CBI arrests NCB Officials taking bribe of Rs. 1.5 Lakhs (See 'DDT')

Addendum of amendments to Indian Pharmacopoeia 2007 released; 73 new monographs added;

CBI arrests Inspector of Debt Recovery Tribunal with Advocate in Gandhinagar + files charge-sheet against Addl CPFO, Delhi for abuse of power;

Govt says 50 lakh tonne free sale sugar to be made available this quarter;

Govt tells Bombay HC: EGoM is in favour of RIL to supply gas to Anil Ambani's Dadri Power project once it is ready;

US Airways plane dives into Hudson river but all 155 pax safe - miracle happens!

Govt working on package to revive cooperative credit system;

Aviation fuel price hiked by 3%; Airlines cut prices of business class;

ddt 16 Jan.pdf

Classification of footwear having uppers of a combination of leather and synthetic/textile material under Chapter 64 of the Drawback Schedule;

mbuzz0055.pdf

Addendum of amendments to Indian Pharmacopoeia 2007 released; 73 new monographs added;

mbuzz0054.pdf

India to grow at 7 to 7.5%: Economic Affairs Secretary;

mbuzz0053.pdf

Govt working on package to revive cooperative credit system;

mbuzz0052.pdf

Govt sanctions funds for upgradation of sports facilities at SAI;

2009-TIOL-27-HC-MUM-IT.pdf

CIT Vs Reliance Utilities & Power Ltd (Dated : January 9, 2009)

Income tax - Disallowance of interest paid on borrowed funds on the ground that the same was utilised for making investments in sister concern - CIT(A) and Tribunal disagree with the AO - held, since assessee had interest-free funds as well as borrowed funds available with it, the presumption that the interest-free fund will be utilised for making investments if that is sufficient to meet the investments, is more logical and the same is established by the findings of the CIT(A) - Revenue's appeal dismissed:BOMBAY HIGH COURT;

2009-TIOL-26-HC-DEL-IT.pdf

M/s Hindustan Industrial Resources Ltd Vs ACIT (Dated : January 9, 2009)

Income tax - capital gains - assessee buys a piece of agricultural land with the intent to set up industries - no agricultrual nor industrial activities carried on the land for years - State Authorities acquire the land for industrial purposes - assessee gets compensation - AO levies capital gains tax - CIT(A) and Tribunal agree with the AO - Held, when land was purchased it was agricultural and when it was acquired by the State, compensation was paid by treating it as agricultural land, the mere intent of the assessee to set up industrial plant on that will not alter the character of the land - Tribunal order set aside - Assessee's appeal allowed:DELHI HIGH COURT;

2009-TIOL-41-ITAT-BANG.pdf + TCS STORY.pdf

Tata Consultancy Service Ltd Vs ACIT, Bangalore (Dated: November 14, 2008)

Income tax - Sec 10A - assessee owns two STP units for export of software - Unit 1 logs profits whereas Unit 2 records losses - CIT invokes Sec 263 for setting off loss of Unit 2 against profit of Unit 1 before Sec 10A benefits are allowed - held, the word 'an' has been used before the undertaking in Sec 10A(1), and deduction is to be allowed on such profit and gains as are derived from the undertaking. Hence, to apply the provisions of section 10A, one has to consider the profit and gains as derived by an undertaking. CIT order set aside and assessee's appeal allowed: BANGALORE ITAT;

2009-TIOL-40-ITAT-DEL.pdf

M/s S R Kumar Inc Vs ACIT, New Delhi (Dated: November 21, 2008)

Income tax - assessee buys a plot from a State Housing Development Board and then cancels the same - forefeits 10% of the deposit made as per terms and conditions - Assessee claims the same as capital loss - AO disallows the carry forward of the same - CIT(A) agrees with the AO - held, since the assessee is not in the business of purchase and sale of plots the AO rightly held it as capital loss but the matter reminded to examine whether carry forward of loss is to be allowed

Assessee sells dollar from his account - AO brings the profits to tax - held, since the assessee has not been offering the profit from fluctuation of dollar rates in any assessment years in the past, the proft from the sale is rightly brought to tax - assessee's appeal dismissed:DELHI ITAT;

2009-TIOL-39-ITAT-MUM.pdf

JDIT,Mumbai Vs M/s CMA CGM SA France (Dated: November 18, 2008)

Income tax - Indo-French DTAA - assessee is into shipping business - operates through an agent in India - income generated from operation of ships in international traffic - AO disallows a part of income earned on slot arrangement basis and treats the agent as PE of the assessee - CIT(A) sets aside the order - held, since the word 'operation of ship' has not been defined either in the DTAA or the domestic laws, help from OECD Model Convention can be taken as Article 9 is similar to that and the income from slot arrangement basis besides shipping business undertaken by owned or leased or chartered ships is to be taxed only in the state of residence - assessee eligible for exemption under treaty - Revenue's appeal dismissed:MUMBAI ITAT;

SERVICE TAX SECTION

2009-TIOL-98-CESTAT-AHM.pdf

CCE, Vapi Vs M/s Saif Electronics (Dated: November 25, 2008)

Service tax – No effort by Revenue to bring out nature of service and qualification of service providers for justifying the activity as consulting engineer's service – No allegation of suppression in SCN - Demand hit by limitation : AHMEDABAD CESTAT;

2009-TIOL-97-CESTAT-DEL.pdf

M/s Ceekay Daikin Ltd Vs CCE, Noida (Dated: November 20, 2008)

ST - Assessee is into manufacturing of automobiles - receives technical knowhow from appellant 2 which is a foreign company - demand under consulting engineer service raised - assessee's counsel argues it may be IPR service but cannot be categorised as consulting engineer service - Matter remanded to decide the actual nature of the service first:DELHI CESTAT;

CENTRAL EXCISE SECTION

2009-TIOL-101-CESTAT-MUM.pdf + scn story.pdf

Fire Equipment Corporation Vs CCE, Mumbai (Dated: December 3, 2008)

Commissioner(Appeals) going beyond the issue involved in the O-in-O as well in the Show cause notice – Matter remanded by Tribunal:MUMBAI CESTAT;

2009-TIOL-100-CESTAT-MUM.pdf + refund story.pdf

CCE, Aurangabad Vs M/s Garware Polyesters Ltd (Dated: December 8, 2008)

Finalisation of Provisional assessment - LB decision in Cadbury [ 2008-TIOL-1986-CESTAT-MUM-LB ] helps Revenue get back refunds of ‘interest' granted by the Assistant Commissioner relying on MSEB Pole Factory [ 2005-TIOL-1643-CESTAT-MUM ] decision – Tribunal directs respondent to pay back the refund amounts within ten days of receipt of order. Interest is required to be paid even when the differential amount is paid before the finalization of the assessment and that the none of the decisions viz. MSEB Pole Factory etc. had considered the language of Rule 7(4) ie. the words “succeeding the month for which such amount is determined” inasmuch as all the decisions had proceed on an unreasoned basis that the interest is payable ‘from the month in which the amount is determined /assessment is finalized'.

Interest was correctly paid by the respondent and they are not entitled to the refunds - The refund amounts of Rs.57,513/- and Rs.1,12,254/- paid to respondent were recoverable - Bench directs the respondent to pay back these amounts within ten days of the receipt of the order.

Revenue appeals allowed.:MUMBAI CESTAT;

2009-TIOL-99-CESTAT-MAD.pdf

M/s Sterlite Industries (I) Ltd Vs CCE, Tirunelveli (Dated: December 8, 2008)

Central Excise – rebate under Rule 18 of the Central Excise Rules – rebate of additional duty paid on supplementary invoices on account of revision of price of goods exported cannot be denied - an exporter is entitled to rebate of the entire duty of excise paid on a consignment of excisable goods on its export.:CHENNAI CESTAT;

CUSTOMS SECTION

CIRCULAR + NOTIFICATION

ctariff09_006.pdf

Anti-dumping duty on import of Melamine from China extended upto October, 2009;

cuscir09_002.pdf

Drawback - Classification of footwear having uppers as a combination of leather / synthetic and textile;

CASE LAWS

2009-TIOL-96-CESTAT-DEL.pdf

M/s Interia Impex Vs CC, Faridabad (Dated: October 16, 2008)

Customs – Import of old and used machinery without a valid license – Subsequent amendment to FTP dispensing with requirement of license does not absolve from fulfilment of obligation under Customs Act – Imports without valid license liable for confiscation and penalty – Redemption fine and penalty reduced owing to circumstances surrounding import:DELHI CESTAT;

2009-TIOL-95-CESTAT-MUM.pdf

CC, Mumbai Vs M/s Hind Offshore Pvt Ltd (Dated: November 4, 2008)

Customs – Refund of differential duty paid on import of vessel subject to principles of unjust enrichment – Duty recoverable from Customs should be shown as current assets, once it is shown as fixed assets duty stands passed on – When vessel is used for providing services with profit motive incidence of duty passed on indirectly through sale of service – Revenue's application for stay of refund order allowed :MUMBAI CESTAT;