Appropriation Bill 2009 enacted; Finance Bill can be enacted anytime this month (See story);

To curb human trafficking Govt amends rules; hikes fee for recruiting agent to Rs 20 lakh;

Officers impeding refund claims of exporters will be taken to task: JS (TRU) ;

PM sets up panel to make recommendations on construction of 35000 km national highways;

HIV positive convict granted bail; terminally ill prisoners should be granted bail: Bombay HC;

Swine Flu scare continues to spread like wild fire; Death toll reaches four in India;

Poor monsoon - PM addresses State Chief Secretaries; says no citizen to go hungry;

TIOL's Post Budget seminars a major success in Hyderabad + Vizag;

Bring all petro-products & natural gas under GST;

No proposal to appoint statutory auditors by Regional Authority: Minister

Roadmap for convergence of Indian Accounting Standards with International system soon: HPCG

TIOL COMMENTARY

finance bill story 1.pdf

Appropriation Bill 2009 enacted; Finance Bill can be enacted anytime this month;

sunday story.pdf

To curb human trafficking Govt amends rules; hikes fee for recruiting agent to Rs 20 lakh;

Vizag seminar.pdf

Officers impeding refund claims of exporters will be taken to task: JS (TRU);

editorial.pdf

Bring all petro-products & natural gas under GST;

hyderabad seminar story.pdf

TIOL's Post Budget seminars off to a good start at Hyderabad;

2009-TIOL-90-SC-CT.pdf + unjust story.pdf

State Of Maharashtra Vs Swanstone Multiplex Cinema (P) Ltd (Dated: July 27, 2009)

Doctrine of Unjust Enrichment – Recovery of entertainment tax from cinema goers during availment of exemption from levy of entertainment tax recoverable – State has a power to grant exemption or concession in respect of payment of tax and no power under the provisions of the Constitution or otherwise to allow an assessee to collect tax and retain the same – When the provisions in a statute are not very clear superior courts will not interpret the statute in such a way as to confer an unjust benefit to any of the parties, i.e., the taxpayer or tax collector or the State – When a person collects tax illegally, it has to be refunded to the taxpayers and if taxpayers cannot be found, the court would direct the same to be paid and/or appropriated by the State – State to realize the amount unjustly enriched by respondent and pay the same to a reputed voluntary or a charitable organization, which had been rendering good services to any sections of the disadvantaged people and in particular women and children - Chief Minister to take up the responsibility of ensuring full, proper and effective utilization of the amount in question.: SUPREME COURT OF INDIA;

MIXED BUZZ

mbuzz0738.pdf

Reliance Power bags 4,000 MW Domestic-coal based Tilaiya Ultra Mega Power Project;

mbuzz0735.pdf

India's signs CEPA with South Korea making it India's first FTA with an OECD country;

mbuzz0734.pdf

No proposal to appoint statutory auditors by Regional Authority: Minister;

mbuzz0733.pdf

Roadmap for convergence of Indian Accounting Standards with International system soon: HPCG;

2009-TIOL-502-ITAT-MUM.pdf

M/s Metal Extruders (India) Pvt Ltd Vs DCIT, Mumbai (Dated: January 27, 2009)

Income Tax - Assessee claims expenditure on account of remuneration to the Director - AO  restricts the claim of remuneration to 35% and  disallows the rest as excessive and unreasonable - CIT(A) finds the addition excessive and directs the AO to delete 50% of the addition - Held, the genuineness of expenditure have not been doubted. Disallowance of remuneration by the authorities below is not justified.

On the issue of disallowance of expenses out of miscellaneous expenditure where AO observes that examination of vouchers shows that several expenses shown under this head pertaining to house property and apportion the expenditure in the ratio of lease rental and sales i.e. in the ratio of 65 : 35 - Held, AO has not pointed out any expenditure relating to house property nor CIT(A) has done so. The estimated disallowance not justified. Assessee Appeal allowed.: MUMBAI ITAT;

2009-TIOL-501-ITAT-DEL.pdf

DCIT, New Delhi Vs M/s Dalaer Singh Mehandi (Dated: June 12, 2009)

Income tax - Sec 80RR and India-Canada DTAA - assessee is a popular singer and stage show performer - performs shows in many countries - files return and the same is processed u/s 143(1) - Reassessment u/s 147 - return accepted - CIT invokes Sec 263 - directs AO not to consider the case under DTAA, withdraw deductions under Ss 80RR and 80G - AO acts on the order - CIT(A) directs the AO to allow deduction u/s 80RR after allowing deduction for 25% of total expenditure for shows held abroad - also directs the AO to verify documents and give tax credit under Article 23(3) of DTAA with Canada - held, since the AO has already worked out deductions as per the CIT order u/s 263, the CIT(A) not justified to interfere with the order - AO's order restored and assessee's appeal dismissed.: DELHI ITAT;

SERVICE TAX SECTION

2009-TIOL-1222-CESTAT-KOL.pdf

M/s BSNL Vs CCE, Ranchi (Dated: June 16, 2009 )

ST - stay / dispensation of pre-deposit - Assessee is a public sector telecom company - seeks waiver of pre-deposit of interest on late payment of service tax - held, since the tax and interest for late payment are not in dispute, there is no question of granting waiver of pre-deposit for interest liability - Assessee's MA dismissed :KOLKATACESTAT;

2009-TIOL-1219-CESTAT-MAD.pdf

M/s Buildcraft Interior Pvt Ltd Vs CST, Chennai (Dated: April 29, 2009)

Service Tax – Stay / dispensation of pre-deposit - Commercial or Industrial construction service – plea that the service falls under works contract service which is taxable only with effect from 01.06.2007 – prima facie case for complete waiver of pre-deposit.:CHENNAI CESTAT;

CENTRAL EXCISE SECTION

2009-TIOL-1223-CESTAT-MUM.pdf

Bajaj Auto Ltd Vs CCE, Aurangabad (Dated: May 29, 2009 )

Interest is mandatory under rule 14 of Cenvat Credit Rules, 2004 but since intent to evade payment of duty is not attributed to the assessee, penalty under Rule 15(2) of the CCR, 2004 is not imposable:MUMBAI CESTAT;

2009-TIOL-1220-CESTAT-BANG.pdf

M/s Saravana Alloy Steel (P) Ltd Vs CCE, Bangalore (Dated: May 7, 2009)

Central Excise – Allegation of clandestine removal of CTD Bars and MS Ingots – An amount of Rs. 50 lakhs already paid – Pre-deposit of additional amount of Rs. 50 lakhs ordered.:BANGALORE CESTAT;

CUSTOMS SECTION

2009-TIOL-1221-CESTAT-BANG.pdf

M/s Kanika Apparels Vs CC, Bangalore (Dated: February 27, 2009 )

Customs – Depreciation allowed upto the date of physical availability of goods – When such action is already taken by original authority no purpose served by ROM praying for clarification or rectification on this issue :BANGALORE CESTAT;

2009-TIOL-1218-CESTAT-BANG.pdf

M/s Lens Master International Vs CC & CCE, Hyderabad (Dated: January 22, 2009)

Customs – 100% EOU – Non fulfillment of export obligation – Penalty imposed by Development Commissioner and paid by appellants – Confiscation, Duty and penalty imposed for violation of Customs Notification for import of duty free capital goods upheld – Redemption fine reduced – Appellants plea for destruction of unutilized raw materials and consumable in terms of EXIM policy to be considered by original authority.:BANGALORE CESTAT;