CBEC Chairman in the aircraft that narrowly missed hitting the President's Helicopter (See 'DDT')

Over 40% of India's working population has no savings: Panel;

Draft Report of Chennai-Bangalore-Mumbai Industrial Corridor submitted: Minister;

No DEPB benefits on export of prohibited items;

Not enough ethnol for 10% blending with petrol: Minister;

Govt sets up Centre of e-Governance in New Delhi;

Govt to set up 20 counter-insurgency & anti-terrorism schools during XIth Plan; Four schools each in Assam, Bihar, Chhatisgarh, Jharkhand and Orissa;

Tilting of Qutab Minar: Geodetic observations recommended to keep vigil;

TIOL COMMENTARY

ddt 18 Feb.pdf

Tariff Value of Brass Scrap and Poppy Seeds Reduced;

spl down.pdf

When does Liasion Office become a PE?

CASE LAW

2009-TIOL-19-SC-CT.pdf + oil story.pdf

State Of Gujarat Vs AMI Pigments Pvt Ltd (Dated: February 4, 2009)

Natural gas, furnace oil, light diesel oil, naphtha etc., consumed by the industry to generate electricity which is then used in the manufacture of end products, namely, caustic soda, industrial chemicals etc, can be considered to be 'raw material' or 'processing material' or 'consumable source' under the Gujarat Sales Tax Act – matter remanded:

Questions to be answered by the High Court on remand

(1) Whether the Fuels consumed, namely, natural gas, furnace oil, light diesel oil, naphtha etc., by the industry to generate electricity which is then used in the manufacture of end products, namely, caustic soda, industrial chemicals etc, can be considered to be 'raw material' or 'processing material' or 'consumable source' for the purposes of Section 15B of the Gujarat Sales Tax Act, 1969 or for the purposes of Rule 42A or for the purposes of exemption notification issued from time to time under the Act?

(2) Whether the tests laid down by the Supreme Court in the case of Coastal Chemicals would apply for deciding the above question or whether the tests laid down in the case of J.K. Cotton and in the case of Ballarpur Industries would apply?

In other words, which line of decisions would apply, while deciding the above question, to the Gujarat Law.:SUPREME COURT;

MIXED BUZZ

mbuzz0179.pdf

Over 40% of India's working population has no savings: Panel;

mbuzz0178.pdf

Overseas borrowing: Present limit is USD 500 mn;

mbuzz0177.pdf

Govt sets up Centre of e-Governance in New Delhi;

mbuzz0176.pdf

Not enough ethnol for 10% blending with petrol: Minister;

mbuzz0175.pdf

Draft Report of Chennai-Bangalore-Mumbai Industrial Corridor submitted: Minister;

2009-TIOL-18-SC-IT.pdf + sc it story.pdf

Mcorp Global Pvt Ltd Vs CIT, Ghaziabad (Dated: February 12, 2009)

Income tax - Depreciation u/s 32(1)(ii) - Assessee is a manufacture of lamination and punching machines - also into leasing business - bought certain soft drink bottles which were directly supplied to lessee in terms of lease agreement - AO found that only a part of total bottles bought reached the lessee's premises and the rest arrived in the next financial year - Only partial benefit allowed - CIT(A) directed AO to allow 100% depreciation - Tribunal and HC disallowed as they found it sham deal - held, it is settled law that what is allowed by the AO cannot be taken back by the Tribunal and when the AO allows depreciation on part of delivery how can the entire transaction be rendered as bogus transaction - Disallowance deleted - Assessee's appeal partially allowed

For the second transaction, AO rightly found that the sub-lease deal preceded the lease deal and then there was nothing in the lease deal indicating prior commencement of the deal and secondly, the sub-leasing right was not given to the lessee by the lessor - assessee fails to prove the genuineness of the deal - Depreciation allowed - Assessee's appeal disallowed.:SUPREME COURT;

2009-TIOL-78-HC-KERALA-IT.pdf

Kerala Rural Employment & Welfare Vs ADIT (Dated: January 19, 2009)

Income tax - assessee is a registered society - fails to file return with Form 10 for accumulation of income within time-limit prescribed u/s 139(1) - Revenue disallows Sec 11 and 13 benefits to accumulation of income for delayed submission - assessee seeks extended period u/s 139(4) for accepting the return with Form 10 - held, going by Rule 17 it is clear that the notice to be given before the expiry of time given under Sec 139(1) - however, the CBDT Circular clearly explains the term 'oversight' and in view of the fact that the assessee has an explanation that the delay was caused by the Chartered Accounts to finalise its account, and that is how notice in Form 10 could not be filed in time but in the totality of facts, Ext.P5 ought to be quashed and the Revenue will issue appropriate orders within two months - Assessee's appeal allowed:KERALA HIGH COURT;

2009-TIOL-77-HC-MUM-IT.pdf

Snowcem India Ltd Vs DCIT, Mumbai (Dated: January 5, 2009)

Income Tax - Sec 115JA - Is interest under Ss 234B and 234C leviable in case of computation of income u/s 115JA? - In view of Apex Court decision in the case of Kwality Biscuits, no interest is leviable in the case of a liability which can be known only after the accounts are audited and balance-sheet is prepared at the end of the financial year - Assessee's appeal allowed: BOMBAY HIGH COURT;

2009-TIOL-113-ITAT-BANG.pdf

Smt J Rama Vs ITO,Bangalore (Dated: November 21, 2008)

Income Tax - Assessee hired vehicles for his transportation business and claimed deduction u/s 40(a)(ia) - AO disallowed the deduction and imposed penalty u/s 234 on noticing the difference in the total receipts as per the TDS Certificate verified by the AO vis-a-vis the amount rendered by the assessee in his P&L Account - CIT(A) confirmed AO's order—Held, hiring of vehicles by the assessee is in the nature of transport contract and hence the disallowance u/s.40(a)(ia) on TDS not been paid is to be disallowed—Held, Levy of interest u/s. 234B is mandatory - Assessee's appeal dismissed.:BANGALORE ITAT;

2009-TIOL-112-ITAT-MUM.pdf

ITO Vs Su-Raj Uk Industries Ltd (Dated: July 30, 2008)

Income Tax - Assessee, engaged in the business of trading diamonds, filed loss return arrived at by using net realizable value method for valuing closing stock - AO made addition to assessee's income rejecting the books of account u/s 145 and valued closing stock using FIFO method - CIT(A) deleted addition - Held, what is important for rejection of books u/s 145 is the ‘Assessing Officer being not satisfied about the correctness and completeness of the accounts' - Held, on the facts of the case, assessee's accounts cannot be considered incomplete and incorrect, it is the case of mere failure to comply with the declared method of accounting to the extent that the assessee relied on the sale figures of the next year - Held, AO has not mentioned in the assessment order the specific requirements of the provisions of section 145, which are not complied with by the assessee - Held, Revenue's appeal allowed for statistical purposes.:MUMBAI ITAT;

SERVICE TAX SECTION

2009-TIOL-79-HC-MUM-ST.pdf + bom st story.pdf

Wardha Coal Transport Pvt Ltd Vs UoI (Dated: January 14, 2009)

Service Tax - Once the tribunal has granted full waiver at least in two similarly situated cases, it would not be proper to take a different view and deny full waiver of pre-deposit. It is pertinent to note that in similar fact situation in SSV Coat Carriers Pvt. Ltd ., the tribunal has granted the prayer for waiver of predeposit. Moreover, the tribunal in Sainik Mining & Allied Services Ltd.'s case has come to the conclusion that service tax liability does not arise in such cases. The counsel for the petitioners is right in contending that the petitioners have a prima facie case. It is true that on merely establishing a prima facie case, interim order of protection should not be passed. But if on a cursory glance it appears that the demand raised has no leg to stand, it would be undesirable to require the assessee to pay full or substantive part of the demand. : BOMBAY HIGH COURT;

2009-TIOL-291-CESTAT-DEL.pdf

M/s Moni Colours Pvt Ltd Vs CCE, Bhopal (Dated: January 13, 2009)

ST - Photography Service - Revenue for inclusion of consumables in the gross value chargeable to tax - extended period invoked - held, it has already been held in the Delux Colour Lab case that the value of materials cannot be included while calculating the value of photography service. Since the assessee has been paying tax on the service component, extended period cannot be invoked - penalty set aside - matter remanded for requantifying tax liability:DELHI CESTAT;

2009-TIOL-290-CESTAT-DEL.pdf

M/s M P Water & Power Management Institute Vs CCE, Bhopal (Dated: January 5, 2009)

ST - assessee is an institute registered under the society act - undertakes technical testing and research work as assigned by govt departments - Demand raised - Commissioner (A) sets aside penalty - assessee pleads limitation - Demand is barred by limitation - Assessee's appeal allowed:DELHI CESTAT;

2009-TIOL-289-CESTAT-DEL.pdf

Valco Industries Ltd Vs CCE, Chandigarh (Dated: January 9, 2009)

ST - Abatement - Revenue disallows benefits as assessee fails to fulfill the conditions of Notification No 1/2006 - Since the Tribunal had remanded a similar case, issue is remanded for fresh examination of documents:DELHI CESTAT;

CENTRAL EXCISE SECTION

2009-TIOL-295-CESTAT-KOL.pdf

CCE, Raipur Vs SBA Industrial Corporation (Dated: December 17, 2008)

Central Excise – CENVAT Credit – reversal of credit on inputs lying in stock on opting for small scale exemption – there is no requirement for such reversal in view of the Larger Bench of CESTAT ruling in case of HMT & Others vs CCE, Panchkula – no infirmity in the orders of the Commissioner (Appeals).:KOLKATA CESTAT;

2009-TIOL-294-CESTAT-KOL.pdf

M/s Musa & Co Vs CCE, Kolkata-III (Dated: December 12, 2008)

Central Excise – Duty paid for clandestine removal of goods – No penalty leviable under s. 11AC when duty paid by appellant is not determined in terms of s. 11A (2) of CEA:KOLKATA CESTAT;

2009-TIOL-293-CESTAT-MAD.pdf

M/s Chennai Petroleum Corporation Limited Vs CCE, Chennai (Dated: November 20, 2008)

Central Excise – LDO/FO - Demand – dead stock LDO remained at the bottom of the storage tanks mixed with FO and cleared on payment of duty. The duty paid was at the rate applicable to FO and not at the rate applicable to LDO which was higher by Rs.1500/- per KL compared to FO. The duty liability on the LDO involved would stand discharged if the differential amount due compared to the duty paid on the same as FO is paid. Matter remanded. ( Para 4):CHENNAI CESTAT;

CUSTOMS SECTION

NOTIFICATION

dgft08not087.pdf

No DEPB benefits on export of prohibited items;

dgft08not086.pdf

Advance authorisation for import of raw sugar;

dgft08pn148.pdf

Table 2 in Appendix 37D related to sports goods amended;

dgft08pn147.pdf

EoU/STP unit allowed to re-import without duty payment samples that were exported;

dgft08pn146.pdf

VKGUY benefits allowed on export of raw cotton;

dgft08pn145.pdf

Import of raw sugar - EO period automatically extended;

CASE LAWS

M/s Conjap Electronic Industries Vs CC, Mumbai (Dated: November 19, 2008)

Customs – Import – Burden of Proof – Confiscation – The goods in question i.e. Philips Triacs are admittedly non-notified goods and therefore the burden lies upon the Revenue to establish that they have been smuggled into India . Revenue has not discharged the burden of proving that the goods had been smuggled into India . Hence, confiscation thereof cannot be sustained. ( Para 3) :CHENNAI CESTAT;