Industrial Production further goes down to 0.5% in January, 2009;

Left, other Regional parties launch 'Third Front' as alternative to Congress and BJP;

Stock holding limits on sugar: Govt gives 30 days from date of receipt;

Coal India allotted two coal blocks in Mozambique;

ACES - CBEC Member Sridhar To inaugurate Pilot Project in Chennai toady (See 'DDT')

The Ant - a fable or? (See 'DDT')

TRAI amends Quality of Service Regulations for Direct to Home Services;

Inflation hits six-year low at 2.43%;

UN believes leisure tourism may reverse economic downturn;

Admission to Company Secretaries Foundation Programme open till March 31, 2009;

Revised UN estimates put world population at 9 billion by 2050;

UN drug tsar asks States to tackle crime and dependency together;

TIOL COMMENTARY

ddt 12 march.pdf

Bringing back all the Money stashed away in foreign banks – a twist in the tale;

cobweb 12 march.pdf

India's lost wealth in tax havens: A case of urging Netas to bring back their own funds!

MIXED BUZZ

mbuzz0278.pdf

TRAI recommends 3-year lock-in period for Promoter’s Equity in Unified Access Service Licence;

mbuzz0277.pdf

TRAI amends Quality of Service Regulations for Direct to Home Services;

mbuzz0276.pdf

UN believes leisure tourism may reverse economic downturn;

mbuzz0275.pdf

Revised UN estimates put world population at 9 billion by 2050;

mbuzz0274.pdf

UN drug tsar asks States to tackle crime and dependency together;

2009-TIOL-119-HC-DEL-IT.pdf

CIT, Delhi Vs Anand Prakash (Dated: February 27, 2009)

Income Tax - Sec 234A - assessee's land was acquired by the State Government - assessee appeals for enhanced compensation - higher compensation with interest awarded - Revenue invokes Sec 148 and levies interest u/s 234B on the assessee - Tribunal holds that the interest u/s 234B is in the nature of penalty and not compensatory and sets aside the levy - held, it is settled that the levy of interest u/s 234B is compensatory in nature and not penal but it is not leviable as the assessee was not aware of enhanced compensation at the time of filing return nor the income was available with the assessee for advance tax - Revenue's appeal dismissed:DELHI HIGH COURT;

2009-TIOL-118-HC-MUM-IT.pdf

Hindustan Foods Ltd Vs DCIT, Goa (Dated: February 13, 2009)

Income tax - Assessee is a food products manufacturer - issues redeemable debentures - maturity - unclaimed funds - Assessee transfers the same to General Reserve Fund - AO treats the same as trading receipts - Tribunal agrees with the AO on the ground that even after five years of maturity the assessee made no efforts to trace the investors and kept utilising the fund for business purposes nor transferred the money to the Investor Education Fund under Sec 205C - held, merely on limitation ground, the assessee cannot go on utilisiting the fund for its own business and pay no tax - if part of the fund is paid in subsequent years, the same can be claimed as deduction - Assessee's appeal dismissed:BOMBAY HIGH COURT;

2009-TIOL-154-ITAT-BANG.pdf + wipro story.pdf

DCIT, Bangalore Vs M/s Wipro Ltd (Dated: January 30, 2009)

Income tax - Sec 10A - Assessee is a computer software manufacturer - exports software and on-site technical services - pays foreign taxes like VAT/GST - claims inclusion of foreign taxes in export turnover - AO disallows - held, since taxes paid abroad also reduce foreign exchange brought into India by same quantum, it is not to be included in export turnover for allowing Sec 10A benefits

Assessee claims credit for VAT/GST paid in the USA and Canada - AO disallows on the ground that there is no provision in the DTAAs to allow credit for taxes paid other than the income tax - Since CIT(A) skips discussing the merit of the AO's view, issue is remanded:BANGALORE ITAT;

2009-TIOL-153-ITAT-BANG.pdf

DCIT, Bangalore Vs M/s Acer India Pvt Ltd (Dated: January 30, 2009)

Income tax - assessee is a manufacturer of computer and peripherals - earns interest income from bank deposits - treats the same as business income deductible u/s 80IB - AO disallows and CIT(A) treats it as income from other sources - held, since the assessee fails to link the earning of interest on fixed deposit whether from the surplus available to the assessee or whether held as margin with the Bank for obtaining overdraft facility against which interest has been claimed allowed as was explained by the assessee before the Assessing Officer - issue remanded to the AO for fresh examination:BANGALORE ITAT;

2009-TIOL-152-ITAT-MUM.pdf

DCIT, Mumbai Vs M/s Premsons (Dated: January 15, 2009)

Income tax - Survey u/s 133A - Revenue conducts survey and finds mismatch between the stock registers and stocks in physical quantity - statements recorded in respect of discrepancy in accounts and undisclosed income - a sum surrendered - assessee discloses certain income towards discrepancy in accounts in final return but not towards undisclosed income surrendered during Survey - held, given the discrepancy between the stock and books of account, it calls for invocation of provisisons of Sec 145(3) and no addition can be made merely on the basis of statements recorded during Survey which has no evidentiary value as per the settled law - Revenue's appeal dismissed:MUMBAI ITAT;

SERVICE TAX SECTION

CIRCULAR

sercir112.pdf

Service tax refund to exporters: CBEC issues fresh clarifications ironing out irritants in claims;

CASE LAWS

M/s Indo Lahiri Bio Power Ltd Vs CCE, Raipur (Dated: January 9, 2009)

Service Tax – Credit of service tax paid on GTA service through TR 6 challans prior to 16.06.2005 available to manufacturers – Issue no longer res integra – Impugned order denying credit not sustainable and liable to be set aside:DELHI CESTAT;

2009-TIOL-411-CESTAT-DEL.pdf

CCE, Jaipur-II Vs M/s J K Cement Works (Dated: January 16, 2009)

Service tax – Rent-a-cab service, Cellular Telephone service, Repair of car/motor vehicle service and Photography service are input services – Services consumed in or in relation to manufacturing process – Credit available on service tax paid on such services – No infirmity in impugned order:DELHI CESTAT;

CENTRAL EXCISE SECTION

2009-TIOL-416-CESTAT-AHM.pdf + limitation story.pdf

M/s Ispa Chemicals Pvt Ltd Vs CCE, Vapi (Dated: February 12, 2009)

Whether the show cause notice issued after a period of six months from the date of visit of the officer or from the date of completion of investigations, is barred by limitation – matter referred to Larger Bench.:AHMEDABAD CESTAT;

2009-TIOL-415-CESTAT-AHM.pdf

M/s Wockhardt Ltd Vs CCE, Surat (Dated: November 25, 2008)

Central Excise – Classification of Povidone Iodine USP under Chapter 2942 initially approved by authorities – Revenue did not make further enquiries on composition of product – No allegation in SCN against assessee regarding suppression or mis-statement – Prima facie case in favour appellants as demand for the period 1991-93 raised in 2006 – Pre-deposit of Rs. 2 crores waived and stay granted unconditionally:AHMEDABAD CESTAT;

2009-TIOL-414-CESTAT-AHM.pdf

M/s Aarvee Denims & Exports Ltd Vs CCE, Ahmedabad (Dated: November 27, 2008)

Central Excise – No bar in refund of unutilized AED (TTA) under Rule 5 of CCR – Revenues contention that AED (TTA) cannot be utilized for goods cleared for home consumption rendering refund claim ineligible not sustainable:AHMEDABAD CESTAT;

CUSTOMS SECTION

cuscir09_012.pdf

Clarification on levy of National Calamity Contingent Duty (NCCD) on Cellular / mobile Phones on the basis of MRP / Retail Sale Price;

Corrigendum.pdf

Corrigendum to Notification No. 21/2009-Customs;

CASE LAWS

2009-TIOL-40-SC-CUS-LB.pdf + SC LB story.pdf

Inspector Of Customs, Akhnoor J & K Vs Yash Pal (Dated: March 6, 2009)

If the foundation of the prosecution case was the alleged confession before the Customs Authorities, that material was not brought to the notice of the accused persons. Acquittal sustained.

What is the object of examination of an accused under Section 313 of the Code? The section itself declares the object in explicit language that it is "for the purpose of enabling the accused personally to explain any circumstances appearing in the evidence against him". Thus it is well settled that the provision is mainly intended to benefit the accused and as its corollary to benefit the court in reaching the final conclusion.:SUPREME COURT LARGER BENCH;

2009-TIOL-120-HC-AHM-CUS.pdf

CC Vs Spectrum Fabrics (Dated: January 22, 2009)

Customs – Appeal filed against Tribunal order setting aside confiscation of goods not stayed by High Court – No infirmity in Tribunal ordering disposal of refund application:GUJARAT HIGH COURT;

2009-TIOL-413-CESTAT-AHM.pdf

M/s Favourite Industries Vs CCE, Surat (Dated: December 15, 2008)

Customs – Seized goods handed over to appellant for safe custody stolen/replaced – Story put forth by appellant does not inspire confidence inasmuch as keys were with the assessee and locks were not found to be broken – Timing of filing of FIR with the Police also points the needle of suspicion towards appellant – Pre-deposit of Rs. 1.25 crores ordered:AHMEDABAD CESTAT;