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Cabinet gives nod to hike in ceiling limit of wages for productivity linked reward from Rs 2500 to Rs 3500 for dock workers + National Biodiversity Plan + pact between India and HK Special Administrative Region; Govt asks State authorities to be extra vigilant about foreign nationals buying properties in India; DGFT notifies NEW DEPB RATES; Direct tax mop-up slows down but TDS grows by 36% till Oct-end; Rohtak Excise books yet another mega service tax evasion case; this time it is Rs 248 Crore! President promotes Addl Judges of several HCs; Inflation marginally ups to 10.72%; SBI cuts PLR by 0.75%; Other banks to follow suit soon ; |
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| Dear Member, Sending the following files: |
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Obama – The MAN; India bravely loses bottled liquor case at WTO! - Fiscal reforms of domestic liquor market cannot be delayed any longer! Direct tax mop-up slows down but TDS grows by 36% till Oct-end; President promotes Addl Judges of several HCs; Global trade shrinks to 6% growth in 2007: WTO Report; Rohtak Excise books yet another mega service tax evasion case; this time it is Rs 248 Crore! |
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CIT, Udaipur Vs M/s Hycon India Ltd (Dated: August 20, 2008) Income tax – Advance paid to seller and interest earned on such advances – Income earned as interest thereon is to be treated as profits and gains of business – Available as deduction under s. 10B : RAJASTHAN HIGH COURT; Patel Chemicals Works Vs AO (Dated: September 8, 2008) Income tax – Assessment of income in transactions with sister concerns – Merely because a wrong person is taxed with respect to a particular income, the Assessing Officer is not precluded from taxing the right person with respect to that income irrespective of the fact whichever course is more beneficial to the Revenue – Quantum proceedings already decided by the Court in favour of Revenue – However in penal proceedings this aspect becomes very relevant – Tribunal directed to record its findings on this aspect and decide the entire appeal afresh: GUJARAT HIGH COURT; 2008-TIOL-536-ITAT-BANG.pdf + bangalore intl story.pdf M/s Bangalore International Airport Ltd Vs ITO, Bangalore ( Dated : December 17, 2007 ) Income tax – Amounts reimbursed in connection with feasibility study of airport project - Expenses incurred by the non-resident company outside India with regard to services received from another non-resident company for the feasibility study of airport project in India not subject to TDS – Successful bidder and failed bidders cannot be treated differently with regard to such expenses :BANGALORE ITAT; M/s Pentafour Software Employees Vs ACIT, Chennai ( Dated : July 08, 2008 ) Donation received towards corpus of the Trust – held not form part of income Assessee company formed for providing medical aid and other facilities for the employees of Pentafour group of companies. Assessee did not claim exemption under sec. 11 and hence there was no requirement of getting registration under sec. 12A of the I.T. Act. AO issued notice under sec. 148 since the fact of not getting registration under sec. 12A was not brought to the notice of AO in the original assessment proceedings so as to assess the voluntary contributions received by the assessee. On appeal Tribunal held that donation received towards corpus of the trust does not fall within the ambit of income and such receipts are capital in nature; hence there is no escapement of income. Appeal by assessee allowed.:CHENNAI ITAT; M/s Yokogawa India Ltd Vs DCIT, Bangalore ( Dated : August 29, 2008 ) Income tax - Assessee is into manufacture, trading and distribution of process control instruments - also runs a software division - claims deduction u/s 10A - carries forward business loss plus depreciation - AO for setting off of business profits against carried forward business loss - Assessee finds if AO's interpreation of law is accepted, there is no profit left to claim deduction u/s 10A - CIT(A) agrees with the AO - Held, deduction u/s 10A is to be allowed without setting off business loss or depreciation of other units - Assessee's appeal allowed :BANGALORE ITAT; |
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2008-TIOL-1810-CESTAT-MUM.pdf + air liquid story.pdf CCE, Aurangabad Vs Air Liquid India Holding Pvt Ltd (Dated: September 26, 2008) Gutsy Revenue tries to employ omnipresent Rule 6 of CCR but fails once again – Tribunal says no reversal of Cenvat required during manufacture of Nitrogen gas as Oxygen gas released into atmosphere is not a ‘manufactured' product. Board has clarified in its Circular 246/80/97-CX , dated 01/10/1996 that gases falling under Chapters 28 & 29 produced in a factory and allowed to escape in the atmosphere are not to be regarded as ‘manufactured' and accordingly the ‘Oxygen' gas released into air is not a manufactured product and hence there is no question of reversal of Cenvat credit availed on input liquid nitrogen gas – Revenue appeal rejected. : DELHI CESTAT; CC, Pune I Vs M/s Harnik Food Industries (Dated: July 11, 2008) Central Excise - SSI exemption - clubbing of clearances of a partnership firm and a private limited company - since sufficient evidence is available to hold that the private limited company is only a dummy unit, clubbing is upheld - Board's Circular No. 6/92 dated 29.5.1992 is not applicable to the facts of the case. : MUMBAI CESTAT; M/s Nippon Steering & Suspension (P) Ltd Vs CCE, Delhi-III (Dated: August 21, 2008) Central Excise - default of payment of duty under Rule 8 of the Central Excise Rules - plea to waive penalty as the duty and interest were paid before the issue of show cause notice is not acceptable as the penalty under Rule 8 is not penalty under Sec. 11 AC - however, quantum of penalty reduced. : DELHI CESTAT; M/s Denis Chem Lab Ltd Vs CCE, Ahemadabad-III (Dated: October 10, 2008) Central Excise - exemption under Notification 6/2002 CE and 4/2006 CE - Calcium Borogluconate Injection and Calcium Magnesium Borogluconate Injection are eligible for exemption as IV fluids. : AHMEDABAD CESTAT;
SERVICE TAX SECTION 2008-TIOL-1813-CESTAT-MAD.pdf + mani story.pdf M/s Mani Engineering Works Vs CCE, Salem (Dated: September 5, 2008) Service tax – revision by the Commissioner under Section 84 of the Finance Act is pre-mature as the matter is pending before the Commissioner (Appeals) : CHENNAI CESTAT; 2008-TIOL-1812-CESTAT-BANG.pdf M/s Magnus Society Vs CC & CE, Hyderabad (Dated: August 23, 2008) Service Tax – Just because an institution collects fees from the students, one cannot come to the conclusion that it imparts “commercial training or coaching” - while deciding whether an institution imparts commercial training or coaching, the totality of the circumstances has to be gone into it. Just because an institution collects fees from the students, one cannot come to the conclusion that it imparts “commercial training or coaching”. “Commercial training or coaching” is very narrow in scope. It means imparting of a particular skill by the said institution, there are several commercial coaching or training centres which imparts skill in computers, literacy, computer operation, spoken English or accountancy. They are so many things. Whereas, education is a very broad term, which includes in its scope the development of personality. It may include coaching or training but that's only a part of education. Education develops several skills, whereas, what is meant by “commercial training or coaching” in the definition given in the Finance Act has a very narrow meaning and it is not so broad enough to contain in its hold institutions imparting higher learning like MBA or Management in Computer Science or any other discipline. They would not be called as “commercial training or coaching centres”. There are many institutions preparing students for entrance examination to various universities. They may be called as “commercial training or coaching” but not institutions which offer degrees, which are recognized by law. In view of this, even the Chennai Bench's decision in the case of M/s. Great Lakes covers this issue.: BANGALORE CESTAT; Bhalchandra Mailing Services Vs CCE, Pune-III (Dated: June 4, 2008) ST - Mailing services - Assessee pleads whatever franking charges they collected from customers were paid to the postal authorities and the same is reimbursable - further argues that since they have already paid service tax on such charges, no further demand can be raised - When Revenue asks for evidence the assessee fails - Since the assessee has now produced evidence, the case is remitted to the Commissioner(A) : KOLKATA CESTAT;
CUSTOMS SECTION NOTIFICATION DGFT notifies new DEPB rates; Many products like memory cards, SIM cards, videophones, ATMs etc notified for exports benefits; DGFT amends policy for export of - non-basmati rice; DGFT export of maize corn - import norms amended; CASE LAWS CC, Mumbai Vs M/s Krishna Gears (P) Ltd (Dated: July 11, 2008) Customs – Import of used horizontal boring machine in dismantled condition in different consignments filing different Bills of Entry at different Customs Houses – Machinery cleared under two Bills of Entry cleared without dispute - No dispute as regards nature of import of the last consignment i.e. they are parts of used capital goods and documents evidencing relation to earlier consignments – Evidence on record suggests that assessee had intention to import only used capital goods and not spares, all three consignments put together constitutes used horizontal boring machine - No infirmity in Commissioner (Appeals) order : MUMBAI CESTAT; |
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