CAG: Out of 9000 Audit Paras not even a first response for 3000 paras (See 'DDT')

CBI powers for CAG? (See 'DDT')

Patel once again calls for rationalisation of ATF prices;

Sahar Airport Customs seizes more than 3 kg heroin; arrests pax;

India invited by EU, G-8 to emergency meet to discuss overhaul of global financial system;

Mounting adverse publicity and political pressure: Jet Airways 'retrenches' decision to fire 1900 staffers;

SEBI eases cap on debt-equity investment ratio for FIIs;

ddt 17 Oct.pdf

Excise Revenue falls by 3.2% in September – Excise and Customs Revenue crosses One Lakh Crores in the half year;

editorial.pdf

Indian Aviation Industry howling for 'policy-ATF' to stay airborne!

2008-TIOL-193-SC-CT.pdf + sc ct story.pdf

Cosmopolitan Club Vs State of Tamil Nadu (Dated: September 25, 2008)

Sales tax on food and drinks supplied by a club to its members – matters remanded to Tribunal to decide the exact relationship between the parties– Will it have any Service Tax implications? In this case there was no determination by the fact finding authorities regarding the relationship between the Club and its members in the matter of supply of food and drinks; that is to say, was the Club acting as an agent of the members or did the property in food and drinks pass from the Club to the members? : SUPREME COURT;

post_aracustoms.pdf

Authority for Advance Ruling (Customs & Excise) looking for a Member ;

RBI Notifi For Interest Rates.pdf

Interest Rates on Non-Resident (External) Rupee (NRE) Deposits- UCBs ;

rbi08cir024.pdf

Deferred Payment Protocols dated April 30, 1981 and December 23, 1985 between Government of India and erstwhile USSR;

rbi08cir023.pdf

RBI enhances limit of overseas FC borrowings by authorised banks ;

2008-TIOL-492-ITAT-MUM.pdf + eurotex story.pdf

Eurotex Industries and Exports Ltd Vs Addl CIT, Mumbai (Dated: September 15, 2008)

Income Tax - Deduction u/s 10B - Assessee owns two 100% EoU units - claims deductions for exports incentives, exports quota income and interest income earned from deposits made for electricity and water connections u/s 10B - AO disallows - CIT(A) grants partial relief to the assessee - Held, the wording in section 10B is similar to the wording used in section 80I - "any profits and gains derived from an industrial undertaking" and in view of the law, the Revenue is correct in excluding the exports incentive for determinging the exemption u/s 10B. Any income which may be incidental to the business of the assessee but which is not derived from the industrial undertaking does not qualify for deduction under section 10B. Assessee's appeal dismissed : MUMBAI ITAT;

2008-TIOL-491-ITAT-DEL.pdf

ADIT, Dehradun Vs M/s Maersk Co Ltd (Dated: September 19, 2008)

Income tax - Interest u/s 234B - Assessee hires non-resident technicians and pays them salaries - Revenue charges the assessee for non-filing of returns by the technicians - Order u/s 163 (1) passed, appointing the assessee as agent of the technicians - Revenue works out liabilities of employees and charges the assessee for not deducting tax at source - also levies interest u/s 234 - CIT(A) says interest is not chargeable in this case and remands the matter to the AO for correct calculation - Held, since the CIT(A) has only remitted the matter to the AO with the direction to examine the documents and allow appropriate relief, no error can be found in this order - Revenue's appeal rejected : DELHI ITAT;

2008-TIOL-490-ITAT-MAD .pdf

M/s Madras Cricket Club Vs ITO, Chennai (Dated: May 13, 2008)

Interest received by assessee club from bank deposits subject to tax.

Principle of mutuality does not exists for such receipts even if such banks are corporate members of the club. Decision of Karnataka High court in Bangalore club followed.

Assessee's appeal dismissed: CHENNAI ITAT;

2008-TIOL-489-ITAT-MAD.pdf

ACIT, Chennai Vs M/s Man Machine Systems (Dated: February 15, 2008)

Deduction under sec. 80 HHE – Seminar receipts – Not eligible for deduction.

Assessee engaged in the business of software development and export of software. Seminar receipts included in profits for determining 80 HHE deduction. According to assessee such seminars are integral part of core business of software engineering and are required by their clients. AO disallowed the claim on the ground that such receipts are from Indian companies and hence not derived from export activity. On appeal, ITAT confirmed the stand of AO. : CHENNAI ITAT;

2008-TIOL-488-ITAT-DEL.pdf

M/s Transfrig India Ltd Vs ITO, New Delhi (Dated: July 25, 2008)

Income Tax - Assessee is in the business of running refrigerated transport vehicles on hire. Vehicles belong to a company which is closely associated with the assessee. Assessee claims deduction for rental payments made to the associated company - On cross-check AO finds that the sum claimed as deduction by the assessee was written off by the associated company as bad debt - deduction disallowed - Held, since the assessee had deducted tax at source on the sum paid to the associated company which showed the same in its books and also paid tax, Revenue is not justified in disallowing the same - Assessee's appeal allowed

The issue of levy of interest u/s 234B and 234D as well as withdrawal of earlier interest granted u/s 244A - Held, the charging of interest u/s 234B and 244A is deemed as consequential in nature and same may be recomputed by the AO while giving appeal effect to the order of ITAT : DELHI ITAT;

CENTRAL EXCISE SECTION

2008-TIOL-1699-CESTAT-MUM.pdf + coconut story.pdf

CCE Vs M/s Sweet Confectionary (Dated: August 28, 2008)

Duty paid “Coconut Punch Chocolates” bought in bulk and repacked with manufactured “Coffee Bite chocolates” and cleared on payment of duty under s.4A is entitled for Cenvat Credit – Tribunal.

Activity of packing of duty paid  “Coconut Punch chocolate” along with manufactured “Coffee bite” is an activity amounting to manufacture, and as there is an activity of manufacturing, the duty paid Coconut Punch chocolate produced by respondents has to be considered as an input for manufacturing final products ‘Coffee bite' – Cenvat credit allowed. 

Tribunal decision in the case of Lotte India Corporation [2008-TIOL-359-CESTAT-MAD] relied upon.:MUMBAI CESTAT;

2008-TIOL-1698-CESTAT-MUM.pdf

M/s Rallis India Ltd Vs CCE, Coimbatore (Dated: August 8, 2008)

Central Excise – exemption under Notification 181/86 CE dated 1.3.86 for fertilizers – the appellants had knowingly availed the exemption for goods cleared to poultry units to be used as feed for chickens – invoking extended period is upheld. :MUMBAI CESTAT;

2008-TIOL-1697-CESTAT-MUM.pdf

M/s Glaxo Smithkline Pharma Ltd Vs CCE, Nashik (Dated: July 27, 2008)

Central Excise - Cenvat credit - Assessee avails credit on common inputs used in manufacture of exempted and dutiable products - Credit of service tax paid on common input services also availed on pro-rata basis to the extent credit was attributable to dutiable goods - adjudicating authority confirms sum equal to 10% of total price of exempted products - Since this issue is already pending with the Larger Bench, stay granted along with waiver of pre-deposit :MUMBAI CESTAT;

2008-TIOL-1696-CESTAT-DEL.pdf

CCE, Jaipur-II Vs M/s Grasim Industries (Dated: August 26, 2008)

CENVAT/MODVAT Credit – Clearance of scrap of machinery during 1995 to 1999 – No evidence to suggest that the appellants have availed MODVAT Credit on these goods received by them during prior period – No reason to interfere with the findings of the Commissioner (Appeals) :DELHI CESTAT;

SERVICE TAX SECTION

2008-TIOL-1694-CESTAT-DEL.pdf

M/s Chetan Traders Vs CCE, Jaipur (Dated: July 17, 2008)

ST - Business Auxiliary Service - Assessee sells telecom products of BSNL and earns commission - Revenue demands tax - Assessee argues since it buys goods from BSNL and sells them to earn profit and pays sales tax on the same, service tax provisions are not applicable - The case is squarely covered by the Tribunal's decision in the case of Karakkattu Communications ( 2007-TIOL-1374-CESTAT-BANG ) in favour of assessee :DELHI CESTAT;

2008-TIOL-1693-CESTAT-MAD.pdf

M/s Pudukottai District Central Co-Op Bank Ltd Vs CCE, Trichy (Dated: July 10, 2008)

Service tax – Banking and other financial services – gold jewllery appraising charges collected from the borrowers has nothing to do with “other financial services” – demand of service tax set aside.: CHENNAI CESTAT;

2008-TIOL-1692-CESTAT-MAD.pdf

M/s Southern Iron & Steel Co Ltd Vs CCE, Salem (Dated: July 31, 2008)

Service tax – Goods transport Agency Service – demand of service tax – matter remanded to the adjudicating authority for verification of records and pass appropriate orders. : CHENNAI CESTAT;

CUSTOMS SECTION

NOTIFICATION

cnt08_113.pdf

CBEC revises tariff value of brass scraps and poppy seeds;

ctariff08_108.pdf

Anti-dumping duty on Chloroquine phosphate extended till September, 2009;

CASE LAWS

2008-TIOL-1695-CESTAT-MUM.pdf

National Steel And Agro Industries Ltd Vs CC, Mumbai (Dated: July 23, 2008)

Customs – Allegation of diversion of duty free imported goods for sale – No concrete evidence to substantiate the allegation – Statement of company official who was not an employee at the time of such clearances cannot be held to be conclusive in the absence of corroborative evidence – ER 1s relied upon by the Commissioner to prove his case pertain to the period not covered in the SCN – Evidence to show that for the period under reference appellants imported materials on payment of duty – Primafacie strong case in favour of appellants – Pre-deposit waived and order stayed : MUMBAI CESTAT;