Assessment of tyres and tubes with flaps under Section 4A - CBEC clarifies (See 'DDT')

ITAT - Work allocation of CIT (DRs)/Sr. DRs (See 'DDT')

Mandatory electronic filing of returns: CBDT exempts agents of non-residents for AY 2008-09;

Orissa flood scenario worsening - Indian Navy pressed into service;

Law & order problem in Jammu & Kashmir: CBDT extends last date of return-filing and obtaining tax audit report u/s 44AB from Sept 30 to Nov 30;

Issue of Foreign Currency Exchangeable Bonds Scheme, 2008;

Hari Puttar and Harry Potter are different; HC dismisses Waner Bros' petition;

Customs & Excise Commissioner R K Pandey of 1982 batch passes away; he was on dialysis for two years;

ddt 23 Sept.pdf + file no 6.pdf + file no137

Applicability of service tax on Tobacco Board under the category of auctioneer service – CBEC clarifies to MOC;

2008-TIOL-179-SC-CT.pdf + sc ct story.pdf

CST Vs Tata Iron & Steel Co Ltd (Dated: September 16, 2008)

Central sales Tax Act – On imported steel – High Court had erred in holding that no question of law arose – matter remanded: SUPREME COURT;

rbi08cir017.pdf

Issue of Foreign Currency Exchangeable Bonds Scheme, 2008;

rbi08cir016.pdf

External Commercial Borrowings Policy - Liberalisation;

CBDT Press Release.pdf

Law & order problem in Jammu & Kashmir: CBDT extends last date of return-filing and obtaining tax audit report u/s 44AB from Sept 30 to Nov 30;

mbuzz995.pdf

India Post gets new Logo; to acquire more aircraft for faster delivery of letters;

mbuzz994.pdf

Mandatory electronic filing of returns: CBDT exempts agents of non-residents for AY 2008-09;

mbuzz993.pdf

Cross Media and ownership restrictions: TRAI seeks views from netizens;

INSTRUCTION

instruct0813.pdf

ITAT - Work allocation of CIT (DRs)/Sr. DRs;

CASE LAWS

2008-TIOL-463-HC-DEL-IT.pdf + dabur story.pdf

Dabur India Limited Vs CIT, New Delhi ( Dated : September 1, 2008 )

ITAT had no choice but to pay obeisance at the altar of judicial discipline and abide by the decision of the larger bench; the ITAT had no choice but to pay obeisance at the altar of judicial discipline and abide by the decision of the larger bench. The submission that the ITAT ought to have followed the decision of a co-ordinate bench in the teeth of the decision of a larger bench is wholly untenable as it would amount closing one's eyes to the exceptions to the principle of consistency one such exception being; that it need not be followed where a decision is passed in ignorance of a decision of a bench of a greater numerical strength or, of a higher judicial authority.

There is no option to the assessee, but to provide for depreciation while calculating the eligible profits and gains on which deduction is permissible under 80 IB , 80HHC: Firstly, by opting out of a claim for depreciation allowance under Section 32 of the Act which resulted in enhancement of profit and gains derived from the industrial undertakings and/or businesses specified under Section 80- IB and Section 80 HHC of the Act, and consequent thereto led to an enhancement of the quantum of deduction under the said provisions. Secondly, by this methodology the Assessee ensured that it could avail the benefit of depreciation allowance on a higher written value of the assets in the years subsequent to the period over which the deductions under Sections 80- IB and 80 HHC would be available.

The Assessee can choose to declare and pay tax on a greater amount of income. Where, however, the Assessee seeks to claim “special deductions” under Chapter VI-A of the Act, there is no option available to the assessee, but to provide for depreciation allowance while calculating the eligible profits and gains on which deduction is permissible under the provisions specified in Chapter VI-A.:DELHI HIGH COURT;

2008-TIOL-462-HC-MAD-IT.pdf

CIT Vs Chennai Properties And Investments Ltd ( Dated : March 4, 2008 )

Income Tax - rental property - Assessee collects amenity charges from tenants and treats the same as business income - AO treats the entire sum as income from house property - CIT(A) treats the amenity charges as income from other sources - Tribunal upholds the CIT(A) order - Held, there is no provision in law to add other charges with the income from house property - Revenue's appeal dismissed:MADRAS HIGH COURT;

2008-TIOL-437-ITAT-MAD.pdf

ADIT, Chennai Vs M/s Navix Lines Pvt Ltd ( Dated : February 15, 2008 )

Whether demurrage charges earned by assessee to be included in taxable income – Explanation to sec. 44B(2) inserted retrospectively  w.e.f 1.4.1976  was not considered by Tribunal while passing the original order. Tribunal held that non-consideration of statutory provision of law is a mistake apparent from record following the decisions of Supreme court in the case of Ashoka Textiles.

Miscellaneous petition by revenue allowed.:CHENNAI ITAT;

2008-TIOL-436-ITAT-MAD.pdf

M/s J D Chains Pvt Ltd Vs DCIT, Chennai ( Dated : March 14, 2008 )

Penalty under sec. 158BFA(2) – Partly upheld since unaccounted investments detected

Levy of Penalty under sec. 158BFA(2) – Additions made in Block assessment towards excess stock of jewellery found in the premises and machinery purchased outside the books of accounts. On appeal Tribunal agreed with the contention of assessee that the excess stock of jewellery is mainly on account of variation in the purity and addition of alloys during the process of making of ornaments and such alloy addition is accounted in the books of head office only when the ornaments are dispatched to the customers. Regarding the unaccounted purchase of machineries, arguments of assessee were rejected and levy of penalty upheld.:CHENNAI ITAT;

2008-TIOL-435-ITAT-MUM.pdf

Boston Consulting Group Pte Ltd Vs DDIT, Mumbai ( Dated : September 10, 2008 )

Income Tax - DTAA with Singapore - Assessee is into strategic consulting business - earns income from Indian clients as well as foreign clients - net income after deducting expenses offered to tax u/s 115JA - AO for applying provisions of Sec 44D - CIT(A) sets aside the order - In view of the Tribunal's decision in the case of assessee itself for earlier AYs, sec 44D is not applicable in this case but the levy of interest u/s 234B and 234C are mandatory and cannot be waived:MUMBAI ITAT;

cbecorder227_2008.pdf

CBEC issues transfer order of 22 AC/DCs;

cbecorder228_2008.pdf

CBEC issues transfer order of 6 more AC/DCs;

CENTRAL EXCISE SECTION

2008-TIOL-05-ARA-CX.pdf + vmt story.pdf

M/s VMT Spinning Company Limited ( Dated : September 11, 2008 )

Advance Ruling - construction services used for construction of workers' quarters, not input service; Services used for constructing buildings for housing workers and staff, do not have a nexus with the manufacture, sale or storage of the final product and therefore such services cannot be considered to be "input service" even as per the extended definition The applicant has laboured hard to put forward an argument that buildings fall in the category of "capital goods" and that availment of Cenvat credit on capital goods is no bar to availment of the higher rate of drawback. Such a claim has to be rejected outright. Capital goods are defined under the Cenvat Credit Rules and this definition does not cover buildings or sheds. Any and every connection, however remote and indirect it may be, is not what is contemplated by the definition. A line has to be drawn somewhere to avoid undue extension of the terms "directly or indirectly" or "in relation to", by adopting a common sense approach. What really matters is the difference in degree.

No full drawback along with CENVAT credit on construction services: The same conclusion could be reached by applying Condition No. 5 of the notification. Condition No.12 ( i ) of Customs notification which owes its origin to Rule 3 is a procedural provision and it does not have the effect of controlling Rule 3 together with its proviso. The inadvertent omission of 'input service' in Condition No.12 does not therefore come to the aid of the applicant.

Why inclusive definitions? Legislatures resort to inclusive definitions

1) to enlarge the meaning of words or phrases so as to take in the ordinary, popular and natural sense of the words and also the sense which the Statute wishes to attribute to it,

2) to include meanings about which there might be some dispute, or

3) to bring under one nomenclature all transactions possessing certain similar features but going under different names. Depending on the context, in the process of enlarging, the definition may even become exhaustive.

The governing principle of interpretation: "Interpretation must depend on the text and the context. They are the bases of interpretation. One may well say if the text is the texture, context is what gives the colour. Neither can be ignored. Both are important. That interpretation is best which makes the textual interpretation match the contextual.: ADVANCE RULING AUTHORITY;

2008-TIOL-1549-CESTAT-MUM.pdf + cenvat story.pdf

M/s Birla Corporation Ltd Vs CCE, Pune-I (Dated : June 6, 2008)

Refund claim for getting back amount of cenvat credit reversed twice – Tribunal holds that CA certificate clearly mentions that expenses not passed on to customers and which finding is not challenged by Revenue – No question of unjust enrichment – Tribunal decision in Cummins India 2007-TIOL-1959-CESTAT-MUM referred.:MUMBAI CESTAT;

2008-TIOL-1548-CESTAT-MAD.pdf

Sicgil India Ltd Vs CCE, Chennai (Dated : June 23, 2008)

Central Excise – Stay/Dispensation of pre-deposit – CENVAT Credit on supplementary invoices issued by the supplier of the goods who paid duty on detection by the department - the supplier cannot be held to have deliberately avoided paying the duty due and appear to have cleared the goods without payment of duty on account of the pendency of the dispute relating to eligibility of SSI exemption to an assessee – pre-deposit waived..:CHENNAI CESTAT;

2008-TIOL-1547-CESTAT-AHM.pdf

CCE, Rajkot Vs M/s Reliance Industries Ltd (Dated : June 27, 2008)

Payment of MOT charges for Central Excise Officers on the working hours for supervision of stuffing of goods exported - In view of two streams of decisions, matter referred to Larger Bench.: AHMEDABAD CESTAT;

SERVICE TAX SECTION

2008-TIOL-1552-CESTAT-DEL.pdf + stgst.pdf

M/s Touraids (I) Travel Services Vs CCE, Kanpur (Dated : August 25, 2008)

Service Tax – Tour Operator - arranging guide services, monument visit services, porter services, food services, general assistance services etc. were covered by the definition of "tour operator service; the supplementary services of arranging guide services, monument visit services, porter services, food services, general assistance services etc. were covered by the definition of "tour operator service" and hence the same attracted service tax. It is not material as to whether the Appellants charged the PTOs for these services on actual basis or otherwise.

Since every Commissionerate had issued trade notices, longer period of limitation can be invoked ; It has been pleaded that the Revenue cannot invoke the limitation period of five years under the proviso to Section 73 (1) of the Act as there was no wilful mis -statement or suppression of fact on the part of the Appellant and during the period of dispute they were under bonafide belief that the supplementary services were outside the purview of the tour operator service. Ever since, the tour operator service has been brought within the purview of service tax based on the instructions of the Board mentioned above, every Commissionerate had issued the trade notices explaining the scope of the tour operator service. [How does the Tribunal know that every Commissionerate had issued trade notices?] Moreover w.e.f . 10/9/04 the amended definition of the word "tour operator" specifically covered the activities of arranging for accommodation, sightseeing or similar services provided in relation to tours. In spite of this, the Appellant did not declare the amount received for those services in the ST-3 returns filed by them and the Department came to know about these services only when a detailed enquiry in this regard was made in February 2007.:DELHI CESTAT;

2008-TIOL-1551-CESTAT-DEL.pdf

CCE, Chandigarh Vs M/s Banke Bihari Computers (Dated :July 16, 2008)

ST - BAS - Assessee provides weighment of goods - Since the assessee is not into promotion of sales, it is not covered under BAS:DELHI CESTAT;

2008-TIOL-1550-CESTAT-DEL.pdf

M/s Unique Investment Centre Vs CCE, Chandigarh (Dated :August 13, 2008)

Service Tax - Stock-brokerage service - Assessee is a sub-broker - Revenue raises demand - Assessee argues since they cannot provide any service directly to the investors as per SEBI rules they provided service only to brokers against commission and secondly, service tax was fully paid by the broker - Held, the term "in connection with" is a term of wide amplitude to mean not only actual sale or purchase, but 'any service' in connection therewith. Where a person arranges a prospective investor and takes him to a stock-broker for the sale or purchase of securities, which activity he cannot undertake himself, it would clearly be a service "in connection with" the sale or purchase. The only rider is that such person must be a registered sub-broker in terms of the definition of stock-broker in Clause (101). Thus, even though there is no privity of contract between sub-broker and the investor, and the sub-broker is not directly engaged in the business of sale or purchase of securities on behalf of the investor, if he is a registered sub-broker, he would be liable to pay Service Tax on the amount received by him as commission or otherwise from the stock-broker under the agreement with him. Assessee's appeal dismissed :DELHI CESTAT;

CUSTOMS SECTION

2008-TIOL-1546-CESTAT-BANG.pdf

M/s Akhil Bhartiya Samjothan Sansthan Vs CC, Visakhapatnam (Dated : June 4, 2008)

Goods imported as gifts from U.K. under bilateral agreement – Visakhapatnam not a declared port in terms of Sl No.5 of Notification 148/94-Cus, but included later – similar imports allowed earlier – Sl No. 1 does not specify any port – Condition Nos. 1 and 5 are independent of each other – When two conditions are prevalent the beneficial condition to be adopted : BANGALORE CESTAT;