Justice A M Kapadia transferred from Gujarat HC to Rajasthan HC + Justice V B Gupta appointed as full-time Judge of Delhi HC;

Govt mulling proposal to further tighten Benami Prohibition Act;

MoS (Telecom) says Govt has no plans to privatise BSNL;

Pirates take control of Malaysian vessel heading for Kutch Port with palm oil and 39 crew; Ransom demanded;

ddt 25 aug.pdf

Services provided in DTA by the SEZ Units - who has to pay service tax?

tiol top.pdf

FDI - Are all tax havens that bad for fund-starved economies?

guest.pdf + How much I lost'

Pay Commission: Fifth vs Sixth!

DIPP Press Note 8.pdf

Guidelines for Foreign investment in Commodity Exchanges.;

DGEP.pdf

Non-payment of Service Tax on providing services outside SEZ by units in the SEZ – Reg.;

mbuzz900.pdf

Chennai Airport Customs seizes expensive watches concealed in milk powder refill packet,

mbuzz899.pdf

Nine million subscribers join mainstream in July; Tele-density goes beyond 29% mark;

mbuzz898.pdf

BCCI hikes NSDF grant to Rs 50 Cr; Minister welcomes it;

ORDER

cbdtorder117_2008.pdf

CBDT issues local rotation order of CITs in many States;

cbdtorder116_2008.pdf

CBDT issues mini transfer order of 8 AC/DCITs;

CASE LAWS

2008-TIOL-414-HC-MUM-IT.pdf + set india story.pdf

SET Satellite (Singapore) Pte Ltd Vs DDIT, Mumbai ( Dated : August 22, 2008 )

Income Tax - Assessee is a non-resident company - has dependent agent for selling ad slots and marketing activities in India - taxability of income - AO for taxing commission paid to the DA at arm's length basis and also the profits of the non-resident company - CIT(A) disagrees with the AO - Tribunal reverses the CIT(A) order by treating the DA as a deemed PE for the non-resident company and holding the profits of the fictional PE as taxable - Held, CBDT Circular No 23 is binding on Revenue, and once service charges are paid to dependent agent at arm's length basis by non-resident principal, and the same is taxed, it extinguishes tax liability of non-resident company in India

As long as the CBDT Circular No 23 and the DTAA with Singapore stand, the profits of non-resident company cannot be taxed - Assessee's appeal allowed:BOMBAY HIGH COURT;

2008-TIOL-413-HC-DEL-IT.pdf + hc it story.pdf

CIT, New Delhi Vs M/s Atam Prakash And Sons (Dated: August 8, 2008 )

Income tax - Tax on capital gains - Joint venture agreement between owner of property and builder - Mere grant of a permissive right to build on a plot of land would not amount to a transfer of capital asset - The rights conferred upon the parties to the contract will crystallize only if and when the proposed multi-storeyed building would come into existence - A dispensation or license properly passeth no interest, nor alters or transfers property in anything, but only makes an action lawful which without it had been unlawful “ Consideration received in this regard is merely an advance for a sale consideration of a property which is yet to come into existence “ No capital gains tax leviable:DELHI HIGH COURT;

2008-TIOL-412-HC-DEL-IT.pdf

CIT, New Delhi Vs M/s L G Electronics India Pvt Ltd ( Dated: August 19, 2008 )

Income Tax - Assessee deposits a sum for issuing LC for import of capital goods - interest earned - AO makes addition by treating the same as income from other sources - Tribunal disagrees with Revenue - Since it was not an investment of money or idle money on which the assessee earned an interest, the sum earned on the margin money to be adjusted against the cost of machinery imported - Revenue's appeal dismissed:DELHI HIGH COURT;

2008-TIOL-411-HC-DEL-IT.pdf

CIT-XVII Vs Food Corpration Of India ( Dated: July 28, 2008 )

Income Tax - Assessee is a registered PF Trust of Employees - Survey - Revenue finds interest being credited to the accounts of some retired employees - holds assessee in default for not deducting TDS - CIT(A) agrees with the AO - Tribunal allows the appeal of the assessee - Held, firstly the status of the assessee is to be determined for the purpose of sec 194A, and secondly if the status of the assessee is determined as individual it is not required to deduct tax at source. Revenue's appeal dismissed.:DELHI HIGH COURT;

cbecnot40_2008

B N Singh promoted as Commissioner;

cbecnot38_2008

Bijay Kumar promoted as Commissiioner;

CENTRAL EXCISE SECTION

2008-TIOL-415-HC-UTTRANCHAL-CX.pdf + hc credit story.pdf

CC & CCE, Meerut-II Vs M/s India Glycols Ltd (Dated: August 12, 2008 )

Cement and bitumen used as construction material, not entitled for Modvat ; in the factory premises Cement and Bitumen may be used not only for the purposes of fixing the plant, but also for the residences of the staff quarters or for constructing the boundary wall of the premises.

However MS Angles entitled :- M.S. Angle were used by the Unit in joining the connecting M.S. pipes in manufacturing the goods produced by the Unit. As such, in respect of ‘M.S. Angle', the CESTAT has rightly upheld Modvat credit, allowed to the Unit.:UTTARAKHAND HIGH COURT;

2008-TIOL-1372-CESTAT-MUM.pdf

Mahindra Ugine Steel Co Ltd Vs CCE, Nashik (Dated: June 24, 2008)

Central Excise - valuation - job work - non-inclusion of value of scrap generated - appellants contesting only on limitation - appellants are to be held as acting under a bonafide belief on the basis of the decision  of the Tribunal that scrap credit was not an element of inclusion in the assessable of Automobile component - demands barred by limitation.:MUMBAI CESTAT;

2008-TIOL-1371-CESTAT-AHM.pdf

M/s Reliance Industries Ltd Vs CCE, Vapi (Dated: July 15, 2008)

Central Excise - refund of pre-deposit under Section 35F - the appellant is entitled for interest on refund sanctioned beyond the period of 3 months from the date of order of Commissioner (Appeals).:AHMEDABAD CESTAT;

2008-TIOL-1370-CESTAT-AHM.pdf

CCE, Surat Vs M/s Ambeshwar Paper Mills Ltd (Dated: May 6, 2008)

Central Excise – exemption - deemed export cannot be considered as clearance for home consumption so as to include their value while computing the initial clearances of 3500MT, in terms of exemption Notification No.6/ 2000 - Revenue's appeal is rejected.:AHMEDABAD CESTAT;

SERVICE TAX SECTION

2008-TIOL-1377-CESTAT-BANG.pdf + fire story.pdf

M/s Fireepro Systems Private Limited Vs CST, Bangalore (Dated: March 13, 2008)

Later inclusion of some aspect in the scope of levy will have to be taken as non-inclusion of the same earlier, when the other portion remained the same  - Legal position with regard to the levy of Service Tax on Erection, Commissioning, Installation, etc. was not very clear and there were different interpretations, hence, extended period not invokable - Fire Proofing service has been specifically included under the category of ‘Erection, Commissioning or Installation Services', w.e.f. 16.06.2005 – Benefit of Notfn 12/03 claimed by the assessee available – CENVAT credit of input services not deniable – Appeal allowed:BANGALORE CESTAT;

2008-TIOL-1376-CESTAT-DEL.pdf

M/s J S P Security Vs CCE, Jaipur-I (Dated: April 2, 2008)

ST - Security Service - Demand confirmed but penalty reduced by Tribunal - ROM - Corrigendum to SCN issued to invoke extended period to appropriate tax with interest deposited - Since the deposit was made not under protest, the corrigendum was beyond the laws - Assessee's application rejected as tax was deposited without protest:DELHI CESTAT;

2008-TIOL-1375-CESTAT-DEL.pdf

M/s Rajputana Ex-Servicemen Vs CCE, Jaipur (Dated: June 24, 2008)

ST - Security service - Assessee has been paying tax on commission received - Revenue demands tax on gross amount received and penalty imposed - Prima facie the assessee has a strong case on limitation - Assessee's stay petition allowed:DELHI CESTAT;

CUSTOMS SECTION

2008-TIOL-1374-CESTAT-AHM.pdf

M/s Kandla Ship Suppliers Vs CC, Kandla (Dated: July 9, 2008)

Customs - import of Arcton 22 gas cylinders from United Arab Emirates are to be reated as prohibited as UAE is not party to the Montreal Protocol in respect of Arcton 22 gas - confiscation of the goods upheld in respect of consignment of more than 200 cylinders upheld as no licence is required if the cylinders in possession are less than 200.:AHMEDABAD CESTAT;

2008-TIOL-1373-CESTAT-MAD.pdf

Hosur Instruments Pvt Ltd Vs CC, Chennai (Dated: April 25, 2008)

Customs – import – valuation - technical know-how fee paid by the appellants to foreign collaborator is not liable to be included under Rule 9(1)(c), in the assessable value of the imported goods - As no nexus was found between the import of components / raw materials and the payment of technical know-how fee/licence fee and as the payment of the fee was not found to be a condition of the import, Rule 9 (1) (c) was not invokable for addition of the fee to the invoice price of the imported goods.: CHENNAI CESTAT;