CBEC exempts transport of many goods by rail, inland water and coastal shipping from service tax;

Tariff value of poppy seeds and brass scraps revised;

India gearing up for Chandrayaan-II and Mars mission: ISRO Chief;

IL&FS to be new promoter of Maytas Infra Limited: CLB;

CBI raids Jharkhand-Cadre Secretary-level IAS officer for misuse of NRHM funds; Searches conducted at 14 places;

Sahar Airport Customs seizes 12 kg Persian Saffron coming from Dubai;

60% arrear payment to Govt servants: CBDT asks DDOs / PAOs for TDS u/s 192; Failure may attract penal interest;

Economy grows at 6.1% in first quarter;

CBEC notifies Customs Exchange Rates for September;

Inferno destroys major parts of AP High Court; Historical library and CJ's chamber also gutted;

TIOL COMMENTARY

ddt 31 aug.pdf + panel_DTC.pdf

New Services from Tomorrow – But where are Board Instructions?

tiol top analysis.pdf

New Direct Taxes Code: CBDT continues to be under hammer!; Powers to issue Circulars to be severely trimmed;

guest column.pdf

Constitutional amendments needed for implementation of GST;

PRESS NOTE

pn5_2009.pdf

Guidelines for Foreign investment in Commodity Exchanges;

MIXED BUZZ

mbuzz0804.pdf

IL&FS to be new promoter of Maytas Infra Limited: CLB;

mbuzz0803.pdf

Economy grows at 6.1% in first quarter;

CIRCULAR

it09cir06.pdf

Clarification regarding deduction of tax at source from payments of second installment of arrears to Government employees on account of implementation of Sixth Central Pay Commission's recommendations matter regarding;

CASE LAWS

2009-TIOL-99-SC-IT.pdf + sc story.pdf

ACIT, New Delhi Vs M/s HCL Technologies Ltd (Dated: August 17, 2009)

Transfer Pricing - Section 92CA - TPO proposes adjustments to ALP without giving personal hearing - HC holds that personal hearing is a must under section 92CA(3) - remits the matter to TPO to be decided within three days after giving opportunity to assessee - Department files SLP - SC asks the parties to approach the Alternate Dispute Resolution panel under the proposed section 144C.: SUPREME COURT;

2009-TIOL-538-ITAT-MUM.pdf

M/s Gupta Gemhouse Pvt Ltd Vs ITO, Mumbai (Dated: January 29, 2009)

Income Tax - Penalty u/s 271(1)(c) - Assessee  is a private limited company engaged in the business of export of processed diamonds. The assessee files loss return - AO makes disallowances - CIT(A) gives partial relief to the assessee. AO initiates penalty proceedings u/s 271(1)(c) for  four items which are confirmed by the CIT(A) - Held, merely because the assessee has not filed any appeal before the Tribunal, no penalty can be levied u/s. 271(1)(c).  Penalty proceedings are quasi criminal in nature and are different from assessment proceedings. The authorities have to bring in something more for visiting with levy of penalty u/s. 271(1)(c). Since in the instant case, the assessee had sufficient capital and free reserves which far exceeds the amount of advances recoverable, therefore, the explanation of the assessee that there should not be any disallowance on account of notional interest is a valid and bonafide explanation. No penalty is leviable on the above two items. As regard to the levy of penalty on provision for gratuity and as regard to  penalty on disallowance of depreciation - The explanation given by the assessee, of clerical oversight and calculation error is a bonafide and valid explanation no penalty u/s. 271(1)(c) is leviable on this amount. Assessee Appeal allowed.:MUMBAI ITAT;

2009-TIOL-537-ITAT-BANG.pdf

Gokaldas Images Pvt Ltd Vs ACIT, Bangalore (Dated: May 28, 2009)

Income Tax - Section 263 - CIT takes the view that the loss of non-10B units and brought forward losses and allowances need to be set off against profits of the 10B units for allowing exemption under section 10B - Held, CIT order u/s 263 suffers from infirmity as he has not been able to spell out factually both the limbs of the reversionary powers. In the view of the earlier decision of the Tribunal, assessee's appeal allowed.:BANGALORE ITAT;

2009-TIOL-536-ITAT-BANG.pdf

M/s Endeavour Estates Pvt Ltd Vs DCIT, Bangalore (Dated: May 29, 2009)

Income Tax - Assessee filed a revised return claiming capital gains on sale of land - AO levied impugned penalty holding that no balance sheet or audited accounts along with the return and receipt of towards 'right to access' was also not disclosed - CIT(A) confirmed AO's order - Held, agreement states that it is an agreement for grant of right of way but only permission to use the property - Held, capital gains arises only from the transfer of a capital asset and there is no sale in the present case - Held, penalty not justified - Assessee's appeal allowed.:BANGALORE ITAT;

SERVICE TAX SECTION

Notification

stnot09_030.pdf

Transport of certain essential goods by inland water and coastal shipping exempted;

stnot09_029.pdf

Certain services provided by rail exempted;

stnot09_028.pdf

Transport of defence goods, postal bags etc by rail exempted;

Case Laws

2009-TIOL-1364-CESTAT-MUM.pdf + oil story.pdf

Kamani Oil Industries Vs CCE, MUMBAI -II (Dated: July 10, 2009)

Appellant taking credit on Goods Transport Services even in respect of exempted goods but reversing the same subsequently – since credit taken after the clearances of the exempted goods, rule 6 of CCR, 2004 not applicable – Penalty sustainable - CESTAT:MUMBAI CESTAT;

2009-TIOL-1363-CESTAT-AHM.pdf

CCE, Ahmedabad Vs M/s ADF Foods Ltd (Dated: June 26, 2009)

Service Tax – Port is the place of removal in case of exports on FOB basis – Even LB in ABB Ltd & Ors 2009-TIOL-830-CESTAT-BANG-LB allowed credit of service tax paid on outward transportation even from factory gate – No merit in revenue appeal – Appellate Commissioner's order allowing refund of service tax upheld:AHMEDABAD CESTAT;

2009-TIOL-1362-CESTAT-DEL.pdf

Rakesh Kumar Thapur Vs CCE, Chandigarh (Dated: March 2, 2009)

ST - Assessee provides horizontal drilling service for telephone cables - tax levied on such service with effect from 16.6.2005 - Commissioner(A) asks for pre-deposit of tax with interest and the entire penalty amount - assessee does not comply - appeal rejected - held, pre-deposit of tax with interest is enough for hearing the case - issue remanded:DELHI CESTAT;

CENTRAL EXCISE SECTION

2009-TIOL-1361-CESTAT-DEL.pdf

M/s Hindustan Coca Cola Beverages Pvt Ltd Vs CCE, Jaipur-I (Dated: March 24, 2009)

Central Excise – Rejection of refund claim for education cess upheld in view of indication of education cess in invoice and lack of evidence to rebut passing on incidence of duty: DELHI CESTAT;

2009-TIOL-1360-CESTAT-MUM.pdf

Hindalco Industries Ltd Vs CCE, CBD Belapur (Dated: June 18, 2009)

Finalization of provisional assessment – Interest on differential duty amount payable from the due date till date of payment of differential duty even if same paid suo motu before finalization – LB decisions in Cadbury India Limited ( 2008-TIOL-1986-CESTAT-Mum-LB ) and Bimetal Bearings ( 2008-TIOL-1821-CESTAT-Mad-LB ) followed – Appeal dismissed: MUMBAI CESTAT;

2009-TIOL-1359-CESTAT-MUM.pdf

GEE Ltd Vs CCE, Mumbai-III (Dated: July 1, 2009)

C & F service used for clearing and forwarding of finished goods from the factory to the docks for exports – amount involved is only Rs.428/- which is too negligible to be considered for pre-deposit.

GTA Service – Prima facie case in view of Larger Bench decision in M/s. ABB Ltd. case reported at 2009-TIOL-830-CESTAT-BANG-LB allowing cenvat credit of service tax paid on GTA service used for outward transportation of finished goods from a factory: MUMBAI CESTAT;

2009-TIOL-1358-CESTAT-AHM.pdf

M/s Chamunda Pharma Machinery Pvt Ltd Vs CCE, Ahmedabad-I (Dated: July 21, 2009)

Central Excise – export of goods to Nepal – denial of refund of duty paid on the ground that the goods were not exported within six months from the date of clearance – the delay in export was due to unrest in Nepal and denial of refund on the ground of delay in export is not in consonance with the export scheme and intention of the legislature to boost export – impugned order set aside: AHMEDABAD CESTAT;

CUSTOMS SECTION

NOTIFICATION

ctariff09_088.pdf

Notification No 25/2009 rescinded;

ctariff09_087.pdf

CBEC imposes safeguard duty on import of Dimethoate Technical;

cnt09_130.pdf

Adjudicating authority notified for M/s. Sunland Metal Recycling Industries Limited;

cnt09_129.pdf

Adjudicating authority notified for M/s. Sambhav Textiles Limited;

cnt09_128.pdf

Adjudicating authority notified for M/s Gujrat Narmada Valley Fertilizer Company Limited;

cnt09_127.pdf

Adjudicating authority notified for M/s Kailash Overseas;

cnt09_126.pdf

Adjudicating authority notified for M/s Rico Steel;

cnt09_125.pdf

Customs Exchange rates for September notified;

PUBLIC NOTICE

dgft09pn003.pdf

Import of restricted items: Payment of duty by using duty credit scrip conditionally allowed;

CASE LAWS

2009-TIOL-453-HC-DEL-CUS.pdf + prosecution story.pdf

Vikas Mohan Singhal Vs Directorate of Revenue Intelligence (Dated: August 12, 2009)

Customs – Criminal prosecution – Once adjudication proceedings exonerate the accused on merits on a given set of facts, criminal prosecution based on identical set of facts cannot be allowed to continue – Order passed on merits by CEGAT not assailed by Revenue – All proceedings arising out of criminal complaint filed against petitioner quashed – Costs of Rs. 25,000 imposed on DRI: DELHI HIGH COURT;

2009-TIOL-1357-CESTAT-AHM.pdf

M/s Crown Steel Co Vs CC, Jamnagar (Dated: April 8, 2009)

Customs – Import of fuel and oil along with ship meant for ship breaking found in separate bunkers chargeable to duty under respective headings – No reason to interfere with impugned orders:AHMEDABAD CESTAT;