Committee of Commissioners cannot examine orders passed by Commissioner (A) (See 'DDT')

Unclaimed Deposits / Inoperative Accounts in banks - RBI clarifies (See 'DDT')

CBEC to initiate action against officers caught red-handed in Pune Rave party;

Pune Police arrests Mumbai Airport Customs officers + Superintendents + others with dance bar girls in a raid at a rave party last night;

India, GCC to resume talks to wrap up Free Trade Agreement soon;

Chennai Airport Customs seizes 200 live ornamental fishes;

World Bank report says India has reduced number of people below poverty line by 9 mn in past three years;

Notice to Chinese firm Huawei for violation of labour laws: Govt says no such notice issued;

ddt 27 aug.pdf

Interesting INTEREST under Customs Act;

spl down.pdf

Taxing income of non-resident telecasting companies: Has the issue really taxied to finality?

rbi.pdf

Unclaimed Deposits / Inoperative Accounts in banks – RBI clarifies;

mbuzz908.pdf

DoT is to launch Phase II Mobile Service to link two lakh villages ;

mbuzz907.pdf

Chennai Airport Customs seizes 200 live ornamental fishes;

mbuzz906.pdf

Mineral Production posts positive growth of 5.6% this fiscal so far;

2008-TIOL-419-HC-DEL-IT.pdf

M/s Soul Vs DCIT ( Dated : August 07, 2008 )

Income Tax - Revenue seals bank accounts of the assessee for recovery of dues - Banks directed u/s 222 to attach the debt of the assessee - Part of dues recovered - Stay petition before AO filed and same being rejected - Held, in view of Board's Instruction No 96, if the assesseed income is more than twice of the returned income, proceedings should be kept in abeyance till the appeal is disposed of - however, the assessee allowed to carry on day to day banking but the money cannot be withdrawn till the case is disposed off: DELHI HIGH COURT;

2008-TIOL-418-HC-DEL-IT.pdf

CIT Vs Microsoft Corporation Of India Pvt Ltd ( Dated: August 21, 2008 )

Income Tax - Assessee enters into contract for taking building premises on rent - Later decides to cancel the same and incurs settlement expenses to pre-empt litigation - claims deduction for the same u/s 37(1) - AO disallows but CIT(A) and Tribunal allow deduction - Since this expenditure falls squarely within the meaning of expression commercial expediency when, seen from the perspective of the assessee's business, it is allowable deduction - Revenue's appeal dismissed: DELHI HIGH COURT;

2008-TIOL-417-HC-MAD-IT.pdf

M/s Computer Graphics Limited Vs ACIT, Chennai ( Dated: August 6, 2008 )

Income Tax - Sec 80I benefits - Assessee converts jumbo rolls of colour paper and film into saleable rolls of standard size - claims deduction by treating the process as manufacture - Held, the assessee's appeal not sustainable as it was decided in the case of the assessee itself in the past:MADRAS HIGH COURT;

2008-TIOL-391-ITAT-HYD.pdf + hyd story.pdf

Koneru Consultants Pvt Ltd VS ITO, Hyderabad (Dated : May 16, 2008 )

Deduction under Sec. 80HHE restricted to profits derived from the business of export of computer software or its transmission from India to a place outside India by any means or providing technical services outside India in connection with the development or production of computer software - Deductions under 10A and 10B are in respect of profits and gains derived by the undertaking

Definition of “computer software” also means any customised electronic data or any product or service of similar nature – Customized software or software developed under an agreement are client specific not useful to other parties – Assessee cannot have ownership rights over such data

Stipulation that assessee is to follow the instruction of the person appointing him does not mean that the assessee is subordinate to that person – Customers paying on hourly basis is only to ensure that the billing amount is kept at the minimum by regulating work - Commission has many hues and it means the act of committing, an instrument conferring authority, a percentage paid to an agent, a body of person appointed to perform certain duties, an order for a piece of work and so on

A person may conduct his business by way of any constitution that he desires, be it as individual, as a proprietor of a proprietary concern or as a director of a company - So long as he renders services specified under the provisions, deduction cannot be denied – Services rendered by the assessee covered under call centre services, data processing services and insurance claim processing as notified by the Board - Activities are certified by STPI as consultancy services in relation to software development on site – Deduction under Sec. 10A allowed – Appeals allowed – Assessing officer directed to provide consequential relief towards interest in terms of Sec. 243B:HYDERABAD ITAT;

CENTRAL EXCISE SECTION

2008-TIOL-1392-CESTAT-MUM.pdf + nidhi story.pdf

Mrs Nidhi N Gupta Vs CCE, Mumbai V (Dated: August 8, 2008)

Attachment of property – whether in name of company or Director – Remand proceedings - Reliance on findings of an earlier order which was itself remanded by the Tribunal is an incorrect proposition in law – Matter once again remanded by Tribunal: CHENNAI CESTAT;

2008-TIOL-1391-CESTAT-MAD.pdf

M/s Sakthi Sugars Ltd Vs CCE, Salem (Dated: February 13, 2008)

MS Angles, Channels, Plates used for fabrication of structural support to machinery and false floor components for covering cables are capital goods – CENVAT credit eligible – Appeal allowed

MS angles, sheets, channels etc., were admittedly used in the manufacture of structural support to machinery. The machinery is admittedly classifiable under Chapter 84 of the Central Excise Tariff Schedule and, therefore, any accessory thereto such as structural support, would be capital goods falling under Rule 2(b)(iii). The sheets, angles etc. were used in the manufacture of capital goods (the structural support to machines), which was further used in the factory (Para 5)

Being a safety provision for the underlying cables, the false flooring components can be treated as accessories to such cables and hence covered by the definition of capital goods under Rule 2 (b) (iii) (Para 6):CHENNAI CESTAT;

2008-TIOL-1390-CESTAT-BANG.pdf

CCE, Mangalore Vs M/s Rajashri Packages Ltd (Dated: April 2, 2008)

New plant and machinery is connected to the old plant – Entire unit has to be viewed in totality – When goods manufactured are in an integrated process and by-products are cleared on payment of duty it cannot be said that the capital goods are used exclusively for production of exempted goods - CENVAT credit on capital goods not deniable – Order of the lower authority affirmed – Departmental Appeal set aside :BANGALORE CESTAT;

2008-TIOL-1389-CESTAT-MAD.pdf

M/s Anitha Devi Spinning Mills (P) Ltd Vs CCE, Coimbatore (Dated: April 11, 2008)

Excess duty collected from the buyers in any manner to be deposited with the Government – Provisions of Sec 11D squarely applicable – Tribunal

In other words, it is not necessary that a person who collected any excess amount of duty unauthorized from the buyer of the excisable goods shall have collected the amount directly. The above provision is to prevent unjust enrichment of a person liable to pay duty, who might collect excess amount representing it to be duty of excise in respect of the goods cleared for home consumption, from his buyers (Para 2):CHENNAI CESTAT;

SERVICE TAX SECTION

2008-TIOL-1388-CESTAT-BANG.pdf + auto story.pdf

CCE, Belgaum Vs Chadha Auto Agencies (Dated: May 7, 2008)

Service tax – Assessee engaged in sales and services of two wheelers – Financial institutions provided office space, furniture etc in the premises – Lease of table space to financial institutions and receiving remuneration for the same cannot be categorized as Business Auxiliary service – Not liable to service tax – Tribunal's earlier decision in Silicon Honda followed – No merit in Revenue appeal and hence dismissed:BANGALORE CESTAT;

2008-TIOL-1387-CESTAT-DEL.pdf

CCE, Indore Vs M/s Panasonic Battery India Co Ltd (Dated: July 24, 2008)

ST - Consulting Engineering Service - Transfer of technical knowhow - Royalty charges paid - Since it is a case of pure transfer of technical knowhow, no service was provided - no tax to be levied:DELHI CESTAT;

2008-TIOL-1386-CESTAT-KOL.pdf

M/s Perfect Technologies Vs CCE CC & ST, Siliguri (Dated: July 8, 2008)

ST - Tax on service recipients - Assessee imports software by downloading the same online and uses the same into home automation system - Assessee argues that since imported software is a good, no service tax can be demanded - Revenue argues downloaded software can be placed under Online Information & Database Access'' category - Since the part of disputed period is covered by Sec 66A and the Revenue not able to explain the lack of jurisdiction of the adjudicating commissioner, it is a fit case for waiving pre-deposit:KOLKATA CESTAT;

CUSTOMS SECTION

2008-TIOL-1385-CESTAT-DEL.pdf

RAJ Kumar Anand & Others Vs CC, New Delhi (Dated: June 2, 2008)

Import of PU foam/leather – Evidence recovered from laptop of the appellant shows the actual description and value of the imported material and hawala transactions – Bank Accounts of the importer-companies were operated by the Appellant – Primafacie proved that the importer-companies were only dummy/front companies - Retraction of statement filed with the Court and not with Customs authorities – In the absence of any cognizance by Court cannot be considered as retraction – Pre-deposit of Rs. 2.77 Crores ordered - Stay Applications adjourned for till the date of compliance : DELHI CESTAT;