Chennai DRI seizes heroin worth Rs 62 lakhs, concealed in Lord Ganesha Idol and heading for USA;

N-deal: PM ready to face Parliament provided his Govt is allowed to negotiate with IAEA and NSG;

Chennai Customs (Seaport-Import) seizes Synthetic American Diamonds and other consumer goods, concealed in biscuit tins, worth Rs 1.34 Crore;

India-ASEAN Free Trade Agreement: India negotiating with Indonesia on palm oil;

PDP withdraws support to Ghulam Nabi Govt over Amarnath land allotment issue; Efforts on to save Govt;

DoP&T declines to disclose file notings: CIC says it is violative of RTI Act;

ddt 30 june.pdf

Export Duty on Steel Products – applicable for clearances to SEZ – Confusion continues;

tiol top.pdf

Income Tax Act: Kaldar to chaos!

guest column.pdf

Overdose of Drawback benefits to textile industry bleeding exchequer!

corruption story.pdf

India Corruption Study 2007: Competitive politics hurting schemes meant for poor;

mbuzz756.pdf

Knowledge Management: CBDT takes new strategic initiative;

mbuzz755.pdf

Poor agri growth rate: RBI Study attributes it to lack of public investment and no expansion in irrigation;

mbuzz754.pdf

RBI eases overseas investment norms for Trusts & Societies ;

mbuzz753.pdf

WIPO Panel agrees on future works in patents domain ;

INSTRUCTION + CBDT PRESS RELEASE

instruct0807.pdf;

India-Danish Double Taxation Avoidance Convention (DTAC ) - CBDT orders suspension of collection of taxes during Mutual Agreement Procedure;

cbdt_clarification_tax_ongp.pdf

CBDT clarifies on tax holiday on oil and natural gas production;

CASE LAWS

2008-TIOL-329-HC-MAD-IT.pdf + settlement story.pdf

Dr C M K Reddy Vs The Settlement Commission (IT/WT), Chennai (Dated: April 17, 2008 )

Income Tax - Survey u/s 133A - Revenue detects major investments but no returns filed - Proceedings u/s 147 - Appeal before CIT(A) - Assessee opts for settlement - Application rejected - Held, Settlement Commission is not a forum to enable dishonest taxpayers to continue his dishonest conduct and still claim benefit - Since the assessee did not make true and full disclosure, application is not maintainable - Assessee's appeal dismissed : MADRAS HIGH COURT

2008-TIOL-328-HC-RAJ-IT.pdf

CIT, Udaipur Vs M/s Ravindra Platimum Pvt Ltd (Dated: May 13, 2008 )

Income Tax - Deduction u/s 43B - Assessee claims deduction for sales tax amount converted into loans under a Sales Tax Deferral Scheme notified by the State Govt - AO allows the same for the year when the scheme was notified but not for the past years on the ground that the Scheme was not in existence - Tribunal allows it - Held, the amendment in the scheme had retrospective effect, and as long as the assessee produces the Eligibility Certificates issued by the Sales Tax authorities, the assessee meets the conditions prescribed by the CBDT Circular and is entitled to deduction u/s 43B - Revenue's appeal dismissed : RAJASTHAN HIGH COURT ;

2008-TIOL-327-HC-RAJ-IT.pdf

CIT Vs Basanti Lal Mundra (Dated: May 16, 2008 )

Income Tax - Assessee surrenders certain incomes - AO makes addition - CIT(A) sets aside some parts of additions made against residual disclosure - Tribunal dismisses Revenue's appeal on tax effect ground - Although there is no error in the CIT's order but the Tribunal was no justified in simply dismissing the appeal only on the ground of CBDT Circualr that the Department cannot file appeal if the tax effect in appeal is less than some specified amount :RAJASTHAN HIGH COURT ;

2008-TIOL-326-HC-P-H-IT.pdf

Shri Mool Chand (HUF) Vs CIT, Faridabad (Dated: April 10, 2008 )

Income Tax Act – Section 45(5) – Section 45(5)(b) will be attracted only when the assessee receives the enhanced compensation in pursuance of a final award/order of a court, Tribunal or other authority increasing the compensation. If any amount is received after stay of the award, in pursuance of any interim order, as a payment subject to the final result, it will not be an amount received as enhanced compensation as contemplated under section 45(5)(b), but only an interim payment received subject to final decision – ITAT Special Bench in case of Padam Parkash (HUF) 104 ITD 1 (Del)(SB) reversed. : P & H HIGH COURT ;

CENTRAL EXCISE SECTION

NOTIFICATION

etariff08_41.pdf

Amends 63/95;

CASE LAWS

2008-TIOL-129-SC-CX.pdf

CCE, Mumbai Vs M/s BOC (I) Ltd ( Dated: April 24, 2008 )

Central Excise – Manufacture: Mere packing for marketing would not amount to manufacture. That mere labeling or re- labeling in the absence of any activity of repacking from bulk packs to retail packs would not render the product marketable directly to the consumer: What has been overlooked by the appellant is that merely packing for being marketed would not do. The repacking would have to be from bulk packs to "retail packs" so as to render the product marketable directly to the consumer.

There is no evidence relied upon by the appellants to the effect that the cardboard boxes in which the units were placed or the thermocole containers were "retail packs.: SUPREME COURT;

2008-TIOL-330-HC-RAJ-CX.pdf + hotchpotch story.pdf

Rochi Ram & Sons Vs UoI (Dated: March 17, 2008)

CESTAT rapped for hotchpotch manner in deciding case without application of mind, and without examining the entire record, from the appropriate standpoint- a look at the order of the learned Tribunal shows an entirely sorry state of affairs, In our view, the above recapitulation is more than enough to show, that the matters have been decided by the learned Tribunal in absolute hotchpotch manner, without application of mind, and without examining the entire record, from the appropriate standpoint, to arrive at an ultimately reconcilable conclusion, of the whole scenario

CESTAT directed to dispose appeals expeditiously, but not to adopt any slipshod method, under the garb of expeditious disposal In such circumstances, instead of ourselves undertaking the long drawn exercise of examining the entire record from the standpoint of every import, manufacture, disposal, stock of every article, and production, and then, to arrive at a conclusion, one way or the other, about the sustainability or confirmation of demand, or dropping of demand, we better stand advised, to set aside the entire judgment whole hog, with respect to all the four appeals, and remit the whole matter to the learned Tribunal back, with a direction, to give reasonable opportunity of hearing, rather patient hearing, to both the sides, to examine the record threadbare, from all standpoints, with the assistance of the representatives of both the sides, and by itself also, independently, objectively and dispassionately, of course without allowing either of the parties to adduce any fresh evidence, or material, and then to decide the matter afresh, as to whether any of the demands, maintained or deleted, are required to be maintained or deleted.

Accordingly, all these appeals are allowed. The impugned judgment, deciding all the four appeals, is set aside whole hog, and the matters are remanded back to the learned Tribunal, for deciding the appeals afresh, bearing in mind the observations made above, obviously, the natural consequence of setting aside will flow. Since the matter is already very old, it is expected, that the Tribunal will decide the appeals expeditiously, but shall not adopt any slipshod method, under the garb of expeditious disposal. :RAJASTHAN HIGH COURT ;

2008-TIOL-1019-CESTAT-MUM.pdf +

Siddhi Forge Pvt Ltd Vs CCE, Aurangabad (Dated: April 11, 2008)

Cenvat Credit - Furnace oil used for manufacturing own products as well as for job worked goods – during relevant period 2002-2003, rule 6(2) clearly excluded inputs used as fuel from purview of rule 6 of CCR – Credit not deniable – Stay granted. : MUMBAI CESTAT;

2008-TIOL-1018-CESTAT-DEL.pdf

M/s Steel Authority Of India Ltd Vs CCE, Raipur (Dated: April 11, 2008)

Forged Products, Blooms, Billets, Chequered Plates, GC Sheets, Flats & MS Plates etc. are used in the manufacture of parts of capital goods in the factory – Credit not deniable.

Paints & Varnishes are specifically included in definition of inputs – credit not deniable.

High Alumina Refractory and Mafrolite is used in the lining of the furnace as refractory material – credit allowed.

Invoices not in the name of the appellant – Credit not available. :DELHI CESTAT;

2008-TIOL-1017-CESTAT-AHM.pdf

M/s Gautam Silk Mills Pvt Ltd Vs CCE & C, Surat-I (Dated: May 1, 2008)

Appellant was only a job worker and only manufactured fabrics for Sonu Exports and assisted them in export on mis-declaration of quantity - having regard to the value of the fabrics mis-declared, the consequential benefit to Sonu Exports and also to Gautam Silk Mills P. Ltd. and its Director, penalty reduced. : AHMEDABAD CESTAT;

2008-TIOL-1014-CESTAT-MUM.pdf + address story.pdf

May & Win Enterprises Pvt Ltd Vs CCE, Belapur (Dated: May 29, 2008)

Applicants should have taken steps like intimating their new address which a prudent man would have done – No ground for restoration of appeal : MUMBAI CESTAT;

2008-TIOL-1013-CESTAT-BANG.pdf

M/s New Sarika Cotton Traders Vs CCE, Guntur (Dated: January 28, 2008)

100% EOU – the order-in-original passed by the Commissioner is not a speaking order and contains several discrepancies and contradictions – matter remanded for de novo proceedings and to pass speaking order -Commissioner shall also examine their prayer for summoning the witnesses for cross-examination.

Appeals allowed by way of remand. : BANGALORE CESTAT;

SERVICE TAX SECTION

2008-TIOL-1016-CESTAT-KOL.pdf

M/s Naresh Kumar & Co Pvt Ltd Vs CST, Kolkata (Dated: May 29, 2008)

Service Tax – Clearing and forwarding agent services - the activities carried out by the appellants are squarely covered under the category of Clearing and forwarding Agent service – demand of service tax is upheld – Matter remanded to examine invocation of extended period and inclusion of reimbursable expenses in the taxable value. :KOLKATA CESTAT;

2008-TIOL-1015-CESTAT-DEL.pdf

M/s Bhayana Builders Pvt Ltd Vs CCE, New Delhi (Dated: May 30, 2008)

ST - Commercial or industrial construction service - Assessee gets construction contract from building an Embassy Complex - pays major part of liability raised before issue of SCN - Revenue alleges that the assessee has not disclosed the full content of the contract entred into otherwise it can also avail exemption granted to embassies - Waiver from pre-deposit of remaining demand granted :DELHI CESTAT;

2008-TIOL-1012-CESTAT-MAD.pdf

South Agrifurane Industries Ltd Vs CCE (ST), Pondicherry (Dated: April 15, 2008)

Service tax – Stay / dispensation of pre-deposit - payment of service tax on GTA service from Cenvat Credit account - in view of the decisions of the Tribunal in favour of the appellant complete waiver of predeposit is ordered. :CHENNAI CESTAT;

CUSTOMS SECTION

NOTIFICATION

cuscir08_10.pdf

Instructions regarding Section 28 BA of the Customs Act, 1962;

sez06ins010.pdf

Notification No.66/2008-Customs dated 10.5.2008 imposing export duty on certain steel products and Basmati Rice;

sez06ins009.pdf

Export Duty on Steel Products;

cnt08_085.pdf

CBEC revises tariff value of brass scraps; no change in poppy seeds and palm oil;

ctariff08_082.pdf

Govt extends anti-dumping duty on vitrified and porcelain tiles for five more years;

ctariff08_081.pdf

Extends anti-dumping duty on graphite electrodes;

dgft08not018.pdf + dgft08cir013.pdf

DGFT again amends import regime for marble slabs;

dgft08not019.pdf

Amends Circular 8/2008;

CASE LAWS

2008-TIOL-1020-CESTAT-KOL.pdf + Chhotu Lal story.pdf

M/s Chhotu Lal Daga Vs CC, Kolkata (Dated: April 29, 2008)

Anti-dumping duty is payable during the interregnum, after the provisional duty lapsed but before the definitive duty was notified; If it is held that during the interregnum which can be between 6-12 months depending when the anti-dumping investigation is completed, the domestic market of a country can be flooded with large-scale imports at dumped prices without having to face anti-dumping duty and this would seriously injure and cripple domestic industry. Obviously, this cannot be the purpose of the Anti-Dumping Law which is enacted purely to provide a trade remedy measure against unfair trade practices and dumped imports.” “Apart from the categorical finding by the Three Member Anti-Dumping Bench in these two cases that anti-dumping duty is leviable during the interregnum, we find that the wordings in paragraph 2 of the Definitive Anti-Dumping Duty Notification No. 138/2002 very clearly states that the anti-dumping duty imposed under the said Notification shall be levied with effect from the date of imposition of the antidumping duty i.e. 21st December, 2001. Hence, in the case of the impugned import which has taken place on 09.12.02, anti-dumping duty is clearly leviable, as provided under the Definitive Anti-Dumping Duty Notification issued on completion of the anti-dumping investigation even though such import has taken place during the interregnum.

Larger Bench decision binding on division benches :- Judicial discipline required the Mumbai Bench to refer the matter to a still Larger Bench if it disagreed with the Three Member Anti-Dumping Bench instead of rendering a contrary decision and in any case, such a contrary decision rendered by a smaller Bench cannot be a binding precedent for another Bench. We also cannot ignore the fact that such an interpretation contrary to the decision of the Larger Bench has serious implications for the economy of the country and health of the domestic industry. :KOLKATA CESTAT;