Swine Flu: Union Health Ministry releases guidelines for screening, testing and isolation of patients (See 'Mixed Buzz')

I-T - HC holds expenses relating to issue of debentures is revenue expenditure - Supreme Court dismisses Revenue's appeal (See 'Direct Tax Basket');

Haryana CM demands separate High Court for Haryana; appeals to PM & Law Minister;

Revenue target: FM goes back on promise made in Budget Speech (See 'Editorial')

PM promises to work with judiciary to make it arrear-free; CJI hints at paucity of judicial officers;

Jaswant Singh's autobiography: Jinnah not responsible for partition of India;

First hours of UN mobilisation when disaster strikes (See 'Mixed Buzz')

Govt sets up GoM on ATF prices but OMCs hike it by 4.5%

30 tax havens continue to avoid OECD tax standards; US Commissioner to replace Pravin Gordhan as Chair of OECD Forum on Tax Administration (See 'Breaking News');

Govt schemes are good but govt machinery is not free of corruption: PM (See 'Mixed Buzz')

Customs detains consignments of GM food; Govt framing rules (See 'Mixed Buzz')

Govt constitutes GoM to look into sales tax on ATF by States and price on ATF by OMCs (See 'Breaking News');

India needs action and not speeches to face drought (See 'Ice Cube Column');

India-ASEAN Free Trade Agreement signed; to come into effect from Jan 1, 2010 (See 'Breaking News')

Ministry of Tourism is first to implement performance management as per ARC (See 'Mixed Buzz')

CBDT extends time limit for ITR-V filing; 60 days grace allowed (See 'Mixed Buzz')

CBEC issues transfer order of SIX AC/DCs + TWO Addl/JCs (See 'Pitara')

TIOL COMMENTARY

RBI story.pdf

RBI Study advises Finance Commission to propose bonus to States for quality expenditure;

editorial.pdf

Revenue target: FM goes back on promise made in Budget Speech;

oecd story.pdf

30 tax havens continue to avoid OECD tax standards; US Commissioner to replace Pravin Gordhan as Chair of OECD Forum on Tax Administration;

pm story.pdf

Govt acceptance of panel report on pension to benefit 12 lakh ex-servicemen; Another 'Green Revolution' needed to achieve 4% agri growth: PM;

aviation story.pdf

Govt constitutes GoM to look into sales tax on ATF by States and price on ATF by OMCs;

FTA story.pdf

India-ASEAN Free Trade Agreement signed; to come into effect from Jan 1, 2010;

icecube.pdf

India needs action and not speeches to face drought;

MIXED BUZZ

mbuzz0760.pdf

PM promises to work with judiciary to make it arrear-free; CJI hints at paucity of judicial officers;

mbuzz0759.pdf

Swine Flu: Union Health Ministry releases guidelines for screening, testing and isolation of patients;

mbuzz0757.pdf

Govt schemes are good but govt machinery is not free of corruption: PM;

mbuzz0756.pdf

Customs detains consignments of GM food; Govt framing rules;

mbuzz0754.pdf

Ministry of Tourism is first to implement performance management as per ARC;

2009-TIOL-93-SC-IT.pdf

CIT, Udaipur, Rajasthan Vs M/s Secure Meters Ltd (Dated: August 11, 2009)

Income tax - Assessee issues debentures - treats expenses as revenue expenditure - HC allows the same by observing that it is irrelevant to consider the object, with which the loan was obtained - Admittedly the debentures when issued are a loan, and therefore, whether it is convertible, or non convertible, does not militate against the nature of the debenture, being loan, and therefore, the expenditure incurred would be admissible as revenue expenditure - Revenue's appeal dismissed by Surpeme Court.: SUPREME COURT OF INDIA;

2009-TIOL-514-ITAT-MUM.pdf

M/s Universal Impex Vs ITO, Mumbai (Dated: May 7, 2009)

Income Tax - Survey u/s 133A - Assessee  is a manufacturer and exporter of pharmaceutical medicines - AO on the basis of some notings in diaries and  on the statement of one of the partners during survey makes additions - Assessee alleges coercion – CIT(A) confirms the addition to some extent - Held, the additions made solely on the strength of the statement without any supporting material are liable to be deleted as the initial burden placed upon the AO to prove that the notings reflect the receipts was not discharged effectively. Assessee's ground allowed.: MUMBAI ITAT;

2009-TIOL-513-ITAT-MUM.pdf

M/s Gomti Finlease (India) Ltd Vs ITO, Mumbai (Dated: April 16, 2009)

Income Tax - Assessee claimed depreciation on the machineries given on lease - AO held the lease transaction as a bogus transaction and therefore disallowed the depreciation but included the lease rentals under the head ‘income from other sources' - CIT(A) confirmed the order - Held, assessee is not liable to be taxed on lease rentals as the whole transaction was a sham - Held, since the explanation offered by the assessee could not be substantiated and the bonafides of the explanation could not be proved by the assessee and all the facts relating to the transactions were held to be bogus and the transaction was held as sham, inaccurate particulars of income justify the levy of penalty u/s 271 (1)(c) - Assessee's appeal partly allowed.: MUMBAI ITAT;

SERVICE TAX SECTION

2009-TIOL-1262-CESTAT-KOL.pdf

M/s Sainik Mining & Allied Service Ltd Vs CCE, CC & CST, BBSR II (Dated: May 12, 2009)

ST - Cargo Handling Service - assessee enters into contracts with coalfields authorities for extraction and transfer of coal, mechanical transfer and transportation of coal for further processing and hiring of pay loaders - held, the first demand was rightly dropped by the Commissioner(A) as it was mining service and the second demand was ruled in favour of the assessee but the third demand as per the Tribunal's decision in another case goes in favour of the Revenue - A pre-deposit of Rs 11 lakh ordered.: KOLKATA CESTAT;

2009-TIOL-1258-CESTAT-DEL.pdf

M/s Korea Plant Service & Engineering Co Ltd Vs CCE, Jaipur I (Dated: July 9, 2009)

ST - Cenvat Credit - Assessee enters into contract for operation and maintenance of captive power plant - pays service on the entire contract amount - avails credit for paying tax on car hiring charges, insurance expenses, security services and coal unloading charges - Commissioner(A) disallows the credit - held, in view of the Tribunal's decision in a similar case, granting unconditional stay, waiver from pre-deposit granted.: DELHI CESTAT;

2009-TIOL-1255-CESTAT-DEL.pdf

M/s Swaraj Mazda Ltd Vs CCE, Jalandhar (Dated: June 11, 2009)

ST - Condonation of Delay - Commissioner(A) rejects the appeal for lack of COD application - also relies on Department of Post's Chitizen's Charters which states that the delivery through Speed Post takes 1-3 days, depending on destination - held, Commissioner(A) passed the order without going into the merit of the case - case remanded.: DELHI CESTAT;

CENTRAL EXCISE SECTION

2009-TIOL-1261-CESTAT-MUM.pdf + entry story.pdf

M/s Narsingirji Mills Vs CCE, Pune (Dated: February 20, 2009)

Entry 52.7 to Notification 8/96-CE covers cotton fabrics simpliciter - if the process of calendering of cotton fabrics is considered as not amounting to manufacture, then the entry 52.15 to notification 8/96-CE would become otiose and meaningless – Duty demand upheld – CESTAT

Appellant admitting that they do not fulfill the condition mentioned in Sr. no. 52.15 of Notification 8/96-CE – Cotton fabrics subjected to the process of calendering is not exempted as condition not satisfied – CESTAT upholds demand of duty and rejects appeal.: MUMBAI CESTAT;

2009-TIOL-1257-CESTAT-BANG.pdf

CCE, Bang III Vs M/s HVAC Systems Pvt Ltd (Dated: March 3, 2009)

Central Excise – Ducts emerging at site during installation of heat ventilators and air conditioning systems do not pass the test of marketability and hence not excisable – No infirmity in impugned order.: BANGALORE CESTAT;

2009-TIOL-1254-CESTAT-MUM.pdf

CCE & CC, Aurangabad Vs Gaurav Agro Pipes (Dated: June 2, 2009)

Defective goods accompanied by letters issued by customers and Cenvat Credit taken thereon - such letters are not the documents specified under rule 9 for the availment of cenvat credit - procedure prescribed under rule has to be followed for claiming benefit there under and is a basic tenet of law recognized by the Supreme Court – Commissioner(A)'s order set aside and Revenue appeal allowed.: MUMBAI CESTAT;

CUSTOMS SECTION

2009-TIOL-1260-CESTAT-BANG.pdf

M/s Bhagwan Mahaveer Jain College Vs CC, Bangalore (Dated: March 16, 2009)

Customs – Eligibility of Notification 51/96-Cus – Registrar of University certified usage of imported computers and servers by the college meant for research purposes – Prima facie strong case for waiver of pre-deposit – Stay granted.: BANGALORE CESTAT;

2009-TIOL-1259-CESTAT-BANG.pdf

CC, Vizag Vs M/s Acalmar Oil & Fats Ltd (Dated: January 5, 2009)

Customs - Import – Ex-bond bill of entry - Interest - If any clearance is made within the initial warehousing period, only duty has to be paid and not interest. The period of 05 days from the date of return of the assessed Bills of Entry under Section 47 applies to the Bills of Entry for home consumption only.: BANGALORE CESTAT;

2009-TIOL-1256-CESTAT-MAD.pdf

Precot Mills Ltd Vs CC, Tuticorin (Dated: May 22, 2009)

Customs – EPCG licences – appellant did not possess licences as on the date of import – plea that same was due to delay in issuance of licences by DGFT is not acceptable – benefit of exemption under Notification 160/92 Cus dated 20.4.92 is not available.: CHENNAI CESTAT;