Sec 14A - Big win for Revenue (Look for Special Bench decision tomorrow)

Service Tax on Commodity Market - Board Clarifies (See 'DDT')

Petro Minister informs LS Government to reduce petro prices within a week;

Secretary, Economic Affairs, Ashok Chawla appointed India's Alternate Governor in World Bank;

Inflation on slide; goes down to 11.07%;

EGoM on SEZ, headed by Pranab Mukherjee, slated to meet on Friday; to discuss tax exemption issue;

MoF Liquidity Panel recommends more support for banks;

ddt 23 Oct.pdf + File 137.pdf

Anti Dumping Duty on Vitamin C – extended;

cobweb.pdf

Recession is here in our lap! Will India depend more on anti-dumping tool to shield domestic economy?

rbi08cir026.pdf

RBI further eases ECB Policy; allows borrowing upto USD 500 mn for rupee expenditure ;

mbuzz1095.pdf

NRIs, PIOs send USD 27 bn remittances back home last fiscal ;

mbuzz1094.pdf

DoT asks TRAI to consider reduction in call termination charge ;

mbuzz1093.pdf

Major changes proposed in Companies Bill, 2008 ;

mbuzz1092.pdf

ECB Policy - Govt may further review it if needed: Economic Affairs Seccretary ;

2008-TIOL-17-ARA-IT.pdf + isro story.pdf

ISRO Satellite Centre [ISAC] ( Dated : October 22, 2008 )

Income tax – Leasing of navigation transponder capacity by non-resident company to an Indian entity (applicant) and payment of fixed annual charges – Navigation transponder is a passive transponder and different from a communication transponder which is active and allows amplification – Applicant receiving only existing space segment capacity of navigation transponder to enable transmission of uplinked data over the entire foot print of satellite and does not use or is not conferred with any right to use the transponder – Payments made is only for deriving the benefit of satellite navigation capacity and not for use of equipment - Mere enabling the use of services or products into after receipt of technical inputs does not amount to “making available” technical knowledge, skills - Payments made by the applicant to the non-resident is neither royalty nor fees for technical services and not liable to tax under IT Act or in terms of DTAA

Income tax - No stipulation in the agreement for provision of services through the local office of non-resident entity – Nature of the contract also rules out any day to day assistance – Revenues case for existence of PE has no factual basis - No part of the business profits flowing from the contract attributable to PE in India – Since income arising out of contract for non-resident not liable to tax under the Act or DTAA applicant not liable to deduct TDS : ADVANCE RULING AUTHORITY;

2008-TIOL-16-ARA-IT.pdf + singapore story.pdf

Singapore Tourism Board ( Dated : October 17, 2008 )

Income tax - Fringe Benefits Tax - Applicant is a non-resident company having liaison offices in India - Held, Chapter XII-H in the Income Tax Act is a self-contained code. As per provisions of Ss 115WA and 115WB, FBT is payable even if no income is taxable in India. All employers which pay fringe benefits to employees are liable to FBT. Applicant is liable to FBT: ADVANCE RULING AUTHORITY;

2008-TIOL-506-ITAT-MUM.pdf + eou story.pdf

DCIT, Mumbai Vs Tecnimont ICB (P) Ltd ( Dated : August 26, 2008 )

Income Tax – EOUs – generating computer designs amnounts to manufacture for the purpose of exemption under Section 10B in view of the expanded scope by Section 10BB :- the assessee is getting technical requirements from its foreign clients for the plant/equipment lay out, which is transferred to it by means of electronic files. Thereafter, the assessee's engineers produce specific designs/drawings with the help and application of computer software for CAD System and then deliver the final design and drawings back to the clients through E-Mail or FTP. From the narration of the above facts, it is manifest that the assessee is involved in the ‘management of electronic data'.

“We, therefore, find no difficulty in coming to the conclusion that the assessee is engaged in the management of electronic data. Resultantly, the condition of “manufacture or production” of an article or thing within the meaning of section 10B read along with section 10BB stands fully satisfied”. :MUMBAI ITAT ;

2008-TIOL-512-HC-MUM-IT.pdf

CIT-VI, Mumbai Vs M/s Design & Automation Engineers (Bombay) Pvt Ltd ( Dated: September 19, 2008 )

Income tax – Sec. 263 to be invoked not as a jurisdictional corrective measure or as a review of subordinate order in exercise of supervisory powers but for the purpose of setting right distortions and prejudices to the revenue - Revenue has admittedly not argued before the CIT or before the Tribunal that the order passed by the Assessing Officer was without application of mind – Tribunal justified in setting aside CIT's order: BOMBAY HIGH COURT ;

2008-TIOL-511-HC-MUM-IT.pdf

CIT-I Vs M/s Raval Tiles And Marble P Ltd ( Dated: October 8, 2008 )

Income tax - Petition alleging Tribunal did not comply with law and proper procedure to dispose off appeals - Going by the order sheets it appears that the Tribunal did not follow the procedure in compliance with the principles of natural justice - Case remanded for fresh consideration : BOMBAY HIGH COURT ;

CENTRAL EXCISE SECTION

2008-TIOL-200-SC-CX.pdf +sc cx story.pdf

CCE, Mumbai Vs M/s Rajpurohit GMP India Ltd (Dated: October 14, 2008)

Central Excise – manufacture - Cutting and slitting of steel sheets and polyester films used for lamination purposes do not amount to manufacture according to Board Circular which is binding on the Department. The later Circular dated 2nd March, 2005 accepts the judgment of the Delhi High Court and withdraws the earlier Circular dated 7th September, 2001. Thus, the position is now made clear that cutting and slitting of steel sheets and polyester films used for lamination purposes do not amount to manufacture according to Board which is binding on the Department.: SUPREME COURT;

2008-TIOL-513-HC-DEL-CESTAT.pdf + cestat story.pdf

Dinkar Khindria Vs Union of India ( Dated: September 23, 2008 )

CESTAT members changing the order after it was signed by both the members, amounts to tampering with the judicial record - Tribunal should ensure that such unsavoury incidents should not occur in the course of their conduct of judicial proceedings - What has been done in this particular case does not behove of judicial proceedings; Once an order is passed and it is signed by the members, the same cannot be altered unless law provides for a review of the same and that too only after hearing the parties; We are not pursuing the matter in respect of the particular members who were party to the said proceedings because of the request made by the President of the Tribunal and particularly because the said members have demitted office as members of the Tribunal; However, the Tribunal should ensure that such unsavoury incidents should not occur in the course of their conduct of judicial proceedings; It is hoped that the President of the Tribunal shall inform the other members of the Tribunal about the passing of this order. : DELHI HIGH COURT ;

2008-TIOL-1731-CESTAT-MAD.pdf

CCE, Chennai-II Vs M/s Malavika Metals (P) Ltd (Dated: May 12, 2008)

CENVAT Credit – Goods manufactured on job work cleared to the principal who in turn cleared them on payment of duty – There is substantial compliance to the job work procedure – Non issuance of challans for raw material clearance to job worker is a minor defect – Benefit of Notification 214/86 to job worker cannot be denied - No infirmity in Commissioner (Appeals) order :CHENNAI CESTAT;

2008-TIOL-1730-CESTAT-MUM.pdf

M/s Kitchen Grace Vs CCE, Pune-III (Dated: July 11, 2008)

Central Excise – Deposit of duty to pursue an appeal – Whenever an appellant has deposited an amount in terms of Section 35F on his own, without any order from the Tribunal, the same has to be considered as pre-deposit – It is undisputed that the appellant herein had challenged the adjudication order and the order of the Commissioner (Appeals) and succeeded – Order of lower authority in not considering the payment by the appellant in pursuance of an order of deposit is incorrect - Impugned order set aside :MUMBAI CESTAT;

2008-TIOL-1729-CESTAT-MAD.pdf

M/s Zeneca ICI Agro Chemicals Ltd Vs CCE, Chennai (Dated: March 28, 2008)

Central Excise – De-mineralized water cleared outside the factory classifiable under 2851.19 and attracts duty – Demand of duty upheld :CHENNAI CESTAT;

SERVICE TAX SECTION

2008-TIOL-1735-CESTAT-DEL.pdf

M/s Bhilai Engineering Co Ltd Vs CCE, Raipur (Dated: July 18, 2008)

ST - Consulting Engineer service - tax deposited before issue of SCN - Demand raised but penalty not imposed - However, Commissioner imposes penalty - Since the Commissioner did not consider all the facts, the case is remanded : DELHI CESTAT;

2008-TIOL-1734-CESTAT-DEL.pdf

M/s Hindalco Industries Vs CCE, Allahabad (Dated: August 8, 2008)

ST - Service recipient - Since the definition of 'assessee' has undergone change several times by way of retrospective amendments, and the liability to file return is on the person who is liable to collect tax, the issue is arguable - pre-deposit waived off : DELHI CESTAT;

2008-TIOL-1733-CESTAT-DEL.pdf

CCE, Jaipur-I Vs Giriraj Brothers (Dated: March 14, 2008)

Service Tax - Cargo Handling service - Loading, unloading and transportation of limestone incidental to the main activity of mining – Service rendered to appellant himself for completion of the entire work – Not leviable to service tax – No reason to interfere with order of Appellate Commissioner : DELHI CESTAT;

CUSTOMS SECTION

2008-TIOL-513-HC-DEL-CESTAT.pdf + cestat story.pdf

Dinkar Khindria Vs Union of India ( Dated: September 23, 2008 )

CESTAT members changing the order after it was signed by both the members, amounts to tampering with the judicial record - Tribunal should ensure that such unsavoury incidents should not occur in the course of their conduct of judicial proceedings - What has been done in this particular case does not behove of judicial proceedings; Once an order is passed and it is signed by the members, the same cannot be altered unless law provides for a review of the same and that too only after hearing the parties; We are not pursuing the matter in respect of the particular members who were party to the said proceedings because of the request made by the President of the Tribunal and particularly because the said members have demitted office as members of the Tribunal; However, the Tribunal should ensure that such unsavoury incidents should not occur in the course of their conduct of judicial proceedings; It is hoped that the President of the Tribunal shall inform the other members of the Tribunal about the passing of this order. : DELHI HIGH COURT ;

2008-TIOL-1732-CESTAT-AHM.pdf

M/s Nirma Ltd Vs CC, Jamnagar (Dated: September 22, 2008)

Customs – Applicability of anti dumping duty - Lower rate of duty will be applicable only when the exporter is a notified exporter in the notification – In other instances residuary entry applies – Impugned order upheld : AHMEDABAD CESTAT;