Finance Bill yet to be passed by Lok Sabha (we mistakenly reported Appropriation bill as Finance Bill due to communication error - we regret it: Editor);

CBDT notifies DTAA between India and Tajistikan;

Margarent Alva appointed Uttrakhand's Governor; B L Joshi to take charge of Uttar Pradesh;

UN breeding owls to stamp out crop-eating rodents;

UN agreement to expose Europe's biggest polluters;

Genunine problems of exporters to be addressed by FTP: Commerce Minister;

Deep-rooted corruption in AICTE; CBI finds huge cash, FDRs and investments in property by several officials;

Time ripe for redefining and enforcing fiscal discipline;

H-1B visa curbs not to affect employees of Indian Outsourcing Cos: Minister;

Govt to link all Panchayats for e-governance within 3 years;

TIOL COMMENTARY

editorial.pdf

Time ripe for redefining and enforcing fiscal discipline;

cbi story.pdf

Deep-rooted corruption in AICTE; CBI finds huge cash, FDRs and investments in property by several officials;

service story.pdf

Service – Redrawing of seniority list for promotion to grade of Assistant Commissioner – Department to redraw seniority list based on the principles enunciated by Madras High Court and Supreme Court and it cannot be faulted in this regard – On preparation of this list, if there is any grievance between direct recruits or promotees, it is always open for aggrieved persons to challenge the final list;

ANALYSIS + CASE LAW

2009-TIOL-347-HC-MUM-CT.pdf + icici story.pdf

M/s ICICI Bank Ltd Vs State Of Maharashtra (Dated: July 3, 2009)

Sales tax Authorities to state reasons for granting or rejecting Stay; The Authorities under the VAT Act considering applications for stay are exercising quasi-judicial functions. Once that be the case, a Tribunal exercising quasi-judicial functions, while passing an order on an application for stay has to give reasons. Failure to give reasons would result in setting aside the order as a non-speaking order. Apart from that a higher Court which exercises jurisdiction over the orders passed by the Tribunal either as an appellate Court or revisional Court or Court exercising supervisory jurisdiction must know the reasons based upon which the Tribunal proceeds to grant or reject the application for stay. Form No.312 if read, as a form for granting order of stay would be clearly arbitrary and will have to be struck down as interfering with the judicial process and administration of justice.:BOMBAY HIGH COURT;

RBI NOTIFICATION

rbi09cir003.pdf

Deferred Payment Protocols dated April 30, 1981 and December 23, 1985 between Government of India and erstwhile USSR;

MIXED BUZZ

mbuzz0667.pdf

UN breeding owls to stamp out crop-eating rodents;

mbuzz0666.pdf

UN agreement to expose Europe's biggest polluters;

mbuzz0665.pdf

Govt to link all Panchayats for e-governance within 3 years;

mbuzz0664.pdf

H-1B visa curbs not to affect employees of Indian Outsourcing Cos;

NOTIFICATION

it09not058.pdf

CBDT notifies DTAA between India and Tajistikan

CASE LAWS

2009-TIOL-348-HC-MAD-IT.pdf + loan story.pdf

Sri Mangilal Jain Vs ITO (Dated: June 16, 2009)

Income Tax – disallowance of alleged loan – No question of law – no interference: The assessee has not made any legal ground calling for interference of this Court and the order passed by the Tribunal in respect of both the claims raised cannot be said to be perverse or illegal. We find no reason to interfere with the finding of the Tribunal. Hence the appeal fails and the same is dismissed and the question of law is answered against the appellant.:MADRAS HIGH COURT;

2009-TIOL-464-ITAT-DEL.pdf

DCIT, New Delhi Vs M/s Sivalik Cellulose Ltd (Dated: April 09, 2009)

Income Tax - Assessee company was to be managed by HLL under the scheme of rehabilitation for which assessee company claimed misc expenses on account of cost paid to HLL for salaries of the managers, officers on deputation and other expenses - AO disallowed the same holding it not a business expenditure and it pertain to earlier years - CIT(A) allowed assessee's appeal - Held, since all these events took place during the relevant previous year, the liability has to be considered as pertaining to that year according to the mercantile principles of accounting and simply because the liability was related to the earlier period, its deduction cannot be disallowed - Revenue's appeal dismissed.: DELHI ITAT;

2009-TIOL-463-ITAT-HYD.pdf

Sri Mohanarami Reddy, Chittoor Dist Vs ITO, Chittoor (Dated: February 6, 2009)

Income tax - Delay in filing return due to sickness – Assessee could not have planned sickness – Penalty quashed: The Assessing Officer's contention is that the assessee should have got the accounts audited before he fell ill. It may be noted that it is for the assessee to plan his affairs. Had he anticipated sometime in April or May that he is going to fall ill in October, he may have thought of getting the accounts audited. Perhaps, this thought also may not have materialized because he was dependent on the auditor as well. If the auditor was busy elsewhere, the assessee cannot be blamed.: HYDERABAD ITAT;

SERVICE TAX SECTION

2009-TIOL-1086-CESTAT-BANG.pdf

M/s Soma Enterprise Ltd Vs CC, CE & ST, Hyderabad (Dated: February 4, 2009)

Service Tax – Service tax not leviable on construction of ‘raw water reservoir' prior to 01.06.2007 when said activity is understood and acted upon as works contract in terms of agreement between service provider and client and sales tax paid accordingly – Impugned order set aside : BANGALORE CESTAT;

2009-TIOL-1082-CESTAT-KOL.pdf

M/s IMRB International Vs CST, Kolkata (Dated: May 6, 2009)

ST - Assessee claims deduction for out of pocket expenses - Revenue disallows - held, since the reimbursement of out of pocket expenses are towards the services rendered, and the payments received from foreign clients is taxable, it is not a fit case for total waiver of pre-deposit - 25% of demand ordered for granting stay.: KOLKATA CESTAT;

2009-TIOL-1081-CESTAT-BANG.pdf

M/s Sharma Transports Vs CC, CCE & ST, Cochin (Dated: March 3, 2009)

Service Tax – Sale of air tickets and receipt of commission does not come under BAS – SCN issued for recovery of tax under BAS not sustainable – Impugned order set aside.: BANGALORE CESTAT;

CENTRAL EXCISE SECTION

2009-TIOL-1085-CESTAT-MAD.pdf

CCE, Tiruchirapalli Vs Suja Rubber Industries (Dated: April 21, 2009)

Central Excise – default in payment of monthly duty liability – Since the last date for payment was Sunday; duty was paid next day – no case of default under Rule 8 of the Central Excise Rules.: CHENNAI CESTAT;

2009-TIOL-1083-CESTAT-BANG.pdf

M/s Dodsal Corporation Pvt Ltd Vs CCE, Bangalore (Dated: March 4, 2009)

Central Excise – Whether pizza cleared in packed containers classifiable under Chapter 19 as bakery product or Chapter 16.01 as preparation of meat – In view of a decision favouring appellants and different interpretations given by departmental authorities, larger period not invokable – Full waiver of pre-deposit granted and recovery stayed.:BANGALORE CESTAT;

2009-TIOL-1080-CESTAT-MAD.pdf

M/s Rajalakshmi Textile Processors Pvt Ltd Vs CCE, Salem (Dated: April 22, 2009)

Central Excise – refund – unjust enrichment – the appellant job workers operating under compounded levy scheme – duty paying documents do not indicate the duty element - Assessees could not establish their case that they had not passed on excess duty paid, with the help of these documents - The alternative course open to them to discharge the burden cast on them u/s 12B of the Act probably was with reference to their accounts; the structure of the composite price and how they had accounted the proceeds in the material period - This, strangely, the assessee has not attempted – no infirmity in the order of the lower authorities holding that the refund is hit by bar of unjust enrichment..: CHENNAI CESTAT;

CUSTOMS SECTION

2009-TIOL-1084-CESTAT-MAD.pdf

CC (Airport - Air Cargo), Chennai Vs Shri Amanulah Abdul Hasan (Dated: April 2, 2009)

Customs – Smuggling of Indian Currency – Confiscation - Penalty - Fine – As the vviolation by the respondent passenger is procedural in nature, inasmuch as the Indian currency is being taken out of India without a valid permit from the Reserve Bank of India, the prayer of the revenue for enhancement of the fine and penalty is rejected as no ground for enhancement is made out. Based on cross-objections filed by respondent, quantum of penalty and fine reduced. : CHENNAI CESTAT;

2009-TIOL-1079-CESTAT-MAD.pdf

Indian Organic Chemicals Vs CC, Chennai (Dated: April 29, 2009)

Customs – Appeal to Commissioner (Appeals) under Section 129D(2) of the Customs Act, 1962 – adjudicating authority who passed the order alone is empowered to file appeal before the Commissioner (Appeals) under Section 129D(2) – Appeal filed by the Additional Commissioner against the order passed by the Assistant Commissioner is not valid. .:CHENNAI CESTAT;