Income tax arrears shoot up to Rs 214000 Crore due to Rs 72000 Cr demand against Hassan Ali Group alone (See 'Breaking News');

CVC seeks Govt nod for making public all cases where sanction for prosecution delayed;

Govt working on mandatory fuel-efficiency standards for all vehicles: Minister;

Two Nepalese nationals caught with FICN in MP;

ISRO loses radio contact with Chandrayaan-1; terminates mission;

Committee of Secretaries reviews Air India's efforts to cut costs; directs for moving Cabinet note in tandem with MoF;

42 accused, including 12 public servants, sentenced in multi-crore fodder scam;

H1N1 virus found in Turkeys not a threat to human: UN Agency;

TIOL COMMENTARY

recovery story.pdf

Income tax arrears shoot up to Rs 214000 Crore due to Rs 72000 Cr demand against Hassan Ali Group alone;

ice cubes.pdf

Adopt alternative fuel parity pricing of gas & reduce taxes;

spl down.pdf

MAT - Tax on gross assets - whether fair and logical?

CASE LAW + ANALYSIS

2009-TIOL-451-HC-DEL-FEMA.pdf + fema story.pdf

Nimesh Suchde Prop Vs UoI (Dated: July 22, 2009)

FERA/FEMA – Import of marbles without import licence under EXIM policy – Allegation of misuse of foreign exchange without permission from RBI – Undervaluation alleged by Customs – No independent finding of under valuation of goods given by the Adjudicating Officer under FERA – Evidence suggests that imports undertaken with permission from RBI – It is settled position of law that if sustainability of adjudicating order is itself in doubt then dispensation, on ground of undue hardship should be granted – Strong prima facie case made out by appellants for waiver of pre-deposit : DELHI HIGH COURT;

MIXED BUZZ

mbuzz0802.pdf

Mangla Oil Field - Rajasthan to earn Rs 12000 royalty revenue, says Deora;

mbuzz0801.pdf

Centre writes to States for implementation of guidelines for tourism infrastructure;

mbuzz0800.pdf

H1N1 virus found in Turkeys not a threat to human: UN Agency;

mbuzz0799.pdf

CVC seeks Govt nod for making public all cases where sanction for prosecution delayed;

mbuzz0798.pdf

Govt workong on mandatory fuel-efficiency standards for all vehicles;

2009-TIOL-535-ITAT-MUM.pdf

Smt Padma D Gandhi Vs ITO, Mumbai (Dated: June 4, 2009)

Income Tax - Section 254(2) – Search u/s 132 - Assessee's diary seized - On questioning relating to the entries in the diary, the husband of the assessee explains that the figures perhaps indicate the value of assets that she intends to lease through her will to some of her relatives - Assessee reiterates the same explanation - A.O. rejects the explanation and holds that the figures found in the seized document either show loans given by the assessee or the amount received back by her on such transactions - additions made - CIT(A) takes the view that the notings in the diary are not explicit and that there are no corroborative evidence to indicate that the entries therein represented cash or loan transactions which have not been accounted for - additions deleted - Tribunal reverses the order of CIT(A) - Assessee points out mistake apparent in arriving at such conclusion in M.A -  Held, there are apparent errors in the order of Tribunal which can be corrected only by recalling the order so that the issue can be adjudicated afresh based on the correct facts and after taking into account all the evidences filed by the assessee - Order recalled - assessee's M.A allowed.: MUMBAI ITAT;

2009-TIOL-534-ITAT-BANG.pdf

M/s Max Healthscribe Ltd Vs ITO, Bangalore (Dated: June 12, 2009)

Income tax - Sec 10A - Assessee is a BPO - claims exemption u/s 10A and also sets off brought forward losses - files Nil returns - argues that it had suffered losses during the previous year relevant to the assessment year 1998-99 and 2000-01 - For these AYs the assessee had opted out of section 10A by invoking the provisions of sub-section (8) of section 10A. Since the assessee had exited the amit of Sec 10A, the assessee argues that the embargo of Sec 10A(6) would not apply - held, it is settled law that the restrictions of Sec 10A(6) will apply only from the AYs after the expiry of the tax holiday period: BANGALORE ITAT;

SERVICE TAX SECTION

2009-TIOL-1356-CESTAT-MUM.pdf

M/s Sandvik Asia Ltd Vs CCE, Pune-I (Dated: June 12, 2009)

Taxable services received from abroad by a person in India - Whether appellant would be liable to pay Service Tax for the period prior to 18.04.2006 in view of the fact that section 66A was incorporated in Finance Act, 1994 w.e.f 18.04.2006 – In view of Bombay High Court decision in Indian National Shipowners Association 2008-TIOL-633-HC-MUM-ST , appellant cannot be held liable for payment of Service Tax for the period 01.01.2005 to 17.04.2006 – Appeal allowed. :MUMBAI CESTAT;

2009-TIOL-1354-CESTAT-MUM.pdf

CCE, Pune Vs Premier Ltd (Dated: June 12, 2009)

Cenvat Credit on Outdoor catering service- Larger Bench in GTC Industries Ltd. 2008-TIOL-1634-CESTAT-MUM-LB allows such credit – ground raised by CCE, Pune-I that full expenses of canteen services were not borne by the assessee hence the service cannot be held to be one relating to their business activity was also considered by LB yet benefit extended - Revenue's appeal bereft of merits, hence dismissed.: MUMBAI CESTAT;

2009-TIOL-1351-CESTAT-MUM.pdf

CCE & CC, Aurangabad Vs M/s Dhoot Compack Ltd (Dated: July 2, 2009)

Cenvat Credit of Service Tax paid on outward transportation of final products from factory to customers' premises – Respondent has sold goods at the buyer's place on FOR basis - Period of dispute February 2005 to March 2006 – Board's Circular 97/8/07 dated 23.8.2007 upheld by P & H High Court in Ambuja Cement ( 2009-TIOL-110-HC-P&H-ST ) and given retrospective effect – SC decision in Suchitra Components ( 2007-TIOL-09-SC-CX ) also relied upon – Commissioner(A)'s order allowing Credit upheld - Revenue appeal dismissed: MUMBAI CESTAT;

CENTRAL EXCISE SECTION

2009-TIOL-450-HC-P&H-CX.pdf + HC CX story.pdf

CCE, Panchkula Vs M/s Special Machine (Dated: August 3, 2009)

Central Excise – Appeals - A dispute as to whether or not the assessee is covered by an exemption notification, relates directly and proximately to the rate of duty applicable thereto for the purpose of assessment: - Appeal from Tribunal lies to Supreme Court.: PUNJAB AND HARYANA HIGH COURT;

2009-TIOL-1353-CESTAT-DEL.pdf

M/s Expo International Vs CCE, Kanpur (Dated: April 24, 2009)

Central Excise – Not mentioning ‘duplicate for transporter' and duty debit details in invoice not a ground for denial of input credit – Impugned order not sustainable.: DELHI CESTAT;

2009-TIOL-1352-CESTAT-AHM.pdf

CCE, Ahmedabad Vs M/s Fine Care Biosystems (Dated: July 3, 2009)

Central Excise - CENVAT Credit - credit of service tax paid on outward transport - in respect of goods cleared for export, place of removal is the port from where the goods are loaded for export - credit admissible - credit is also admissible on service tax paid for air ticket service charges - revenue appeal has no merit.:AHMEDABAD CESTAT;

CUSTOMS SECTION

2009-TIOL-452-HC-MAD-COFEPOSA.pdf + Cofeposa story.pdf

Elizabeth Rani Vs The State Of Tamil Nadu (Dated: July 17, 2009)

Customs – Detention under COFEPOSA – Difference in valuation, fact of Show Cause Notice and reply, retraction of statement not brought to the notice of the Advisory Board – Detention illegal – quashed: In all these cases, the principle is accepted that even in spite of the documents coming into being after the passing of the order of detention, if such documents are relevant and material to the subject of detention, the detaining Authority is under a duty to put those documents before the advisory Board.: MADRAS HIGH COURT;

2009-TIOL-1355-CESTAT-AHM.pdf

Mrs Nitu Bhojwani Vs CC, Ahmedabad (Dated: April 2, 2009)

Customs – When bonafides are established Indian currency seized should be allowed to be redeemed on payment of fine – Confiscation modified from absolute to redeemable on payment of fine – Redemption fine imposed and penalty reduced.:AHMEDABAD CESTAT;