'Customs Notification Number' field added to DTR; What is this DTR all about? (See 'DDT')

Realty Sector expects clarity on tax provisions (See 'Budget Run-Up')

India extends concessional tariff regime to Senegal;

DRI detects diversion of goods from duty-free shop from Hyderabad airport;

Smt Anjana Prakash and Mr Jyoti Sharan appointed as Addl Judges of Patna HC;

Victorian Govt finally cracks down on forces responsible for attacks on Indians;

OECD Steel Committee sees market recovery beginning end 2009;

TIOL COMMENTARY

ddt 10 June.pdf

What is this  DTR  all about?

budgetrunup03.pdf

Realty Sector expects clarity on tax provisions;

spl down.pdf

Debarring clauses in CBEC Rewards Scheme need a re-look;

RBI NOTIFICATION

rbi_notification.pdf

NBFCs  - Accounting Standard 22- Treatment of Deferred Tax Assets (DTA) and deferred Tax Liabilities (DTL) for computation of capital –  RBI  Clarifies;

List of Government Holidays of 2010.pdf

For list of Union Govt approved holidays in 2010;

MIXED BUZZ

mbuzz0555.pdf

DRI detects smuggling from duty free shops at Hyderabad Airport;

mbuzz0554.pdf

OECD Steel Committee sees market recovery beginning end 2009;

cbdt_dpc.pdf

DPC-Promotion to the grade of CIT for the vacancy year 2008-09;

CASE LAWS

2009-TIOL-351-ITAT-MUM.pdf + star cruise story.pdf

M/s Star Cruises (India) Travel Services P Ltd Vs DDIT, Mumbai (Dated: March 24, 2009)

Income tax - Interest u/s 244A - Assessee is into cruise shipping business - sends remittances abroad without deduction of tax at source u/s 195 - AO holds it as assessee in default and issues orders under Ss 201(1) and 201(1A) - Assessee deposits tax with interest - CIT(A) orders refund - interest u/s 244A denied - held, if TDS is deposited involuntarily by the assessee and refund is ordered, interest is payable - Assessee's appeal allowed :MUMBAI ITAT;

2009-TIOL-350-ITAT-HYD.pdf

Shv Energy India Pvt Ltd Vs ACIT, Hyderabad (Dated: December 14, 2008)

Income tax - In the rapidly changing technological environment, nothing is of enduring nature and more so in the field of software – maintenance of software is not capital expenditure - Assessee's appeal allowed :HYDERABAD ITAT;

2009-TIOL-349-ITAT-MAD.pdf

Shriram Transport Finance Co Ltd Vs ITO, Chennai (Dated: February 06, 2009)

Income Tax - Assessee, an NBFC, claimed deduction on the amount transferred to a statutory reserve u/s 45 IC of the RBI Act - AO disallowed the deduction - CIT(A) upheld AO's order - Held, transfer to reserve is only an appropriation of the profits which cannot be considered as a charge to the profits - Held, transfer to Reserve Fund can certainly not be called a diversion of income by overriding charge since RBI has not attached any obligation that the fund be kept in any earmarked security nor the purpose of utilization of the fund has been specified - Assessee's appeal dismissed. :CHENNAI ITAT;

2009-TIOL-348-ITAT-MUM.pdf

DCIT, Mumbai Vs M/s Procter & Gamble Home Products Ltd (Dated: January 19, 2009)

Income Tax - Assessee claimed deduction of expenditure incurred on approved Voluntary Retirement Scheme which was disallowed by AO - CIT(A) restored the matter back to AO to consider the provisions of Rule 6B - AO held the expenditure disallowable not under rule 6B but on the ground that the same was of capital nature - CIT(A) held in favor of assessee - Held, payment of compensation to induce the workmen to retire prematurely was an item of expenditure incurred by the company on the ground of commercial expense in order to facilitate carrying on of the business and it was an expenditure allowable under section 37(1) - Revenue's appeal dismissed. :MUMBAI ITAT;

2009-TIOL-347-ITAT-BANG.pdf

ACIT, Bangalore Vs M/s Novell Software Development India Pvt Ltd (Dated: April 30, 2009)

Income tax - Sec 10A - Assessee incures expenses in foreign currency towards telecom connectivity for providing technical services from total turnover - AO disallows - held, it is a settled law now that if such expenses are deducted from export turnover it will also be deducted from the total turnover - Revenue's appeal dismissed :BANGALORE ITAT;

SERVICE TAX SECTION

2009-TIOL-888-CESTAT-DEL.pdf + export story.pdf

CST, Delhi Vs M/s Convergys India Pvt Ltd (Dated: May 18, 2009)

Export of services – Rebate/Refund - Without questioning the credit taken, the eligibility to rebate cannot be questioned :. The eligibility to the credit of the duty paid on inputs and the credit of tax paid on input services are not contingent on whether the services are exported or not. It is incidental that the respondent is exporting the entire services as of now. They could as well be rendering, or may render in future, the same services to domestic customers. They could be partly providing the said services to domestic customers and could be partly exporting services. In all the situations, the criteria for the eligibility of the credit will be the same. It is clear that there cannot be two different yardsticks, one for permitting credit and the other for eligibility for granting rebate. Whatever credit has been permitted to be taken, the same are permitted to be utilized and when the same is not possible there is provision for grant of refund or as rebate.

input services used in connection with procurement of other input services has to be treated necessarily as input services; The show cause notice alleged that the respondent had used imported input services and in connection with procurement of such services, they had also used certain other input services by using telephone, telex, fax, e-mail etc. and such services used for procuring such input services cannot be treated as input services. This appears to be erroneous. Using telephone, telex, fax, e-mail etc cannot be treated as output services provided by the respondent.

Filing of declaration only procedural – substantial benefit cannot be denied - The document based verification can be at a latter point of time. The non-observance of a procedural condition in this case is of a technical nature and cannot be used to deny the substantive concession. Further, in respect of export, a liberal view requires to be taken. The non-fulfilment of the procedure cannot lead to denial of the benefit under the beneficial legislation providing for export benefits.:DELHI CESTAT;

2009-TIOL-887-CESTAT-DEL.pdf

M/s TIL Ltd Vs CCE, Jaipur-II (Dated: May 6, 2009)

ST - penalty - assessee is accused of manipulating reapir and maintenance contract into supply contract - demand - substantial deposit made - held, since there is serious allegation of converting a taxable contract into a non-taxable contract, pre-deposit is ordered but waiver of interest and penalty waive off :DELHI CESTAT;

CENTRAL EXCISE SECTION

2009-TIOL-884-CESTAT-MUM.pdf

M/s Bannari Amman Sugars Ltd Vs CCE, Salem (Dated: March 6, 2009)

Central Excise – Notification – Interpretation of – Notification No.23/03-CE extends benefit to goods manufactured wholly from indigenous raw materials. Use of imported consumables will not disentitle an EOU to the benefit of the said notification. (Para 5)

Words and Phrases – Raw materials vis-à-vis Consumables - The meanings of these expressions as assigned in the EXIM Policy in force during the material period - ‘Consumables' means any item which participated and is required for a manufacturing process but did not form part of the end product. These are substantially or totally consumed during the manufacturing process. ‘Raw material' means basic materials which are needed for the manufacture of goods whether they had been previously manufactured or are processed or are still in a raw or natural state. (Para 4):MUMBAI CESTAT;

2009-TIOL-883-CESTAT-AHM.pdf

M/s Adi Artech Transducers Pvt Ltd Vs CCE & CC, Vadodara-II (Dated: February 28, 2009)

Central Excise – When shortage of inputs accepted by assessee and duty amount debited, it cannot be disputed later on the ground that department has not adduced evidence for clandestine removal – It is incumbent upon assessee to explain shortages convincingly – Demand of duty and imposition of penalty under Rule 25 confirmed – Penalty under S. 11AC set aside :AHMEDABAD CESTAT;

CUSTOMS SECTION

NOTIFICATION

ctariff09_059.pdf

India extends concessional tariff regime to Senegal;

dgft08not110.pdf

Export of groundnuts and seasame seeds - DGFT insists on certification;

dgft08not109.pdf

Export to Russia - DGFT amends 'nature of restrictions';

dgft08pn185.pdf

SION rate for Gents Leather Half Boot Lasted Upper with insole revised;

CASE LAWS

2009-TIOL-886-CESTAT-BANG.pdf + furniture story.pdf

M/s GE India Technology Centre   Vs CC, Bangalore (Dated: February 10, 2009)

Customs – Modular furniture/ anti static carpet to be regarded as capital goods, entitled for benefit of exemption notification 52/2003-Cus under EOU scheme and allowed for inter unit transfer – Once goods are imported in terms of exemption notification 52/2003-Cus, Customs cannot dispute the eligibility of the said notification – Board Circular 16/07 dated 18.04.07 clarifies that even items which are listed in Sl. Nos. other than Sl. No.1 of Annexure I to notification 52/2003-Cus may be allowed the facility of IUT, if these items qualify to be considered as capital goods – No justification in demand of duty and imposition of penalties when transfer is made after obtaining permission from Development Commissioner and Customs authorities – Impugned order liable to be set aside:BANGALORE CESTAT;

2009-TIOL-885-CESTAT-AHM.pdf

M/s Bhairavi Exim P Ltd Vs CC, Ahmedabad (Dated: September 1, 2009)

Customs – Evidences furnished by appellants not considered properly by Commissioner while disposing case of diversion of imported goods – Matter remanded to Commissioner to re-examine evidences in r/o each consignment and give clear findings for not accepting appellants contentions :AHMEDABAD CESTAT;