UP Minister Jamuna Nishad removed after his violent supporters kill police constable; Mayawati announces relief for victim's family;

Chennai Airport Customs seizes Ketamine worth Rs 60 lakhs;

Pawar says export ban on food items to be lifted once situation normalises;

Explosion case: Govt books IPCL officials for negligence;

FM visit to Stanford Univ: MoF clarifies FM cancelled trip 10 days back and not because of austerity measures; Deora says ditto same for his visit to Japan;

cbdt story.pdf

'Jumboree' of fiscal issues: FM to address jumboree of CCITs on Monday;

cic story.pdf

Husband’s continued suspension and denial of promotion – wife makes RTI application to CBEC and seeks reasons for the same – CIC says that’s not a request for 'information' under RTI Act;

mbuzz683.pdf

OECD welcomes contribution of Sovereign Wealth Funds;

mbuzz682.pdf

V-P releases book 'Muslims of India Since Partition'; says 1947 events not yet covered in totality;

mbuzz681.pdf

Air Force aircraft 'Tejas' undergoes hot weather flight trail at Nagpur;

mbuzz680.pdf

ODF v OOXML: FISME extends support to Open Document Format;

2008-TIOL-230-ITAT-MUM.pdf + it story.pdf

Gujarat Ambuja Cements Ltd vs DCIT, Mumbai (Dated: February 27, 2008)

Income Tax – re-assessment - there is no case for the revenue that there was any income escaping assessment due to failure of the assessee to disclose fully and truly all the material facts. There is also no case for the revenue that the assessment has been reopened after the completion of four years because some new materials have come to the possession of the revenue. It is clear that there is neither failure on the part of the assessee to disclose any material facts nor other failure contemplated under the proviso. All the issues cropped up again in the reassessment were already there in the original assessment and were appealed.

Therefore, the reopening was done without jurisdiction, because the issue was pending before the higher forums. Secondly, there was no new material that came to the possession of the revenue to issue notice and reopen under section 147.: MUMBAI ITAT;

2008-TIOL-229-ITAT-DEL.pdf

ACIT, New Delhi Vs M/s Samtel India Ltd ( Dated : January 31, 2008 )

Income Tax - Assessee claims depreciation on fluctuation of foreign exchange - Revenue disallows but CIT(A) deletes additions - Held, before amendment to Sec 43A by Finance Act, 2002, the increase in the liability on account of fluctuation in rate of foreign exchange representing capital liability had to be worked out on the basis of the rate of foreign exchange on the last date of the previous year. Going by a large number of judicial decisions, the assessee is permitted to rework the actual cost and the depreciation. Therefore, in capital account cases, where the cost of asset has been either paid fully or in part prior to fluctuation in the rate of foreign exchange, the cost of the asset would correspondingly be permitted to be re-worked for the purposes of re-payment, depreciation or investment allowance, as the case may be, with reference to the rate prevailing on the last date of the financial year in which the fluctuation occurs. Revenue Appeal dismissed.

Appeal against CIT(A)'s deletion where it has not considered product development expenditure as capital expenditure - Held, no doubt the assessee will continue to manufacture such monitors over a number of years, but, that is not the decisive test, the reason being that it was incurred for retaining efficiency in the revenue field, as pointed out in the case of Glaxo Smithkline Consumer Healthcare Ltd. Respectfully following that order, Revenue Appeal dismissed.

Appeal against  allowance of an expenditure in respect of advertisement and brand promotion - such expenditures are in the revenue field even though the benefit may continue for some time. The treatment of an expenditure in the books is not conclusive of the matter : DELHI ITAT;

CENTRAL EXCISE SECTION

2008-TIOL-895-CESTAT-BANG.pdf

CCE, Mysore Vs M/s KVK Control Panels (Dated: January 31, 2008)

Central Excise – manufacture – repairs of old transformers can not be held to bring into existence of new goods – no infirmity in the order of the Commissioner (Appeals) – revenue appeal has no merit: BANGALORE CESTAT;

2008-TIOL-894-CESTAT-MAD.pdf

CCE, Salem Vs K G Denim Ltd (Dated: March 18, 2008)

Central Excise – deemed credit on cotton yarn used in the manufacture of denim fabric cleared to 100% EOU without payment of duty - the credit was allowed by the Bench in the respondent's own case earlier - mere pendency of the referred issue before any High Court would not to act as stay of operation of the final order passed by the Tribunal – no merit in revenue's appeal: CHENNAI CESTAT;

2008-TIOL-891-CESTAT-AHM.pdf + pesticide story.pdf

M/s New Chemi Industries Ltd Vs CCE, Daman ( Dated: April 29, 2008 )

:Duty paid pesticides, since damaged, brought back to factory and repacked, relabeled – appellant follows rule 173H procedure – even if activity is held as manufacture, entire exercise revenue neutral if rule 173L procedure followed: Tribunal : AHMEDABAD CESTAT;

2008-TIOL-890-CESTAT-MAD.pdf

M/s NEPC India Ltd Vs CCE, Chennai ( Dated: March 11, 2008 )

Central Excise – exemption to waste and scrap under Notification 171/88 CE withdrawn from 1.3.1994 which was restored only on 16.3.1995 – duty demand for the intervening period - the cardinal principle that an exemption Notification should be strictly construed will rule the roost – However, on limitation the appeal is allowed as extended period can not be invoked.: CHENNAI CESTAT;

2008-TIOL-889-CESTAT-BANG.pdf

M/s Sandur Micro Circuit Ltd Vs CE & CC, Mangalore ( Dated: Feburary 8, 2008 )

100% EOUs – demand of duty foregone on the goods imported / indigenously procured due to non-fulfillment of export obligation – Since the EOU had made some exports, the duty foregone has to be re-quantified by taking into account the partial fulfillment of export obligation – No interest is payable in terms of the Notifications at the relevant time – there is no warrant for imposing penalty – matter remanded. : BANGALORE CESTAT;

SERVICE TAX SECTION

2008-TIOL-892-CESTAT-MUM.pdf

M/s Shewalakar Hotels Vs CCE, Nagpur (Dated: April 28, 2008)

ST - business auxiliary service - tax demanded - Assessee claims the sum received as rent - Prima facie no requirement of pre-deposit as it is a franchisee agreement: MUMBAI CESTAT;

2008-TIOL-888-CESTAT-DEL.pdf

M/s PNC Construction Co Ltd Vs CCE, Chandigarh ( Dated: Feburary 27, 2008 )

ST - Business Auxiliary Service - Assessee collects toll tax on behalf of NHAI - Tax demanded and penalty imposed - Since the assessee is providing a service to the NHAI, it is not a fit case for waiver of pre-deposit : DELHI CESTAT;

CUSTOMS SECTION

NOTIFICATION

dgft08not015.pdf

DGFT amends import policy for betel nuts;

CASE LAWS

2008-TIOL-893-CESTAT-DEL.pdf

Munjal Showa Ltd Vs CCE, Faridabad (Dated: March 18, 2008)

Customs – import against forged DEPB scrips – the appellant company paid the entire duty involved on communication of result of verification of the scrips – the findings imposing penalty were arrived without allowing the cross examination of the agent from whom the scrips were purchased which amounts to gross violation of principles of natural justice – matter remanded to allow cross exanimation

Confiscation - the goods have already been cleared and disposed of - the goods have not been seized during investigation and were not available for confiscation at the time of adjudication - as the goods have been cleared using forged licences, they are, no doubt, liable for confiscation - when they are not available for confiscation, they cannot be actually confiscated: DELHI CESTAT;