Advance Remittances for Import of Services - FEMA - Limit Raised (See 'DDT')

Forest officers in Haryana with hardly any forest will get more salary than Chief Commissioner of Income Tax - IRS Grouse (See 'DDT')

DRI arrests self-styled 'philanthropist-cum-educationist' NRI with 5 kg heroin;

CBI proposes to develop national data bank on FICN;

Govt to set up smoking cessation clinics to help youth quit smoking;

Hyderabad DRI seizes USD worth Rs 10 lakhs from pax heading for Houston;

Chennai Airport Customs seizes Euro 15500 + USD 39700 + British Pound 16200 from Singapore resident; Total seizure of FC so far this year crosses Rs 16 Cr;

Govt may opt for 30% cess on big diesel cars;

ddt 9 Sept.pdf

Advance Remittances for Import of Services – FEMA – Limit Raised;

editorial.pdf

Usurious interest rate: Apex Court should look into entire gamut of banking charges for various services;

2008-TIOL-443-HC-MP-CT-LB.pdf + mp hc story.pdf

Addl Commissioner, Sales Tax Vs M/s S Kumar Ltd (Dated: July 31, 2008)

Sales Tax - Cinder is not a different commodity from its parent coal: it is luculent that what is intended by coal and its forms is the combustible and burning article. It is clear that when a distant cousin like charcoal has been treated as coal, it would be a travesty to deprive the cinder (coal ash) of the lower marginal tax by treating it otherwise, especially when it is a part of the coal which comes out of the boiler on account of having become less combustible and unfit for use in the boiler, but retaining all properties of coal. It has not been denied that insofar as cinder is concerned, it contains sufficiently large pieces of coal and, therefore, there is no transformation or a manufacturing process: MADHYA PRADESH HIGH COURT (LARGER BENCH);

rbi08cir015.pdf

Foreign Exchange Management Act, 1999 – Advance Remittances for Import of Services;

mbuzz949.pdf

Hyderabad DRI, Chennai Airport Cutoms arrest persons with drugs;

mbuzz948.pdf

Govt to set up smoking cessation clinics to help youth quit smoking;

mbuzz947.pdf

Govt notifies guidelines for Internet Protocol TV;

2008-TIOL-408-ITAT-DEL.pdf + ako story.pdf

Akzo Nobel Car Refinishes India Vs DCIT, New Delhi ( Dated : August 08, 2008 )

Income tax - Incorporation of the company and appointment of the Managing Director for running the business alone are not sufficient to record a finding that business has been set up during the accounting period unless there is specific evidence that the activities for which the company is set up are undertaken by the company - Appellant' s claim that business commenced in the year of incorporation and appointment of Managing Director not acceptable when expenses incurred by the Managing Director in the initial stages were reimbursed by the company in the subsequent year - Not entitled for claim of business expenses in the AY relevant to year of incorporation

Income tax - Even if the assessee is following the mercantile system of accounting and though interest income would accrue during the AY, the right to receive interest would occur only on maturity of the FDs in AY 1990-91 - Addition made by CIT (Appeals) in AY 1998-99 deleted:DELHI ITAT;

2008-TIOL-407-ITAT-HYD.pdf

ACIT, Hyderabad Vs VST Industries Ltd ( Dated: May 9, 2008 )

Assessee entered into a sale and repurchase of tobacco by way of Just-in-time arrangement for raising finances for the business - Profit/loss from the sales effected by the assessee to be ascertained by comparing the sale price charged by the assessee with the original purchase price of the goods – Assessing officer compared this with the re-purchase price which is an accounting fallacy - JIT arrangement was in the ordinary course of business and the loss computed by the Assessing Officer is only illusory – Not to be added back to the income – Excise duty and sales tax cannot form part of the total turnover u/s 80HHC (3) of the Act - Apex Court ruling in Lakshmi Machine Works followed – Revenue Appeals dismissed:HYDERABAD ITAT;

2008-TIOL-406-ITAT-DEL.pdf

ACIT, New Delhi Vs O P Chawla ( Dated : July 14, 2006 )

Processing a return under sec. 143(1)(a) does not amount to assessment. Since the return was never brought to assessment under sec. 143(3) but was merely processed under sec. 143(1)(a) without any enquiry and without hearing the assessee there is no question of AO forming any opinion at that stage; hence the question of change of opinion while issuing the notice under sec. 148 does not arise.

When a particular expression used by the legislature has been judicially interpreted in a particular was to denote a particular meaning and content and if the same expression is continued to be used in the same provisions despite other substantial amendments to the provision, the correct rule of interpretation is that the expression must be given the same meaning as was given to it before the amendment.

There has to be distinction between cases where after the processing or acceptance of the return under sec. 143(1)(a) some fresh facts or information or material has come to the possession of the AO or there has been a change in the legal position, and cases where there is no such development. In the former class of cases, the notice for reopening the assessment would be valid. But in the latter class of cases, AO cannot assume powers to issue the notice under sec. 148 first and then make enquiries in an attempt to unearth escaped income.

Since the satisfaction recorded by AO are in the nature of suspicion only and not reason to believe, the notice issued under sec. 148 is invalid.

Appeal by Department dismissed.:DELHI ITAT;

2008-TIOL-405-ITAT-DEL.pdf

M/s Central Warehousing Corporation Vs CIT-I, New Delhi ( Dated : January 25, 2008 )

Income Tax - As the assessee had already added prior period expenses more than the sum proposed by CIT u/s 263, the order of the A.O. could not be said to be prejudicial to the interest of revenue - CIT on the facts of the case, had no power to exercise jurisdiction u/s 263 - Assessee appeal allowed. :DELHI ITAT;

CENTRAL EXCISE SECTION

2008-TIOL-1467-CESTAT-MUM.pdf + cast iron story.pdf

Silver Ispat (P) Ltd Vs CCE, Nashik (Dated: May 16, 2008)

Credit on Cast iron moulds – Amending notification 70/2003-CE(N.T) dated 15.09.2003 extending full cenvat credit on moulds and dies not retrospective in nature:MUMBAI CESTAT;

2008-TIOL-1466-CESTAT-MAD.pdf

Coromandel Granite Company Ltd Vs CCE, Pondicherry (Dated: June 24, 2008)

100% EOU – demand of duty on the imported / indigenously procured goods due to failure to achieve export obligation – matter remanded as the appellants are to be supplied with the copies of the relevant documents and also as the order was passed without personal hearing.:CHENNAI CESTAT;

2008-TIOL-1465-CESTAT-MAD.pdf

M/s Arun Smelters Ltd Vs CCE, Chennai (Dated: June 24, 2008)

Central Excise – compounded levy under Section 3A of the Central Excise Act on Iron and Steel products - the appellants were not entitled to utilise CENVAT credit taken on inputs, for payment of duty on non-alloy steel ingots and billets under the compounded levy scheme and, therefore, the demand of duty raised in the impugned order is upheld – however, penalty is reduced. :CHENNAI CESTAT;

SERVICE TAX SECTION

2008-TIOL-1471-CESTAT-DEL.pdf + stgst.pdf

M/s Tiger Sports Marketing Pvt Ltd Vs CST, New Delhi (Dated: August 1, 2008)

Service Tax - Even Management Service - organizing Golf Tournaments on behalf of PGA of India is not a taxable service under Even Management Service -the service provided by the Appellants to the companies sponsoring the tournament, is similar to "Sponsorship service" which became taxable w.e.f . 18/04/06.: DELHI CESTAT;

2008-TIOL-1470-CESTAT-DEL.pdf

M/s Business Information Processing Services Vs CCE, Jaipur -I (Dated: July 30, 2008)

ST - Business Auxiliary Service - Assessee has agreement with govt departments for printing monthly bills for general customers - Since the assessee is only printing bills on behalf of their clients, prima facie their service is not covered under BAS - Pre-deposit waived off : DELHI CESTAT;

2008-TIOL-1450-CESTAT-DEL.pdf

M/s Jindal Steel & Power Ltd Vs CCE, Raipur (Dated: April 22, 2008)

Service tax – Taxable services received from outside India – Service tax paid by the recipient available as credit even before rendering taxable output service and can be utilized for payment of service tax on output services – No time limit prescribed for availing CENVAT credit:DELHI CESTAT; (Sending it again as there were some typo error in the text sent to you earlier)

CUSTOMS SECTION

2008-TIOL-1469-CESTAT-MUM.pdf + air gun story.pdf

M/s Alfred Menezes Vs CC, C.S.I, Airport, Mumbai (Dated: August 1, 2008)

Absolute confiscation should be an exception rather than a rule – Diana Air Gun although prohibited for import can be allowed to be redeemed on payment of redemption fine – Tribunal.

Majority decision in Universal Traders 2006-TIOL-1319-CESTAT-DEL followed.:MUMBAI CESTAT;

2008-TIOL-1468-CESTAT-BANG.pdf

Vazheparambil Pareed Abdul Latheef Vs CC, Cochin (Dated: May 27, 2008)

Customs – Importation of used car – Violation of EXIM policy - Abetment of improper importation – Clear evidence against the appellant – Statement of appellant gives a wealth of details – Prima facie not a statement under duress – Corroborative evidence/statement available – Merely because the proceedings against two other accused were dropped, the case against the appellant would not stand not acceptable - Penalty confirmed, but reduced taking into consideration the facts and circumstances of the case : BANGALORE CESTAT;