Inspectors, examiners and Preventive officers to be called -Customs and Excise officers' (See 'DDT')

Industry growth rate comes to standstill; logs 0.4% growth in October;

US asks Pak to widen base of crackdown on terror outfits;

'Do-Not-Call' Registry Scheme: RBI panel not in favour of complete ban on telemarketing;

Bank of America to chop 35000 jobs over three years;

Out of 5960 sanctioned strength of CBI, 1404 lying vacant: Govt;

India sanctions USD 4.5 mn for instituting Fellowship Fund at Harvard;

ddt 12 dec.pdf

No Duty imposed by Notification No 59/2008-CE;

azadi_bachao.pdf

Study the Phraseology - After 80- IB , let it be 80IC;

2008-TIOL-227-SC-CT.pdf + sc story.pdf

M/s A & G Projects & Technologies Ltd Vs State of Karnataka (Dated: December 11, 2008)

A sale becomes inter- State sale under the CST ACT if the movement of goods from one State to another is under the contract of sale, and the property in the goods passes to the purchaser otherwise than by transfer of documents of title when the goods are in movement from one State to another Section 3 of the CST ACT 1956 formulates the principles for determining when a sale or purchase takes place in the course of inter-State trade or commerce. The question whether a particular sale is an inter-State sale or an intra-State sale, though essentially one of fact, is not the pure question of fact inasmuch as the facts of a given case have to be examined in the light of Section 3 and, therefore, it is a mixed question of fact and law. A sale (transfer of property) becomes inter- State sale under Section 3(a) of the CST ACT 1956 if the movement of goods from one State to another is under the contract of sale, and the property in the goods passes to the purchaser otherwise than by transfer of documents of title when the goods are in movement from one State to another.: SUPREME COURT;

mbuzz1248.pdf

Promotion of renewable energy sources: Govt says no proposal for JVs with foreign companies ;

mbuzz1247.pdf

Steel demand down to 1.1%; DGAD to investigate into anti-dumping charges;

mbuzz1246.pdf

Refund for air tickets: Govt lays down mandatory guidelines;

mbuzz1245.pdf

PC gives graphic details of Mumbai terror attack in House;

mbuzz1244.pdf

Our jails are spilling over with prisoners; second round of modernisation being worked out;

2008-TIOL-621-HC-DEL-IT.pdf + surrender story.pdf

CIT, Delhi –IX Vs Harkaran Das Ved Pal (Dated: November 12, 2008 )

Income Tax - when there is a bonafide surrender and the undisclosed income is computed merely on the basis of such surrender, no penalty would be imposable under Section 158 BFA (2) of the Act - it is apparent that the undisclosed income has been computed merely on the basis of the surrender made by the assessee in the course of the block assessment proceedings - had there been no surrender, the Assessing Officer could not have determined the undisclosed income inasmuch as the Tribunal has returned a finding of fact that there is no evidence relatable to the search on the basis of which such undisclosed income could have been determined.: DELHI HIGH COURT;

2008-TIOL-620-HC-DEL-IT.pdf

CIT, Delhi-IV Vs Uppal Hotels Ltd (Dated: November 24, 2008 )

Income tax - assessee enters into an agreement - later the same is amended to defer interest liability - AO makes addition for notional interest and rules amendment letter is an afterthought - An agreement is entered into to make mutual rights enforceable and its amendment cannot be said to be an afterthought - Addition of notional interest set aside - Revenue's appeal dismissed : DELHI HIGH COURT;

2008-TIOL-619-HC-MUM-IT.pdf

Prakash Vs ITO, Nagpur (Dated: September 12, 2008 )

Income Tax - Assessee (deceased) claims exemption u/s 54-F for investing the proceeds of sale of property - Revenue imposes capital gains tax as the proceeds were invested in the name of  Appellant's adopted son - CIT(A) holds that the transaction does not involve transfer of capital asset - Tribunal terms it as 'transfer' and remands the issue back to the CIT(A) who holds that Sec 54-F contemplates only investment in residential property by the assessee; it is enough if the sale proceeds are invested in the construction of a residential house - Held,  for claiming exemption u/s 54-F, right from the sale of original asset till the purchase and/or construction of the residential house, the ownership and domain over the new asset is a must - Assessee's appeal dismissed : BOMBAY HIGH COURT;

2008-TIOL-618-HC-MP-IT.pdf

Ashok Kumar Goyal Vs Income Tax Settlement Commission And Others (Dated: September 23, 2008 )

Income Tax - Pursuant to the search and seizure action of the Revenue, assessee offers additional income for settlement u/s 245C - Department files reply and various letters asking for explanation on other unconcealed income for which no replies were filed by asssessee - HC allows assessee's writ petition and directs settlement commission to settle the case within limited time - considering paucity of time Commission accepts the income offered by the assessee but orders verification and proper enquiry of facts disclosed - Assessee opposes inquiry being illegal u/s 245C - Held, for barring further inquiry by the Commission u/s 245C, assessee is under an obligation to make full and true disclosure of income - Assessee's petition dismissed accordingly. : MADHYA PRADESH HIGH COURT;

2008-TIOL-617-HC-DEL-IT.pdf

CIT Vs Shri Ravinder Nath Goel (Dated: November 6, 2008 )

Income tax - assessee pays commission and service charges to agent - AO disallows on the ground that such commission was earlier paid by the assessee when the sales had grown two-fold whereas it has grown only by 15% in the relevant AY - Tribunal deletes the additions on the ground that once the sales agent cannot be held to sustain the sales graph or an increase in the sales, and once the commission is paid as per the agreement it cannot be allowed - no fault in the Tribunal's order - Revenue's appeal dismissed : DELHI HIGH COURT;

CENTRAL EXCISE SECTION

2008-TIOL-2032-CESTAT-MAD.pdf

M/s Sri Ramanarayan Mills Ltd Vs CCE, Coimbatore (Dated: September 4, 2008)

Central Excise – valuation – clearances to depots – refund claim on the ground that excess duty was paid – in view of the contradictory claims by the revenue and the appellant on factual position, matter remanded for verification of facts. : CHENNAI CESTAT;

2008-TIOL-2031-CESTAT-DEL.pdf

CCE, Chandigarh Vs M/s Dharampal Satya Pal & Others (Dated: November 5, 2008)

Central Excise - captive consumption - demand of NCCD on tobacco essence used for captive consumption on the ground that there is no exemption for such consumption - demand is not sustainable as NCCD is paid on the finished goods and the entire exercise would be only revenue neutral. : DELHI CESTAT;

2008-TIOL-2030-CESTAT-AHM.pdf

CCE, Vadodara Vs M/s Bell Granito Ceramics Ltd (Dated: November 11, 2008)

Central Excise - valuation - Section 4A - different MRPs are acceptable for different packages - it is the prerogative of the manufacturer to affix the MRP on the goods and if different MRPs are affixed keeping in view the market condition, different MRP so fixed would be the retail sale price in respect of that packet. : AHMEDABAD CESTAT;

SERVICE TAX SECTION

CIRCULAR

sercir106.pdf

Refund of service tax to exporters: CBEC further eases procedures;

CASE LAWS

2008-TIOL-2036-CESTAT-BANG.pdf + ICFAI story.pdf

M/s Institute Of Chartered Financial Vs CC & CE, Hyderabad-II (Dated: October 17, 2008)

Service Tax – Commercial coaching or training service – Institutions imparting higher education and conferring degrees recognized by law cannot be equated to commercial training centres engaged in coaching in specified fields – Word ‘commercial' qualifies ‘coaching or training centre' and not ‘coaching or training' in the statutory definition – Registered society without any profit motive and exempt from IT outside the purview of ‘commercial coaching or training service' – When activities of institution are widely known in public domain including department allegation of suppression with intention to evade tax not sustainable : BANGALORE CESTAT;

2008-TIOL-2035-CESTAT-DEL.pdf

M/s Surya Tours And Travels Vs CCE, Jaipur-II (Dated: October 8, 2008)

ST - Rent-a-cab Service - Assessee provides cabs on hire basis - Since the assessee is not renting a cab to a customer who gets the right to use and earns the control of the vehicle during the limited period but providing the vehicle on km-basis with a driver and retains the control of the vehicle, it becomes a transport service and no service tax is leviable : DELHI CESTAT;

2008-TIOL-2034-CESTAT-DEL.pdf

CCE, Allahabad Vs M/s Krishna Coaching Institute (Dated: October 24, 2008)

ST - Commercial coaching and training service - liability - assessee collects advance payment for services to be provided during period which was brought under tax net - Merely because the payments were received prior to the service being notified, it does not absolve the assessee of its liability to pay tax - Commissioner (A) order modified to this extent and penalty set aside : DELHI CESTAT;

CUSTOMS SECTION

2008-TIOL-2033-CESTAT-AHM.pdf + sil story.pdf

Sh H Kumar Gadecha Vs CC, Ahmedabad (Dated: September 1, 2008)

SILs  submitted by original licence holders for cancellation to DGFT find their way into the open market although allegedly cancelled by DGFT - appellant purchases these from brokers and imports consignments on the strength of these – Appellant a victim of circumstances - No case for demand of customs duty - Tribunal by majority : AHMEDABAD CESTAT;