not hesitate to hold that the assessee was not liable to deduct tax at source and hence the demand raised in respect of rent payments is cancelled. : HYDERABAD ITAT ;

CENTRAL EXCISE SECTION

cbecorder089_2008.pdf

CBEC issues additional charge order of CCs ;

NOTIFICATION

etariff08_26.pdf

CBEC further relaxes raw materials procurement procedures for EoU/STP/EHTP units; debonding of capital goods: depreciation to be allowed in proportion to realised NF, Norms committee defined + DTA clearances of textiles, granite and articles from EoUs to attract same rate of excise duty as clearances from DTA units;

CASE LAWS

2008-TIOL-688-CESTAT-MAD.pdf

M/s Goodwill Textiles (P) Ltd Vs CCE, Madurai (Dated : February 20, 2008)

Central Excise – ROM – a mistake to be rectified under Section 35 C of the Central Excise Act must be apparent from the record – in the memo of appeal, the applicant did not raise any ground against the finding of the Commissioner on extra commercial consideration – no case for ROM . : CHENNAI CESTAT;

2008-TIOL-687-CESTAT-MAD.pdf

M/s Lakshmi Machine Works Vs CCE, Coimbatore (Dated : February 07, 2008)

Central Excise – cenvat credit – stay / dispensation of pre-deposit – cenvat credit on service tax paid on outward freight – no prima facie case for waiver, but as the credit was already reversed, waiver granted for interest and penalty . : CHENNAI CESTAT;

2008-TIOL-686-CESTAT-BANG.pdf

M/s Forbes Aquatech Ltd Vs CCE, Calicut (Dated : January 17, 2008)

Central Excise – Cenvat credit cannot be denied on the ground that waste is not returned from job worker; Cotton waste is not manufactured goods. Mere mention in the Tariff is not enough to make goods excisable- Adoption of an international classification code for a municipal manufacturing levy . : BANGALORE CESTAT;

2008-TIOL-685-CESTAT-MAD.pdf

M/s Leo Fastners Limited Vs CCE, Pondicherry (Dated : February 01, 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-693-CESTAT-MUM.pdf + stgst.pdf

Caliber Point Business Solutions Ltd Vs CCE, Belapur (Dated : March 28, 2008)

Export of Taxable Services effected prior to 14.03.2006 also entitled for Rule 5 CCR, 2004 refund – Issue no longer res integra - Tribunal decision in WNS Global Services (P) Ltd. 2008-TIOL-228-CESTAT-Mum followed.

However, since both the lower authorities had had rejected the refund claim only on the ground of the non-applicability of rule 5, in the interest of justice matter sent back to the lower authorities for the limited purpose of ascertaining whether the applicants had fulfilled the conditions as laid down in Notification 5/2006-CE(N.T) & if they had done so, to grant the refund claim. : MUMBAI CESTAT;

2008-TIOL-692-CESTAT-MAD.pdf

M/s Maveric Systems Ltd Vs CST, Chennai (Dated : January 21, 2008)

Service Tax – Validation and testing of software is a working on “material” falls under ‘technical testing and analysis' and is prima facie taxable 

The definition of ‘Technical Testing and Analysis' under Section 65 (106) has already been noted earlier in this order and, according to this definition, any service in relation to scientific testing or analysis of “material”, excluding any testing or analysis service provided in relation to human beings or animals, is a taxable service. Prima facie, by validating and testing software, the assessee was working on “material” in the manner defined under Section 65 (106). Prima facie, the demand of service tax amounting to over Rs. 95 lakhs is sustainable on merits . : CHENNAI CESTAT;

2008-TIOL-691-CESTAT-BANG.pdf

M/s Ex-Services Security Co-Operative Society Ltd Vs CCE, Belgaum (Dated : February 26, 2008)

Service Tax – Security Agency – Limitation -  Appellate authority has given a finding that the appellants have a bona fide doubt regarding their liability. Extended period is not invokable. (Para 4)

Commercial Concern - Appellant is a co-operative society, registered under Karnataka Co-operative Society Act for the welfare of the Ex-servicemen. As per Section 4 of the Karnataka Co-operative Society Act, 1954 a commercial concern is debarred from being registered as a Co-operative Society. It follows that the appellant is not a commercial concern. Demand is not sustainable. (Para 4) : BANGALORE CESTAT;

CUSTOMS SECTION

NOTIFICATION

ctariff08_061.pdf

Anti-dumping duty on many rubber chemicals imposed upto Nov, 2008;

ctariff08_060.pdf

More relaxation for EoU/STP/EHTP : where no SION, the generation of waste, scrap and remnants upto 2% of input quantity to be allowed Norms committee defined;

ctariff08_059.pdf

CBEC rescinds 55/2002-Cus;

CASE LAWS

2008-TIOL-690-CESTAT-MUM.pdf

M/s A R Marines Pvt Ltd Vs CC, Mumbai (Dated : March 07, 2008)

Condonation of delay - Appeal filed before a wrong forum viz. Jt.Secy, GOI, MF but in time needs to be viewed leniently – Delay condoned. : MUMBAI CESTAT;

2008-TIOL-689-CESTAT-BANG.pdf

M/s Goetze (India) Ltd Vs CC, Bangalore (Dated : February 04, 2008)

Customs – benefit of exemption extended to the assessee by the Commissioner (Appeals) with consequential relief subject to the provisions of Section 27 of the Customs Act – appellant requests the relief without insisting the time limit for refund under the provisions of Section 27 - no mistake in the order of the Commissioner (Appeals) that needs modification . : BANGALORE CESTAT;

ddt 06 may.pdf

Metallised plastic film – non excisable – no need to reverse credit – but since when?

2008-TIOL-91-SC-CT.pdf + bubble story.pdf

CTT, UP Vs Associated Distributors Ltd (Dated : May 5, 2008)

Hindi Notification prevails in UP : It is pertinent to note that the official language of the State of Uttar Pradesh is Hindi. If any difference is found between the notifications in English and Hindi, the notification issued in Hindi will be applicable.

Bubble Gum – Classification: On the said notification, the courts have decided that confectionery comes within sweets ( mithai ) and sweetmeat, but it has not been mentioned that Bubble-gum comes within the category of a Sweet. The Commissioner, Sales Tax, UP has relied on judgment in Nutrine Chewing Gum Products Co. Pvt. Ltd., Arya Nagar, Lucknow and observed that:- "In chewing-gum, sugar is an almost insignificant. it is not eatable. Its use is entirely different. Children use it just for a fun and athletes for controlling the breath. In common parlance also nobody treats it as an item of confectionery. I, therefore, hold that chewing-gum is an unclassified item."

Bubble Gum is not mithai in UP: In Pappu Sweets case, the Supreme Court in order to give meaning to the notification issued by the State of Uttar Pradesh has laid great emphasis on the common parlance test. The court gave an apt illustration of a toffee. Toffee in the country of origin may be considered as sweetmeat but it cannot be considered as mithai in this part of the country ( Uttar Pradesh ). Similarly, by no stretch of imagination, can Bubble-gum be considered as mithai in the State of Uttar Pradesh . Consequently, 'Bubble-gum' is taxable as an unclassified good: SUPREME COURT ;

2008-TIOL-90-SC-CT.pdf + fiscal story.pdf

M/s Punjab Aromatics Vs State of Kerala (Dated : April 30, 2008)

The "test of irreversibility" is an important criterion to ascertain as to when a given process amounts to manufacture; Courts have to go by the principle involved in the fiscal legislation : SUPREME COURT ;

mbuzz585.pdf

Govt to part with USD 5 bn from forex reserves for infrastructure financing ;

mbuzz584.pdf

Stockholm Convention: Legwork for national implementation plan begins ;

mbuzz583.pdf

OECD & IOPS join hands to envisage new licensing regime in pension industry ;

mbuzz582.pdf

Health Ministry proposes to allow more food additives ;

mbuzz581.pdf

Partial roll-back of Export Duty: Ministry of Steel says no but seeks exemption for export under Advance Licence;