Refund of services used for export goods – Coastal transport added;

Tariff value for poppy seeds and brass scrap increased;

Bangalore Enforcement Directorate seizes Rs 1.2 Cr hawala money;

CBEC exempts import under Advance Authorisation Scheme for deemed exports + allows re-credit of duty on re-export of goods imported under reward schemes;

Definitive anti dumping duty imposed on Sun/Dust Control Polyester Film;

Anti Dumping Duty on EPDM withdrawn;

CCEA authorises OVL for addl investment of USD 149.46 mn in Vietnam oil block;

CCEA gives nod for upgradation of 100 ITIs ;

ACC clears P J Thomas (KL-73) as new Telecom Secretary;

India's exports continues to be negative in August;

CBEC Member Rakesh Sharma retires but S K Goel's joining order gets stuck in procedural pipeline;

Govt launches 1% interest subvention on housing loans upto Rs 10 lakhs;

Mumbai Airport Customs seizes 6490 kg of saffron from pax coming from Dubai;

TIOL COMMENTARY

ddt 01 oct.pdf

Don't look a Gift Horse in mouth - Generosity to be taxed from today

cobweb.pdf

Containing climate change: India needs to welcome 'tariff initiative' taken by EU and USA;

acc_appointments.pdf

ACC clears P J Thomas (KL-73) as new Telecom Secretary;

MIXED BUZZ

mbuzz0901.pdf

CCEA authorises OVL for addl investment of USD 149.46 mn in Vietnam oil block;

mbuzz0900.pdf

CCEA gives nod for upgradation of 100 ITIs ;

mbuzz0899.pdf

India's exports continues to be negative in August;

mbuzz0898.pdf

Govt launches 1% interest subvention on housing loans upto Rs 10 lakhs;

2009-TIOL-521-HC-MAD-IT.pdf

CIT, Madurai Vs M/s VTM Limited (Dated: September 8, 2009)

Income tax - Section 32(1)(iia) - Assessee is a manufacturer - opts for additional depreciation on windmill - AO disallows - held, for availing additional depreciation what needs to be satisfied is that the setting up of new plant, acquired and installed, should be after March 31, 2002. The provisions of Sec32(1)(iia) do not state that the setting up of a new machinery or plant, which was acquired and installed upto 31.03.2002 should have any operational connectivity to the article or thing that was already being manufactured by the assessee. No infirmity in the Tribunal's order - Revenue's appeal dsimissed: MADRAS HIGH COURT;

2009-TIOL-598-ITAT- BANG.pdf

M L Krupal Vs ITO (Dated: June 26, 2009)

Income Tax - Pursuant to a scrutiny assessment u/s 133A on the assessee's (a wholesale dealer in coffee) premises, AO disallowed the loss finding that the gross profit rate returned was 0.96% and there were inflated purchases and manipulated closing stock for which no records were maintained - CIT(A) confirmed AO's order - Held, though assessee could not explain the purchases because it did not maintain the purchase register, he, however, has offered the enhanced income on account of the exact valuation of stock that was from all purchases which the Assessing Officer did not consider as closing stock for taxation in pursuance to the survey proceedings wherein the sales tax returns are verified and accepted - Held, matter is restored to the file of Assessing Officer for reconsideration - Assessee's appeal allowed for statistical purposes.: BANGALORE ITAT;

2009-TIOL-597-ITAT- BANG.pdf

ACIT Vs Honeywell Technology Solutions Lab Pvt Ltd (Dated: August 4, 2009)

Income tax - Sec 10A - Assessee is in the business of software development - incurs expenditure in foreign currency on travel - AO is for deduction of such expenditure from export turnover before Sec 10A benefits are allowed - CIT(A) orders for deduction of the same from total turnover also - held, since the philosophy incorporated in Sec 10A is the same that of Sec 80HHE, there is no infirmity in the CIT(A) order - Revenue's appeal dismissed.:BANGALORE ITAT;

2009-TIOL-596-ITAT- DEL.pdf + himachal story.pdf

Himachal Pradesh Environment Vs CIT (Dated: August 28, 2009)

Income Tax - preservation of environment covered under charitable activity – Pollution Control Board pursuing objects of general public utility. Collecting fee does not affect the situation - Cancellation of Registration as charitable organisation quashed - No conflict in an assessee being a regulatory body and its pursuing an ‘object of general public utility' which qualifies to be a charitable activity under section 2(15) of the Act. The scope of expression ‘any other object of general public utility' is indeed very wide, though it would indeed exclude the object of private gain such as an undertaking for commercial profit even as the undertaking may subserve general public utility. Courts have taken a very broad view of the connotations of ‘objects of general public utility'. Bearing in mind the fact that assessee is admittedly engaged in the activities for the purposes of “prevention, control or abatement of pollution” , the objects of the assessee trust are of general public utility. The assessee was indeed pursuing objects of general public utility.

As far as assessee being engaged in trade, commerce or business is concerned, it is not even the Commissioner's case that running an organization, set up under the statute, for controlling, preventing and abating pollution, is pursuing trade, commerce or business. Obviously, a trade, commerce or business implies an activity with profit motive even though public good may be a secondary benefit from such an activity. That is not the case here. The legal framework under which the assessee is set up is quite clear and unambiguous and it reflects will of the lawmakers in no uncertain terms, which is to prevent pollution:DELHI ITAT;

2009-TIOL-595-ITAT- MUM.pdf

Fidelity Investment Trust Fidelity Overseas Fund Vs ADIT (Dated: August 18, 2009)

Income tax - Sec 111A, 115AD - Assessee is non-resident investor - invests in shares - claims set off of short term capital loss u/s 111A against short term capital gain u/s 115AD - AO disallows on the ground that capital loss made after 30.9.2004 cannot be set off against capital gains made prior to this cut-off date when the Securities Transaction Tax was levied - held, the assessee has the option to set off short term capital loss against the short term capital gains as per the provisions of section 70(3) r.w. s.111A and 115AD of the Income tax Act - Assessee's appeal allowed:MUMBAI ITAT;

SERVICE TAX SECTION

NOTIFICATION

stnot09_040.pdf

Refund of services used for export goods – Coastal transport added;

CASE LAWS

2009-TIOL-1552-CESTAT-DEL.pdf

M/s Brindco Sales Ltd Vs CST, Delhi (Dated: August 3, 2009)

ST - Assessee is a commission agent - claims since it was not covered under BAS prior to 10.9.04 when amendment in the definition of BAS was made, it is entitled to exemption notification - Revenue denies the benefit - held, no clear-cut findings by lower authorities - waiver from pre-deposit granted :DELHI CESTAT;

2009-TIOL-1550-CESTAT-AHM.pdf

M/s Dineshchandra R Agrawal Infracon Pvt Ltd Vs CCE, Ahmedabad (Dated: August 4, 2009)

ST - assessee supplies labourers to railways - held, since labourers work under direct supervision of the railways, it is prima facie a case, not linked to cargo handling - pre-deposit waiver granted : AHMEDABAD CESTAT;

2009-TIOL-1549-CESTAT-AHM.pdf

Shri Prabhudas Keshavlal Patel Vs CST, Ahmedabad (Dated: July 2, 2009)

ST - assessee supplies labourers to railways - held, since labourers work under direct supervision of the railways, it is prima facie a case, not linked to cargo handling - pre-deposit waiver granted : AHMEDABAD CESTAT;

CENTRAL EXCISE SECTION

2009-TIOL-1555-CESTAT-MAD.pdf + Credit story.pdf

M/s Eveready Industries India Ltd Vs CCE, Chennai (Dated: August 6, 2009)

Central Excise – CENVAT Credit - CENVAT credit distribution from the corporate office to different factories – the Commissioner of the unit should have got the matter examined with his counterpart having jurisdiction over the corporate office before re-distributing the credit allocated – matter remanded.:CHENNAI CESTAT;

2009-TIOL-1554-CESTAT-MUM.pdf +morarjee story.pdf

Morarjee Textiles Ltd Vs CCE, Nagpur (Dated: August 6, 2009)

Appeal filed against rejection of refund claims – Provisions of section 35B(6) of the CEA, 1944 not applicable – Minimum fees of Rs.1000/- acceptable:MUMBAI CESTAT;

2009-TIOL-1553-CESTAT-MUM.pdf

B G Shirke Construction Technology Ltd Vs CCE, Mumbai (Dated: August 7, 2009)

Condonation of delay: Applicant coming to know of passing of impugned order of remand dt.16.5.2005 on 17.11.2007 whereas applied for the copy of the same on 16.09.08, got it on 25.9.08 and filed appeal on 03.12.08 - There is inordinate delay in obtaining copy of impugned order and no satisfactory explanation is provided by the applicant for the delay inferring negligence on their part – Applicant should have been more vigilant - Application dismissed.:MUMBAI CESTAT;

CUSTOMS SECTION

CIRCULAR

cuscir09_025.pdf

Re-Export of goods imported under reward schemes which are defective or unfit for use – Re-credit of duty–Reg;

NOTIFICATION

cnt09_149.pdf

Tariff value for poppy seeds and brass scrap increased;

ctariff09_112.pdf

CBEC exempts import under Advance Authorisation Scheme for deemed exports;

ctariff09_111.pdf

Definitive anti dumping duty imposed on Sun/Dust Control Polyester Film;

ctariff09_110.pdf

Anti Dumping Duty on EPDM withdrawn;

CASE LAWS

2009-TIOL-1551-CESTAT-MAD.pdf

Regency Glazes Ltd Vs CC, Chennai (Dated: July 23, 2009)

Customs – Stay / Dispensation of pre-deposit - EPCG – capital goods imported under EPCG under Notification 55/03 Cus dated 1.4.2003 shifted to another factory of group company after discharge of export obligation, which was regularised by the JDGFT-Prima facie case for waiver of pre-deposit. :CHENNAI CESTAT;