Chidambaram takes a gamut of quick actions to put internal security machinery in place (See"Common Basket")

Mr Moorthy takes over as new CBDT Chairman; Mr Sudhir Chandra joins as new Member;

Somalian pirates hijack German vessel;

Interface with Chief Secys of States: Centre accepts demand for setting up Public Projects Appraisal Board;

PM is finally back home today after successful surgery at AIIMS;

Hyderabad DRI arrests Nigerian with heroin worth Rs two crore;

SC rules District Collectors / District Magistrates are not a judge; cannot seek immunity from criminal prosecution;

chidu story.pdf

Chidambaram takes a gamut of quick actions to put internal security machinery in place;

siva kumar.pdf

ICAI - Please wake up!

mbuzz0107.pdf

Foreigners illegally acquiring real estate in India; Centre asks States to review all sales registered recently;

mbuzz0106.pdf

Interface with Chief Secys of States: Centre accepts demand for setting up Public Projects Appraisal Board

mbuzz0105.pdf

Mr Moorthy takes over as new CBDT Chairman; Mr Sudhir Chandra joins as new Member

mbuzz0104.pdf

Hyderabad DRI arrests Nigerian with heroin worth Rs two crore;

mbuzz0103.pdf

Australia, Isle of Man sign tax information exchange agreement;

2009-TIOL-56-HC-MUM-IT.pdf

M/s Monica Gems Vs ACIT, Mumbai (Dated: Janaury 19, 2009)

Income tax - AO disallows one-third of foreign travel expenses - CIT(A) and Tribunal also agree with the AO - held, the expenses incurred on foreign travel can either be in the course of business or not related to the business at all. It cannot be allowed on part basis - Tribunal order set aside and the matter remanded for fresh considration: BOMBAY HIGH COURT;

2009-TIOL-69-ITAT-MUM.pdf + glaxo story.pdf

Glaxo India Ltd Vs JCIT, Mumbai (Dated: October 21, 2008)

Income tax - slump sale - assessee agrees to sell going concern for a lump sum price - immovable property transferred - Revenue treats it as item-wise sale and levies capital gains - Merely because certain value was shown for assets for paying stamp duty it does not bring it under purview of Sec 55, and then Revenue should not overlook fact that it was a sale of assets as well as liabilities - the slump sale effected by the assessee before Section 50B came into the Act was not exigible to computation of provision u/s. 45 for capital gains - Assessee's appeal allowed:MUMBAI ITAT;

SERVICE TAX SECTION

2009-TIOL-189-CESTAT-DEL.pdf + cargo story.pdf

M/s Singh Brothers Vs CC & CE, Indore (Dated: January 7, 2009)

Service Tax - unloading of coal from rail wagons and discharging them to the conveyor belt through the track Hopper – Liable to Service Tax under "Cargo Handling Service” – Event of levy arises when service relating to or in relation to handling of cargo is provided by a cargo handling agency irrespective of mode of transport used for movement of such cargo

As it is a question of interpretation, extended period of limitation not applicable and no penalty - it is a question of interpretation of law and there can be no question of suppression on the part of the appellants. As a result, demand requires to be restricted for the period within the normal period of limitation and accordingly to be re-quantified. While recalculating the demand of service tax the benefit of cum-tax should also be extended. As the issue involved interpretation of law there is no justification for invoking extended period of limitation and therefore, no penalties are warranted.:MUMBAI CESTAT;

2009-TIOL-185-CESTAT-DEL.pdf

CCE, Chandigarh Vs M/s Malwa Cotton Spinning Mills Ltd (Dated: December 5, 2008)

ST - assessee pays sales commission to non-resident company - demand raised on service recipient - Commissioner(A) sets aside demand prior to 1.1.2005 but upholds demand for the latter period - held, in view of insertion of 66A of the Finance Act, 1994 with effect from 18.4.2006 and the Board Circular that the offshore services provided are not taxable prior to 18th April, 2006, assessee's appeal allowed :DELHI CESTAT;

CENTRAL EXCISE SECTION

2009-TIOL-11-SC-CX.pdf + sc cx story.pdf

CCE, Ghaziabad Vs M/s International Tobacco Ltd (Dated: September 3, 2008)

Tipper Gold Tipped Cigarettes, not filter cigarettes – A filter consists of non- tobacco material. It is made of viscose staple which looks like cotton. The filter in the cigarette is generally put at one end. In the case of a filter cigarette, the tobacco is prevented from entering into the mouth of the smoker. In the case of a plain cigarette there is no filter, on both ends you have tobacco. If one breaks a filter cigarette and separates the filter from the main part of the cigarette the viscose staple would emerge, whereas in the case of plain cigarette, tobacco would emerge. The 'Tipper- Gold Tipped' brand manufactured by respondent does not contain viscose staple. The Tipper- End of the cigarette manufactured by the respondent contains tobacco. Keeping in mind these basic character , function and use of the product, the product in question falls in CSH -2403.11. In other words, 'Tipper- Gold Tipped' brand manufactured by the respondent would fall in the category of cigarettes "other than filter cigarettes".

For Classification, that basic character, function and use is more important than the name used in trade parlance: basic character, function and use are more important than the name used in trade parlance. One more principle needs to be kept in mind ‘the Rules of Interpretation of the tariff comes into play only if the classification cannot be determined according to the terms of the headings and any relative section or Chapter Notes.:SUPREME COURT;

2009-TIOL-188-CESTAT-DEL.pdf

M/s Nino Chaka P Ltd Vs CC (General), New Delhi (Dated: November 11, 2008)

Central Excise – Interest payable on refund of pre-deposits for payments made after 90 days of the order of Tribunal – Non-production of pre-receipt by assessee not a ground to justify delay in repaying pre-deposit – Interest liable to be paid - Apex Court decision in ITC Ltd [ 2004-TIOL-112-SC-CX-LB ] followed:DELHI CESTAT ;

2009-TIOL-186-CESTAT-AHM.pdf

M/s Jupiter Remedies Pvt Ltd Vs CCE, Vapi (Dated: October 1, 2008)

Central Excise – Credit cannot be varied at recipient's end on the ground that supplier paid excess duty than required to be paid – SCN issued beyond stipulated time period, demand also hit by limitation – Impugned order set aside :AHMEDABAD CESTAT ;

2009-TIOL-184-CESTAT-MUM.pdf

M/s Jayketan Marketing & Clothing Vs CCE, Belapur (Dated: September 19, 2008)

Central Excise – Duty paid under protest after clearance of goods cannot be transferred to buyers – Test of unjust enrichment not applicable – Impugned order set aside :MUMBAI CESTAT;

CUSTOMS SECTION

2009-TIOL-10-SC-NDPS.pdf + ndps story.pdf

Abbas Khan Vs Central Bureau of Narcotics (Dated: January 14, 2009)

NDPS – Conviction based on Statement valid – sentence reduced and fine waived as there was no other evidence: There is practically no evidence to show as to how much quantity of articles were allegedly sold by these appellants. However, we do not think that the statements made by these accused are inadmissible in evidence as they were made under Section 67 of the Act. At the same time the evidence adduced would only prove that they had dealt with narcotic drugs and to that extent the admission is valid. As the quantity itself is not proved, one could only say that it is not possible to assume that they were dealing with any commercial quantity of contraband articles, which offence by itself is of a very serious nature. The prosecution should have produced better evidence to sustain such conviction.:SUPREME COURT;

2009-TIOL-187-CESTAT-MUM.pdf

M/s Ram Gopal Polytex Ltd Vs CC (ADJN), Mumbai (Dated: November 10, 2008)

Customs – Goods imported from high sea sellers under Advance licenses and cleared duty free – Appellants not provided with documents relied upon in SCN – Replies and submissions not considered in proper context – Impugned order set aside – Matter remanded to Commissioner with a direction to follow principles of natural justice and pass a speaking order – Appellants at liberty to adduce additional evidences against allegations in SCN:DELHI CESTAT;