RBI hikes Repo rate by 50 basis points & CRR by 25 basis points; Interest rates likely to harden up;

Live bombs recovered in Surat; Many States on high alert;

Shri K Kannan appointed as Additional Judge of Madras High Court;

Atul Chaturvedi joins as new Fertiliser Secretary;

CBN, Neemuch, seizes 14 kg opium; arrests two persons;

ddt 29 july.pdf + hpnotification.pdf

Intellectual Property: Geographical Indications and biodiversity - hot topic at WTO meet;

vacancies.pdf

Vacancy for Member in Forfeited Property Tribunal;

mbuzz827.pdf

Govt to launch 'National Mission in Education through ICT' soon;

mbuzz826.pdf

RBI hikes Repo rate by 50 basis points & CRR by 25 basis points;

2008-TIOL-367-HC-DEL-IT.pdf + export it story.pdf

M/s Delhi Inter Exports Pvt Ltd Vs CIT ( Dated: July 9, 2008 )

Income Tax – export market development allowance- not eligible for an agent: the expenditure must have been incurred wholly or exclusively on development or publicity outside India in respect of goods, services or facilities which the assessee deals in or provides in the course of his business; The admitted position in the present case is that the assessee procured export orders from foreign buyers and passed them on to the manufactures or dealers of various goods in India, who in turn, made the exports. The assessee by itself did not deal in goods which were exported. It merely acted as an agent who procured export orders and passed the orders on to the manufacturers or dealers, who made the exports in respect thereof. : DELHI HIGH COURT;

2008-TIOL-366-HC-MAD-IT.pdf

Pay And Accounts Officer Vs ITO, Chennai ( Dated: July 8, 2008 )

Income Tax - Failure to deduct tax at source - Demand u/s 201(1-A) - 708 days delay in filing appeals - Tribunal summarily reject appeals - Powers to condone delay is not to legalise injustice; if 'sufficient cause' is there it should be condoned; every day's delay cannot be explained and as such the pedantic approach should not be made. The doctrine must be applied in a rational common sense. The delay in this case cannot be regarded as occasioned deliberately or on account of negligence or on account of malafides. A litigant does not stand to benefit by resorting to delay, but he runs a serious risk. Courts are not respected on account of its power to legalise injustice on technical grounds but because it is capable of removing injustice and is expected to do so. Making a justice oriented approach from this perspective, there is sufficient cause for condoning the delay - Assessee's appeal allowed : MADRAS HIGH COURT;

2008-TIOL-365-HC-MP-IT.pdf

Government Of Madhya Pradesh Vs TRO & ORS ( Dated : March 25, 2008 )

Income Tax - Whether the provision of of s. 206, sub-s. (1)(c) is applicable to State Government - Held,  every person including the State Government which is granting lease is liable to deduct tax on income earned by any person under the lease and deposit it with the Central Government. Mere absence of the word "every person" in the definition of "seller" as contained in Explanation cl. (c) to s. 206C cannot be construed to mean that the provisions of s. 206C do not apply to the State Government - Appellant's appeal dismissed : MADHYA PRADESH HIGH COURT;

2008-TIOL-364-HC-P-H-IT.pdf

CIT Vs Sh Hardayal Singh (HUF) ( Dated : July 1, 2008 )

Income Tax - Assessee fails to include interest income earned on FDRs in original return - AO initiates penalty u/s 271(1)(c) - CIT(A) deletes the same - Tribunal upholds the CIT(A) order - Since the Revenue has failed to give any categoric finding about infirmity in the Tribunal's order and the AO has also not recorded satisfaction, Revenue does not have a case - Revenue's appeal dismissed : PUNJAB AND HARYANA HIGH COURT;

CENTRAL EXCISE SECTION

2008-TIOL-1203-CESTAT-DEL-LB.pdf + amritlala story.pdf

Amrit Bottlers Pvt Ltd Vs CCE, Allahabad (Dated: June 2, 2008)

Draining out aerated waters – President feels there is conflict between two orders and refers the matter to Larger Bench;  no conflict holds LB; there is no conflict between the decision in the case of Amrit Bottlers and Hindustan C oca C ola beverages. Both the decisions are on different facts of the case. In these circumstances matter is referred to the referral bench to decide the issue on merit. : DELHI CESTAT;

2008-TIOL-1202-CESTAT-KOL.pdf + tata story.pdf

M/s Tata Steel Ltd Vs CCE, Jamshedpur (Dated: June 24, 2008)

"Integrated steel plant" means a manufacturer or a producer who, starting from the stage of iron ore, manufactures or produces within the same premises the excisable goods specified Chapter 72 or Chapter 73 - Board's Circular No.696/12/2003-CX, dated 26.02.2003, clarifies that the word 'ore' also includes ore concentrate - Clarification seeks to clarify the legal position as it existed from the date of issue of the notification benefit available to appellants

It is also common knowledge and a fact of history that TISCO is the first integrated steel plant which was set up in India even prior to independence as a shining example of a pioneer nationalist entrepreneur's efforts when steel was being imported from abroad despite our country having rich sources of iron ore (Para 6)

The Appellants have also argued that a subsequent show cause notice dated 23.02.06 issued by the same Commissioner takes a contrary stand that ore concentrate is not a different commercial commodity and on that ground, a huge demand has been raised against the Appellants alleging irregular availment of CENVAT Credit. Confirmation of the present demand and raising of the subsequent demand clearly indicate a state of confusion in which the Excise Authorities are working (Para 8)

We are somewhat concerned that the Commissioner who is having jurisdiction over an integrated steel plant, goes on to confirm a huge demand of duty and penalty of over Rs. 235 crores on the sole ground that M/s. TISCO is not an integrated steel plant. He also disregards a specific circular issued by the Board to clarify that ore includes ore concentrate. Before confirming such a huge demand and disregarding a specific circular issued by the Board, it was advisable for the Commissioner to consult the Board and also to verify the position in respect of the other integrated steel plants, some of which are not located far from the Adjudicating Commissioner's jurisdiction. There does not seem to be any record that such an exercise has been done. There was a time when the training of an I.R.S. (Customs and Central Excise) Officer was not considered complete unless he was familiar with the manufacturing and excise system of an integrated steel plant and an integrated textile mill : KOLKATA CESTAT;

2008-TIOL-1201-CESTAT-MAD.pdf

M/s Madan Agro Industries (India) Ltd Vs CCE, Salem (Dated: May 13, 2008)

Central Excise – demand of duty on coconut oil as hair oil under Tariff item 33059019 – classification of the goods under heading 1513 is supported by the Board Circular and also by the orders of the Tribunal – prima facie case made out for waiver of pre-deposit. : CHENNAI CESTAT;

SERVICE TAX SECTION

2008-TIOL-1199-CESTAT-MUM.pdf + stgst.pdf

Force Motors Ltd Vs CCE, Pune (Dated: July 11, 2008)

In the current jet age, use of company owned and operated Aircraft is a bare requisite for business activities – Service Tax charged by Airports Authority of India for parking the aircraft at the Airport is entitled for Cenvat Credit as Input Service

Tribunal decision in Indian Rayon & Industries Ltd. [ 2006-TIOL-1152-CESTAT-MUM ] relied upon. : MUMBAI CESTAT;

2008-TIOL-1198-CESTAT-MAD.pdf

M/s Fifth Avenue Vs CST, Chennai (Dated: March 25, 2008)

Service Tax – Stay/Dispensation of pre-deposit – Business Auxiliary Service Vs Business Support Service – the elements of services rendered by the appellants are found in Business Support Service – Pre-deposit waived. : CHENNAI CESTAT;

CUSTOMS SECTION

NOTIFICATION

dgft08cir023.pdf

Eligibility of supplies to EOUs for deemed export benefits;

dgft08pn054.pdf

Agency designated for export of sugar to USA;

cnt08_098.pdf

CBEC notifies Customs exchange rates for August;

CASE LAWS

2008-TIOL-1200-CESTAT-MAD.pdf

M/s Pushpanjali Silk Pvt Ltd Vs CC, Chennai (Dated: May 1, 2008)

Customs – valuation of mulberry raw silk of Chinese origin – enhancement of value based on contemporaneous Bills of entry – the appellant was not supplied with the copies of the said Bills of Entry – principles of natural justice violated – no infirmity in the order of the Commissioner (Appeals) in remanding the case for a fresh decision. : CHENNAI CESTAT;