Indo-Austrian DTAA - JV partners into consultancy services - AOP is taxable in India (Look for latest advance ruling in 'Breaking News' tomorrow)

Maharashtra VAT - Submission of Audit Report in Form 704 date extended (See 'DDT')

US Customs may retain your laptop - India's DRI is no better (See 'DDT')

FM approves 24 FDI proposals worth Rs 753 Cr; Daiichi Sankyo's Rs 104 Cr proposal also gets nod alongwith Dvas Multimedia's Rs 317 Cr proposal;

Govt to propose major amendments in Motor Vehicles Act; Penalty for traffic offence to be hiked ;

Corporate TDS grows by 45%; Cost of collections declines to 0.54 %;

8% Savings Bonds, 2003: RBI issues clarifications related to applicability of TDS provisions and surcharge;

Mobile Virtual Network Operator: TRAI proposes independent status service provider;

Employee Stock Option Scheme & Employee Stock Purchase Scheme: SEBI amends guidelines;

Economy to grow by 7.5-8% this fiscal: Rangarajan;

Crown debts: Who has first right - State or Financial Institutions? - SC reserves order;

ddt 6 aug.pdf

CUTE entitled for Export Obligation;

spl down.pdf

Will RBI further simplify export procedures?

maha cir 27.pdf

Maharashtra VAT - Submission of Audit Report in Form 704 – date extended;

Amendments to SEBI (ESOS & ESPS) Guidelines, 1999.pdf

Employee Stock Option Scheme & Employee Stock Purchase Scheme: SEBI amends guidelines;

RBI Notifi For Savings Bonds On TDS.pdf

8% Savings Bonds, 2003: RBI issues clarifications related to applicability of TDS provisions and surcharge;

FDI.pdf

FM approves 24 FDI proposals worth Rs 753 Cr; Daiichi Sankyo's Rs 104 Cr proposal also gets nod alongwith Dvas Multimedia's Rs 317 Cr proposal;

rbi08cir005.pdf

Guidelines on trading of Currency Futures in Recognised Stock / New Exchanges;

mbuzz853.pdf

Corporate TDS grows by 45%; Cost of collections declines to 0.54 %;

mbuzz852.pdf

Govt to propose major amendments in Motor Vehicles Act; Penalty for traffic offence to be hiked;

mbuzz851.pdf

Mobile Virtual Network Operator: TRAI proposes independent status service provider;

mbuzz850.pdf

Overseas Citizenship number touches 3 lakh figture; USA accounts for 1.2 lakh;

mbuzz849.pdf

First phase of Rs 442 Cr e-court to be complete by Feb, 2009;

2008-TIOL-386-HC-MAD-IT.pdf

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

Income Tax - Sec 10(10C) benefits - Optional Early Retirement Scheme of RBI - Assessee opts for the scheme and gets compensated - TDS deducted - Assessee claims refund - AO rejects it but Tribunal allows - If all the conditions specified in section 10(10) and Rule 2BA of the Rules are not satisfied, benefits cannot be allowed - Tribunal's order set aside - Revenue's appeal allowed :MADRAS HIGH COURT;

2008-TIOL-385-HC-DEL-IT.pdf

CIT, Delhi Vs RBG Investment And Finance Ltd ( Dated: July 21, 2008 )

Income Tax - Deduction u/s 37(1) - Services charges paid to the Mutual Funds for subscribing fully convertible debentures on behalf of the assessee which was as per the agreement to buy back the same after 36 months - AO disallows the expenses on the ground that it was not a business deal - Given the fact that the issues were oversubscribed and the assessee had entered into a financing agreement only to make profit after the debentures were converted into rights but the market crashed because of the Harshad Mehta's scam, such expenses were incurred wholly and exclusively for business - Deduction allowed and no fault can be found in the Tribunal's order - Revenue's appeal dismissed : DELHI HIGH COURT;

2008-TIOL-355-ITAT-DEL.pdf + quantum story.pdf

M/s Mahavir Irrigation Pvt Ltd Vs CIT, New Delhi ( Dated : May 31, 2008 )

Income tax - Signing amount received from client and accounted as security deposit - Orders passed earlier by the CIT(A) and the Tribunal in the quantum proceedings cannot be taken as conclusive for penalty proceedings - Quantum proceedings and penalty proceedigns are distinct from each other - When all material facts relevant to the claim as security deposit were before AO, it is not a case of concealment as envisaged in section 271(1)(c) attracting levy of penalty - Order levying penalty of Rs. 3 crores under section 271 (1) (c) set aside - Assessee's appeal allowed:DELHI ITAT;

2008-TIOL-354-ITAT-BANG.pdf

Nike Inc Vs CIT, Bangalore ( Dated : May 28, 2008 )

Income Tax - Revisionary powers u/s 263 - Restrictions - CIT cannot invoke such powers when the issues are pending with the CIT(A) and the Tribunal for consideration - Assessee's appeal allowed: BANGALORE ITAT;

CENTRAL EXCISE SECTION

2008-TIOL-1255-CESTAT-MAD.pdf + cement story.pdf

M/s Rajapalayam Cement & Chemicals Ltd Vs CCE, Tirunelveli ( Dated: March 5, 2008 )

Cement damaged due to rains – Damage occurred due to unprecedented rains which is a natural cause - Remission of duty admissible

There was widespread damage in the state owing to the unanticipated fury of the rains. The finished goods of the assessee cannot be held to have been left to the vagaries of nature by the assessee without regard to its value. As submitted by the counsel, the loss to the assessee was more than Rs.5 lakhs when the impugned cement got drenched in rain. In the circumstances, I am convinced that the finished goods got damaged owing to natural causes and that the remission sought by the assessee has to be allowed (Para 3): CHENNAI CESTAT;

2008-TIOL-1254-CESTAT-MAD.pdf

CCE, Coimbatore Vs M/s Ooty Bakers & Confectioners (P) Ltd ( Dated: April 4, 2008 )

Clearance of goods, in polythene bags carrying a brand name of another co, assigned to assessee – Assessee under bonafide belief regarding eligibility of SSI benefit – Penalty set aside – Demand hit by limitation – Assessee's appeal allowed and Revenue appeal dismissed

We have already found that the assessee's plea of bona fide belief that they were not barred from availing SSI benefit stands proved. Therefore, they cannot be held to have suppressed anything with intent to evade payment of duty. Apparently, it was the above bona fide belief of the assessee that stood in the way of their declaring anything with regard to the branded goods....there can be no demand of duty from the assessee for the period beyond six months (Paras 4,5): CHENNAI CESTAT;

2008-TIOL-1253-CESTAT-MAD.pdf

CCE, Mangalore Vs M/s WEP Peripherals Ltd ( Dated: March 7, 2008 )

Goods sold from depot – Duty paid at the factory gate is evidently more than the duty collected from the buyers at the depot – Apparent on record that there is no unjust enrichment – Not necessary for the appellants to prove unjust enrichment any further – Order of the Lower Appellate authority sustained – Revenue appeal dismissed

The duty collected from the buyers after clearance from the depots is the correct duty leviable and is also less than the duty paid by the respondent at the time of clearance from the factory. In other words, unjust enrichment need be examined only when the goods are cleared directly from the factory at higher duty to the buyers. In this case, when the goods were cleared from the depot to the buyers, the duty collected was less than the duty paid at the time of clearance from the factory. Hence it is not necessary in such cases for the appellants to establish unjust enrichment (Para 1): CHENNAI CESTAT;

2008-TIOL-1252-CESTAT-DEL.pdf

CCE, Raipur Vs Pankaj Oxygen Ltd ( Dated: June 17, 2008 )

Supply of gases in specially designed vehicles – Cost recovered for the same is transportation charges and not includible in the assessable value – If only the cost of transportation has been indicated in the invoice without any breakup for the forward and return journey it should be accepted as the cost of transportation from the place of removal to the place of delivery – No contrary evidence furnished by Revenue - Board' Circular No. 643 dated 01.07.2002 followed: DELHI CESTAT;

SERVICE TAX SECTION

2008-TIOL-1249-CESTAT-MUM.pdf

M/s Tata AIG Life Insurance Co Ltd Vs CST, Mumbai-I ( Dated: May 26, 2008 )

ST - Cenvat Credit - Assessee avails credit of tax paid on input service of agency commission under the category 'Insurance Auxiliary Service' and Management Consultancy service - In view of some the decided cases, the pre-deposit is waived off: MUMBAI CESTAT;

2008-TIOL-1248-CESTAT-KOL.pdf

M/s BOC (India) Ltd Vs CCE & ST, JSR ( Dated: July 3, 2008 )

Service Tax – Stay/Dispensation of pre-deposit – conveyance of goods through pipelines – since the appellant have calculated the service tax and paid the same, pre-deposit waived.:KOLKATA CESTAT;

CUSTOMS SECTION

NOTIFICATION

dgft08not028.pdf

Ban on exports of maize to UN-approved scheme for African countries lifted;

CASE LAWS

2008-TIOL-1251-CESTAT-MAD.pdf + import story.pdf

Nemichand Dasarrla Vs CC, Chennai ( Dated: February 12, 2008 )

No finding in SCN to show that the appellants by their acts of omissions, commissions rendered the imports liable for confiscation under Section 111 – No finding other than usage of forged TRAs – Pre-deposit waived and stay granted There is no finding whatsoever in the impugned orders to support the penalties imposed on the appellants under Section 112(a). For such a penalty, there should have been a finding to the effect that the appellants, by their commissions or omissions, rendered the imported goods liable for confiscation under Section 111. Apart from the finding that the appellants had dealt in forged TRAs, the impugned orders do not contain any finding to the effect that they had done anything or had omitted to do anything which rendered the goods liable for confiscation under Section 111 of the Act (Para 4): CHENNAI CESTAT;

2008-TIOL-1250-CESTAT-DEL.pdf

M/s Uniflock International Ltd Vs CC (ICD), New Delhi ( Dated: May 01, 2008 )

Customs – refund claim without challenging the assessment order is not maintainable.:DELHI CESTAT;