DRI seizes FICN worth Rs 72.5 lakh at Calicut Airport; Four persons arrested;

Pakistan releases 35 Indian prisoners on Independence Day;

Prachanda chosen as Nepal Prime Minister;

PM says inflation is a worry but growth not to be compromised;

Govt exempts from central excise duty goods procured for Ultra Mega Power projects;

Inflation further climbs up to 12.44 %;

FM approves 9 FDI proposals worth Rs 300 Cr; Rio Tinto Singapore (Rs 149 Cr) + J P Morgan India Property (Rs 100 Cr) proposals get final nod ;

pm story.pdf

India to send Spacecraft Chandrayan to moon this year; Hike in pay packets of govt employees to make Govt more efficient: PM;

2008-TIOL-149-SC-CT.pdf + sc story.pdf

Alagendran Exports Pvt Ltd Vs State of Kerala (Dated: August 12, 2008)

Sales Tax - Cashew purchased for export – AO has not decided whether the purchases were in the course of export – matter remanded: The most important aspect, which has not been decided by the AO, is whether the purchases made by the appellant were in the course of export in terms of Section 5(3) of the 1956 Act. It appears from the Memo of Appeal filed before the Appellate Tribunal that the appellant had produced Trading Accounts and details of purchases for the Assessment Year 1998-1999, list of domestic purchases supported by sale bills issued by registered dealers within and outside the State against Form 18A , prior purchase orders of foreign buyers, copies of export invoices, bill of lading and other records. In such matters, it is the duty of the AO to collate the facts and ascertain whether the purchased cashew kernels worth Rs.1,92.67,236 /- were effected in the course of export.: SUPREME COURT;

mbuzz878.pdf

DRI seizes FICN worth Rs 72.5 lakh at Calicut Airport; Four persons arrested;

mbuzz877.pdf

RBI transfer Rs 15000 Cr surplus to Union Govt's kitty;

CBDT Order 114_2008

CBDT issues transfer order of four more officers

CBDT Order 113_2008

CBDT issues transfer order of 13 officers of various ranks

CASE LAWS

2008-TIOL-150-SC-IT.pdf

CIT, West Bengal-III Vs Balkrishna Malhotra (Dated: July 28, 2008 )

Income Tax - Notice for reassessment - Assessment after eight years but it was well within one year from the date of notice - assessment completed but tax due from the assessee determined later - Validity of assessment - Since the Madras HC had earlier decided that the word 'assessment ' in the first proviso means not merely computation of income but also determination of the tax payable - No contrary view taken by any HC - No need to depart from this settled view as it may unsettled many cases and particularly in the light of the fact that the law itself has been changed later - Revenue's appeal dismissed : SUPREME COURT;

2008-TIOL-401-HC-DEL-IT.pdf + ao story.pdf

M/s Keshav Shares And Stocks Limited Vs ITO (Dated: July 2, 2008 )

Income Tax – notice for reopening of assessment – Assessing officer bound to pass speaking order on assessee's objection: the proper course of action for the noticee is to file a return and if he so desires, to seek reasons for issuance of the notice. The Assessing Officer is then bound to furnish reasons within a reasonable time. On receipt of reasons, the noticee is entitled to file objections to the issuance of the notice and the Assessing Officer is bound to dispose of the same by passing a speaking order before proceeding with the assessment. : DELHI HIGH COURT ;

2008-TIOL-400-HC-P&H-IT.pdf

CIT, Karnal Vs M/s Carpet India (Dated: July 7, 2008)

Income Tax - Sec 80HHC benefits - Assessee is a job worker for an export house - claims exports benefits on income - Revenue disallows - A supporting manufacturer is at par with direct exporter and the benefits cannot be denied - Revenue's appeal rejected : P & H HIGH COURT ;

CENTRAL EXCISE SECTION

2008-TIOL-1318-CESTAT-BANG.pdf + cenvat story.pdf

M/s Coastal Papers Vs CCE, Visakhapatnam (Dated: March 19, 2008)

Evidence to suggest that the machinery was used for manufacture of both exempted goods and dutiable goods – CENVAT Credit not disallowable if assessee utilises the machinery for manufacture of exempted and dutiable goods – Intention of the manufacturer to use the machinery for both the purposes evident - Appeal allowed with consequential relief : BANGALORE CESTAT;

2008-TIOL-1317-CESTAT-MAD.pdf

M/s Rajam Industries Pvt Ltd Vs CCE, Pondicherry (Dated: May 27, 2008)

Central Excise – Discounts allowed by the suppliers after payment of excise duty – Since input suppliers have not claimed refund of the excess duty paid such duty is prima facie available as CENVAT Credit – Arithmetic error in computation of irregular credit not addressed by the lower authority – Pre-deposit waived and recovery stayed :CHENNAI CESTAT;

2008-TIOL-1314-CESTAT-BANG.pdf

M/s Manjilas Food Products Vs CCE, Cochin (Dated: May 30, 2008)

Central Excise – Dispute with regard to classification of Rice powder, white puttu podi and pathiri podi under Chapter 11 or 19 – Products obtained after roasting of rice after washing and pulverization/sieving – Commissioner (Appeals) to examine all relevant issues including chemical examination certificate : BANGALORE CESTAT;

SERVICE TAX SECTION

2008-TIOL-1315-CESTAT-BANG.pdf

M/s Marigold Paints Pvt Ltd Vs CCE, Bangalore (Dated: May 30, 2008)

Service tax - Consignment sale agent is not a C & F Agent – Larger Bench decision in L & T followed – Appellants having borne the incidence of service tax entitled to refund : BANGALORE CESTAT;

2008-TIOL-1312-CESTAT-BANG.pdf

M/s S B Enterprises Vs CCE, Cochin (Dated: February 18, 2008)

Mere procuring and booking orders for the principal by an agent on a Commission basis, would not amount to providing services as clearing and forwarding agents (C & F Agents) – Larger Bench decision in L & T case followed - Appeal allowed with consequential relief : BANGALORE CESTAT;

CUSTOMS SECTION

NOTIFICATION

cnt08_101.pdf

Tariff value of poppy seeds and brass scrap hiked;

dgft08pn062.pdf

Furnishing of BG/LUT with Customs by Authorisation holder: DGFT amends Para 2.20 of FT;

CASE LAWS

2008-TIOL-1316-CESTAT-MAD.pdf

R Sundar Vs CC, Chennai (Dated: May 5, 2008)

Customs – denial of DEEC exemption on the ground of exporting inferior goods – the appellants' claim of denial of natural justice is acceptable as cross examination of the officers was not allowed – matter remanded.: CHENNAI CESTAT;

2008-TIOL-1313-CESTAT-MAD.pdf

Shri P A Sadiq Vs CC, Cochin (Dated: April 28, 2008)

Customs – deep sea trawlers purchased from Matsyafed through tender / auction – the trawlers were originally imported by Matsyafed under Notification 262/58 Cus according to which if the vessels are subsequently broken up, duty has to be paid – demand of duty and confiscation under Secion 111(o) upheld - However fine and penalty reduced.

Words and Phrases – importer - the expression “the time when they are cleared for home consumption”, used in the definition of ‘importer, includes the time when the vessels are cleared under the fresh Bill of Entry for the purpose of breaking up - Thus, in relation to the period between the original importation of the subject vessels and their clearance under fresh Bill of Entry for the purpose of breaking, Matsyafed as original importer and the appellant as subsequent owner of the vessels get covered by the definition of “importer” under Section 2(26) of the Act for the respective segments of the said period. : CHENNAI CESTAT;