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Will Budget Premier League deliver? (See 'Budget Run-Up') Vacancies at Chief Commissioner-level in CBEC - DPC - incomplete ACRs - Board Member figures in list of defaulters; FM approves 23 FDI proposals worth Rs 565 Crore; Reservation no solution to Muslims' backwardness: Minority Minister Salman Khursheed; PC proposes to revamp NCB; more manpower to be sanctioned for anti-drugs and anti-FICN campaigns; Closure of fraud cases - relaxation in the existing norms; Senior Citizens Savings Scheme, 2004 - Acceptance of Form 15-G from the Nominees; World Oceans Day: UN Chief warns of untold damage inflicted on seas; Bermuda signs record nine tax information agreements in two months; House Panel for 'complete ban' on entry of corporate into retail trade ; |
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| Dear Member, Sending the following files: |
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TIOL COMMENTARY What is the difference between ICDs and CFSs –CBEC Clarifies; Will Budget Premier League deliver?Service tax on services rendered from outside India - A peep into judicial decisions? Vacancy at CC-level - DPC - incomplete ACRs - Board Member figures in defaulters' list? RBI RBI Notifi for Fraud Cases.pdf Closure of fraud cases - relaxation in the existing norms; RBI Notification For Senior Citizens.pdf Senior Citizens Savings Scheme, 2004 - Acceptance of Form 15-G from the Nominees; MIXED BUZZ Closure of bank fraud cases: RBI eases existing norms; World Oceans Day: UN Chief warns of untold damage inflicted on seas; Bermuda signs record nine tax information agreements in two months; |
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DEPUTATION Filling up of the Four Posts of Under Secretary (Technical) in CBDT; CASE LAWS 2009-TIOL-346-ITAT-HYD .pdf + ap story.pdf ACIT, Hyderabad Vs Andhra Pradesh Power Generation Corporation Ltd (Dated: December 19, 2008) Income tax - India-China DTAA - Assessee is a State Government undertaking - enters into contracts with non-resident company for supply of power generators and also erection and commissioning of the project - TDS u/s 195 - Assessee writes to Revenue for rate at which TDS to be deducted only service component of the contract - AO holds that it is a composite contract and although the title of goods is transferred outside India the assessee exercises control over it during commissiong and since the non-resident has hired warehouses from the assessee and also constructed colony for its staff, it becomes its PE and the entire income is business income as per Article 7(1) of the DTAA - CIT(A) agrees with the AO that it is a composite contract but holds TDS is liable for only that part of income which is attributed to execution of commissioning in India - held, the AO is right in holding that it is a composite contract but it has, however, two identifiable segements and the supply of equipment is on FOB basis and such a contract cannot be rewritten by the AO. Since the title of goods was passed on to the buyer outside India and TDS is applicable only to the income arising from the service contract carried out in India. There is no wrong in CIT(A) order that even if there is a PE in India, since the goods were manufactured outside India, no income can be attributed to the PE as business income - TDS to be paid only on income attributable to the service component of the contract as rightly offered by the assessee on its own - Revenue's appeal dismissed :HYDERABAD ITAT; ITO, Mumbai Vs M/s Matraco India Ltd (Dated: February 04, 2009) Income Tax - Section 68 - Assessee raises unsecured loan against securities pledged with the Banks being in the name of two persons in the form of FCNRs and RIBs - AO holds it to be unaccounted money of the assessee company and its Directors which are being channelised and circulated through the RIBs and determines the amount held in FCNRs/RIBs as income of the assessee u/s 68 – CIT(A) remands the issue back to the AO for affording an opportunity to the assessee to present the comments on information provided by the Banks and holds that the explanation given by the assessee company to counter the allegation made by the AO as logical and based on material evidence and as the AO is not able to disprove the claim - Held, in view of ratio laid down by Apex Court in CIT Vs Daulatram Rawatmull and in the facts and circumstances of the case, no merit in the addition made by the AO. CIT(A) order confirmed. Revenue Ground dismissed. Mr Niraj Mehta Vs ACIT, Mumbai (Dated: January 30, 2009) Income Tax - Notice u/s 158BC - block return filed – AO finds discrepancies in stocks of loose diamonds and gold and same were not offered for taxation in return - makes additions for undisclosed amount - CIT(A) agrees with the AO - held, only the profit element of such stocks can be brought to tax and not the entire shortage of gold - the sale proceeds of the gold and the undisclosed income declared in the block return explain the source of acquisition of loose diamonds - Assessee's appeal allowed.:MUMBAI ITAT; M/s Raymond Ltd Vs Addl.CIT, Mumbai (Dated: February 25, 2009) Income tax - Trial run expenses - assessee is into manufacture of steel - expands capacity for cold rolled steel - incures trial run expenses - initially capitalises the same but since production commences during the FY, such expenses are claimed as revenue expenditure - AO and CIT(A) disallow - held, since it is expansion of existing capacity, and similar allowance was made in the case of assessee in earlier years, it is allowable - assessee's appeal allowed Sec 35AB - Assessee enters into agreement with three foreign companies for transfer of technical knowhow fee - Fees are paid in instalments over a period of time - assessee claims since the payments are made in instalment and not lump sum Sec 35AB is not applicable and it is allowable u/s 37 - AO allows one-sixth of the gross amount in the relevant year - held, since the issue is settled in favour of Revenue in earlier years, only one-sixth of the gross sum is to be allowed u/s 35AB - Assessee's appeal dismissed :MUMBAI ITAT; |
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CBEC promotes 12 as Commissioner and issues transfer order of 32 Commissioners;
SERVICE TAX SECTION 2009-TIOL-882-CESTAT-DEL-LB.pdf + Vandana Global Story.pdf Vandana Global Ltd Vs CCE, Raipur (Dated: May 27, 2009) CESTAT Larger Bench – Referral of matters to Larger Bench – Preliminary objection by Revenue that matters shall be referred to the Larger Bench only when a final view is arrived at by a division bench, referral at stay stage being illegal and invalid, rejected – When a coordinate bench holds a contrary view on a decision rendered on a given matter by another coordinate bench, such matters can be referred to the Larger Bench at any stage of the proceedings – Once decision is taken by referral bench which is in conflict with the precedent decision, whether the wording used in the order of the referral bench is "prima facie view" or "final view" is immaterial as long as inconsistency in the earlier judgment has been brought out – Member (T) in Leading judgment:DELHI CESTAT (LARGER BENCH); CCE, Raipur Vs M/s Saket Oxygen Pvt Ltd (Dated: April 24, 2009) ST - Cenvat Credit - Assesee avails credit of tax paid on input services to pay service tax on GTA service - held, it is a settled issue and credit can be availed - Revenue's appeal dismissed:DELHI CESTAT; M/s K M Movement Vs CCE, Jaipur (Dated: May 11, 2009) ST - Cargo Handling Service - Assessee does not participate in hearing despite notice - held, a persual of the contract indicates that the transporation is not a dominant component and the assessee has undertaken loading and uloading - since the assessee is not cooperating nor is registered, it cannot be granted waiver of pre-deposit - Assessee's appeal dismissed:DELHI CESTAT;
CENTRAL EXCISE SECTION 2009-TIOL-882-CESTAT-DEL-LB.pdf + Vandana Global Story.pdf Vandana Global Ltd Vs CCE, Raipur (Dated: May 27, 2009) CESTAT Larger Bench – Referral of matters to Larger Bench – Preliminary objection by Revenue that matters shall be referred to the Larger Bench only when a final view is arrived at by a division bench, referral at stay stage being illegal and invalid, rejected – When a coordinate bench holds a contrary view on a decision rendered on a given matter by another coordinate bench, such matters can be referred to the Larger Bench at any stage of the proceedings – Once decision is taken by referral bench which is in conflict with the precedent decision, whether the wording used in the order of the referral bench is "prima facie view" or "final view" is immaterial as long as inconsistency in the earlier judgment has been brought out – Member (T) in Leading judgment:DELHI CESTAT (LARGER BENCH); Oil & Natural Gas Corporation Vs CCE, Raigad (Dated: March 4, 2009) Whether post 01.07.2000 duty on LPG is to be paid on the basis of transaction value or on the basis of Administered Pricing Mechanism (APM) fixed by the Government – Tribunal decision in GAIL [ 2002-TIOL-398-CESTAT-Del-LB ] and Mangalore Refinery is to the effect that valuation of petroleum products should be based on APM price – Pre-deposit waived and Stay granted – Early hearing as high stakes involved. :MUMBAI CESTAT; M/s Rivaa Textile Industries Ltd Vs CCE, Surat (Dated: January 7, 2009) Central Excise - Removal of a chamber from stenter requires re-fixation of annual capacity and does not entail closure of stenter warranting abatement under Rule 96ZQ(7) – Competent authority after giving permission to remove the chamber should have re-fixed annual capacity and examined duty liability if any during closure of chamber – Impugned order set aside and matter remanded to original authority:AHMEDABAD CESTAT; M/s Ahmedabad Packaging Industries Ltd Vs CCE, Ahmedabad (Dated: April 23, 2009) Central Excise – When matter pertaining to refund attained finality Appellate Commissioner has no jurisdiction to sit in judgment over the order passed by his predecessor – If Revenue is aggrieved with Commissioner (Appeals) order sanctioning refund, should have challenged the order before Tribunal – Matter remanded for de novo consideration of interest claim on delayed refund :AHMEDABAD CESTAT;
CUSTOMS SECTION Addition of data field regarding ‘customs notification number' for transmission of data to DGCI&S – regarding – reg. dgft08pn183.pdf + dgft08pn184.pdf DGFT amends SION rates of a few chemical group items; CASE LAWS 2009-TIOL-301-HC-MAD-CUS.pdf + cha story.pdf Isak Ebinesar Vs Chairman, CBEC, New Delhi (Dated: April 15, 2009) Customs- CHA Licensing Regulations 2004 - the petitioners who passed the examination under the old regulations ( 1984) do not have any vested right to seek exemption from passing the examination under the New Regulations - petitioners cannot claim legitimate expectation that they would be issued with licese under the old regulations - doctrine of legitimate expectation is not applicable to the petitioner's case - Challenge to the new regulations and the notification inviting applications under new regulations is rejected - however, the Central Board of Excise and Customs, is directed to examine the matter and come up with a scheme for extending to the petitioners herein, the same benefits as conferred upon similarly placed persons in Delhi and Punjab and Haryana.: MADRAS HIGH COURT; 2009-TIOL-882-CESTAT-DEL-LB.pdf + Vandana Global Story.pdf Vandana Global Ltd Vs CCE, Raipur (Dated: May 27, 2009) CESTAT Larger Bench – Referral of matters to Larger Bench – Preliminary objection by Revenue that matters shall be referred to the Larger Bench only when a final view is arrived at by a division bench, referral at stay stage being illegal and invalid, rejected – When a coordinate bench holds a contrary view on a decision rendered on a given matter by another coordinate bench, such matters can be referred to the Larger Bench at any stage of the proceedings – Once decision is taken by referral bench which is in conflict with the precedent decision, whether the wording used in the order of the referral bench is "prima facie view" or "final view" is immaterial as long as inconsistency in the earlier judgment has been brought out – Member (T) in Leading judgment:DELHI CESTAT (LARGER BENCH); |
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