Entry into broadcasting sector: TRAI says no to political parties and State Govts; set up FUND like USO for public services;

Spectrum allocation policy: High Court seeks details from Govt;

Ministry of Steel chasing MoF for levying import duty on steel;

PM's Economic Council for cut in RBI's reverse repo rate;

India, South Korea to ink FTA in December;

Priyaranjan Dasmunsi becomes a Minister without portfolio; PM to hold addl charge of I & B Ministry;

ddt 12 nov.pdf

Claiming exemption from Additional Duty of Customs on High Speed Diesel Oil under notification No 21/2002 Cus – Right or wrong? An insight into a DRI case;

spl down.pdf

Service PE or Included services?

2008-TIOL-210-SC-CT.pdf + mmtc story.pdf

M/s MMTC Limited Vs CCT (Dated: November 3, 2008)

Just because Article 227 was mentioned in the writ appeal instead of Article 226, writ should not have been dismissed: the High Court seems to have gone by the nomenclature i.e. the description given in the writ petition to be one under Article 227 of the Constitution. The High Court did not consider the nature of the controversy and the prayer involved in the Writ petition. The prayer was to quash the order of assessment passed by the Assistant Commissioner, Commercial Tax levying purchase as well as Entry Tax - there is no manner of doubt that the orders and proceedings of a judicial court subordinate to the High Court are amenable to writ jurisdiction of the High Court under Article 226 of the Constitution.: SUPREME COURT;

mbuzz1157.pdf

Entry into broadcasting sector: TRAI says no to political parties and State Govts; set up FUND like USO for public services ;

mbuzz1156.pdf

Industrial production grows by 4.8% in Sept; FM hails it;

mbuzz1155.pdf

India tests surface-to-surface missile with 600 km range;

mbuzz1154.pdf

Indian Navy foils Somalian pirates' attempt to hijack Indian cargo vessel;

mbuzz1153.pdf

EPFO Board gives nod to report on cadre restructuring;

2008-TIOL-557-HC-DEL-IT.pdf + telecom story.pdf

CIT Vs Bharti Cellular Ltd ( Dated: October 31, 2008 )

Income tax - TDS u/s 194J - Port services - Assessees are telecommunication service providers - make payments to PSU telecom companies for using interconnection / port access services linking a caller and a call-receiver belonging to service circles of two different telecom companies - AO for deduction of tax at source u/s 194J on the ground that such a service using sophisticated technology qualifies as technical service as per Explanation 2 to Clause (vii) of Sub-Section (1) of Sec 9 of the I-T Act - Tribunal disagrees with the Revenue that such services fall within the purview of payments as provided under Sec 194J

Held, the connotation of the word technical service is not very clear in the Act. However, it has been used in the society of words managerial and consultancy as given in Explanation 2 of Section 9(1)(vii). Going by the maxim of noscitur a sociis, these words indicate commonality and shared attributes. Hence, the word 'technical' will have to take colour from the words managerial and consultancy, and since both managerial and consultancy services characteristically involve a human element, the Sec 194J would cover only those technical servcies which necessarily have an element of human interface

The interconnect / port access facility is only a facility to use the gateway and the network of MTNL /other companies. MTNL or other companies do not provide any assistance to the assessees in managing, operating, setting up their infrastructure and networks. No doubt, such a facility is 'technical' in the sense that it involves sophisticated technology and may even be construed as a 'communication service' but to interpret the entire expression used in the pertinent Section the individual meaning of technical has to be she, and the only meaning of the whole expression 'technical services' is to be seen. Besides, the expression `technical service' is not to be construed in the abstract and general sense but in the narrower sense as circumscribed by the expressions 'managerial service' and 'consultancy service' as appearing in Explanation 2 to section 9 (1) (vii) of the I-T Act. In this light, the expression 'technical service' would have reference to only technical service rendered by a human. It would not include any service provided by machines or robots. : DELHI HIGH COURT ;

2008-TIOL-555-HC-DEL-IT.pdf + haryana story.pdf

M/s Haryana Acrylic Manufacturing Company Vs CIT-IV ( Dated : November 3, 2008 )

Income tax –– Notice issued under s. 148 to re-open assessment alleging failure to disclose all material facts for income escaping assessment - Reasons furnished for re-opening the assessment do not contain any allegation that appellant had failed to disclose material facts – When AO completes assessment proceedings under s. 143 (3) verifying all the material facts and requisite details he cannot retrace his steps to allege that appellant failed to disclose fully and truly all material facts – Notice issued under s. 148 and proceedings initiated thereon liable to be quashed : DELHI HIGH COURT ;

2008-TIOL-554-HC-P&H-IT.pdf

CIT-III, Ludhiana Vs Improvement Trust ( Dated : October 31, 2008 )

Income tax - charitable institution - assessee is an Improvement Trust set up by an Act of the State Govt - files application for registration u/s 12AA - Revenue denies it - Tribunal held the act of the Trust is charitable in nature and allowed the appeal - Held, since the assessee's activities are that of general welfare activities, registration cannot be denied, more in view of the Apex Court decision in Gujarat Maritime Board ( 2007-TIOL-237-SC-IT ) - Revenue's appeal disallowed : PUNJAB AND HARYANA HIGH COURT ;

2008-TIOL-553-HC-P&H-IT.pdf

Om Parkash Harbans Lal Sangrur Vs CIT, Patiala ( Dated: October 15, 2008 )

Income tax - Sec 68 - assessee is into liquor trade - search u/s 132 - Notice issued - AOP filed return and also an application before Settlement Commission which rejected the petition - AO finds cash credits and asks the assessee to furnish names and addresses of persons contributing to cash credits - Assessee fails - AO makes additions and initiates penalty - Tribunal allows it but reduces quantum of penalty - No infirmity in Tribunal's order based on facts - assessee's appeal dismissed : PUNJAB AND HARYANA HIGH COURT ;

2008-TIOL-552-HC-RAJ-IT.pdf

CIT, Jodhpur Vs M/s Pokar Hotel Jodhpur ( Dated : September 22, 2008 )

Income tax - Sec 147 - Assessee is into hotel business - Search conducted on premises of promoters of the hotel - A survey was also done at the hotel - AO re-opens assessment u/s 147 and makes additions on the basis of report from Valuation Cell about construction of the hotel - Tribunal deletes it - Held, first, the fate of the search operation is not known; secondly, the total amount taken by the Revenue to have been spent on construction is much more than the valuation done by the Valuation Cell which is not justified - The Tribunal's order does not call for interference - Revenue's appeal dismissed: RAJASTHAN HIGH COURT ;

2008-TIOL-551-HC-DEL-IT.pdf

CIT- VI Vs Tulip Finance Ltd ( Dated: October 15, 2008 )

Income tax - Sec 68 - Assessee receives share capital money - AO seeks details of contributors - assessee furnishes necessary details, including RBI approval for dividend paid on the share capital - AO makes additions ignoring evidence - Tribunal deletes it - No reason to interfere with findings

Depreciation - cast iron moulds - agreement signed two days before the end of the FY - AO disallows on the ground that the agreement was to take effect from next month - Depreciation allowed by Tribunal as it was first instalment of the lease money payable from next month whereas the lease commenced two days before the fiscal-end - Findings of facts do not call for interference : DELHI HIGH COURT ;

CENTRAL EXCISE SECTION

2008-TIOL-1850-CESTAT-BANG.pdf

M/s ECE Industries Limited (Formerly Apeec) Vs CCE, Visakhapatnam-I (Dated: July 18, 2008)

Central Excise – Limitation – Clearances of inputs and finished goods as free replacements pending repair without payment by duty – When the issue is in the knowledge of the authorities action has to be initiated within the time limit only – No suppression of facts to invoke extended period - Demand beyond six months hit by limitation : BANGALORE CESTAT;

2008-TIOL-1849-CESTAT-MAD.pdf

Padma Balaji Steels (P) Ltd Vs CCE, Trichy (Dated: July 30, 2008)

Central Excise – Section 3 A – Annual Capacity determination – The Commissioner was required to act in a quasi judicial capacity and follow principles of natural justice before rejecting the request for re-determination – matter remanded. : CHEENAI CESTAT;

2008-TIOL-1848-CESTAT-BANG.pdf

M/s Hindustan Petroleum Corporation Limited Vs CCE, Mangalore (Dated: July 22, 2008)

Central Excise – Exemption from payment of duty on ethanol blended petrol – In view of Notification 25/06 dtd. 20.11.06 issued under Section 11C duty not payable for the period from 1/7/04 to 3/8/04: BANGALORE CESTAT;

2008-TIOL-1847-CESTAT-BANG.pdf

M/s Arvind Mills Limited Vs CCE, Bangalore -I (Dated: July 22, 2008)

Central Excise – Appeal - Even if the Commr(A) has given his findings on merits and limitation, original authority to dispose of the case independently without being influenced by the observations of the Commr (A) – Appellants entitled to plead the case with additional evidence before original authority : BANGALORE CESTAT;

SERVICE TAX SECTION

2008-TIOL-1845-CESTAT-DEL.pdf

CCE, Chandigarh Vs M/s Nahar Exports Ltd (Dated: October 14, 2008)

ST - Consultiong Engineer Service - Tax not leviable on consulting service provided by non-resident service provider having no office in India prior to 1.1.2005 as per Larger Bench decision in Hindustan Zinc Ltd ( 2008-TIOL-1149-CESTAT-DEL-LB ) : DELHI CESTAT ;

2008-TIOL-1844-CESTAT-DEL.pdf

Shri Bhagwan Singh Gulati Vs CCE, Bhopal (Dated: June 20, 2008)

ST - Tour operator service - assessee has contract carriage permit and ferries employees of factories - Revenue raises demand - Since the assessee has no tourist permit, they are not liable to tax - Assessee's appeal allowed : DELHI CESTAT ;

CUSTOMS SECTION

2008-TIOL-556-HC-DEL-CUS.pdf + car story.pdf

CC, ICD, TKD Vs J S Gujral ( Dated: October 17, 2008 )

Customs – Import of cars – Import Policy required a certificate from a Japanese Ministry which refused to give the certificate; law cannot ask a person to do the impossible: As per the Import Policy the importers were required to obtain the Type Approval Certificate/ COP from the international accredited agency of the country of origin of the goods. In this case the cars have been imported from Japan and, therefore, it was only the Ministry of Land, Infrastructure and Transport which could have issued the Type Approval Certificate/ COP. The respondents had applied to the said Ministry for the Type Approval Certificates/ COPs but the Ministry had flatly refused in so many words. In such a situation the respondents could not be expected to submit the Type Approval Certificate/ COP from the said agency.: DELHI HIGH COURT ;

2008-TIOL-1846-CESTAT-BANG.pdf

CC, Visakhapatnam Vs M/s Stilbene Chemicals Ltd (Dated: July 25, 2008)

Customs – 100% EOU – Expiry of warehousing period of goods imported and warehoused – Application for extension of warehousing period and waiver of interest pending with Chief Commissioner – I nterest liability beyond the permitted period of warehousing does not accrue automatically but triggers only by invocation of bond obligation under Section 59(1)(b) – No infirmity in the impugned order : BANGALORE CESTAT;