Govt releases 'Customs Tariff Database Online' to make it simple for business;

Govt mulling proposal to set up 14 world class universities;

FICN: Note sorting machines to be installed at all currency chest branches;

Vice President condoles death of Gangubai Hangal;

HCs report mounting cheque-bouncing cases - no proposal to set up separate tribunal: Govt;

Upstream oil PSUs help OMCs to post meagre profits;

Rajya Sabha passes right to free education bill;

Govt to introduce two more digits to Pin Code to indicate beat of postmen in select post offices;

Issue of cheap imports: India may opt for Quantitative Restrictions and amend Foreign Trade Act;

TIOL COMMENTARY

ddt 21 july.pdf

Sixth Pay Commission Arrears - Taxability of second instalment in the FY 2008-09;

stgst.pdf

Implementation of GST - First step is to release White Paper;

icecube.pdf

Inject credibility and accountability in budget promises;

MIXED BUZZ

mbuzz0675.pdf

Govt mulling proposal to set up 14 world class universities;

mbuzz0674.pdf

FICN: Note sorting machines to be installed at all currency chest branches;

mbuzz0673.pdf

Govt releases 'Customs Tariff Database Online' to make it simple for business;

mbuzz0672.pdf

Upstream oil PSUs help OMCs to post meagre profits;

letter9001.pdf

Taxability of second instalment of arrears to be paid to Govt employees;

CASE LAWS

2009-TIOL-357-HC-UTTRANCHAL-IT.pdf

CIT, Dehradun Vs Tehri Hydro Development Corporation (Dated: July 3, 2009)

Income tax - Sec 57(iii) - assessee is engaged in construction of hydro-electric project - earns interest on deposits with banks and also on rent deposited by employees and dam oustees - capitalises interest income and also claims deduction for administrative expenses - Tribunal allows 2.5% of administrative expenses - held, since the assessee had not yet commenced business and the project was at construction stage, the interest income was rightly capitalised and administrative expenses was also rightly allowed by the Tribunal - Revenue's appeal dismissed: UTTARAKHAND HIGH COURT;

2009-TIOL-356-HC-UTTRANCHAL-IT.pdf

CIT, Dehradun Vs National Institie Of Aeronautical Engineering Educational Society (Dated: July 15, 2009)

Income tax - Sec 12AA - Assessee is a registered society - provides technical education - applies for registration u/s 12AA - CIT rejects the application - Tribunal directs the Revenue to allow registration - held, mere imparting education for primary purpose of earning profits cannot be said to be a charitable activity. In the expression “charitable purpose” u/s 2(15), ‘charity' is the soul of the expression. Mere trade or commerce in the name of education cannot be said to be a charitable purpose. And CIT has to satisfy himself as provided under Section 12AA of the Act before allowing the registration. Revenue's appeal allowed : UTTARAKHAND HIGH COURT;

2009-TIOL-467-ITAT-DEL.pdf + behl story.pdf

ACIT, New Delhi Vs Ravinder Behl (Dated: March 31, 2009)

Income tax - Assessee works as CEO of a non-resident company - employer company becomes subsidary of an American company - contract terminated - compensation offered for truncating the contract period and also for services to be provided by the assessee to his successor by introducing the successor to key suppliers and clients - assessee claims the same as compensation for restrictive covenants - AO disagrees with the assessee and treats it as revenue receipt - CIT(A) holds part of the sum as payment towards restrictive covenants - held, since the compensation was for termination of the contract and the assessee was not prohibited from taking up fresh employment it was profits in lieu of salary u/s 17(3)(i) and is taxable as revenue receipt - Revenue's appeal allowed :DELHI ITAT;

2009-TIOL-466-ITAT-MAD.pdf

ITO, Chennai Vs M/s Dhandapani Finance Ltd (Dated: March 31, 2009)

Bogus lease transactions – alternate plea raised by assessee that if lease transactions are treated as finance transactions, then only interest income to be assessed as income – alternate plea rejected since the transactions were sham – recent decision of apex Court in MCorp Global pvt. Ltd. Vs CIT followed :CHENNAI ITAT;

2009-TIOL-465-ITAT-MUM.pdf

M/s P V Constructions Vs ACIT, Mumbai (Dated: January 9, 2009)

Income Tax - Assessee made certain transfers to its sister concern on account of lease and reversionary interests - AO held that the said payment is gratuitous in nature without any legal obligation - CIT(A) confirmed AO's order - Held, to invoke the provisions of Sec 147, the AO must have “reasons to believe” and this expression cannot be considered in vaccum - Held, material may not be conclusive but must be sufficient for forming the prima-facie belief that income of the assessee had escaped assessment - Assessee's appeal allowed. :MUMBAI ITAT;

SERVICE TAX SECTION

2009-TIOL-1093-CESTAT-BANG.pdf

M/s Silver Lake Information Systems Pvt Ltd Vs CST, Bangalore (Dated: March 17, 2009)

Service Tax – Training on software related to AS/400 mainframes rendered to clients – Service tax amount demanded already discharged, balance amount waived and stay granted:BANGALORE CESTAT;

2009-TIOL-1092-CESTAT-DEL.pdf

M/s Auto World Vs CCE, Allahabad (Dated: April 17, 2009)

Service tax - Business Auxiliary Service - Assessee is an authorised auto dealer - arranges auto loans for customers from financial institutions and earns commission - fails to pay tax on commission income due to confusion - after Board clarifies assessee voluntarily deposits tax partly - Revenue raises demand and imposes penalty - held, since there was initially confusion about the levy of service tax on commission income, no mala fide can be alleged and since the balance tax was also deposited before the adjudication order, it is a fit case for invocation of Sec 80 - Assessee's appeal allowed :DELHI CESTAT;

2009-TIOL-1091-CESTAT-KOL.pdf

M/s Arti & Sons Vs CST, Kolkata (Dated: March 16, 2009)

ST - Business Auxuliary Service - Assessee is into promotion and marketing of lottery tickets - Demand and peanlty - extended period also invoked - Assessee argues it is covered under service tax net only after Explanation to Sec 65(19) w.e.f 16.5.2008 was inserted - held, since the Explanation is only clarificatory in nature, it is not a fit case for waiver of pre-deposit - 25% pre-deposit ordered :KOLKATA CESTAT;

CENTRAL EXCISE SECTION

2009-TIOL-1096-CESTAT-BANG.pdf + sez story.pdf

M/s Sujana Metal Products Ltd Vs CC & CCE, Hyderabad (Dated: May 1, 2009)

Central Excise – Supplies to SEZ Developer – amendment to Cenvat Credit Rules retrospective – Stay granted: the SEZ Act, 2005 provides for the exemption of supplies made to a developer. Moreover, the amendment to Cenvat Credit Rules, 2004 should be taken to be clarificatory in nature as the word “substituted” has been used. :BANGALORE CESTAT;

2009-TIOL-1095-CESTAT-AHM.pdf

M/s Sarla Polyester Ltd Vs CCE & CC, Vapi (Dated: May 29, 2009)

Central Excise – Polyester covered yarn and Nylon covered yarn manufactured by applying the process of conventional covering classifiable under Chapter 5402.62 and 5402.61 – When facts are known to the department extended period cannot be invoked – Manner of computation of duty remanded to Commissioner for reconsideration :AHMEDABAD CESTAT;

2009-TIOL-1094-CESTAT-DEL.pdf

M/s Dabur India Ltd Vs CCE, Ghaziabad (Dated: March 17, 2009)

Central Excise – When respondent has no objection, rectification application allowed with requisite directions to modify earlier order :DELHI CESTAT;

CUSTOMS SECTION

2009-TIOL-1097-CESTAT-KOL.pdf + cus story.pdf

M/s Bengal Trade Links Vs CC (Port), Kolkata (Dated: April 17, 2009)

Import of Obscene goods – Who decides obscenity ? Expert's opinion not applicable to Customs Act; the import of obscene and objectionable articles are prohibited under Section 111(d) of the Customs Act, 1962 vide Notification No.1-Cus . dated 18.01.1964 issued under Section 11 of the Customs Act, 1962 which prohibits import of any obscene book, pamphlet, paper, drawing, painting, representation, figure or article. The offending goods are obscene and objectionable as the same are for Group Sex. :KOLKATA CESTAT;