Don't visit North Block for transfers – Govt tells IRS (Income Tax) officers (See 'DDT');

Thinking aloud: Petro Ministry for deregulating petrol prices;

RBI Governor says current fiscal statistics does not reveal underlying stress; RBI also allows UCBs to install on-site ATMs without permission;

Saudi Arabia relaxes visa rules for foreign businessmen;

2008-TIOL-287-HC-AHM-IT.pdf + jurisdiction story.pdf

Income Tax - AO makes additions on six grounds plus interest u/s 139 and 217 - CIT(A) sets aside the order on the ground that the assessee was not heard by the AO and the principles of natural justice were violated - AO initiates fresh assessment and finds a new source of income and makes addition by disallowing excise duty collected but not paid u/s 43B - CIT(A) and Tribunal hold that since the CIT(A) had totally set aside the previous order, the AO had jurisdiction to explore new items of income and conduct investigation in that regard and make additions - Tribunal order set aside on the ground that the CIT(A) had originally set aside the order only against the six grounds of additions and the interest and had he not done it, the AO would not have expanded the scope of his jurisdiction and assessment and disallowed the excise duty collected - Assessee's appeal allowed : GUJARAT HIGH COURT;

2008-TIOL-286-HC-DEL-IT.pdf

CIT, Delhi Vs M/s Harig Crank Shafts Ltd (Dated: April 23, 2008)

Income Tax - Assessee incurs expenditure on product development - instead of claiming entire expenditure in one year, assessee opts for deduction on deferred revenue basis - AO allows 10% of expenses in that FY - AO in subsequent years treat the claim u/s 35D and disallows the expenditure - Tribunal allows it - Since the expenditure is found to be genuine and the same being not claimed u/s 35 D, the Tribunal decision is upheld - Revenue's appeal dismissed : DELHI HIGH COURT;

2008-TIOL-285-HC-RAJ-IT.pdf

CIT, Udaipur Vs Shree Rajasthan Syntex Ltd (Dated: May 6, 2008)

Income Tax - Assessee leases out capital assets on rental - Lessor is Udaipur-based and the lessee is Mumbai-based - Lessor claims depreciation u/s 32 - Lessee pays rental and claims the same as revenue expenditure - But, the AO allows depreciation in place of treating the same as revenue expenditure - Having come to know the same the AO of lessor issues notice u/s 148 - CIT(A) upholds the additions made by the AO - Tribunal deletes it - Held, it is a fit case for applicaiton of ratio of Apex Court decision in Shaan Finance ( 2002-TIOL-55-SC-IT ) where a distinction between a finance lease and an operation lease has been made and this case falls in the latter category where the benefits have to be allowed to the assessee - Revenue's appeal dismissed : RAJASTHAN HIGH COURT ;

2008-TIOL-284-HC-P-H-IT.pdf

CIT Vs Tek Ram (HUF) (Dated: February 4, 2008)

Income Tax - enhanced compensation and interest received by the assessee - AO finds the assessee has not declared the same for tax - Penalty u/s 271(1)(c) imposed - Since the issue is in dispute, there are two possible views - no penalty can be levied - Revenue's appeal dismissed : P & H HIGH COURT ;

CENTRAL EXCISE SECTION

2008-TIOL-816-CESTAT-BANG.pdf + electrode story.pdf

CCE, Belgaum vs M/s Vasavadatta Cement (Dated: May 2, 2008)

Central Excise – Cenvat Credit – Welding electrodes used for repair; eligible: Welding Electrodes used in repair and maintenance of machineries in the cement factory, - the cement factory consisting of complex machineries cannot run smoothly if the various defects are not rectified immediately. There are large number of pipes and tubes through which the various ingredients pass through. If some parts of the pipes or even machinery are broken, welding is very necessary. How can anybody reason that such welding is not in relation to the manufacture of final products?”

Judicial Discipline: It was clearly held that Supreme Court's decision is binding on the Tribunal and is to be preferred to the contrary decision of Tribunal's Larger Bench decision. : BANGALORE CESTAT;

2008-TIOL-815-CESTAT-DEL.pdf

CCE, Chandigarh Vs M/s Ralson Carbon Black Ltd (Dated: March 10, 2008)

Central Excise – default in payment of duty under Rule 8 of the Central Excise Rules – monthly payment facility withdrawn by the Assistant Commissioner – the assessee is required to pay duty only from PLA during the default period, but not from Cenvat account – The defaulted amount also can not be paid from the Cenvat Credit earned subsequently as per Rule 3 (4) of the Cenvat Credit Rules – matter remanded for determining the penalty. : DELHI CESTAT;

2008-TIOL-814-CESTAT-DEL.pdf

M/s Petro Carbon Industries Vs CCE, Allahabad (Dated: February 18, 2008)

No material placed by the Revenue of clandestine removal of the inputs - appellant explained that the loss is due to natural causes, conversion loss and processing loss which is not disputed – demand made in 1998 on the basis of information given by appellant in August 1995 – no suppression – Demand not sustainable on merits as well as on limitation. : DELHI CESTAT;

2008-TIOL-813-CESTAT-MAD.pdf

Concrete Products & Construction Company Vs CCE, Chennai (Dated: March 27, 2008)

Central Excise – valuation – duty on differential amount received on account of price escalation – the appellant contend that the differential duty was already paid – matter remanded to original authority after complete verification of the records. : CHENNAI CESTAT;

SERVICE TAX SECTION

M/s Parason Machinery (India) Pvt Ltd vs CCE, Aurangabad (Dated: April 23, 2008)

Cenvat Credit – Prima facie, Service tax credit allowable on Xerox Machine maintenance services, Air Travel Agent Service, Tourist taxi service & Photography services

Tribunal decisions in Victor Gaskets, (2008-TIOL-409-CESTAT-Mum) & Force Motors, (2008-TIOL-539-CESTAT-Mum) relied upon. : MUMBAI CESTAT;

2008-TIOL-810-CESTAT-BANG.pdf

M/s Style Cell Vs CCE(A), Mangalore (Dated: January 25, 2008)

Service tax – clearing and forwarding agent service – the appellants have sold the goods on behalf of the principal as an agent and they were not handling the goods to come within the category of clearing and forwarding agent service – impugned order is not legal and proper and is therefore set aside. : BANGALORE CESTAT;

CUSTOMS SECTION

2008-TIOL-288-HC-MAD-NDPS.pdf

Paramananthan Yoganatham Vs IO, NCB (Dated: March 17, 2008)

petitioner could not demonstrate before this court that there is no material available on record to find him guilty - the Trial Court has meticulously analysed the materials on record and has returned a finding that the petitioner committed an offence punishable under sections 29, 8(c) read with 21(c) and 28 of the Narcotic Drugs and Psychotropic Substances Act, 1985 - the reason that the petitioner has been in custody for the past five years and ten months cannot be a ground for suspending the sentence and granting bail. : MADRAS HIGH COURT;

2008-TIOL-812-CESTAT-AHM.pdf

M/s Indian Oil Corporation Ltd Vs CC, Ahmedabad (Dated: April 4, 2008)

Customs – interest – no interest need be paid on refund of penalty and redemption fine deposited during the pendency of the appeal – the provisions of Section 27A of the Customs Act are applicable only for duty but not for redemption fine and penalty. : AHMEDABAD CESTAT;

ddt 26 may.pdf + officermemorandum.pdf

EOUs can make monthly payment of duty – officers to scrutinise the self assessment;

tiol spl guest.pdf

Inflation: Is FM capable of controlling it?

guest column.pdf

Shed the lethargy: New Section 72 of Finance Act, 1994 is deadly!

The Insider.pdf

CBEC foreign posting: A battle between 'selected' merit and 'dejected' merit!

RBI Notification for ATMs.pdf

Annual Policy Statement for the year 2008-09 Installation of Automatic Teller Machines (ATMs) -UCBs.

RBI Notifi for Standard Assets.pdf

Provisioning Requirement for Standard Assets- UCBs

mbuzz638.pdf

Union Govt to honour participants of Arzi movement of Junagarh today;

mbuzz637.pdf

CBN destroys 151 hectare illicit opium poppy cultivation in Uttarkashi;