Karnataka polls: BJP heading for big victory; may fall short of majority;

PM undergoes cataract operation in right eye this morning; to resume work from tomorrow;

Criminal trial for Delhi HC former Judge Shamit Mukherjee to begin from tomorrow;

Bharti no longer in race for South African telecom giant MTN;

Pak frees 99 Indian prisoners; handed over to India at Wagha border;

Export duty on steel from DTA to SEZ: PMO all set to toss the coin coming week ;

Telecom Minister says foreign players can also bid for 3G ;

2008-TIOL-198-ITAT-DEL.pdf

Class India Ltd Vs ACIT (Dated: February 22, 2008 )

Income Tax - deduction u/s 80 IB   claimed on account of sale of harvester combines and spare parts - AO holds that sale of spare parts represents trading activity - excludes profits attributable to trading of spare parts - CIT (A) upholds the action of the AO on the ground that that the appellant is buying components from outside vendors, its own plant and machinery is clearly not being put to use for the manufacture of these items – it is incorrect to hold that the sale of spares/components are merely trading in goods and not the goods manufactured by the assessee. Though the assessee may be outsourcing some of the spare parts by getting them manufactured elsewhere, after receiving the same the assessee is applying further process so as to render them marketable as per the required standard - the assessee cannot be called a trader simpliciter so as to deny deduction in respect of sale of only spare parts. The manufacture of spare parts being undertaken along with the manufacture of machine product, namely, ‘Harvester Combine' will entitle the assessee to claim deduction under section 80-IB. : DELHI ITAT;

2008-TIOL-197-ITAT-DEL.pdf

Bisquare Technologies Pvt Ltd Vs ITO (Dated: January 31, 2008 )

Income Tax - Assessee pays commission by account payee cheque for procuring sales orders - However, precise nature of services rendered for procuring the order along with relevant correspondence not furnished by the assessee - AO after considering the reply sent through letter by commission agent on notice served u/s 133(6)  observs that no services were rendered and disallows the commission - The CIT (A)  confirms  the disallowance - Matter remanded back to AO for deciding the issue afresh and the assessee is also directed to state precisely the services rendered and to produce relevant correspondence with the recipient.: DELHI ITAT;

2008-TIOL-196-ITAT-HYD.pdf + vdis story.pdf

Hyderabad Security & Offset Printers Ltd Vs DCIT, Hyderabad (Dated: January 29, 2008 )

Perhaps, according to the revenue, to err may be human, but to rectify a genuine error is inhuman – Set off allowed against income declared under VDIS - if the set-off is not allowed, the assessee would end up paying tax twice on the same income. This would cause injustice to the assessee monetarily. It would also cause injustice to the revenue for collecting more tax than what is due in terms of being unjust to its subjects. “I see no reason why I should be consciously wrong today because I was unconsciously wrong yesterday”. : HYDERABAD ITAT;

rlt86-Part -4.pdf + rlt86-Part -3.pdf

RLT Case Laws Headnotes;

CENTRAL EXCISE SECTION

2008-TIOL-808-CESTAT-DEL.pdf

M/s Kobe Suspension Co Pvt Ltd Co Vs CCE, Delhi-IV, Faridabad (Dated :April 11, 2008)

Presumption that goods were manufactured & cleared clandestinely cannot form the basis for demand of duty unless there are other evidences.

No justification for a separate penalty on the proprietor in addition to penalty on the firm. : DELHI CESTAT;

2008-TIOL-807-CESTAT-BANG.pdf

M/s KAP Steel Limited Vs CCE, Bangalore (Dated : Febuary 18, 2008)

Central Excise – annual capacity determination under Section 3A of the Central Excise Act – no justification in including the waste and scrap while determining the annual capacity – appeal allowed. : BANGALORE CESTAT;

2008-TIOL-803-CESTAT-MAD.pdf

M/s Prasad Polypack Company Vs CCE, Chennai-IV (Dated : December 27, 2007)

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. : DELHI CESTAT;

2008-TIOL-802-CESTAT-MAD.pdf

Hydraulics Pvt Ltd Vs CCE, Chennai (Dated : Febuary 29, 2008)

Central Excise - valuation - goods cleared to related unit for further manufacture - value should be determined as per rule 8 of the valuation rules 2000 - demand for the period prior to 1.7.2000 is time barred - matter remanded in respect of clearances after 1.7.2000 to follow the guidelines of CAS 4 and other issues raised by the appellants. : CHENNAI CESTAT;

2008-TIOL-801-CESTAT-MAD.pdf

M/s Tansi tool and engineering works Vs CCE, madurai (Dated : Febuary 26, 2008)

Central Excise – stay / dispensation of pre-deposit – clearance of cut bits of MS rods, channels etc without payment of duty – no prima facie case for waiver of pre-deposit. Pre-deposit ordered. : CHENNAI CESTAT;

SERVICE TAX SECTION

2008-TIOL-809-CESTAT-BANG.pdf

M/s Synergy Audio Visual Workshop Pvt Limited Vs CST, Bangalore (Dated: January 31, 2008)

Service tax – Advertising agency service – no service tax on the amounts received by the appellant as sub-contractor from the main advertising agency who had already discharged service tax. : BANGALORE CESTAT;

2008-TIOL-805-CESTAT-MUM.pdf + cola story.pdf

M/s Coca Cola India Pvt Ltd Vs CCE, Pune - III (Dated : April 10, 2008)

Cenvat credit of Service Tax paid on Advertisement services - Coca Cola directed to freeze their Cenvat account for an amount of Rs.4.88 crores by Tribunal.

Against Earlier order A/291/2007/WZB/C-I(EB) dated 16.04.2007 [2007-TIOL-723-CESTAT-MUM] of Tribunal denying the Cenvat Credit availed on S.Tax paid on Advertisement Services, Bombay High Court had in C.Ex. Appeal no. 118/2007 accepted the prayers of the appellant & granted interim relief subject to the condition that the assessee does not utilize the Cenvat Credit of Rs.75,15,733/- lying in the account – in the light of the said HC order, waiver of pre-deposit of credit of Rs.4,88,44,763/- & penalty of equivalent amount granted subject to the condition that this amount remains frozen (un-utilized) in the Cenvat account : MUMBAI CESTAT;

CUSTOMS SECTION

2008-TIOL-806-CESTAT-MAD.pdf

M/s ITC Ltd Vs CC, Chennai (Dated : March 13, 2008)

Customs – import under DEEC – licences procured were for ‘ paper board other than white paperboard / ivory board whereas the goods imported were found to be coated duplex board – following the ratio of the Tribunal order in an earlier case of the same appellant, the appeal is allowed : CHENNAI CESTAT;

2008-TIOL-804-CESTAT-DEL.pdf

M/S A G Incorporation & Others Vs CC, New Delhi (Dated : April 10, 2007)

Customs - Valuation - Import of PCB for DTH services - DRI alleges undervaluation on the basis of declaration filed before the Hong Kong Customs and the importer admitting the same - Value enhanced on the basis of contemporaneous imports - Since the assessee have already partly paid some duty, stay granted and waiver from fruther pre-deposit also allowed : DELHI CESTAT;

2008-TIOL-119-SC-MISC.pdf + ongc story.pdf

Oil Natural Gas Corporation Ltd Vs Atwood Oceanic International, S.A. (Dated: May 13, 2008 )

ONGCs contractor becomes liable to pay Income Tax due to extension of the provisions of the IT Act to the Continental Shelf and Exclusive Economic Zone of India Contract provided for arbitration in case of dispute - The scope for interference by Apex court in this kind of cases, is extremely limited : SUPREME COURT ;

cic story.pdf + cic_case.pdf

Informants want 'information' under RTI Act on fate of their ‘information' but CIC says that's enough!

global steel story.pdf

OECD Steel Committee says market remains strong, despite risks to global economy;

mbuzz636.pdf

Paswan says Indian steel production to reach 290 mn-mark by 2020;