RBI Governor YV Reddy conferred Honorary Fellowship of LSE (See 'DDT')

Annexure-less Income Tax Returns – Officers don’t read Board instructions (See 'DDT')

Lok Sabha adjourned for some time as BJP MP alleges attempts of bribery; Voting scheduled for 6 PM;

Economy will grow at 7-8%, says PC;

Noted Film Director Tapan Sinha gets Dada Saheb Phalke Award for 2006;

Indian origin leader Ram Baran Yadav is elected first President of Nepal;

ddt 22 july.pdf

Export of taxes – the SEZ confusion continues;

edit.pdf

Sword of Summons over Board - Board Member should appear before CESTAT to resolve Conflict;

Holidays Lists.pdf

Holidays to be observed in Government Offices during the year 2009;

mbuzz815.pdf

Post Offices open 110 lakh NREGS Accounts Electronic Smart Cards for fast payment to workers;

mbuzz814.pdf

Govt cautions Indians about fraudsters in West Africa;

2008-TIOL-355-HC-MAD-IT.pdf + retirement story.pdf

CIT, Chennai Vs Sh. K Venkatesan ( Dated: July 4, 2008 )

Benefits under RBI's Optional Early Retirement Scheme – not eligible for deduction under Section 10( 10C ): As the schemes had not been introduced for the purpose of making-over the reduction in the existing strength of the employees and do not provide that the vacancy caused by the voluntary retirement or voluntary separation shall not be filled up, the requirements (iii) and (iv) of Rule 2BA have not been fulfilled. ..... In order to entitle the person the benefit under section 10( 10C ) of the Act the provisions of section 10( 10C ) and Rule 2BA should be complied with cumulatively and compliance of some of them would not entitle the employee the benefit as claimed for. : MADRAS HIGH COURT;

2008-TIOL-354-HC-P-H-IT.pdf

Shri Chandi Ram Vs CIT, Faridabad ( Dated: February 25, 2008 )

Income Tax - Whether enhanced compensation received  in perusance of interim order is an enhanced compensation u/s 45 (5) (b) – Held,  If any amount is received after stay of the award, in pursuance of any interim order, as payment subject to the final result, it will not be an amount received as enhanced compensation u/s 45 (5) (b). This provision will be attracted only when the final decision is rendered by the Appellate or other Authority. This is supported by Apex court judgement in. CIT Vs. Hindustan Housing and Land Development Trust Ltd ( 2002-TIOL-540-SC-IT ) - amendment to Section 45 of the Act by inserting clause (c ) by the Finance Act 2003. The amendments would apply only to future period and not to any period prior to 1.4.2004 - Assessees' Appeals allowed. : P & H HIGH COURT;

2008-TIOL-331-ITAT-DEL.pdf

DCIT, New Delhi Vs M/s KLM Royal Dutch Airlines ( Dated : April 4, 2008 )

Income Tax - TDS u/s 194H - Assessee is a foreign airline - deducts tax at source on commission paid for selling tickets to passengers but no TDS on tickets given to agents as part of promotional activities - Revenue demands tax - Since the discounted tickets were issued to travel agents for their own consumption and not for sale it was a transaction on a principal to principal basis and no brokerage or commission accured to the agents - Revenue's appeal dismissed :DELHI ITAT ;

JCIT & OSD TO CIT-III, N ew Delhi ( Dated : May 30, 2008 )

Income Tax - share application money - AO holds the assessee has failed to establish the three ingredients of section 68, namely, the identity of the creditors, their creditworthiness and the genuineness of the transactions - additions made - Part addition explained in earlier proceedings excluded but rest confirmed - Assessee's appeal partly allowed :DELHI ITAT ;

CENTRAL EXCISE SECTION

2008-TIOL-1157-CESTAT-MAD.pdf + differential story.pdf

Bimetal Bearings Ltd Vs CCE, Chennai (Dated : July 2, 2008)

Central Excise – provisional assessment – whether interest is payable in cases where the differential duty is paid before the finalization of the assessments by the department – matter referred to Larger Bench. : CHENNAI CESTAT;

2008-TIOL-1156-CESTAT-MAD.pdf

M/s Jai Bhavani Steel Enterprises Ltd Vs CCE, Chennai (Dated : April 22, 2008)

Central Excise – Stay / dispensation of pre-deposit – duty demanded on alleged clandestine manufacture and clearance on the ground of purchase of melting scrap without bills – since it is admitted that the appellant is not trading in melting scrap, the same should have been considered to have been used in the manufacture – pre-deposit ordered. Pre-deposit ordered. : CHENNAI CESTAT;

2008-TIOL-1155-CESTAT-MUM.pdf

M/s Govind Poy Oxygen Ltd Vs CCE, Goa (Dated : May 8, 2008)

Recovery of rental charges/detention charges on cylinders, service charges like hydraulic testing charges, inspection and repair charges, internal inspection and repair charges from customers – Not includible in assessable value – Tribunal decision in Saurabh Gases followed : MUMBAI CESTAT;

2008-TIOL-1154-CESTAT-MUM.pdf

Ballarpur Industries Ltd Vs CC & CE, Nagpur (Dated : Feburary 7, 2008)

Input service distributor not registered before taking credit – No reasons from the department for delay in granting registration - An allocation chart is not the prescribed document for the purpose of availment of credit – Pre-deposit of Rs. 13,00,000/- ordered – Rest waived – Stay granted : MUMBAI CESTAT;

SERVICE TAX SECTION

2008-TIOL-1152-CESTAT-DEL.pdf

CCE, Chandigarh Vs M/s Swaraj Engines Ltd, Mohali (Dated : June 3, 2008)

ST - GTA Service - Service tax paid on GTA out of Cenvat Credit account - Revenue disallows - Assessee is entitled to utilise credit towards payment of ST on GTA service : DELHI CESTAT;

2008-TIOL-1151-CESTAT-DEL.pdf

CST, Delhi Vs M/s Delhi Gym Khana Club Ltd (Dated : June 13, 2008)

ST - Mandap Keeper service - Demand - Issue is no longer res integra as it was settled by Calcutta HC in Dalhousie Institute case ( 2005-TIOL-08-HC-KOL-ST ) - Revenue's appeal dismissed : DELHI CESTAT;

2008-TIOL-1150-CESTAT-DEL.pdf

M/s YRG Services Vs CCE, Jaipur (Dated : June 17, 2008)

ST - Business Auxiliary Service - Assessee arranges customers for banks which in turn charge processing fee from customers and a part of that fee is paid to the assessee as commission - Demand confirmed - Issue is no longer res integra as it has been settled that such a service is covered under BAS - pre-deposit ordered : DELHI CESTAT;

CUSTOMS SECTION

NOTIFICATION

dgft08not025.pdf

Maize exports: DGFT clarifies if LC opened prior to ban, exports to be allowed;

CASE LAWS

2008-TIOL-138-SC-CUS.pdf + commissioner story.pdf

CC (Port), Kolkata Vs M/s Cosmo Steel Pvt Ltd (Dated: May 9, 2008)

Non-compliance with Supreme Court order – Customs Commissioner imposed personal cost of Rs. 10,000/- to be recovered from his salary and paid to the assessee: The goods have now been released on payment of demurrage charges which include the period from the date of passing the order i.e. 7.1.2008 till the date of releasing the goods to the assessee i.e. 3.5.2008. The demurrage charges for this period are not justified as the goods were retained by the department in spite of orders passed by this Court to release the goods. On a query put to Mr. Mohan Parasaran , learned Additional Solicitor General as to who should bear the demurrage charges for the period 7.1.2008 to 3.5.2008, he submits that demurrage charges already paid by the assessee for the period 7.1.2008 to 3.5.2008 shall be refunded to the assessee within two weeks from today. The unqualified apology tendered by Mr. B.B.Aggarwal , Commissioner of Customs (Port), Kolkatta is accepted subject to payment of personal cost in the sum of Rs.10,000 /- (rupees ten thousand). The cost be recovered from the salary of Mr.B.B.Aggarwal , Commissioner of Customs and paid to the assessee. : SUPREME COURT ;

2008-TIOL-356-HC-MAD-CUS.pdf + hc story.pdf

CC, Tuticorin, Vs M/s. Edhayam Frozen Foods ( Dated: July 4, 2008 )

Cess – export of fish – prawns not fish; the expression ‘fish' contained in Schedule 7 to the Agricultural Produce Cess Act, 1940 would not include within itself prawns and shrimps : MADRAS HIGH COURT;

2008-TIOL-1153-CESTAT-MUM.pdf

CC, Airport, Mumbai Vs M/s Kiran Jewels (Dated : April 25, 2008)

Customs – confiscation – redemption fine is not imposable when the goods are not available for confiscation.:MUMBAI CESTAT;