Online facility Centre at Hyderabad Central Excise (See 'DDT');

Transporters call off strike; Govt to withdraw service tax cases; and all services related to transportation of goods by road to be treated as GTA;

Direct tax collections zoom by 38% to Rs 57000 Cr in 1st quarter;

Inflation goes up to 11.63% as of June 21st ;

CBEC's AC/DC transfer order finalised but gets caught in 'procedural delay';

ddt 4 july.pdf + cofeposa.pdf + commir_hyd.pdf

COFEPOSA - reasons for revoking or refusing to revoke the detention order need not be communicated – EIB communicates High Court order;

ST GST.pdf

Attachment of property provisions in Service Tax: Controversial, outrageous, unethical and dictatorial!

fdiproposals.pdf

28 FDI proposals cleared;

mbuzz773.pdf

First quarter direct tax collections: Delhi tops with 53.6% growth ;

mbuzz772.pdf

Transporters call off strike; Govt to withdraw service tax cases and all services related to transportation of goods by road to be treated as GTA ;

mbuzz771.pdf

Internet users surpass 11mn figure; Wireless market grows by 11.8%;

mbuzz770.pdf

Bangalore DRI arrests two foreign nationals carrying drugs; Contraband worth Rs 7 Cr seized ;

mbuzz769.pdf

CBDT amends Industrial Park Scheme to extends sops to IT;

NOTIFICATION

it08not076.pdf

Amendment to Industrial Park Scheme 2008;

savings_scheme.pdf

Govt amends Post Office Saving Scheme;

CASE LAWS

2008-TIOL-297-ITAT-AHM.pdf + sbi story.pdf

Canara Bank, Vs ITO, Surat ( Dated : February 15, 2008 )

SBI's MICR centre: State Bank of India was managing and clearing of the cheques through MICR Centre by rendering managerial services which falls within the definition of technical services. The definition of "fees for technical services" is very wide. It covers within its ambit any managerial, technical or consultancy services rendered by a person. Since other banks pay to the State Bank of India charges for the MICR facilities regarding identifying, reading and clearing cheques through its special kind of machines, the same is in the nature of fees for technical services and, therefore, will be liable for TDS :CHENNAI ITAT ;

2008-TIOL-296-ITAT-MAD.pdf

ACIT, Chennai Vs Shri Jagdish Gagual Rangwani ( Dated : April 2, 2008 )

Income Tax - Assessee is an employee of a non-resident company - comes on deputation to India to work with one of the subsidiaries of the company but continued to be an employee of the parent company - parent company fails to deduct tax at source - assessee pays tax with interest u/s 201(1A) - Since the payment of tax was belated, AO seeks interest under Ss 234B and 234C- In a case where an employer is bound to deduct tax at source, the employee is not liable for interest leviable under Ss 234B & 234C - Revenue's appeal dismissed :CHENNAI ITAT ;

2008-TIOL-295-ITAT-MAD.pdf

DCIT, Chennai Vs M/s Brahmayya & Co ( Dated : April 9, 2008 )

Income Tax - Assessee is a CA firm - pays huge sum captioned as 'pension to partners - contribution to LIC' - claims it as revenue expenditure - Since the payment was for using the goodwill being left behind as legacy by the retiring partner, it is capital expenditure - Revenue's appeal allowed :CHENNAI ITAT ;

2008-TIOL-294-ITAT-AHM.pdf

DCIT, Baroda Vs AIMS Industires Ltd ( Dated : November 20, 2007 )

Income Tax - Penalty u/s 271(1)(c) - Share application money to sister concern without interest - Assessee had taken interest-bearing loan for the same - Interest claimed as deduction in P&L a/c - AO disallows interest expenses and also motor hire charges and imposes penalty for concealment of particulars - Since all the facts of the case were disclosed by the assessee, no penalty can be imposed for making additions for the interest and disallowing excessive motor charges - Revenue's appeal dismissed : AHMEDABAD ITAT ;

CENTRAL EXCISE SECTION

2008-TIOL-1048-CESTAT-MAD.pdf + roots story.pdf

M/s Roots Industries Ltd Vs CCE, Coimbatore (Dated : May 13, 2008)

Central Excise – finalization of provisional assessments – once the Commissioner has reviewed the provisional assessment finalisation order passed by the Deputy Commissioner under Section 35E(2), the recourse should be to file appeal but not to issue show cause notice for recovery of the differential duty. :CHENNAI CESTAT;

2008-TIOL-1047-CESTAT-MUM.pdf + computer story.pdf

M/s Godrej Industries Ltd Vs CCE, Mumbai-II (Dated : Nov 27, 2008)

Computers are capital goods and hence for recovery of credit provisions of rule 57U would come into play and not rule 57I of CER'44 – No cause for imposition of penalty u/r 57U(6) and interest u/r 11AB :MUMBAI CESTAT;

2008-TIOL-1046-CESTAT-DEL.pdf

M/s Woco Motherson Elastomers Ltd Vs CCE, Noida (Dated : May 7, 2008)

100% EOU – lapsing of unutlised cenvat credit for DTA units converted into EOU/ EHTP/STP units – as per the Board Circular dated 18.11.99, only credit availed in respect of capital goods would lapse – credit in respect of inputs will not lapse. : DELHI CESTAT;

2008-TIOL-1045-CESTAT-DEL.pdf

M/s R K Marble (P) Limited Vs CCE, Jaipur-II (Dated : May 14, 2008)

Central Excise – Stay/dispensation of pre-deposit – classification of marble slabs - when prime goods have been classified under chapter 25, it does not prima-facie appeal to reason that the repaired and reconditioned marble slabs should be classified differently i e. under chapter 68 - Repaired goods have to be classified under the same chapter heading as is applicable to the prime goods – prima facie case in favour of the assessee . : DELHI CESTAT;

SERVICE TAX SECTION

2008-TIOL-1044-CESTAT-DEL.pdf

M/s Sew Construction Ltd Vs CCE, Raipur (Dated : May 7, 2008)

ST - Site formation and demolition service - Assessee is a sub-contractor and the tax is paid on the entire contract by the main contractor - Since the tax has been paid by the main contractor, and some deposits have already been made by the assessee it is a fit case for waiver of pre-deposit : DELHI CESTAT;

2008-TIOL-1043-CESTAT-KOL.pdf

Bharat Sugar Mills Vs CCE, Patna (Dated : May 26, 2008)

ST - GTA Service - Assessee avails abatement of 75% exemption without obtaining declaration from the GTA that they did not avail any credit either on input or capital goods - Demand also raised for non-payment of tax on freight paid for transporation of sugarcane by road - Both the issues involve law and pre-deposit cannot be called for at this stage :KOLKATA CESTAT;

CUSTOMS SECTION

NOTIFICATION

dgft08cir014.pdf

Import policy of items classified under ITC (HS) Code 2846 (Compounds, in-organic or organic, of rare-earth metals, of yttrium or of scandium or of mixtures of these metals);

CASE LAWS

2008-TIOL-1042-CESTAT-MUM.pdf

Mrs Sapna Sanjeev Kohli Vs CC, Mumbai (Dated : February 25, 2008)

Customs – confiscation of gold jewellery not declared – the appellant is a frequent traveller and is well aware of the Customs Rules, as she, as per her own admission, has already cleared gold at Delhi International Airport, previously for which she paid duty – plea that she was going to the bank to enquire about the rate of duty applicable does not appear to be tenable – if she wanted any clarification she should have asked the Customs officer on duty and not the bank – confiscation upheld – however, absolute confiscation is set aside and the goods ordered to be released on payment of appropriate duty and redemption fine of Rs 10 lakhs. : MUMBAI CESTAT;