Service Tax on Hair Cut - New York Stunned (See 'DDT')

Govt to set up National Meat and Poultry Processing Board;

Chhatisgarh bags CSI-Nihilent e-governance award; Customs man does it again for State Govt ;

Petrol cess: Govt garners Rs 70,000 Cr since 2000;

Inflation finally comes down to 6.84%;

Second Stimulus Package to focus on Income Tax benefits + bank rates;

LS passes amendment in terror law;

NYPD cops take a round of Mumbai terror attack spots to study new trend;

UN Security Council authorises air and land attacks on Somalian pirates;

ddt 18 dec.pdf

Govt Sops to promote Textile industry and export segment;

cobweb.pdf

New National Security Paradigm: Does Govt really think Customs has no place in new 'Command System'?

vacancies_wco.pdf

WCO looking for DD and TO;

mbuzz1275.pdf

Govt sets up Inter-Ministerial Panel to look into complaints against TV channels;

mbuzz1274.pdf

Satish Lomba of Audit & Accounts appointed Custodian for Harshad Mehta case;

mbuzz1273.pdf

Petrol cess: Govt garners Rs 70,000 Cr since 2000;

mbuzz1272.pdf

CIS Anti-Terrorism Centre to connect to Interpol databses;

mbuzz1271.pdf

Chhatisgarh bags CSI-Nihilent e-governance award; Customs man does it again for State Govt ;

2008-TIOL-22-ARA-IT.pdf + ara story.pdf

Dr Virindra Kumar Raina ( Dated: December 17, 2008 )

 Income Tax- Advance Ruling;- NRO Accounts – NRI returning to India - The income of the applicant arising from the existing NRO deposits with SBI shall be taxed @ 20% - AAR - The income of the applicant arising from the existing NRO deposits with SBI shall be taxed @ 20% plus applicable surcharge and cess; After his return to India, the applicant can invoke the provisions of section 115H until conversion of his NRO account into rupee account as per the extant RBI regulation / instruction; Until conversion, income from NRO account shall be segregated from other income of the applicant and subjected to tax @ 20% plus applicable surcharge and cess ; So far as question no. 4 is concerned, whether the applicant can open fresh NRO account after his return to India will depend on the then prevailing regulations / instructions of RBI .: ADVANCE RULING AUTHORITY;

2008-TIOL-635-HC-P-H-IT.pdf

Sunil Bhaseen Vs CIT, Jalandhar (Dated: November 28, 2008 )

Income Tax - Gift - assessee receives considerable sum in gift - AO makes addition on the basis of statement of a person who says that it was the assessee's own money - Tribunal agrees with the AO as the assessee fails to substantiate the reason for such a gift and that the donor was closed related to the assessee - Since the assessee did not make any effort to rebut the charges, merely because the person making a statement against the assessee was not cross-examined, it will not vitiate the case - Assessee's appeal dismissed : PUNJAB AND HARYANA HIGH COURT ;

2008-TIOL-634-HC-DEL-IT.pdf

CIT Vs Smt Rani Shankar Mishra (Dated: December 12, 2008 )

Income tax - assessee applies for a job with Voice of America, an agency of the US Govt - assessee receives intimation about selection but was never offered a job - a group of women allege discrimination based on gender - class action in US court of law - compensation received by assessee with interest - AO treats the sum received as profits in lieu of salary u/s 17(3)(iii) - CIT and Tribunal disagree with the AO - Held, since the compensation was given for not offering a job and discrimination based on gender, there was no employer-employee relationship between the assessee and the voice of American. Compensation is rightly held to be capital receipt by the Tribunal - Revenue's appeal dismissed :DELHI HIGH COURT ;

2008-TIOL-628-ITAT-DEL.pdf + taxfree story.pdf

Indian Sugar Exim Corporation Ltd Vs DCIT, New Delhi (Dated: December 05, 2008 )

Income tax - Sec 14A - Assessee earns dividend income and interest from bonds - claims deduction for expenditure - AO disallows part of expenditure incurred for earning exempted income - CIT(A) deletes disallowance made for interest income but partly allows for dividend income - Held, in view of evidence produced from bank, no disallowance to be made for interest income. However, for earning dividend income, a part of administrative expenses like management decisions, professionals to keep a watch on the markets and close study of rise and fall in value of investments has to be attributed, and the onus to prove that no expenses, directly or indirectlly were incurred in relation to earning such tax-free income, lies with the assesse. Since the assessee fails to prove so, the disallowance made by the AO is uphled :DELHI ITAT ;

2008-TIOL-627-ITAT-DEL.pdf

M/s Punjab & Sind Bank Vs ACIT, New Delhi (Dated: October 17, 2008 )

Interest Tax Act - Section 4 – Held, interest tax was to be levied on gross amount of interest received by all banks and financial institutions which definitely called for application of multiplication factor of 2/100 (3/100 in assessment year 1997-98) to gross amount of interest for computing interest tax liability of assessee – Held further that although assessee was allowed to reimburse itself for interest tax levied by making necessary adjustments in interest rates charged from borrowers, it did not mean that adjustments of such interest rate would be by way of grossing up interest rate by including interest tax also therein. :DELHI ITAT ;

CENTRAL EXCISE SECTION

2008-TIOL-636-HC-RAJ-CX.pdf + loss story.pdf

UoI Vs M/s Hindustan Zinc Limited & Anr (Dated: October 13, 2008 )

Central Excise - destruction or loss of goods, by natural causes or unavoidable accident, is essentially a subjective satisfaction – No question of Law – In the very nature of things, contemplated by Rule 21, the aspect of satisfaction, about the destruction or loss of goods, by natural causes or unavoidable accident, is essentially a subjective satisfaction of the authority concerned, and that having been recorded by the learned Tribunal, it is a pure satisfaction of fact, altogether subjective. The findings recorded by the Tribunal have already been quoted above, which in our view leaves no manner of doubt that the learned Tribunal had independently recorded its satisfaction about the loss, or destruction having been sustained by the assessee under the circumstances as covered by Rule 21. Then, merely because the Tribunal also referred to, or relied upon the accounting policy, which as held above, is not relevant, would not in any manner vitiate the finding, recorded by the Tribunal. The finding remains the findings of fact. The result of the aforesaid discussion is, that we do not find any force in the appeals. The same are, therefore, dismissed. : RAJASTHAN HIGH COURT ;

2008-TIOL-2073-CESTAT-MUM.pdf + parle story.pdf

CCE, Raigad Vs Parle International Ltd (Dated: November 20, 2008)

Tribunal deprecates the order passed by CCE, Raigad and remands the case.

Commissioner drops demand notice – Revenue appeals on the ground is not a speaking one - Finding that there was nothing to indicate that the adjudicating authority was convinced with the submissions made or had examined the applicability of the case law, the Bench deprecated the order passed and remanded the matter. :MUMBAI CESTAT;

2008-TIOL-2072-CESTAT-MAD.pdf

M/s GTN Exports Ltd Vs CCE, Coimbatore (Dated: July 16, 2008)

CE – CENVAT CREDIT - entitlement of EOU to take balance of credit relating to inputs/capital goods lying in the cenvat account of the DTA on the date of its conversion to EOU; Rule 10 of Cenvat Credit Rules, 2004 did not prohibit availing by EOU of the balance credit at the time of conversion of DTA. Rule 10 of CCR '04 dealt with transitional credit in situations such as shifting of factory or change in ownership or sale, merger or amalgamation or lease. The claim of the appellant that the credit balance available related to inputs received on or after 06.09.04 is not contested. In any case, no provisions prohibited an EOU from availing balance of credit when the unit converted to EOU from DTA. EOU also manufactured goods for DTA clearances.

Amount of duty to be paid on removal of inputs as such: the Commissioner (A) ordered that the appellant was required to reverse the credit originally availed when the inputs were removed as such. We find the order to be in accordance with Rule 3(5) of CCR,04. The appellant had reversed credit as per the said rule and the demand in this regard was dropped by the original authority in the order passed following the directions in Order in Appeal No.92/06. The appeals are allowed. :CHENNAI CESTAT;

2008-TIOL-2071-CESTAT-MAD.pdf

M/s HI-TECH Arai Ltd Vs CCE, Madurai (Dated: September 11, 2008)

Central Excise – classification – remand by the CESTAT – the Commissioner (Appeals) cannot classify the goods under a different entry which was not part of the remand order and which was not agitated before the Tribunal – matter remanded. :CHENNAI CESTAT;

SERVICE TAX SECTION

2008-TIOL-2068-CESTAT-DEL.pdf

M/s Bharat Apex Industries Ltd Vs CST, New Delhi (Dated: September 15, 2008)

Consulting Engineer - Appellant receiving technical know how from foreign collaborators who do not have office in India - recipient of such service could not be held liable for paying service tax prior to 1.1.05 – LB decision in Hindustan Zinc Ltd. 2008-TIOL-1149-CESTAT-DEL-LB followed. : DELHI CESTAT;

2008-TIOL-2067-CESTAT-MAD.pdf

M/s Madras Race Club Vs CST, Chennai (Dated: September 23, 2008)

Service tax – Stay/Dispensation of pre-deposit – Business Support Service – demand of service tax on commission received by the Race Club from bookmakers under Business Support Service – prima facie case for waiver of pre-deposit - Section 65(104c) of the Finance Act, 1994. : CHENNAI CESTAT;

2008-TIOL-2066-CESTAT-BANG.pdf

CCE, Mangalore Vs V S Patil (Dated: July 24, 2008)

Service Tax - Providing Rent-A-Cab to BSNL – when the service provider registered with the department as early as on 10-9-2003 and paid the service tax for the period from 4/2001 to 7/2002, there was no reason for them to discontinue payment of service tax for later period – there is substance in Revenue's contention - Penalty imposition called for but in the facts and circumstances penalty imposable to the extent of 25% of service tax amount  – Commissioner(A)'s order set aside to the said extent and appeal allowed. : BANGALORE CESTAT;

CUSTOMS SECTION

NOTIFICATION

dgft08pn117.pdf

DGFT restores DEPB rates for milk and milk products;

CASE LAWS

2008-TIOL-2070-CESTAT-MUM.pdf

M/s K C Knitwear Vs CC, Mumbai (Dated: September 18, 2008)

Customs - Allegation of mis-declaration of value of export goods for claiming higher drawback - When there is prima facie evidence to suggest that goods cannot be exported and the statements obtained are spontaneous, depositions cannot be alleged to be afterthought – Loading of goods can at best be considered as preparation for export but certainly not attempt to export – Commissioner's order for confiscation of goods and imposition of penalty set aside : MUMBAI CESTAT;

2008-TIOL-2069-CESTAT-MAD.pdf

M/s Bharati Airtel Vs CC, Chennai (Dated: September 22, 2008)

Customs – classification of Optical Fibre Cables – Commissioner's order classifying under CSH 9001.10 by following the ratio of Authority of Advance Ruling is against the provisions of Section 28J of the Customs Act, 1962 - an advice issued by the AAR is binding on the Commissioner and the party seeking advice and none else. : MUMBAI CESTAT;