BJD, BJP part ways as seat-sharing talks fail in Orissa;

Noted Mumbai-based Indirect tax practioner and author of many books T Gunasekaran dies of cardiac arrest; his body being taken to Chennai for cremation;

Joblessness reaches 8.1% - highest in last 25 years in USA; Long way to go before economy gets gong, says White House;

Ministry celebrates Women's Day today;

Commonwealth Games advertisement piques Election Commission; Cabinet Secy directed to recover cost of ad from officers responsible for release;

PM asks Pranab Mukherjee to carry on with MoF charge;

Pak asks Interpol to search database for international links to Mumbai terror attacks;

UN-backed roadmap for halving auto emissions unveiled;

Third front to form Govt: Bardhan;

Surge in fiscal deficit to act as stimulus to growth: Dr Virmani;

PM asks Pranab Mukherjee to carry on with MoF charge;

TIOL COMMENTARY

2009-TIOL-34-SC-CT.pdf + Sony India Pvt Ltd Story.pdf

M/s Sony India Pvt Ltd Vs CTO (Dated: March 5, 2009)

TNGST – Discrimination in tax rate between imported goods and indigenous ones – Assessee ought to have filed statutory Appeals – Since an important question of Law is involved, assessee allowed to file appeal with the appellate Authority: Against the assessment orders, the assessee chose to move the Tribunal without exhausting statutory remedy under the Act. In our view, looking to the contentions advanced by the assessee, they ought to have proceeded to file appeals for each assessment year before the First Appellate Authority under the Act which they have failed to do. However, since an important question of law arises for determination and since the liability is likely to recur in future, we direct the appellant-assessee herein to prefer statutory appeal(s) within a period of four weeks: SUPREME COURT OF INDIA;

stgst.pdf

Googly from Govt : Service Tax for SEZs goes into refund mode;

MIXED BUZZ

mbuzz0263.pdf

RBI task force calls for restructuring of diamond sector in Gujarat;

mbuzz0262.pdf

Tourism industry set to bounce back stronger than ever: UN;

mbuzz0261.pdf

African nations to support India's claim to permanent seat to UNSC;

mbuzz0260.pdf

UN welcomes new US stance on reaching climate change pact;

mbuzz0259.pdf

Pak asks Interpol to search database for international links to Mumbai terror attacks;

mbuzz0258.pdf

Surge in fiscal deficit to act as stimulus to growth: Dr Virmani;

mbuzz0257.pdf

Nepal: UN for end to violence by all sides in Chitwan protests;

mbuzz0256.pdf

UN-backed roadmap for halving auto emissions unveiled;

clarification_grade_pay.pdf

Clarification on grant of Grade pay of Rs. 5400 in PB-2 on non-functional basisto Income Tax Officers of Income Tax Department;

CASE LAWS

2009-TIOL-35-SC-IT.pdf + film story.pdf

CIT-IV, Tamil Nadu Vs B Suresh (Dated: March 3, 2009)

Income tax - Sec 80HHC - Assessee is a film producer - enters into agreement with an overseas TV channel and exports lease right of film for limited period - earns foreign exchange and claims exports benefits - AO disallows on the ground that the lease cannot be equated with sale of goods - CIT(A) allows the benefits and Tribunal upholds the CIT(A) order - held, with globalisation and growing cross-border transactions, the difference between the lease right and sale has got blurred, and the word 'lease' is included in the meaning of the word 'sale' in Rule 9A and Rule 9B. The basic requirement of Sec 80HHC is to earn foreign exchange and retention of profits for export business. The assessee is eligible for exports benefits - Revenue's appeal dismissed: SUPREME COURT OF INDIA;

2009-TIOL-148-ITAT-BANG.pdf

DCIT, Davangere Vs M/s Samsons Distilleries Pvt Ltd (Dated: December 12, 2008)

Income tax - Sec 115JA - Assessee is a manufacturer of rectified spirit / IML - claims business loss and depreciation - AO invokes provisions of Sec 115JA - claims that MAT is not applicable to its case as it did not declare any dividend - AO disagrees and CIT(A) agrees with the AO - held, the view taken by the Revenue is valid - CIT(A) order upheld:BANGALORE ITAT;

CBEC Order No 40.pdf

CBEC issues transfer order of nine AC/DCs;

SERVICE TAX SECTION

2009-TIOL-400-CESTAT-DEL.pdf

CCE, Raipur Vs M/s Chhatisgarh Iron & Steel Pvt Ltd (Dated: January 1, 2009)

ST - Job work - assessee undertakes fabrication of railway structures and ladders of towers - materials are supplied for the same - Demand is raised under business auxiliary service and penalty imposed - Commissioner (A) makes inquiry and finds that the assessee does job work and the duty-paid materials were supplied for the same - Demand set aside - Commissioner(A) order upheld and Tribunal terms it as improper exercise of power and unnecessary burden to the assessee: DELHI CESTAT;

2009-TIOL-396-CESTAT-AHM.pdf + consulting story.pdf

CCE & CC Vadodara-I Vs M/s Ambalal Sarabhai Enterprises Ltd (Dated: January 6, 2009)

Service tax - a sale of technical know-how does not amount to rendering of any consulting engineering service: There is no relationship of service provider, and the receiver between the parties to the transaction in the implementation of supplementary agreement. It is quite clear from the terms of the agreement and the details, after the transfer of know-how, the respondents took up only manufacturing activity and the remaining activities were taken over by the purchasers of the technical know-how. Held: the agreements under consideration were for sale of technical know-how and they do not involve any consulting engineering service provided by the respondents to others.: AHMEDABAD CESTAT;

CENTRAL EXCISE SECTION

2009-TIOL-398-CESTAT-DEL.pdf

M/s Jyoti Capsules Vs CCE, Kanpur (Dated: December 8, 2008)

Central Excise – Common inputs used in manufacture of dutiable and exempted goods – 8% not payable when exempted goods are exported under bond – Provisions of sub-rules (1), (2), (3) and (4) of Rule 6 not applicable in terms of Rule 6 (5) of CCR, 2002 – Impugned order not sustainable and liable to be set aside: DELHI CESTAT;

2009-TIOL-397-CESTAT-AHM.pdf

CE & Cus, Surat II Vs Asian Paints (I) Ltd (Dated: December 1, 2008)

Central Excise – Refund of excess duty paid by assessee to be granted suo moto on finalization of provisional assessments under Rule 9B(5) of CER – Date of filing of claim irrelevant in view of prevailing law – Impugned order upheld: AHMEDABAD CESTAT;

2009-TIOL-395-CESTAT-DEL.pdf

M/s Mansurpur Sugar Mills Vs CCE, Meerut-I (Dated: January 16, 2009)

Central Excise - CENVAT Credit on welding electrodes used for repair and maintenance of sugar mill - credit is admissible as per the Rajasthan High Court's judgement overruling the Larger Bench decision in J.P.Rewa Cement case.:DELHI CESTAT;

CUSTOMS SECTION

2009-TIOL-33-SC-NDPS.pdf + ndps sc story.pdf

State Of NCT Of Delhi Vs Ashif Khan (Dated: March 3, 2009)

Narcotic Drugs – Small quantity or commercial - only the actual contents by weight of the narcotic drug in the mixture relevant: in a mixture of a narcotic drug or a psychotropic substance with one or more neutral substance the quantity of the neutral substance or substances is not to be taken while considering whether small quantity or a commercial quantity of the narcotic drug or psychotropic substance is recovered but only the actual contents by weight of the narcotic drug or psychotropic substance as the case may be relevant for determining whether it would constitute a small quantity or commercial quantity.: SUPREME COURT;

2009-TIOL-399-CESTAT-MAD.pdf

M/s Air Travel Enterprises India Ltd vs CC (Sea Port), Coimbatore (Dated: October 13, 2008)

Customs – Export – Custom House Agent – Penalty – In the absence of any finding of the active involvement of the CHA in any act of omission or commission which had rendered the export goods liable for confiscation under Section 113, the penalty imposed under Section 114 is liable to be set aside. No offence has been found to have been committed by the CHA for which it could not be penalized under a specific provision of the Customs Act. Therefore, the penalty imposed under Section 117 is also not called for. Appeal allowed: CHENNAI CESTAT;