Home Ministry proposes separate courts for speedy disposal of terror cases;

Serial bomb blasts in Delhi - Gaffar Market, GK-Part I and Connaught Place; Death toll rises to 24; more than 100 injured;

BJP to kick off election campaign with Advani's 'Vijay Yatra';

Delhi DRI arrests a Thai lady passenger with 1.6 kg heroin at domestic airport;

Govt does not favour proposal to fix price band for steel products;

NMDC pays Rs 210 Cr dividend to Govt;

Industrial production shows improved growth of 7.1% in July;

Power Secretary calls for integration of rural and urban energy programmes;

Indo-French meet on Monday to discuss trade promotion;

flood story.pdf

PM takes stock of Disaster Management Authority work on Kosi floods; Nitish Kumar seeks Rs 9000 Cr aid;

mbuzz964.pdf

Govt to release coins in honour of Annadurai;

mbuzz963.pdf

Two-day bank strike on Sept 24 & 25: MoF clarifies Govt stand on disinvestment;

mbuzz962.pdf

Power Secretary calls for integration of rural and urban energy programmes;

mbuzz961.pdf

Indo-French meet on Monday to discuss trade promotion;

ORDER

cbdtorder127_2008.pdf

CBDT issues transfer order of two CCITs;

CASE LAWS

2008-TIOL-422-ITAT-HYD.pdf + software story.pdf

M/s Frontline Soft Ltd Vs DCIT, Hyderabad (Dated: August 3, 2007)

Income tax – Assessee acquired the right to use MUX and ancillary equipments in USA to get connectivity facility for outbound calls to clients in USA - Payments made in this regard to the non-resident who provided the equipment for usage is Royalty within the meaning of Clause (iva) of Explanation 2 of section 9(1)(vi) of the Act – Such transaction is within the confines of s. 195 of the Act and tax is deductible at source

Income tax – Assessee acquired right to use of 'True Dial Software' - Payment made in this regard was not for transfer of absolute assignment and ownership of 'True Dial Software' but for only right to use the said software – Such payment falls under the definition of 'Royalty' as defined in Explanation 2 (iva) to section 9(1)(vi) of the Act - Payment to non resident is deemed to accrue and arise in India and liable to deduction of tax at source – Order of the lower authorities up held - Assessee's appeals dismissed: HYDERABAD ITAT;

2008-TIOL-421-ITAT-DEL.pdf

ADDL CIT, Noida Vs M/s Swastik Fragrances ( Dated : June 27, 2008 )

Interior designing and renovation charges on the office premises held as revenue expenditure. Office building was old and the expenditure incurred during the year was not substantial compared to the Written Down Value of the building. Expenses were incurred only to give a better look in tune with the modern trends and no additional space was created. No enduring benefit accrued to the assessee. Revenue's appeal dismissed. : DELHI ITAT;

CENTRAL EXCISE SECTION

2008-TIOL-1498-CESTAT-MAD.pdf

M/s G T Exports Vs CCE, Coimbatore (Dated: July 4,2008)

Central Excise – refund of unutilized credit under Rule 5 cannot be denied on the ground that the activity undertaken on goods exported does not amount to manufacture: CHENNAI CESTAT;

2008-TIOL-1497-CESTAT-MAD.pdf

CCE, Chennai Vs M/s Tamil Nadu Electricity Board (Dated: April 25, 2008)

Central Excise – manufacture - the refining/reprocessing of used transformer oil, undertaken by the respondents during the period of dispute would not amount to ‘manufacture' for the purpose of levy of duty of excise as rightly held by the lower appellate authority: CHENNAI CESTAT;

2008-TIOL-1495-CESTAT-BANG.pdf + sales story.pdf

M/s Consolidated Engineering Construction Company Vs CCE, Bangalore (Dated: May 29, 2008)

Central Excise - Job worker - Sales Tax paid on raw material not deductible from Assessable value – Job worker cannot claim cum duty price valuation – value of scrap included twice – Matter remanded for redetermination of aggregate value of clearance for SSI benefit – Lapse of not paying duty on the sales tax element on the raw material is due to lack of understanding of the law - Job worker not entitled to cum duty price - Since assessee was under bonafide belief vis-à-vis sales tax abatement & cum duty price - Penalty set aside: BANGALORE CESTAT;

2008-TIOL-1493-CESTAT-BANG.pdf

CC & CE, Hyderabad Vs M/s Sundar Silk Mills (P) Ltd (Dated: March 25, 2008)

Assessee's request for sealing of stenter acted upon by Revenue belatedly - Assessee cannot be faulted for Revenue's delay in initiating action as per statute – Revenue Appeal dismissed - CESTAT : BANGALORE CESTAT;

SERVICE TAX SECTION

2008-TIOL-1496-CESTAT-AHM.pdf

CCE, Vadodara Vs Catalytic Distillation Tech (Dated: May 15, 2008)

ST - Consulting Engineering Service - Revenue detects from IOCL documents that payment was made to the assessee for providing consulting engineering service - Demand and penalty confirmed - Tax with interest deposited - while reviewing u/s 84, the Commissioner set aside the penalty on the ground that the levy was new at the material time and the assessee was not aware of it - Revenue provides no justification for levy of penalty - Commissioner's order upheld: AHMEDABAD CESTAT;

2008-TIOL-1494-CESTAT-DEL.pdf

M/s Modi-Mundipharma Pvt Ltd Vs CCE, Meerut (Dated: June 23, 2008)

Service Tax – Right to use technical knowhow – prima facie intellectual property – pre deposit ordered: From the Appellant's agreement with M/s Mundipharma , it is clear that this is not an agreement for permanent transfer of technology but an agreement under which the appellant have acquired right to use the knowhow developed by M/s Mundipharma , for manufacture of certain medicines for which annual payment of royalty is made to M/s Mundipharma . The service being received by the Appellant from M/s Mundipharma , therefore, prima facie appears to be covered by the definition of "Intellectual property rights" service as given in Section 65 ( 55a ) of the Act, and on this point, the Revenue, prima facie, has a strong case. However on the point of limitation, the appellant, prima facie, appear to have a strong case, as during the period of dispute, the appellant, every year were filing an ER-4 return under Rule 12 (2) (a) of the Central Excise Rules, 2002 in the Divisional office and along with this return, they were enclosing a copy of audited balance sheet and profit and loss account in which the royalty payments are clearly mentioned. Taking all these factor into consideration, we are of the view that this is not a case for total waiver of pre-deposit of duty and penalty. Accordingly, we direct the appellant to deposit an amount of Rupees Eleven Lakhs . :DELHI CESTAT;

CUSTOMS SECTION

2008-TIOL-169-SC-AD.pdf + dumping story.pdf

DGAD Vs M/s Lubrizon India Pvt Ltd (Dated: September 10, 2008)

Anti Dumping – question whether "like article" includes only the article which is the subject matter of investigation after being identified – left expressly open - “the Preliminary Notification came to be issued on 5th September, 2002. The duty was leviable for five years. It was extendable but, in this case, it has not been extended. This period of five years, in the present case, ended on or about 4th September, 2007. Since then, it has not been extended. In the meantime, the respondent has paid duty for five years. In the circumstances, we do not wish to go into the question of law, quoted herein-above. Prima facie, we are of the view that the Tribunal's decision needs proper evaluation and consideration particularly, in the context of the connotation to be given to the words "like article" under Rule 2(d) of the said Rules, 1995.” For the afore-stated reasons, although on the facts of the case, we do not wish to interfere, we keep the question of law expressly open.: SUPREME COURT;