Commerce Secretary G K Pillai is new Home Secretary; Rahul Khullar is appointed as new Commerce Secretary;

FM allocates work to MoS(R);

PM recasts Plan Commission Panel;

Write book on earth sciences and win Rs 50000: Govt;

Govt imposes anti-dumping duty on import of CD-Rs;

India prohibits import of certain livestock and livestock products + all imported cigarettes to be subjected to tobacco products packaging and labelling rules;

Chennai Airport Customs seizes 25 ornamental fishes from pax coming from Singapore;

Racist attack on Indians: Advani for Parliamentary delegation to Australia;

Gove denies report on transfer of P&H High Court Judge Justice Mehtab Singh Gill;

TIOL COMMENTARY

budget story.pdf

Maharashtra Govt Budget gives relief to small professional taxpayers; hikes VAT rate on many items;

MIXED BUZZ

mbuzz0546.pdf

PM approves reconstitution of Plan Panel;

mbuzz0545.pdf

ADB takes steps to prevent spread of Swine Flu after it gets infected;

mbuzz0544.pdf

Write books on earth sciences in Hindi and win Rs 50000: Govt;

mbuzz0543.pdf

2009 cereal production to be second highest documented yield: FAO;

2009-TIOL-338-ITAT-MUM.pdf

ACIT, Mumbai Vs M/s H P Shah & Co (Dated: January 15, 2009 )

Income Tax - Assessee claimed interest expenditure u/s. 36(1)(iii) on amount invested in Mutual Funds - AO disallowed expenditure holding that borrowed funds were not for the purpose of assessee's business - CIT(A) allowed assessee's appeal - Held, where borrowed as well as own funds are used for both business and other than business purposes, there is no presumption that moneys used for other purposes came out of borrowed funds - Held, if an assessee having sufficient interest free funds, in the form of capital reserves and other funds without interest bearing from relatives and friends not related to business, to cover funds given interest free or utilized other than for business purposes, no disallowance is warranted, however, if the own funds are not sufficient to cover interest free advances, a proportionate disallowance is warranted - Revenue's appeal allowed and proportionate disallowance was made.:MUMBAI ITAT;

2009-TIOL-337-ITAT-DEL.pdf

M/s Exxon Mobil Lubricants Pvt Ltd Vs CIT, New Delhi (Dated: April 2, 2009 )

Income Tax - Sec 263 - assessee claims deduction of expenditure on account of advertisement and publicity - makes provision for two accounts of expenses - The claim of the advertisement accepted by the AO in the original assessment order though without any discussion in the assessment order - The CIT thought that the provision towards advertisement and publicity expenses to be unascertained liability being in the nature of contingent liability which is not deductible and held assessment order to be erroneous and prejudicial to the interests of revenue and consider that to take a final view on the issue further examination of the assessment records are necessary which can be conducted only by the AO and no conclusive findings on the issue at this stage –Held, on the one hand, the CIT says that it was a contingent liability not allowable as deduction and on the other hand, he records a finding that it was not possible for him to record conclusive findings on this issue at this stage. The two things are contradictory. It cannot be said that these are unascertained liabilities. The provision was made on the basis of purchases made by the parties who have earned the points on that purchases and as per the scheme, it was an allowable expenditure - CIT order set  aside and AO order restored.:DELHI ITAT;

Office Order.pdf

FM allocates work to MoS(R);

SERVICE TAX SECTION

2009-TIOL-865-CESTAT-DEL.pdf

M/s BSNL Vs CCE, Meerut-II (Dated: April 6, 2009)

ST - telecom service - Revenue alleges assessee failed to provide break-up of telecom and cellular services and short-paid the tax - assessee says it provided the break-up to the Commissioner(A) - held, the matter is remanded for fresh examination of facts:DELHI CESTAT;

2009-TIOL-864-CESTAT-DEL.pdf

Rajeev Kumar Gupta Vs CCE, Jaipur (Dated: March 26, 2009)

ST - Outdoor catering service - assessee runs a canteen within a factory - entire infrastructure with electricity is provided by the company - Revenue raises demand by treating the assessee as outdoor caterer - held, since the entire facilities are provided by the company itself, the assessee only cookes food and serves it to company's employees - no demand is sustainable - assessee's appeal allowed:DELHI CESTAT;

CENTRAL EXCISE SECTION

2009-TIOL-867-CESTAT-AHM.pdf + bandage story.pdf

CCE, Ahmedabad Vs M/s Neptune Textile Mills Ltd (Dated: February 27, 2009)

When the buyer and the manufacturer are in the know that the product manufactured and cleared were to be used in manufacture of bandages of PP Grade, the goods are correctly classifiable under heading 58.03 and not as Mosquito net fabrics – Tribunal.

Revenue appeal failing to make a mention in its appeal memorandum about the setting aside by the Commissioner(Appeals) of confiscation of the goods ordered and the penalties imposed on the Managing Director and the Partner of M/s Gujarat Healthcare, the consignee, by the adjudicating authority. Holding that such a reference was necessary in the appeal memorandum to make the appeal a complete one, the Tribunal allowed the appeal of the Revenue to the extent it was appealed against and did not disturb the order of the Commissioner(Appeals) to the extent it was not challenged.:AHMEDABAD CESTAT;

2009-TIOL-866-CESTAT-DEL.pdf

M/s New Holland Tractors (India) Pvt Ltd Vs CCE, Noida (Dated: February 24, 2009)

Central Excise – Input credit taken legally not required to be reversed when finished good viz., tractors become exempt subsequently – Larger Bench decision in M/s HMT & ors 2008-TIOL-1884-CESTAT-Del-LB followed – Impugned orders set aside:DELHI CESTAT;

CUSTOMS SECTION

NOTIFICATION

ctariff09_058.pdf

Govt imposes anti-dumping duty on import of CD-Rs;

dgft08not108.pdf

Imported cigarette subjected to new packaging and labelling rules;

dgft08not107.pdf

India prohibits import of livestock and livestock products;

CIRCULAR

dgft08cir092.pdf

Export of Sugar – reintroduction of the system of export release orders w.e.f. 1.1.2009 for export under OGL – Corrigendum to Policy Circular No. 87 (RE-09)/2004-2009 dated 4.5.2009;

CASE LAWS

2009-TIOL-863-CESTAT-MUM.pdf

Seahawk Logistics Pvt Ltd Vs CC, Nhava Sheva (Dated: March 19, 2009)

Empty containers on vessel – Goods not prohibited goods - when the goods were not liable to confiscation under section 111 of the Customs Act, the steamer agent could not have been held to have, by any commission or omission, rendered them liable to confiscation – Confiscation and Penalty set aside. :MUMBAI CESTAT;