3% duty for certain imports, including cars under EPCG (See 'DDT')

Export of services - Supply of tangible goods – export only if the goods are located abroad (See 'DDT')

Pawar says no more ban on more items for future trading;

Industrial growth dips to 3% in March, 2008 from 14.8% during same month last fiscal;

BHEL takes over Bharat Plates & Vessels Ltd at Vizag today;

PM asks DRDO to speed up advanced technologies research;

2008-TIOL-266-HC-DEL-IT.pdf + nhk story.pdf

CIT Vs NHK Japan Broadcasting Corporation (Dated: April 23, 2008 )

Income Tax - TDS - Assessee is a non-resident company - deducts TDS on salary paid to employees in India - But no TDS deducted on 'global salary' paid outside India - Survey - Tax with interest deposited - assessee fears levy of penalty - AO initiates proceedings u/s 201 to hold the assessee in default - Tribunal sets aside the proceedings on limitation ground - It is true that Sec 201 does prescribe any period of limitation but there must be some time limit for the Revenue within which it can initaite proceedings of this nature, and a period of three years as prescribed u/s 153 is good enough but since the Tribunal has fixed four years as limitation, there is no need to change it - Revenue's appeal dismissed: DELHI HIGH COURT;

2008-TIOL-265-HC-P&H-IT.pdf

CCE, Ludhiana Vs M/s Liberty Group Marketing Division, Karnal (Dated: April 22, 2008 )

Income Tax - Assessee claims deduction for expenditure incurred on glow sign boards and neon signs and publicity - AO treats it as capital expenditure as such items are of enduring nature - CIT(A) disagrees with the AO - Tribunal upholds the CIT(A) order - Glow sign boards are not an asset of enduring nature and have a short life which needs regular replacement as it decays fast due to wealther and it is rightly pointed out by the Tribunal that it is a regular expenditure for a business - Allowable expenditure under Sec 37(1) - Revenue's appeal dismissed: P & H HIGH COURT;

2008-TIOL-181-ITAT-DEL.pdf

M/s Picker India Ltd Vs DCIT (Dated: April 11, 2008 )

Income Tax - Additions made for commission profit on GP estimation basis - CIT(A) deletes it - On examination of the case u/s 40A(2)(b) for last AY, the Revenue had concluded that the said provision was not applicable, and when the same section has not been invoked this year, it is reasonable to infer that the expenditure shown by the assessee on purchases is resonable - No case to make additions on GP basis - Assessee's appeal allowed: DELHI ITAT;

2008-TIOL-180-ITAT-MUM.pdf

DCIT Vs The Supreme Industries Ltd, Mumbai (Dated: February 19, 2008 )

Income Tax - Sec 80HHC benefits - AO includes excise duty and sales Tax in the total turnover - CIT(A) diagrees - Revenue appeal dismissed in view of SC decision in the case of Lakshmi Machine Works

Sections 80I & 80IA - CIT(A) upholds the AO's order restricting the claims by holding that depreciation has to be taken to arrive at correct magnitude of profits - Assessee appeals - Appeal dismissed in view of the Apex Court ruling that depreciation u/s 32 is to be taken into account before allowing other benefits: MUMBAI ITAT;

2008-TIOL-179-ITAT-HYD.pdf

ITO, Hyderabad Vs Smt V Sunanda (Dated: January 1, 2008)

The tax effect is less than Rs. 2 lakhs and hence in terms of the Board's Instructions, the department should not have filed the present appeal: HYDERABAD ITAT;

CENTRAL EXCISE SECTION

2008-TIOL-730-CESTAT-MUM.pdf + india forge story.pdf

M/s India Forge & Drop Stampings Ltd Vs CCE, Pune (Dated: April 4, 2008)

Supplementary invoices raised & differential duty paid thereon – later, it is detected that higher price was wrongly fixed – since duty already recovered from customers, no cause for refund: MUMBAI CESTAT;

2008-TIOL-729-CESTAT-MAD.pdf

M/s Tel Exports Vs CCE , Chennai (Dated: February 18, 2008)

Central Excise – Larger period could not be invoked on the ground of suppression of facts when the relevant facts were known to both the parties a couple of years before the issue of the demand notices – entire demand set aside on limitation

Customs Valuation – Demand– assessable value to be arrived at / quantified in terms of appropriate rule of CVR – Resorting to a rule, different to rule as sought by the assessee for valuation, has to be explained to the latter – matter remanded: MUMBAI CESTAT;

2008-TIOL-728-CESTAT-DEL.pdf

M/s Goodyear India Limited Vs CCE, Faridabad (Dated: March 12, 2008)

Central Excise - Demand of interest and penalty for payment of differential duty on basis of supplementary invoices - As per settled judicial view, such demand is not sustainable: DELHI CESTAT;

2008-TIOL-727-CESTAT-MAD.pdf

M/s Church's Auxiliary For Social Action Vs CCE, Trichy (Dated: February 27, 2008)

NGOs engaged in the rehabilitation are not aware of Central Excise law –delay in filing the appeal condoned: CHENNAI CESTAT;

2008-TIOL-723-CESTAT-MUM.pdf

CCE, Mumbai II Vs M/s Perfect Caps (Dated: December 28, 2007)

There is no provision under Section 35C of the CEA, 1944 for condoning the delay in filing the application for rectification of mistake – COD application for filing ROM dismissed: MUMBAI CESTAT;

2008-TIOL-721-CESTAT-BANG.pdf

M/s Vijay Packaging Systems Ltd Vs CCE, Hyderabad (Dated: January 29, 2008)

Central Excise – Non-accountal of goods – Clandestine Clearances – Shortages of physical stock when compared to stock recorded in RG1 register. No evidence of clearance of fabric found short recorded. Appellant claims benefit of Notification 53/88 & 14/92. Matter remanded for fresh consideration.: BANGALORE CESTAT;

SERVICE TAX SECTION

2008-TIOL-725-CESTAT-KOL.pdf

CCE, Kolkata Vs M/s ABB Ltd (Dated: February 14, 2008)

Service Tax - Section 73 as it stood before the amendment by the Finance Act, 2004 cannot be invoked in a case where section 71A applied  - Decision of Tribunal in L.H. Sugar Factories upheld by Supreme Court followed: KALKATA CESTAT;

2008-TIOL-724-CESTAT-MUM.pdf

M/s Empro Oil (P) Ltd Vs CCE, Noida (Dated: March 14, 2008)

ST - Consultancy servcie - Assessee provides multiple services to foreign companies - Revenue raises demand under various taxable services categories like Management Consultant and BAS but the assessee is for Business Support Service which came into tax net from a later date - Although the assessee's agreements indicate a contract for execution of work but they have not properly pleaded for complete waiver of pre-deposit - A pre-deposit of Rs 1.25 Cr ordered : MUMBAI CESTAT;

CUSTOMS SECTION

NOTIFICATION

ctariff08_063.pdf

Amends Notification No 43/2002; 46/2002 + 47/2002;

ctariff08_062.pdf

CBEC amends Notification No 154/94-Cus to amend table against Sr No 3;

CASE LAWS

2008-TIOL-97-SC-CT.pdf + depb story.pdf

M/s Yasha Overseas Vs Commissioner of Sales Tax (Dated: May 6, 2008)

DEPB is goods: It is plain that DEPB like REP licence has its own intrinsic value and the purchaser, on payment of consideration, buys something for its value. The DEPB credit is thus clearly `goods' within the meaning of sales tax laws and its sale clearly exigible to tax. We may observe here, if DEPB (or for that matter REP license!) has to be compared with a lottery ticket, it can only be compared with a lottery ticket that has won the prize. The prize- winning lottery ticket ceases to be a mere piece of paper having no value itself. It acquires inherent value and becomes itself a thing of value. Imagine a situation where prize winning lottery tickets are freely available for sale. (As a matter of fact, clandestine sale of the prize winning lottery ticket for conversion of black money into white is not completely unknown!). In buying the prize winning lottery ticket the purchaser would pay the consideration for the value that the piece of paper has acquired and in that situation we fail to see how that ticket can be described as anything else but 'goods'.

If any more analogies are to be given one might compare DEPB with prepaid meal tickets or prepaid petrol coupons or accumulated flying miles. A meal ticket, a petrol coupon or flying miles credit has its own intrinsic value. If permitted free transferability those would soon become market commodities and would be sold and bought for their value as `goods'.

The Constitution Bench decision in Sunrise does not alter the position in regard to levy of tax on sale of REP licence and on that issue the three-Judge Bench decision in Vikas continues to hold the field. DEPB has an intrinsic value that makes it a market commodity. Therefore, DEPB , like REP licence qualifies as `goods' within the meaning of the Sales Tax laws: SUPREME COURT;

2008-TIOL-726-CESTAT-MAD.pdf

M/s J J Trading Corporation Vs CC, Chennai (Dated: February 19, 2008)

Customs – stay / dispensation of pre-deposit – export of sandalwood chips on the basis of certificate of procurement issued in the name of a non-existent firm – prima facie the goods were attempted to be exported fraudulently – pre-deposit ordered.: CHENNAI CESTAT;

2008-TIOL-722-CESTAT-KOL.pdf

M/s A J Cast Alloys Pvt Ltd Vs CC(Airport & Admn), Kolkata (Dated: January 30, 2008)

Penalty cannot be imposed after death and even if it was imposed but not recovered during life time of the deceased, the same cannot be recovered from the legal heirs for the reason that generally penalty dies with the deceased.: KOLKATA CESTAT;

ddt 12 may.pdf

Finance Bill enacted- Notifications galore;

tiol exclusive.pdf

The 'real' & 'surreal' tax demands besiege Microsoft in India!

guest column.pdf

At last, CBDT admits that service tax is not income;

fa2008_story.pdf

Notifications consequent to enactment of Finance Bill 2008 - exporters to get refund of service tax paid on three more services;

transfer story.pdf

Annual General Transfer: More amendments proposed in policy; North Block meeting today to finalise Commissioner's order;

mbuzz600.pdf

Industrial Production records 3% growth in March, 2008;

mbuzz599.pdf

NTPC earmarks 0.5% of profit for green technologies;

mbuzz598.pdf

TRAI Paper on Internet Telephony calls for liberal regulatory regime;