CCEA gives nod for acquisition of land for future nuclear power plants ;

Cabinet approves merger of M/s SIIL with NMDC + gives not to relief package for Gujarat riot victims;

FICCI + CII plead to Govt to exempt them from service tax;

OECD-FAO to present world agricultural outlook in Paris on next Thursday;

CBDT + CBEC AGT orders having bleak chances this week;

Hinduja Group gets nod to set up World Knowledge Centre in Mumbai;

Chief Justice of Orissa HC Justice Asok Kumar Ganguly transferred to Madras HC ;

2008-TIOL-279-HC-DEL-IT.pdf + capital gain story.pdf

Shri A S Chhachhi Vs CIT, Delhi ( Dated: April 25, 2008 )

Sale of house property - capital gains tax - Deduction u/s 48 to be allowed first before allowing deductions under Ss 53 & 54

Income Tax - Assessee sells one floor of property - buys one flat and invests in IDBI bonds - computes capitals gains - claims deduction u/s 48(2) before availing deductions u/s 53 & 54 - AO reverses the process of computation and allows deduction under Ss 53 & 54 and then computes deduction u/s 48(2) - As per scheme of the Act, deduction u/s 48(2) to be allowed first before giving benefits under Sections 53 & 54

There is no explanation or proviso is given in section 48 of the Act, that the deduction to be allowed under sub-clause (b) of sub-section (1) of section 48 of the Act is subject to the deduction allowed under section 53 and 54 of the Act and when the deduction is calculated under section 48 of the Act, it has to be calculated under both sub-section (1) (a) and (1) (b) of the same section. : DELHI HIGH COURT ;

2008-TIOL-278-HC-P&H-IT.pdf

CIT, Vs M/S PML Industries Ltd ( Dated: May 12, 2008 )

Income Tax - Revenue v Capital expenditure - Assessee claims deduction for foreign travel expenditure - Tribunal allows it on the ground that it was wholly for business - Since there is no capital asset involved in this case, the Tribunal's decision upheld - Revenue's appeal disallowed: P & H HIGH COURT ;

2008-TIOL-277-HC-AHM-IT.pdf

CIT, Vs Mehsana Dist.Co-Op.Milk Produ-Cers' Union Ltd ( Dated : March 10, 2008 )

Income Tax - Assessee is a milk cooperative - Reserve Fund - As per Sec 67 of the Gujarat Cooperative Societies Act, certain percentage of the profit to be earmarked to the reserve fund - Assessee claims deduction u/s 37 by treating it as business expenditure - Since the society can choose to use the reserve fund for the business of the society, it cannot be kept outside the purview of taxation and can also not be treated as business expenditure - Revenue's appeal allowed : GUJARAT HIGH COURT ;

2008-TIOL-276-HC-P&H-IT.pdf

CIT, Vs Amar Nath ( Dated : April 11, 2008 )

Income Tax - Assessee claims exemption u/s 10(36) on profits from shares - AO disallows and levies penalty for deliberately making wrong claim - Tribunal deletes it - Since the assessee claimed the exemption on wrong advice of his counsel who is on record and his affidavit has not been rebutted, penalty is not sustainable - Revenue's appeal dismissed
: P & H HIGH COURT ;

CENTRAL EXCISE SECTION

2008-TIOL-117-SC-CX.pdf + sc cx story.pdf

CCE, Bangalore Vs M/s Karnataka Agro Chemicals (Dated: May 15, 2008 )

Central Excise – Manufacture of micronutrient compounds – classification - It is the "method of manufacture" which has a strong bearing on the question whether the product(s) needs to be classified under CSH 3808.20 or under CSH 3105.00. – Matter remanded.

Limitation: three Circulars have been issued by the Department. Till today, the controversy regarding the classification of "micronutrient fertilizers" was not settled. There is even a conflict of views between Ministry of Finance and Ministry of Agriculture. In the circumstances, question of invoking extended period of limitation does not arise. It is well-settled that mere non-declaration is not sufficient to invoke the larger period but some positive act of suppression is required for invoking larger period of limitation under Section 11A of the Central Excise Act, 1944 : SUPREME COURT ;

2008-TIOL-793-CESTAT-MAD.pdf

M/s Prasad Polypack Company Vs CCE, Chennai (Dated: Dec 27, 2008)

Central Excise – lubricant and coolant repacked from bulk to smaller packs amounts to manufacture from 1.3.1997 – extended period – Show Cause Notice issued after three and half years from the date of visit by the officers - No material is available on record to indicate that the department was preoccupied with further investigations during the intervening period – differential duty demand barred by limitation. :CHENNAI CESTAT;

2008-TIOL-792-CESTAT-MUM.pdf

M/s Ramnond Research Laboratories Pvt Ltd Vs CCE, Mumbai (Dated: February 26, 2008)

Hypo solution and Silver residue coming into existence during processing of Cinematographic film - since both the products are fully exempted from duty the demand cannot survive – Appeal allowed. : MUMBAI CESTAT;

2008-TIOL-790-CESTAT-BANG.pdf

M/s Venlon Polyster Film Ltd, Mysore Vs CCE, Bangalore (Dated: February 28, 2008)

Central Excise – Cenvat Credit – reference to High Court – since the High Court has answered the question in assessee's favour - the appeal is allowed and the Order-In-Appeal is set aside. : BANGALORE CESTAT;

SERVICE TAX SECTION

2008-TIOL-791-CESTAT-MAD.pdf

M/s Sakthi Auto Components Ltd Vs CCE, Salem (Dated: February 26, 2008)

Central Excise – stay / dispensation of pre-deposit - Cenvat Credit – credit of service tax paid on outward transportation – full waiver of pre-deposit granted. :CHENNAI CESTAT;

2008-TIOL-788-CESTAT-KOL.pdf

M/s B Ghose & Pvt Ltd Vs CST, Kolkata (Dated : March 26, 2008)

ST - Port service - Assessee is engaged in stevedoring services - Revenue says the assessee is covered under port service - Pre-deposit is waived off, following decision in Velji P & Sons case ( 2007-TIOL-1452-CESTAT-AHM ) :KOLKATA CESTAT;

2008-TIOL-787-CESTAT-DEL.pdf

M/s Larsen & Tourbo Limited Vs CC & CE, Bhopal (Dated : April 10, 2008)

Service Tax – stay / dispensation of pre-deposit – Maintenance and repair service and Erection and Commissioning, Installation Services – The Commissioner while confirming the demand, had extensively dealt with the case laws relied on by the appellant and distinguished the same – Prima facie merits in the findings – pre-deposit ordered. :CHENNAI CESTAT;

CUSTOMS SECTION

2008-TIOL-275-HC-MUM-CUS.pdf

CC, Mumbai Vs Jubilant Organosys Ltd, Mumbai ( Dated: February 29, 2008 )

Customs – Amendment to Bill of entry under Section 149 of the Customs Act to change the mode of payment of CVD from debiting the DEBP to payment in cash – no infirmity in the order of the Tribunal in allowing the appeal nor will the question of law as framed arise.

Section 17 vis-à-vis Section 149 - Will Section 17 control the exercise of discretion under Section 149 of the Customs Act? In our opinion Section 149 has to be construed independently of Section 17 and is only subject to the proviso to Section 149. In other words any document presented to the Customs House can be amended in the manner prescribed. The exceptions are in the proviso but even in such cases the documents referred to the proviso can be amended if there be documentary evidence which was in existence at the time the goods were cleared, deposited or exported.(Para 6) : BOMBAY HIGH COURT ;

2008-TIOL-789-CESTAT-MUM.pdf

M/s Faber Heatkraft Industries Ltd Vs CC, (I) Nhava Sheva (Dated: January 25, 2008)

Refund allowed to appellant but Commissioner(A) directing that the amount be credited to the Consumer Welfare Fund – Stay from recovery ordered till disposal of appeal. : MUMBAI CESTAT;

ddt may 22.pdf

Duty paid by EOUs for DTA clearance – amount of credit eligible. Board forgets to amend Cenvat Credit Rules while amending Notification No. 23/2003 – C.E;

cobwebmay22.pdf

Arrest of Income Tax Tribunal Member: CBI deserves pat for uncorking bottle for anti-corruption genie!

2008-TIOL-116-SC-CT.pdf + charcoal story.pdf

M/s Ponds India Ltd Df(Merged With H L Ltd) Vs CTT, Lucknow (Dated: May 16, 2008)

Classification - only because "charcoal" contains the word `coal', the same would not mean to be a species of coal. - If an entry had been interpreted consistently in a particular manner for several assessment years, ordinarily it would not be permissible for the Revenue to depart therefrom , unless there is any material change.

"If there is no meaning attributed to the expressions used in the particular enacted statute then the items in the customs entries should be judged and analysed on the basis of how these expressions are used in the trade or industry or in the market or, in other words, how these are dealt with by the people who deal in them, provided that there is a market for these types of goods. This principle is well known as classification on the basis of trade parlance. This is an accepted form of construction. It is a well known principle that if the definition of a particular expression is not given, it must be understood in its popular or common sense viz. in the sense how that expression is used every day by those who use or deal with those goods”.

The meaning of "drug" is very wide and same has been held to be so in a large number of cases. : SUPREME COURT ;

mbuzz632.pdf

Cabinet gives nod to relief package for Gujarat riot victims ;

mbuzz631.pdf

CCEA approves implementation of MMA Scheme ;

mbuzz630.pdf

CCEA gives nod for land acquisition for future N-plants ;

mbuzz629.pdf

Govt sets up Council for Promotion of Overseas Employment ;