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AED and SAED on motor spirit and HSD: CBEC clarifies it is not to be paid for goods exported under bond from units located in SEZ + Units in SEZ allowed to avail rebate benefits for exports; Govt all set to refer Satyam corporate fraud case to Serious Fraud Investigation Office; Satyameva Jayate - Satyam Asatyam - Ramalinga raju resigns; There was no Satyam at all - it was all Asatyam (See 'Common Basket' for full text of Raju's letter) FIPB approves 34 proposals worth Rs 1614 Crore; Deora again hints at petro price cut by month-end; Exports Incentive Scheme under Chapter 3 of FTP - value for calculation of entitlement - DGFT clarifies FOB value inclusive of discounts and commission to be reportd; TRAI Study reveals congestion in cellular networks is alarming in many areas; Govt all set to refer Satyam corporate fraud case to Serious Fraud Investigation Office; Govt serious about pushing through Insurance Bill before Parliament runs out of oxygen; |
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| Dear Member, Sending the following files: |
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Fringe Benefit Tax – Pre-paid Electronic Meal Card – CBDT Prescribes Conditions; Rate of Service Tax: Relevant date is Date of Service rendered; Exim Bank's Line of Credit of USD 25 million to the Government of Ghana; mbuzz0021.pdf + Satyam_Computer_Services_Ltd.pdf Satyam Computers - there was no Satyam at all - it was all Asatyam; FIPB approves 34 proposals worth Rs 1614 Crore; TRAI Study reveals congestion in cellular networks is alarming in many areas; CBI nabs ACIT of 2004 batch IRS, accepting bribe of Rs 2 lakh; |
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CBDT posts three DCITs as OSD in Board; CASE LAWS JSRS Udyog Limited Vs ITO (Dated: December 10, 2008) Income Tax - Sec 147 - Assessee challenges the notice u/s 148 and the order passed by the AO by disposing of the objections to the initiation of re-assessment proceedings -Held, no reasons supplied to the petitioner - merely having a reason to believe that income had escaped assessment, is not sufficient to reopen assessments beyond the four year period - escapement of income from assessment must also be occasioned by the failure on part of the assessee to disclose material facts, fully and truly. This is a necessary condition for overcoming the bar set up by the proviso to sec 147 - notice and Revenue's order quashed:DELHI HIGH COURT; CIT, Bikaner Vs M/s Rajesh Kumar Dinesh Kumar (Dated: November 10, 2008) Income tax - interest u/s 220(2) - AO makes block assessment - Tribunal sets aside assessment and remands it to AO for fresh examination - AO again makes assessment for the same income - Tribunal again remands it to AO with fresh directions - AO passes fresh assessment order, reducing the demand - calculation of interest - Held, interest to be computed from the date, the amount becomes due as per the fresh assessment order passed after the remand and is covered by para 2(i) of the Circular No 334 - Revenue's appeal dismissed:RAJASTHAN HIGH COURT; 2009-TIOL-14-ITAT-BANG.pdf +stpi story.pdf Nous Infosystems Private Ltd Vs ACIT, Bangalore (Dated: November 7, 2008) Income tax - assessee is into export of computer software - has four units outside India and two STPI units in India - AO sets off losses of non-STPI units against profits of STPI units - Held, issue is already decided in favour of assessee as the Revenue cannot set off losses incurred by non-STPI units against profits of STPI units Sub-section (4) of Sec 10A - AO considers total turnover of the business for allowing benefits - Held, in view of the substitution of Sub-sec 4 by the Finance Act, 2001 w.e.f 1.4.2001, it has to be the total turnover of the unit and not the entire business (all the units) of the assessee Unrealised export proceeds - AO excludes it from exports turnover eligible for deduction u/s 10A - Assessee relies on Sec 155(11A) which was introduced from 13.7.2006 and pleads for inclusion of the same in the figure of export turnover - Held, the intention of the legislature is very clear to allow the assessee to apply for rectification within a period of four years from the end of the previous year in which export proceeds were brought into India and the AO is bound to allow the benefits for including them in export turnover as directed by the CIT(A) who has powers co-terminum with the AO - Revenue's appeal dismissed:BANGALORE ITAT; ITO, Delhi Vs M/s U S Granite (Dated: September 26, 2008) Income tax - assessee is a 100% EoU - also exports goods through third parties - claims deduction u/s 10B as well as Sec 80HHC separately - AO allows deduction u/s 10B but while allowing benefits u/s 80HHC, reduces the exemption granted u/s 10B from the profits of the business and Sec 80HHC benefits allowed only on the balance - CIT(A) allows assessee's appeal - Held, it is already settled that a 100% EoU is entitled to independently claim deduction u/s 10B and Sec 80HHC - Revenue's appeal dismissed:DELHI ITAT; ACIT, Moradabad Vs M/s Jubilant Organosys Ltd (Dated: November 7, 2008) Income tax - Reassessment u/s 147 - assessee raises loans and invests in shares - assessee's dividend income assessed under the head 'Income from other sources' - Assessment reopened to deduct the sum of interest from the dividend income and additions made - held, since all the facts were disclosed truly and fully in the return for assessment, initiation of re-assessment is not sustainable - Assessee's appeal allowed:DELHI ITAT; |
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| SERVICE TAX SECTION CCE Vs M/s Shree Rubber Plast Co Pvt Ltd (Dated : December 19, 2008) Central Excise / Customs Appeals – High Court has power to condone delay: for the applicability of Section 4 to 24 of Limitation Act, the following three conditions must be satisfied:- (i) There must be prescribed period of limitation under any special or local law; (ii) The said prescription of period of limitation should be different from that of the period prescribed by the Schedule of the Limitation Act. (iii) Application should be before a Civil Court. So Section 5 of Limitation Act will be applicable to Appeals filed under Section 35G of the Central Excise Act.:BOMBAY HIGH COURT (LARGER BENCH) General Electric International Inc Vs CCE, Delhi (Dated: November 27, 2008) ST - Cenvat credit - assessee receives consulting engineer service from non-resident - invoice raised at offshore address and payment also made outside India - assessee takes credit for tax paid on services received from non-resident - Revenue denies it on the ground that the invoice was raised outside India - held, since output services were provided here and input services also received in India, credit cannot be denied - Assessee's appeal allowed:DELHI CESTAT; CC & CCE, Indore Vs M/s Arkema Catalyst India Ltd (Dated: November 26, 2008) ST - Service recipient - assessee enters into agreement with non-resident for supply of technical knowhow - Revenue raises demand - held, it is already settled that the service provided by a non-resident or from outside India, who does not have any office in India, is not liable to service tax prior to 1.1.05 - Revenue's appeal dismissed:DELHI CESTAT; CCE & CC, Vadodara Vs M/s Sthapatya Rachana (Dated: November 26, 2008) ST - Consulting Engineer service - assessee is an architect - valuation of property - Revenue levies tax - Commissioner(A) disagrees - Held, no tax can be levied on architect merely because its service related to consulting engineer service is acceptable to service receiver. It can be levied only on professionally qualified engineer who can provide such service competently - Revenue's appeal rejected:AHMEDABAD CESTAT;
CIRCULAR Payment of Additional Excise Duty (AED) and Special Additional Excise duty (SAED) on motor spirit and high speed diesel and National Calamity Contingent Duty (NCCD) on excisable goods exported from units located in Special Economic Zone (SEZ); CASE LAWS 2009-TIOL-19-HC-MUM-CX-LB.pdf + rubber story.pdf CCE Vs M/s Shree Rubber Plast Co Pvt Ltd (Dated : December 19, 2008) Central Excise / Customs Appeals – High Court has power to condone delay: for the applicability of Section 4 to 24 of Limitation Act, the following three conditions must be satisfied:- (i) There must be prescribed period of limitation under any special or local law; (ii) The said prescription of period of limitation should be different from that of the period prescribed by the Schedule of the Limitation Act. (iii) Application should be before a Civil Court. So Section 5 of Limitation Act will be applicable to Appeals filed under Section 35G of the Central Excise Act.:BOMBAY HIGH COURT (LARGER BENCH) 2009-TIOL-41-CESTAT-MUM.pdf + Nicholas Piramal Story.pdf Nicholas Piramal India Ltd Vs CCE, Raigad (Dated: November 19, 2008) Cost of special packing viz. catch cover not to be included in valuing Physician Samples as the value is arrived at on pro-rata price of regular pack – Tribunal. Tribunal's observations - ++ the issue is squarely covered by the CESTAT decision in the case of Softesule P. Ltd. [ 2005-TIOL-1657-CESTAT-MUM ] wherein it has been clearly held that physician's samples are meant for advertising the product and entire cost of advertising is included in the cost of regular packs and therefore pro rata valuation based on price of regular box is proper. ++ In the present case also, the cost of special packing in which the physician's samples are packed gets recovered from the customer in the cost of regular pack which would include all the expenses incurred by the manufacturer for selling the product in the market. ++ Therefore, the cost of packing gets included in the price of the physician's sample which is being worked out on pro-rata basis on regular pack which includes the cost of special packing also. ++ In view of the this, we find no force in the SDR's plea that once modvat credit has been taken of the duty on the special packing its cost needs to be included separately as such cost is already included in the cost of regular pack which has been taken for arriving at pro-rata price. After setting aside the order of the Commissioner(Appeals), the appeal was allowed with consequential relief:MUMBAI CESTAT; . CCE & CC, Aurangabad Vs M/s Balaji Amines Ltd (Dated: September 5, 2008) Central Excise - CENVAT Credit taken on the strength of debit notes reversed immediately on being pointed out - no case for imposing penalty under Section 11 AC. Revenue appeal has no merit.:MUMBAI CESTAT; CCE, Bangalore Vs M/s Bata India Ltd (Dated: September 25, 2008) Central Excise - Section 11D - no amount is collected through the invoices representing excise duty - provisions of Section 11D are not attracted.:MUMBAI CESTAT;
CUSTOMS SECTION NOTIFICATION Shamshabad airport notified for loading and unloading of goods Anti-dumping duty imposed on mulberry raw silk from China; Anti-dumping duty on import of float glass from China extended; Import of ODS as input for export: DGFT says separate permission required under Advance Authorisation Scheme; Exports Incentive Scheme under Chapter 3 of FTP - value for calculation of entitlement - DGFT clarifies FOB value inclusive of discounts and commission to be reportd; CASE LAWS CCE Vs M/s Shree Rubber Plast Co Pvt Ltd (Dated : December 19, 2008) Central Excise / Customs Appeals – High Court has power to condone delay: for the applicability of Section 4 to 24 of Limitation Act, the following three conditions must be satisfied:- (i) There must be prescribed period of limitation under any special or local law; (ii) The said prescription of period of limitation should be different from that of the period prescribed by the Schedule of the Limitation Act. (iii) Application should be before a Civil Court. So Section 5 of Limitation Act will be applicable to Appeals filed under Section 35G of the Central Excise Act.:BOMBAY HIGH COURT (LARGER BENCH) 2009-TIOL-36-CESTAT-AHM.pdf + eou story.pdf M/s Amod Stampings Pvt Ltd Vs CC, Kandla (Dated: August 6, 2008) Customs – 100% EOU - Permission for advance DTA sales against fulfilment of future export obligation - When Development Commissioner determines that export obligation as not fulfilled, exemption benefit for DTA sales not available – Demand of duty and imposition of fine and penalty confirmed:AHMEDABAD CESTAT; |
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