EOUs – Subcontracting of production process abroad (See 'DDT')

SC vacates stay on Adani's SEZ;

PM says no to emission quota for developing countries; puts burden on G8;

Left formally withdraws support to UPA Govt; urges Prez to direct PM to face no-confidence motion in House;

President appoints Smt Prabha Rau as Governor of HP + transfers Dr S S Sidhu from Manipur to Goa + S C Jamir goes to Maharashtra & Gurbachan Jagat goes to Manipur;

ddt 9 july.pdf + cement.pdf

Effective Rate of Duty on Cement – CBEC clarifies;

spl down.pdf

Invocation of Sec 3A of CEA: The new avataar of production norm;

The Insider

Is there a nexus between transfer orders and forthcoming polls?

mbuzz783.pdf

Govt all set to unfold National Skill Development Policy;

mbuzz782.pdf

Govt monitors usage of unsound plastics recycled practices;

mbuzz781.pdf

Core sector growth slows down to 3.5% in May.;

2008-TIOL-338-HC-DEL-IT.pdf + moser bear story.pdf

The CIT, Delhi-III Vs Moser Baer India Ltd ( Dated : May 14, 2008 )

Income Tax - Sec 10B(7) - Assessee is a 100% EoU - decided to withdraw the claim of exemption for a particular Assessment Year - files declaration after due date of filing of the return - AO disallows and CIT(A) approves it - Tribunal holds the requirement of filing declaration for withdrawal of exemption claim before return-filing is only directory and allows the assessee's appeal - Held, there are two limbs to Sec 10B(7) - first one relating to filing of declaration for withdrawal of claim is mandatory where the second one relating to the time limit prescribed for filing the same before the due date of return-filing is only directory as it can be done before the assessment is completed - Assessee's appeal allowed: DELHI HIGH COURT;

2008-TIOL-337-HC-P-H-IT.pdf

The CIT-I, Chandigarh Vs M/s Punjab State Co-Operative Bank Ltd ( Dated : March 3, 2008 )

Income Tax - deduction u/s 80P(2)(a)(i) - Revenue disallows deduction of income earned from business done with 'nominal' members - it makes no difference whether the income is derived from the loan advanced to the nominal members or members or otherwise to a third party because every income of interest derived by a co-operative banking society from the banking business activity is to exempt under Section 80P(2)(a)(i) of the Act - Revenue Appeal dismissed.:P & H HIGH COURT;

2008-TIOL-336-HC-MUM-IT.pdf

The CIT-III, Pune Vs Mr Madhukar B Pawar ( Dated : June 25, 2008 )

Income Tax - Assessee takes a loan of Rs 20,000 from seven different persons - Revenue alleges violation of Sec 269SS - levies penalty u/s 271D - Going by the CBDT Circular which is binding on the revenue's field formations, the loan being not in excess of Rs 20,000, no penalty can be imposed - No point of law involved - Revenue's appeal dismissed:BOMBAY HIGH COURT;

2008-TIOL-335-HC-MUM-IT.pdf

M/s FGP Limited Vs The CIT ( Dated : June 26, 2008 )

Income Tax - Taxability of royalty income - Assessee had a royalty agreement with a party but a dispute cropped up and both went for arbitration - Since the assessee was folling mercantile system of accounting, AO levies tax on royalty income receivable - Tribunal holds that even if the income was not received, it will be taxable in the AY as the assessee followed the mercantile system - Held, even for the mercantile system, what is taxable is the real income, and the Apex Court ruling in Godhra Electricity is very much applicable as there is no real accrual of income because the arbitration dispute was pending in the relevant AY - Assessee's appeal allowed: BOMBAY HIGH COURT;

CENTRAL EXCISE SECTION

2008-TIOL-1076-CESTAT-MAD-LB.pdf + LB story.pdf

CCE, Chennai Vs M/s Chennai Petroleum Corporation Ltd (Dated : June 30, 2008)

Central Excise – demand of duty on Fuel Oil used within the petroleum refinery for manufacture of Raw Naphtha cleared at Nil rate of duty – the provisions of Chapter VII of erstwhile Central Excise Rules have no effect from 1.7.2001, after the repeal of the Central Excise Rules 1944 without saving clause – refineries are no longer deemed warehouses under the new Central Excise Rules – the only option for the refineries is to fall back on exemption notification 67/95 CE for captive consumption. :CHENNAI CESTAT (LARGER BENCH);

2008-TIOL-1075-CESTAT-MAD.pdf

Additional Chief Engineer Salem Electricity Distribution Circle Vs CCE, Salem (Dated : March 4, 2008)

Application for condonation of delay should explain sufficient reasons for such delay – Tribunal :CHENNAI CESTAT;

2008-TIOL-1074-CESTAT-MAD.pdf

M/s Saradhambal Steel India Pvt Ltd Vs CCE, Salem (Dated : March 3, 2008)

Central Excise – Registration cannot be denied on the grounds that the predecessor company has arrears of duty – Tribunal directs the Assistant Commissioner to grant registration in six weeks :CHENNAI CESTAT;

2008-TIOL-1073-CESTAT-MAD.pdf

CCE, Chennai Vs Autolec Industries Ltd (Dated : February 29, 2008)

Central Excise – Gear box and clutch parts are classifiable under 84.83 of Central Excise Tariff - Tribunal:CHENNAI CESTAT;

SERVICE TAX SECTION

2008-TIOL-1072-CESTAT-MUM.pdf + Crompton Greaves Story.pdf

CCE, Goa Vs Crompton Creaves Ltd (Dated : January 7, 2008)

Service Tax paid on GTA services - TR-6 challan has to be considered as valid duty paying document for availment of credit during the period 01.01.2005 to 15.06.2005 – Issue no longer res integra: MUMBAI CESTAT;

2008-TIOL-1071-CESTAT-BANG.pdf

ABB Ltd Vs CST, Bangalore (Dated : January 29, 2008)

Service Tax – Plea of revenue neutrality to be considered in disputed issues - Tribunal: BANGALORE CESTAT;

CUSTOMS SECTION

NOTIFICATION

ctariff08_083.pdf + cnt08_086.pdf

Govt fully exempts ear cotton from Customs duty + withdraws drawback benefits on export of raw cotton;

dgft08not023.pdf

Export of CITES species: DGFT notifies ports;

CASE LAWS

2008-TIOL-1070-CESTAT-MAD.pdf

M/s ETK Softech (P) Ltd Vs CC, Tuticorin (Dated : April 25, 2008)

Customs – Stay / dispensation of pre-deposit – misuse of EOU Scheme – no evidence of financial hardships of the company - pre-deposit of Rs 10,00,000/- ordered. :CHENNAI CESTAT;