Area Based exemption - Ceiling in rate - Sealing of fate? (See 'DDT')

Dasmunsi says IIMC to be upgraded as International Media University;

Ajit Kumar Sinha appointed as Addl Judge of Jharkhand HC;

Industrial growth rate down to 7%; Slowdown in manufacturing pulls it down;

Union Cabinet gives nod for DTAA with Syria + CCEA sanctions Rs 678 Cr for preparations for Commonwealth Games;

RBI hikes repo rate by 25 basis points; home loans to be more expensive;

Ranbaxy goes to Japanese pharma major Daiichi ;

ddt 12 june.pdf

Austerity By Example! Chhota mantri surrenders car;

cobweb.pdf

Liechtenstein Episode: India needs to pursue fiscal diplomacy to obtain black money database;

rbi07cir052.pdf

Deferred Payment Protocols dated April 30, 1981 and December 23, 1985 between Government of India and erstwhile USSR;

mbuzz698.pdf

CCEA okays Rs 678 Cr funds for Commonwealth Games ;

mbuzz697.pdf

Rs 234 Cr for Devt of Water Resources Info System ;

mbuzz696.pdf

Cabinet sanctions sops for Bhagalpur riot victims ;

mbuzz695.pdf

Nod for DTAA with Syria ;

cbdtorder076_2008.pdf

CBDT transfers 42 Addl CITs / JCITs; retains many on compassionate & Spouse grounds;

CASE LAWS

2008-TIOL-315-HC-AHM-IT.pdf

Amichand Investment (P) Ltd Vs DCIT ( Dated : April 22, 2008)

Book Profit under S.115 not to be increased by TDS : The legislature has taken a conscious decision to bring to tax a notional income by deeming the same to be an income chargeable to tax at the prescribed rate under s. 115J of the Act. The opening portion of s. 115J (1) of the Act opens with a non obstante clause which provides for a self contained code without having regard to anything contained in any other provisions of the IT Act. Once this is the position, it is not possible to accept the stand of the Revenue that a particular income or part thereof escapes assessment in the process. The object of incorporating s. 115J of the Act in the statute was to ensure that companies, which otherwise do not pay any tax by availing of statutory deductions and reliefs under the Act, are now required to pay tax at the prescribed percentage on a deemed income. In these circumstances, Revenue cannot be permitted, on one hand to invoke provisions of s. 115J of the Act, and yet on the other hand resort to other provisions of the Act simultaneously. : GUJARAT HIGH COURT;

2008-TIOL-314-HC-AHM-IT.pdf

M/s Echke Ltd Vs CIT ( Dated : March 12, 2008)

The position in law is well settled. That an assessee has to establish that the change in the method of accounting is bonafide and has been consistently followed. This fact can be established only by considering the conduct for the period subsequent to the change. In the present case, despite the assessee having in terms pleaded that the change has been consistently followed after adopting the cash method of accounting, as already noticed hereinbefore, none of the authorities or the Tribunal have dealt with, much less brought any contrary evidence on record to disprove the said statement. Therefore also the finding of the Tribunal that the change was not bonafide does not merit acceptance.

The assessee, who put forth its case in no uncertain terms cannot be put to rack because the Revenue and the Tribunal failed in their respective duties: The learned Senior Standing Counsel also raised additional contention at this stage that if the Tribunal has not dealt with the pleading of the assessee that the changed method of accounting had been consistently followed in subsequent years the matter be restored to the file of the Tribunal for recording a finding because it would not be open to the Court to assume that the averment made by the assessee is correct. This submission requires to be stated only to be rejected. The Tribunal has in terms noted the submission made by the representative of the assessee in paragraph No. 4 of the impugned order. If the Tribunal has thereafter failed in its duty neither the Revenue can be given second innings nor can the Tribunal be given a chance to buttress its order. The assessee, who put forth its case in no uncertain terms cannot be put to rack because the Revenue and the Tribunal failed in their respective duties. A pleading which has gone unchallenged is deemed to have been accepted and stands proved , that is the basic law of pleadings, and in tax jurisprudence there is no warrant to depart from this settled legal position. : GUJARAT HIGH COURT;

2008-TIOL-237-ITAT-AHM-SB.pdf + spl bench story.pdf

Shri Kamrej Vibhag Sahakari Khand Udyog Mandli Ltd Vs ITO, Surat ( Dated : May 30, 2008)

Payments made by Co-operative sugar factories to its member farmers – no TDS : Section 194C applies when the payments are made for carrying out any work including supply of labour for carrying out any such work in pursuance of a contract between the contractor and the persons stated therein. By sub-section (1) of section 194C a liability to deduct tax at source is cast upon the person responsible for paying any such sum. Here, the responsibility of paying the sum for harvesting, cutting and transporting is of the cane growers. The payments are, no doubt, made to the labour hired for this purpose but these payments were made by the Samiti or by the assessee as alleged by the revenue, not on its own account; they were for and on behalf of the cane growers.: AHMEDABAD ITAT; (SPECIAL BENCH)

2008-TIOL-236-ITAT-DEL.pdf

ACIT, New Delhi Vs Shri Rajeev Jain ( Dated : April 8, 2008)

Notional Interest – Assessee advanced interest free loans to sister concern, although interest income was offered to tax in earlier assessment years no income was offered for these years - Assessee before the AO took a categorical stand that loans given were interest free and also produced its copy of accounts in the books of the debtor to show that no interest was credited by the debtor in assessee's accounts – Held, notional interest not chargeable to tax, even if there was an agreement to charge interest on loan between the parties last year, the same stood rescinded in the years under consideration as neither the assessee charged any interest nor the debtor paid or credited any interest on the loan in question. : DELHI ITAT;

CENTRAL EXCISE SECTION

NOTIFICATION

exnt08_28.pdf

CBEC vests powers under Central Excise Act into DG (Audit) officials;

CASE LAWS

2008-TIOL-313-HC-RAJ-CX.pdf

M/s Rivona Industries Ltd Vs CC, CE & ST Appellate Tribunal & ORS ( Dated : April 23, 2008 )

Central Excise - Pre-deposit - Tribunal orders for pre-deposit of part demand - Assessee fails to comply with the order - Appeal dismissed - Financial hardship pleaded - Tribunal directed to decide the case on merits provided the pre-deposit condition is fulfilled - Assessee's appeal partly allowed : RAJASTHAN HIGH COURT;

2008-TIOL-919-CESTAT-MUM.pdf + Delta story.pdf

Delta World Systems Vs CCE, Pune-III ( Dated: March 7, 2008 )

100% EOU – demand of duty on the goods imported duty free and alleged to be used for other purposes – In view of the extension of export obligation period by the STPI, the demand of duty and confiscation of the goods is premature. :MUMBAI CESTAT;

2008-TIOL-918-CESTAT-MUM.pdf

Dr Writer's Food Products Pvt Ltd Vs CCE, Pune-II ( Dated: April 4, 2008 )

Rule 6 of Cenvat Credit Rules – whether reversal of credit is sufficient when no separate records are maintained of inputs used for dutiable & exempted goods – since issue referred to Larger Bench in case of Nicholas Piramal [2008-TIOL-614-CESTAT-MUM] & the assessee has also reversed a sum of Rs.90.11 lakhs, pre-deposit waived & stay ordered. :MUMBAI CESTAT;

2008-TIOL-917-CESTAT-MUM.pdf

M/s JSW Steel Limited Vs CCE, Thane-I ( Dated: April 4, 2008 )

Job work under notification 214/86-CE – whether Rule 6 of CCR, 2004 applicable – Since LB decision of Tribunal in Sterlite [ 2005-TIOL-305-CESTAT-MUM-LB ] not stayed by Bombay HC in Revenue appeal, prima facie case for waiver of pre-deposit of duty and penalty.

Appellant receiving inputs under rule 4(5)(a) of CCR, 2004 for doing job work & clearing goods to supplier under exemption notfn. 214/86-CE who after processing clears the goods on payment of duty – whether 8%/10% payable – Issue prima facie stands settled in appellants favour by LB decision of Tribunal in Sterlite Industries [ 2005-TIOL-305-CESTAT-MUM-LB ] – Revenue contending that they have filed and appeal before the Bombay High Court – in the absence of any stay of the order, prima facie case for waiver of pre-deposit of duty and penalty. :MUMBAI CESTAT;

SERVICE TAX SECTION

2008-TIOL-914-CESTAT-DEL.pdf

M/s Vijay Industries Vs CCE, Meerut-I (Dated: March 28, 2008)

ST - Cenvat Credit of service tax paid on outward freight claimed - Revenue disallows on the ground that the place of removal is factory gate - Assessee pleads that the freight is included in the assessable value and the goods being cleared on FOR basis - Case remanded to verify whether excise duty was paid on FOR basis : DELHI CESTAT;

CUSTOMS SECTION

NOTIFICATION

ctariff08_076.pdf

Anti-dumping duty on potassium carbonate extended till next June;

CASE LAWS

2008-TIOL-316-HC-DEL-CUS.pdf + prosecution story.pdf

Attarpal Singh Vs Directorate of Revenue Intelligence ( Dated: April 29, 2008 )

CESTAT exonerating the appellant on merits – No prosecution As far as the present case is concerned, the finding of the CEGAT that the petitioner deserves to be exonerated has been arrived at after discussing the evidence brought on record by the Department. Therefore the decision in Mohd . Ali Jabiullaha is distinguishable in its application to the facts of the present case. The present case is covered by the judgment in Sunil Gulati which followed the judgments of the Supreme Court. The order of the CEGAT exonerating the petitioner on merits having attained finality, there is no justification for continuation of the criminal proceedings against him on the same facts and evidence. : DELHI HIGH COURT;

2008-TIOL-916-CESTAT-BANG.pdf

CC, Bangalore Vs M/s Maharashtra Hybrid Seeds Company Ltd ( Dated: Feburary 7, 2008 )

100% EOUs – demand of duty for non-fulfillment of export obligation – depreciation is to be allowed even in cases of partial fulfillment of export obligation – contention of the revenue that depreciation can be allowed only in cases of complete fulfillment of export obligation has no merit. : BANGALORE CESTAT;

2008-TIOL-915-CESTAT-MUM.pdf

M/s Britannia Industries Ltd Vs CC, Mumbai (Dated: January 11, 2008)

Customs – Stay/Dispensation of pre-deposit – import of crude palm oil (edible grade) – duty demanded by denying the benefit of exemption under Notification 21/2002 Cus based on the test report of the samples – the appellant's contention that the amendment to the Notification 21/2002 decreasing the lower limit of Carotene value from 500 PPM to 250 PPM has retrospective effect is not acceptable – pre-deposit ordered as no prima facie case is made out . :MUMBAI CESTAT;