Govt notifies modified ACP Scheme as per Pay Panel recommendations;

New FM in Office – YES MINISTER (See 'DDT')

FM says Union Budget 2009 to be tabled in July first week;

CBEC keeps pace with speed of judicial pronoucements; circulates Rajasthan Spinning & Dharmendra Textiles;

Fissures within UPA Version II over Cabinet bearths widen; Expansion not on cards today;

CBI nabs Central Excise Inspector accepting bribe of Rs 8000/-;

SC orders UP Govt to reinstate sacked 18000 police constables;

Madhav Nepal takes over as new Nepal PM;

TIOL COMMENTARY

ddt 26 may.pdf

Drawback – Excise portion when export goods are procured from market;

office_memorandum.pdf

Govt notifies modified ACP Scheme as per Pay Panel recommendations;

CASE LAW + ANALYSIS

2009-TIOL-79-SC-MISC.pdf + sc story.pdf

Sambhaji & Ors Vs Gangabai & Ors (Dated: April 2, 2009)

Justice Hurried is Justice Buried: While justice delayed may amount to justice denied, justice hurried may in some cases amount to justice buried.

Procedural law so dominates in certain systems as to overpower substantive rights and substantial justice - No person has a vested right in any course of procedure. He has only the right of prosecution or defence – In an adversarial system, no party should ordinarily be denied the opportunity of participating in the process of justice dispensation. Unless compelled by express and specific language of the statute, the provisions of CPC or any other procedural enactment ought not to be construed in a manner which would leave the court helpless to meet extraordinary situations in the ends of justice.

The mortality of justice at the hands of law troubles a Judge's conscience and points an angry interrogation at the law reformer.

Procedural law is not to be a tyrant but a servant, not an obstruction but an aid to justice. All the rules of procedure are the handmaids of justice . The language employed by the draftsman of procedural law may be liberal or stringent, but the fact remains that the object of prescribing procedure is to advance the cause of justice.

The humanist rule that procedure should be the handmaid, not the mistress, of legal justice compels consideration of vesting a residuary power in Judges to act ex debito justitiae where the tragic sequel otherwise would be wholly inequitable. Justice is the goal of jurisprudence, procedural, as much as substantive.

No person has a vested right in any course of procedure . He has only the right of prosecution or defence in the manner for the time being by or for the court in which the case is pending, and if, by an Act of Parliament the mode of procedure is altered, he has no other right than to proceed according to the altered mode.

A procedural law should not ordinarily be construed as mandatory, the procedural law is always subservient to and is in aid to justice . Any interpretation which eludes or frustrates the recipient of justice is not to be followed.

Procedural law is not to be a tyrant but a servant, not an obstruction but an aid to justice . A Procedural prescription is the handmaid and not the mistress, a lubricant, not a resistant in the administration of justice. Merely, because a provision of law is couched in a negative language implying mandatory character, the same is not without exceptions. The courts, when called upon to interpret the nature of the provision, may, keeping in view the entire context in which the provision came to be enacted, hold the same to be directory though worded in the negative form.: SUPREME COURT;

MIXED BUZZ

mbuzz0514.pdf

CBI nabs Central Excise Inspector accepting bribe of Rs 8000;

mbuzz0513.pdf

Economic revival - human capital to play critical role: OECD;

mbuzz0512.pdf

No impact of economic slowdown on manufacturing in Indian Railways;

2009-TIOL-270-HC-MAD-IT.pdf

CIT, Trichy Vs Sri P L Gandhi (Dated: April 28, 2009)

Income tax - Sec 147 - Reassessment order passed - Tribunal allows assessee's appeal - held, where tax effect is less than the sum stipulated by the CBDT, no appeal can be filed unless the case falls in the category of one of exceptions - Board circular is binding on the Revenue - Revenue's appeal dismissed:MADRAS HIGH COURT;

2009-TIOL-269-HC-DEL-IT.pdf

CIT Vs Concorde Capital Management Company Ltd (Dated: May 20, 2009 )

Income tax - Sec 69A - AO makes additions after a search and based on some loose papers - CIT(A) and Tribunal dismiss the Revenue's appeal - held, since the additions were made on the basis of a third party statement which was recorded during a Survey u/s 133A, it cannot be sustained - Revenue's appeal dismissed:DELHI HIGH COURT;

2009-TIOL-268-HC-DEL-IT.pdf

CIT Vs Amarjeet Singh Chadha (Dated: May 12, 2009)

Income tax - Search and seizure - AO makes additions on various counts - Tribunal allows additions on account of cash and jewellery - held, additions can be made only based on evidence collected during search u/s 132 or materials collected u/s 132(4) - no substantial law point involved - Revenue's appeal dismissed:DELHI HIGH COURT;

2009-TIOL-314-ITAT-MUM .pdf + Shri Chandrakant H Shah ITAT Story.pdf

Shri Chandrakant H Shah, Mulund Vs ITO, Mumbai (Dated: January 12, 2009 )

A transaction of loan can be without interest and a transaction of loan implies an agreement to repay the money – such loan cannot be added to income: the orders of Revenue Authorities appear to be passed on assumptions and presumptions and, particularly, when apparently, there exist no provision in the section 56(2)(v) to treat loans, which may not be repaid, as income of the assessee. Several commercial considerations prevail in the business world for entering into business transactions of various types and if the Revenue Authorities tax such transactions in this manner, then, the conduct of business would become impossible. It is also pertinent, to mention here that '0'% interest loan or interest free loan have been institutionalized where the manufacturing, companies or marketing companies compensate the financing companies who give money to the customers interest free to buy the products and these types of loan result into a vibrant economy benefiting all concerned and if the view taken by the Revenue Authorities is accepted then, all such transactions can be taxed as-income, u/s. 56(2)(v) of the Act which cannot be the intention of the legislature.:MUMBAI ITAT;

2009-TIOL-313-ITAT-MUM.pdf

ACIT, Mumbai Vs M/s Reliance Communications Infrastructure Ltd (Dated: January 12, 2009 )

Income tax - Sec 36(1)(iii) - assessee is into providing internet services and IT infrastructure facilities - claims deduction for interest charges - AO partly disallows it on the ground that the interest-bering loans were advanced interest-free to sister concerns - held, the assessee had first its own interest-free funds in the form of share capital and secondly, it is settled law that as long as giving interest-free loan serves commercial expediency of the assessee's business which is applicable in the instant case, no disallowance of interest payment can be made - Revenue's appeal dismissed:MUMBAI ITAT;

SERVICE TAX SECTION

2009-TIOL-271-HC-P&H-ST.pdf + stgst.pdf

CCE, Jalandhar Vs M/s A D Communication (Dated: May 05, 2009)

Service Tax - revision of order under Section 84 of the Finance Act, 1994 - Once the initial order has been passed within a period of two years, the provisions of Section 84(5) of the Finance Act stands complied with - There is no further requirement of law that even on the remand as per the order of the Tribunal the period of limitation that was initially applicable would continue to apply. :PUNJAB AND HARYANA HIGH COURT;

2009-TIOL-810-CESTAT-MAD.pdf

R Deivendran Vs CCE, Madurai (Dated: January 5, 2009)

Service Tax – Rent a Cab – Service Tax of Rs.9080/- demanded from an illiterate person, eligible for exemption –Demand and penalty set aside.:CHENNAI CESTAT;

CENTRAL EXCISE SECTION

CIRCULAR

excircular889.pdf

Imposition of mandatory penalty equal to duty under Section 11AC even though duty is paid before the issue of Show Cause Notice. Supreme Court's judgement dated 12th May, 2009 in the case of U.O.I Vs. Rajasthan Spinning & Weaving Mills and Commissioner of Customs & Central Excise Vs. Lanco Industries Ltd. in Civil Appeal No.3525 of 2009 arising out of S.L.P (Civil) No.4078 of 2008.

CASE LAWS

2009-TIOL-809-CESTAT-BANG.pdf

CCL Products ( India ) Ltd Vs CC & CCE, Guntur (Dated: March 20, 2009)

EOU – Destruction of damaged goods – Department does not reply to assessee's letters for over a year – goods destroyed without Departmental supervision – No fault on the part of the assessee – duty, penalty quashed:BANGALORE CESTAT;

2009-TIOL-808-CESTAT-AHM.pdf + eou story.pdf

CCE, Surat-I Vs Ghodela Impex (Dated: January 20, 2009)

Goods manufactured by a 100% EOU out of raw-materials received from another 100% EOU and cleared to DTA – whether  eligible for benefit of exemption under Notification No. 8/97-CE, 23/2003-CE – Matter referred to Larger Bench.:AHMEDABAD CESTAT;

2009-TIOL-807-CESTAT-MAD.pdf

M/s Henkel India Ltd Vs CCE, Chennai-II (Dated: January 1, 2009)

Central Excise - Credit availed on inputs and capital goods is not recoverable as along as they are not removed from the factory and are used in or in relation to manufacture the final products. The ratio applies even in cases, where the factory is transferred on lease.:CHENNAI CESTAT;

CUSTOMS SECTION

CIRCULAR

dgft08pn180.pdf

SION rate for raw cotton amended ;

corrrigendum.pdf

Corrigendum to Public Notice No. 179;

dgft08cir091.pdf

“Error 96” cases and their online validation under DEPB Scheme;

CASE LAWS

2009-TIOL-811-CESTAT-MAD.pdf

Mr Neil Armstrong Vs CC, Trichy (Dated: January 2, 2009)

Customs- A penalty cannot be imposed on a person for abetment on presumption of conscious participation in the offence inviting confiscation .:CHENNAI CESTAT;