Govt appoints Vivek K Tankha as Addl SG for Direct Taxes in Supreme Court;

Cabinet gives nod for 7 more Indian Institute of Management (IIMs) + Coal India can also now invest in overseas coal assets;

Commerce Minister further extends DEPB Scheme; focuses on Focus Market & Focus Product Schemes;

Duty Credit Scrips under VKGUY Scheme now become transferable;

Incentive under Focus Market Scheme hiked to 3%; 2% under Focus Product Scheme;

26 new markets added under Focus Market Scheme;

35 more ports to have EDI facility by next year;

Govt to set up Directorate of Trade Remedy Measures;

15% value addition norms for advance authorisation scheme;

FTP targets 15% growth rate in first two years; 25% in rest 3 years of policy period;

Cabinet gives nod for 7 more Indian Institute of Managment (IIMs) + Coal India can also now invest in overseas coal assets;

Union Cabinet gives nod to 50% reservation to women in Panchayat polls;

DGCEI, Delhi Zonal Unit, detects Rs 20 Cr duty evasion by mineral water bottling companies based in Goa and Delhi; For first time, evidence of draft duplicate account retrieved from Yahoo mail box, pen-drives and hard copies, all found together;

SC judges finally agree to disclose personal assets along with those of families;

PM announces Task Force on Micro, Small and Medium Enterprises;

TIOL COMMENTARY

ddt 27 aug.pdf

Foreign Trade Policy Today – But is it legally valid?

cobweb.pdf

New Direct Taxes Code: A blatant attempt to prop up moth-eaten institution of Revenue Secretary at cost of Revenue Boards!

tiol top.pdf

Suspend NELP VIII till gas pricing imbroglio is resolved!

highlight story.pdf

Commerce Minister further extends DEPB Scheme; focuses on Focus Market & Focus Product Schemes;

MIXED BUZZ

mbuzz0795.pdf

Cabinet okays proposal for induction of supercritical technology through bulk ordering;

mbuzz0794.pdf

CCEA gives nod for exit of TCIL from Bharti Hexacom;

mbuzz0793.pdf

CCEA approves Rs 230 Cr fund for polar science expedition to Antarctica;

mbuzz0792.pdf

Cabinet gives nod to 7 more IIMs;

mbuzz0791.pdf

Coal India can also now invest in overseas coal assets;

2009-TIOL-533-ITAT-MUM.pdf + loss story.pdf

Jacobs Engineering India Pvt Ltd Vs ACIT,Mumbai (Dated: May 26, 2009)

Income Tax – Assessees claim of foreseeable losses to be allowed irrespective of method of accounting in terms of AS-7 – Issue restored to A.O. to quantify and calculate losses in accordance with AS-7;

Disallowance of deduction of expenditure on computer software – Issue restored to A.O. in view of Special Bench decision in Amway India Enterprises vs. DCIT 2008-TIOL-97-ITAT-DEL-SB

Reduction of unabsorbed depreciation of earlier years while computing profits from business when granting deduction under Section 80 HHE – Deductions under Chapter VIA are to be allowed only on net income and not on gross income – Assessee can claim deduction u/s. 80 HHE after considering brought forward depreciation and brought forward loss i.e. deduction eligible only on net income:MUMBAI ITAT;

2009-TIOL-441-HC-MUM-IT.pdf

Satish Balan Vs UoI (Dated: August 10, 2009)

Income Tax - Sec 269UC - By an agreement of sale, the respondent no 3 agrees to sell a property to the petitioners in accordance with the provisions of Chapter XXC of the I-T Act - petitioners and the respondent no.3 file a statement in Form No 37I as required u/s 269UC - After hearing the parties the appropriate authority passes an order acquiring the said property - Held, the order of the appropriate authority suffers vices because (i) The value of encumbrance of the tenancy has not been properly calculated by the appropriate authority (ii) The appropriate authority has not given good reasons why it considered the three sale instances, as comparable and how it arrived at the value of an open plot of land with building occupying a small part of it on the basis of sale instances of built up commercial/residential apartments; and (iii) The apparent authority has also not given good reasons why sale instance relied upon by the petitioners was not considered as comparable and why the price of the said property was not determined on the basis of the said sale instance - Matter remanded for deciding it afresh - Appellant's petition allowed.:BOMBAY HIGH COURT;

2009-TIOL-439-HC-P&H-IT.pdf

CIT, Chandigarh Vs Simla Chandigarh Diocese Society (Dated: August 19, 2009)

Income tax - Sec 11(1)(a) and Sec 12(1) - Assessee is a registered society - runs churches and schools - claims exemption to various types of income earned from rental, FDRs etc - AO disallows on the ground that the assessee is a society and not a Trust - also notes that there is no provision of law for filing Form No 10 which was filed by the assessee - CIT (A) allows the appeal and Tribunal agrees with it - held, since Form No 10 has been found to be valid, and all the income flows from the property, there is no substantial question of law involved - Revenue's appeal dismissed :PUNJAB AND HARYANA HIGH COURT;

2009-TIOL-438-HC-DEL-IT.pdf

CIT Vs Sophisticated Marbles & Granite Industries (Dated: August 11, 2009)

Income tax - manufacturing - assessee 'manufactures' marble slabs - Revenue disallows - held, since marble slabs are put through various processes like filling up holes and cracks with chemical after mixing the same with powders; polishing and cutting them into marketable sizes, it does meet the contours of common meaning attached to 'manufacture' - Revenue's appeal dismissed:DELHI HIGH COURT;

2009-TIOL-437-HC-DEL-IT.pdf

CIT, Delhi Vs M/s Deeksha Holding Ltd (Dated: August 17, 2009)

Income tax - Penalty u/s 271(1)(c) - Assessee claims deduction for professional expenses and advertising expenditure - also fails to add short term capital gains from sale of cars - AO makes additions - Penalty initiated - Tribunal sets aside penalty - held, since the assessee admits the mistake of not including short-term capital gains in income and merely because other disallowances were made it cannot be construed that the assessee furnished bogus and false particulars of income - AO also fails to record his satisfaction - penalty not sustainable - no question of law involved - Revenue's appeal dismissed :DELHI HIGH COURT;

SERVICE TAX SECTION

2009-TIOL-1341-CESTAT-MUM.pdf + inox air story.pdf

Inox Air Products Ltd Vs CC & CCE, Nagpur (Dated: July 8, 2009)

ST paid on outward transportation - Liquid Oxygen, Nitrogen and Medicinal gas delivered to buyers in cryogenic tanks maintained at sub-zero temp and mounted on goods transport vehicles - Cenvat Credit allowed – CESTAT : MUMBAI CESTAT;

2009-TIOL-1340-CESTAT-DEL.pdf

M/s Nahar Fibre Vs CCE, Jallandhar (Dated: July 16, 2009)

ST - Cenvat Credit - Assessee avails credit on inward and outward transporation of goods from factory to its branches - Revenue disallows - held, it is already settled by the Larger Bench in the ABB Ltd case that the credit is available for tax paid on outward transportation of final products from the place of removal as the same is to be treated as an input service in terms of Rule 2(1)(ii) of the CENVAT Credit Rules, 2004 - Assessee's appeal allowed :DELHI CESTAT;

2009-TIOL-1339-CESTAT-DEL.pdf

M/s Delhi Public School Society Vs CST, Delhi (Dated: July 7, 2009)

ST - stay / pre-deposit dispensation - Assessee pleads on limitation - held, although the assessee may have a case on limitation but pre-deposit of Rs 10 lakh ordered :DELHI CESTAT;

CCE & CC, Vadodara Vs M/s Aurochem (Dated: June 29, 2009)

ST - ROM - Tribunal holds that the assessee is not liable to pay tax under C & F Agent service - Revenue argues that the assessee was also saddled with liability for the later priod under Business Auxiliary Service and the Commissioner (A) fails to give a finding on that - Mistake admitted and case remanded to the Commissioner (A) for fresh order - Revenue's appeal allowed :AHMEDABAD CESTAT;

CENTRAL EXCISE SECTION

2009-TIOL-440-HC-P&H-CX.pdf + interest story.pdf

IND-Swift Laboratories Ltd Vs UoI (Dated: July 3, 2009)

Central Excise – interest on irregular credit – interest is payable only from the date of utilising the credit, but not from the date of taking the credit – Rule 14 of the CENVAT Credit Rules 2004 should be read to mean that interest is chargeable only from the date of utilising the credit - interest cannot be claimed from the date of wrong availment of CENVAT credit. :PUNJAB AND HARYANA HIGH COURT;

2009-TIOL-1337-CESTAT-AHM.pdf

CCE, Vadodara II Vs M/s Danke Products (Dated: July 21, 2009)

Central Excise – CENVAT Credit – credit of service tax paid on repairs and maintenance service undertaken by third agency on behalf of the manufacturer of the Transformers during the warranty period – the respondents are eligible for credit as rightly held by the Commissioner (Appeals) – revenue appeal has no merit.:AHMEDABAD CESTAT;

2009-TIOL-1336-CESTAT-AHM.pdf

M/s Cadila Pharmaceuticals Ltd Vs CCE, Ahmedabad (Dated:July 14, 2009)

Central Excise – CENVAT Credit – input service – Management consultant service is covered under the definition of input service as “activity relating to business” – credit admissible.:AHMEDABAD CESTAT;

CUSTOMS SECTION

NOTIFICATION

dgft09not002.pdf

Duty-free import of foreign brands of petrol & diesel allowed for R & D purposes - testing of new automobiles;

dgft09not001.pdf

FTP notified to come into effect from Aug 27, 2009 ;

PUBLIC NOTICE

dgft09pn001.pdf

HoP notified to be effective from Aug 27, 2009;

CIRCULAR

dgft09cir003.pdf

Automatic Endorsement of Additional Items permitted for imports under Target Plus Scheme (under Para 3.7 - FTP RE2004 / FTP RE2005) and under DFCE for Status Holders Scheme (under Para 3.7.2.1 ( vi ) of EXIM Policy (RE2003)).

dgft09cir002.pdf

Import of sports weapons by ‘Renowned Shooters'

dgft09cir001.pdf

Amendment of Policy Circular No. 77 dated 31.03.09 related to “Guidelines for import of Precious Metal by the Nominated agencies”

CASE LAWS

2009-TIOL-1335-CESTAT-DEL.pdf

M/s Bajaj Sons & Ors Vs CC, Amritsar (Dated: May 12, 2009)

Customs – non-fulfilment of Plant Quarantine requirements – the contention of the appellants that the goods are not prohibited goods and confiscation under Section 111(d) of the Customs Act is not sustainable as the goods are prohibited goods as the Plant Quarantine Authorities disallowed the release of the goods – confiscation upheld.:DELHI CESTAT;

2009-TIOL-1334-CESTAT-MUM.pdf

CC, Mumbai Vs M/S Blue Circle Corporation (Dated: July 7, 2009)

Directions contained in Tribunal order are to be implemented in letter and spirit - In case the proper officer of Customs is faced with any insurmountable procedural difficulty in the matter, he can obtain appropriate orders from the appropriate superior administrative authority.:MUMBAI CESTAT;