ITAT President issues transfer order of 11 Members w.e.f afternoon of Sept 11 (See 'Direct Tax Basket')

CBEC issues mini transfer orders of Addl / JCs + Vijai Lakshmi Sharma as DG (DRI) and Mr Ajit Kumar to hold addl charge of CC (Customs), Ahmedabad;

States set up market squads to curb black marketing of essential food items;

Govt exempts more export promotion councils from service tax;

Silhouettes of authors of Direct Taxes Code Bill stand completely shrouded;

Peter Pan tinkers once again with tax treaty law (See 'Common Basket);

OECD Forum takes measures to ensure end of era of banking secrecy;

DTC: Can our society treat word 'grandfathered' as synonym for 'elimination'?;

Sad Demise of Rajasekhara Reddy - But why a Holiday? - Guidelines on Holidays on death of high dignitaries;

YSR Reddy's charred body being brought to Hyderabad; Union Govt orders probe;

TIOL COMMENTARY

ddt 4 sept.pdf

Reversal of wrongly taken CENVAT Credit – Is interest payable? – CBEC Clarifies;

potpourri_022.pdf

Silhouettes of authors of Direct Taxes Code Bill stand completely shrouded;

CASE LAW+ ANALYSIS

2009-TIOL-463-HC-DEL-RTI.pdf + RTI story.pdf

CCI Vs Subhash Chandra Agarwal & Anr (Dated: September 2, 2009)

Declaration of assets by Supreme Court judges made pursuant to resolution of 1997 and in possession of Chief Justice of India will come within ambit of RTI Act: DELHI HIGH COURT;

PRESS NOTE

pn6_2009.pdf

Foreign Direct Investment (FDI) into a Small Scale Industrial Undertaking (SSI)/ Micro & Small Enterprises (MSE) and in Industrial Undertaking manufacturing items reserved for SSII MSE - clarification;

Selection for post of Members, Settlement Commission.pdf

Selection for the posts of Members in the Customs & Central Excise Settlement Commission;

MIXED BUZZ

mbuzz0817.pdf

Accidental activation of value added services: TRAI issues direction;

mbuzz0816.pdf

Ministerial Meeting on re-energising Doha Round concluded;

mbuzz0815.pdf

OECD Forum takes measures to ensure end of era of banking secrecy;

transfer_order.pdf

ITAT President issues transfer order of 11 Members;

CASE LAWS

2009-TIOL-462-HC-MUM-IT.pdf + gibbs story.pdf

Gilbs Computer Limited Vs ITAT (Dated: July 29, 2009)

Appeal to ITAT – Fee when there is loss - What does these expressions “more or less” indicate? It can only be more than a negative income even if the expression “income” is held to be both positive and negative income: It can only be more than a negative income even if the expression “income” is held to be both positive and negative income. Negative income cannot be more. It will always be less: BOMBAY HIGH COURT;

2009-TIOL-461-HC-DEL-IT.pdf

Carlton Overseas Pvt Ltd Vs ITO (Dated: August 18, 2009)

Income tax - Sec 147 - Assessee is a manufacturer and exporter of footwear - claims deductions under Sections 80HHC and 80IB - AO raises queries - Assessee files detailed reply - AO passes assessment order u/s 143(3) - Notice u/s 148 - assessee asks for reasons for reopening assessment - AO furnishes reasons - held, reopening of assessment merely on the observation of audit party amounts to change in opinion which cannot be allowed under Sec 147 - Assessee's appeal allowed: DELHI HIGH COURT;

2009-TIOL-552-ITAT-BANG.pdf

Chief Accounts Officer , Mysore Vs ITO (TDS), Mysore (Dated: May 15, 2009)

Income Tax - Section 201(1) and 201(1A) - appellant is Chief Accounts Officer of Mysore City Corporation, a local body to administer and manage the Mysore City - assessee pays interest to Karnataka Urban Infrastructure Development Finance Corporation (KUIDFC), a Govt Company involved in funding the various developmental work of the infrastructure project in the State of Karnataka - No TDS deduction made on interest payments - AO raises demands for several A.Ys – CIT(A) confirms charging of interest - Held, the matter requires consideration afresh in the light of the provisions of section 194A read with section 197 as applicable to the assessee as defined therein. Issue restored to the file of AO for bringing on record the facts which directly holds the assessee as assessee in default for these A.Ys and grant an opportunity of being heard to the assessee in order to establish that the provisions of section 194A be not applicable to them. Assessee's Appeal allowed.: BANGALORE ITAT ;

2009-TIOL-551-ITAT-DEL.pdf

DCIT, New Delhi Vs M/s Seil Aircon Ltd (Dated: April 30, 2009)

Income Tax - Assessee pays commission on sales - AO observes  that the assessee's sales in quantity terms have reduced and there is no justification for the higher expenditure in the year under consideration  - makes  addition - CIT(A) confirms  disallowance and the Tribunal, remands the matter for fresh adjudication – CIT(A) deletes addition - Held, the rate of commission would be higher on the ACs which is of a higher value compared to the cooler. Be that as it may, the rate of commission, if compared with the value works out to 10.14% in the year consideration as against 12.72% in the last year, and, therefore, no reasons remain for the disallowance of the commission on the ground that a higher commission is paid in the year under consideration: DELHI ITAT;

2009-TIOL-550-ITAT-MUM.pdf

Shri Popatlal Fulchand Vs ACIT, Mumbai (Dated: May 6, 2009)

Income Tax - Section 22 - house property owned by partners of the firm in individual capacity are utilised by a partnership firm, constituted of HUFs through its partners - assessee do not disclose any notional income from the house property on ground that same being used for assessee's own business - AO is of the view that partnership firm is a distinct entity than the individual partners and therefore the firm having utilised the premise for its business is not sufficient to give the benefit of section 22 to the individual partners - Held, in view of Delhi High Court decision in CIT vs. H S Singhat & Sons the assessee is not liable to tax in respect of the notional income of the house property used by the firm for its business. Addition deleted and Appeal of the assessee allowed: MUMBAI ITAT;

cbecorder194_2009.pdf + cbecorder192_2009.pdf

CBEC issues transfer order of 5 Addl/JCs;

cbecorder193_2009.pdf

Vijai Lakshmi Sharma posted as DG (DRI);

SERVICE TAX SECTION

NOTIFICATION

stnot09_035.pdf

Govt exempts some more export promotion council from service tax;

CASE LAWS

2009-TIOL-460-HC-DEL-ST.pdf + st story.pdf

CST Vs M/s Delhi Gymkhana Club Ltd (Dated: August 28, 2009)

Service Tax – Appeal against Tribunal's order on taxability of service – Appeal lies to Supreme Court: The Tribunal held that when the service is provided by a club to its members, it does not attract service tax. Where does an appeal lie against such a decision of the CESTAT? The Revenue appealed to the High Court. As is clear from the order of the Appellate Tribunal, in essence, the question that is decided relates to rate of duty. Whether nomenclature thereof is given as service tax, it is the rate of duty of that tax which would essentially fall for consideration. Against such a decision, appeal is filed by the appellant under Section 35G of the Act which would not be maintainable.: DELHI HIGH COURT;

2009-TIOL-1397-CESTAT-DEL.pdf

M/s Ujjawal Parivahan Sahakari Samiti Ltd Vs CCE, Jaipur (Dated: June 17, 2009)

Service Tax – Activities like excavation, transportation from mining area to crushing site, transportation of mining goods and crushed goods to the buyer under a composite contract – Since appellant may fall under tax net for some activities and certain activities like transportation in mining area being held as not taxable, pre-deposit of Rs. 20 lakhs ordered :DELHI CESTAT;

2009-TIOL-1396-CESTAT-DEL.pdf

M/s Beekay Engineering Corpn Vs CCE, Raipur (Dated: July 21, 2009)

ST - Works Contract Service - Cenvat credit availed by the assessee - later reversed and abatement claimed - Revenue raises demand - held, once credit availed on the input is reversed, the case may be equated with on-availment and waiver of pre-deposit is gratned :DELHI CESTAT;

2009-TIOL-1395-CESTAT-DEL.pdf

CCE, Ludhiana Vs M/s Speedways Tyre Service (Dated: July 9, 2009)

ST - Reconditioning service - assessee provides tyre retreading service - Revenue for tax under repair and maintenance service - held, the reconditioning activity of the assessee was brought under the tax net only from 16.6.05 - Adjudicating authority directed to rework the demand :DELHI CESTAT;

CENTRAL EXCISE SECTION

2009-TIOL-1399-CESTAT-AHM.pdf

Shri Umesh Rai Vs CCE & CC, Vapi (Dated: June 4, 2009)

Central Excise – No infirmity in clearance of PTY on job work basis not excluded in CENVAT Credit Rules, 2004 though excluded under Notification 214/86-CE – Duty demand, confiscation and penalties set aside: AHMEDABAD CESTAT;

2009-TIOL-1398-CESTAT-MUM.pdf

Balmer Lawrie & Co Ltd Vs CCE, Belapur (Dated: June 30, 2009)

Cenvat Credit is required to be reversed on shortages of inputs shown during the course of statutory audit/annual stock taking, as reflected in Trial Balance – Burden to prove admissibility is on the assessee – Bombay High Court decision in CCE, Aurangabad vs. Greaves Cotton Limited ( 2007-TIOL-445-HC-MUM-CX ) denying such credit not stayed by Supreme Court – Appeal dismissed: MUMBAI CESTAT;

2009-TIOL-1394-CESTAT-MUM.pdf + oom story.pdf

R R Oomerbhoy Pvt Ltd Vs CCE, Aurangabad (Dated: July 28, 2009)

Payment of duty before issuance of show cause notice – Provisions of section 11A(2B) of the CEA, 1944 prohibit issuance of show cause notice for demanding duty under sub section (1) of section 11A and, therefore, there is no question of any determination of duty under sub-section (2) and consequently invoking section 11AC is erroneous – CESTAT: MUMBAI CESTAT;

2009-TIOL-1393-CESTAT-BANG.pdf

M/s Sriba Agro Ltd Vs CC & CCE, Guntur (Dated: February 25, 2009)

Central Excise – Clearance of refined oil from bulk packs to retail packs - Notification No. 6/2002-CE gives option of either paying duty of Rs.1/- per kg or claiming exemption of nil duty on refined edible oils packed into unit containers – Entry No.244 (B) and (C) do not have any pre-conditions and are mutually exclusive – It is settled law that when there are two views possible on a notification, view which is more beneficial to the assessee has to be applied – Period involved is prior to enactment of Section 5A (1A) of CEA, 1944 and not applicable – Impugned orders not legal and proper, liable to be set aside :BANGALORE CESTAT;

CUSTOMS SECTION

NOTIFICATION

dgft09cir005.pdf

Import of sports weapons by "Renowned Shooters.''

dgft09not004.pdf

Prohibition on Export of Edible Oils;

CASE LAWS

2009-TIOL-1400-CESTAT-AHM.pdf

M/s Jai Jagdish Ship Breakers Pvt Ltd Vs CC, Jamnagar (Dated: April 8, 2009)

Customs – Interest on delayed refund of duty – Finalization of assessment and recovery of differential duty through bank guarantee – Appeal allowed by Tribunal thereby warranting refund of duty recovered and subsequently refund sanctioned pursuant to second order from Tribunal – Non-challenge of Appellate Commissioners order which later merged into Tribunal's second order not a ground to deny interest – Unwarranted litigation initiated by Revenue pursuant to Tribunal's first order – Interest to be paid from the date of Tribunal's first order: AHMEDABAD CESTAT;