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Provisional assessment and finalization - what is the rate of interest to be paid? (See 'DDT') Cabinet gives green signal to NIFT for implementation of OBC quota; Refund under Tatkal Scheme: Railways says it is given in certain cases; India to move WTO against Obama's decision to withdraw tax sops to Cos outsourcing jobs; Violence in Chennai HC premises: SC appoints former SC judge Justice B Srikrishna to conduct probe; Govt notifies 6% DA hike for employees and pensioners; |
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| Dear Member, Sending the following files: |
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TIOL COMMENTARY ddt 27 Feb.pdf Welcome Back OscAR Rahman – Without Customs Duty – Jai Ho; MIXED BUZZ Govt gives nod for Rs 600 per pax development fee for international pax and Rs 100 for domestic pax for Mumbai Airport; Economic growth rate down to 5.3% in Q3 in current fiscal; Refund under Tatkal Scheme: Railways says it is given in certain cases; Cabinet gives green signal to NIFT for implementation of OBC quota; Consultant for CBI recommends re-engineering of investigation; |
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2009-TIOL-98-HC-MUM-IT.pdf + reliance story.pdf M/s Reliance Capital Ltd Vs CIT (Dated: January 15, 2009) IT – Condonation of Delay - cause for such serious delay is callous, irresponsible style of functioning in the Department. The principle of public accountability makes the officers concerned responsible and liable: A casual or a negligent litigant who has acted with utter irresponsible attitude, cannot claim the condonation of delay in law when the right has accrued to the other side. - In performance of their functions, public officers or public servants have the duty to act judiciously, fairly and expeditiously. - Pre-occupation of an officer or officials can be a reasonable excuse, but for a short period and nothing justifies the inaction for a pretty long period running into months. If such an excuse is to be permitted in law, then the Courts would have to completely ignore the law of limitation. - Public interest imposes an obligation upon the Department as a whole to act in a channalise d manner and to ensure that every appeal which is sought to be preferred by the Department is not rendered barred by time that too by inordinate and unexplained delays.:BOMBAY HIGH COURT; ACIT Vs Tulsidharan Bhaskaran (Dated: January 20, 2009) Income tax - Sec 44AD - Assessee has contract receipts and offers 3.1% of profit to tax - AO rejects the books of accounts for lack of vouchers and unexplained huge sundry entries - opts for estimate mathod and taxes 8% of profits - CIT(A) reduces it to 4% - Tribunal agrees with the CIT(A) order - held, merely because the Tribunal has agreed with the CIT(A) order based on examination of facts, no question of law arises - Revenue's appeal rejected:GUJARAT HIGH COURT; DCIT, Bangalore Vs Endocrinology & Diabetic Research Institute (Dated: January 30, 2009) Income Tax - Assessee filed return mentioning exercising option for accumulation u/s 11(2) claming as for public charitable purposes - AO held that assessee has not filed any objection for treating the assessee's activities as commercial activities and not mentioned any specific objective to claim exemption on accumulation and therefore, the trust is not entitled to exemption u/s 11 even though it is registered u/s 12A - CIT(A) allowed assessee's appeal - Held, while considering the reopening of the assessment, the Tribunal has to consider as to whether the Assessing Officer has reason to believe that income has escaped assessment - Held, Form No.10, which has been filed during the course of assessment proceedings, will entitle the assessee to claim that certain accumulation is not to be included in the total income as per section 11(2) - Revenue's appeal partly allowed.:BANGALORE ITAT; Steel Authority Of India Ltd Vs ACIT, New Delhi (Dated: November 28, 2008) Income Tax - Assessee Company (PSU) filed return under Sec 115JA - AO disallowed deductions claimed u/s 28 to 44D and challenged the computation of income u/s 115JA - CIT(A) confirmed AO's order—As regards expenses incurred on issuance of 5 year and 7 year bonds, AO allowed only 1/5th and 1/7th, respectively, of the amount holding the expenditure as one of enduring benefit - Expenses incurred for the issue of the bonds are different from discount on the debentures and being a routine expenditure, it has to be allowed in totality in the year in which they have incurred - AO also disallowed interest on foreign currency loan which was confirmed by CIT(A) as well - Held that the conditions of disbursement of interest liability are subsequent and do not reduce the liability of the assessee - Assessee's appeal allowed for statistical purposes.:DELHI ITAT; |
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| SERVICE TAX SECTION 2009-TIOL-99-HC-KAR-VAT.pdf + bharti story.pdf Bharti Airtel Ltd Vs State Of Karnataka (Dated: January 16, 2009) Providing broadband Connectivity amounts to 'sale of light energy' taxable under Karnataka VAT Act on the entire sale proceeds despite being assessed to Service Tax: there is sale of artificially created light energy' by the appellant company to its subscribers in its activity of transmitting their data through the OFCs network so as to attract the provisions of KVAT Act 2003 and that the Government of Karnataka has authority to levy VAT on the entire proceeds collected by it as “lease rentals” from its subscribers despite the Appellant Assessee Company being assessed to ‘service tax' by the Central Government under the Finance Act 1994.: KARNATAKA HIGH COURT; CCE, Vapi Vs M/s Bhilosa Tex-N-Twist Pvt Ltd (Dated: January 27, 2009) ST - Assessee pays tax on outward transport service out of Cenvat credit - Revenue disallows - It is already decided that the manufacturers are not hit by the definition of output service - Revenue's appeal dismissed:AHMEDABAD CESTAT; CCE, Raipur Vs M/s Ajanta Color Labs (Dated: December 19, 2008) ST - Photography service - Revenue for includsion of photographic materials in the gross value of taxable service - Issue is already decided that the photography service is a works contract which includes elements of sale and service and the value of material cost not to be included for payment of service tax - no extended period as it is a matter of interpreation of law:DELHI CESTAT; M/s Alphacone Containers Pvt Ltd Vs CCE, Vapi (Dated: January 27, 2009) ST - Technical Service - Revenue alleges that appeallants provided technical service - Appellant says amount was paid for transfer of technical knowhow - since the nature of taxable service is in dispute, the deposit made before the Commissioner(A) is adequate to hear the case - stay granted :AHMEDABAD CESTAT;
2009-TIOL-356-CESTAT-MUM.pdf + jobworker story.pdf Cipla Ltd Vs CCE, Mumbai III (Dated: January 12, 2009) Job worker also buying inputs and availing credit and later raising sale invoices for recovery of cost of the material from principal manufacturer – Prima facie no cause for denying Cenvat Credit – Tribunal. :MUMBAI CESTAT; CCE, Chennai Vs M/s Kyungshin Industrial Motherson Ltd (Dated: October 24, 2008) Central Excise – Cenvat – Rejected inputs – Reversal of credit – Interest - The respondents had reversed credit availed in respect of inputs which were issued for manufacture and rejected at the assembly stage. Inputs issued and rejected at assembly stage are inputs issued for manufacture and no credit is liable to be reversed as such inputs are found not suitable and not consumed in further manufacture. In the circumstances, the impugned credit is not liable to be reversed. Therefore, the impugned demand of interest cannot be sustained. ( Para 5):CHENNAI CESTAT; CCE, Madurai Vs M/s Flora Laboratories (P) Ltd (Dated: September 30, 2008) Central Excise – SSI Exemption – Computation of value – Limitation – In the absence of accurate computation of value to arrive at the value of clearances, the appeal filed by the revenue cannot be considered. Further, the department had completed the investigation in 1996 and issued SCN for demanding the amount short paid in 1998 whereby the demand has become barred by limitation. (Para 4):CHENNAI CESTAT;
CUSTOMS SECTION CIRCULAR + NOTIFICATION Related to changes done to Annual Supplement to FTP; Procedure for issuing Free Sale and Commerce Certificate – Clarification regarding; CASE LAWS 2009-TIOL-24-SC-CUS.pdf + atul story.pdf M/s Atul Commodities Pvt Ltd Vs CC, Cochin (Dated: February 24, 2009) Customs – Import of Second hand photocopiers allowed without licence prior to 19.10.2005 – Kerala HC decision quashed – Tribunal LB decision in Atul Commodities restored: import of old and used photocopying machines stands covered by the concept of "second- hand capital goods. One more aspect needs to be mentioned. Para 2.33 expressly states that import of old and used computers/second-hand computers are restricted. Para 2.33 of the Handbook do not restrict photocopying machines. Import of photocopying machines is expressly restricted only by Notification no. 31 dated 19.10.2005. This itself indicates that categorization/re-categorization cannot be done by policy circulars. Such exercise has to be undertaken by specific amendment to the Policy vide Section 5 of the 1992 Act. In this case, Notification no. 31 dated 19.10.2005 indicates that the Central Government has brought in photocopying machines into the category of second-hand goods vide amendatory Notification, therefore, import of photocopying machines stand restricted only on and after 19.10.2005. In fact, if the argument of the Department is to be accepted, then there was no need to issue Notification no. 31 dated 19.10.2005.:SUPREME COURT ; R K Marble Pvt Ltd Vs CC, Jaipur (Dated: January 15, 2009) Customs – Import of rough marble blocks at less than floor price – When prices in international market are down, no justification for enhancement of prices declared by appellant based on average prices – Price declared by appellant to be accepted for assessment purposes - Confiscation confirmed for violation of policy – Redemption fine and penalty reduced:DELHI CESTAT; |
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