Govt imposes definitive anti-dumping duty on Plain Medium Density Fibre Board + extends same on poly Vinyl Chloride Paste Resin;

CBEC discontinues system of sending documents from minor ports and foreign post offices to Custom House for audit;

President appoints Nalla Bhuma Narayan Rao and Samudrala Govindarajulu as Additional Judges of AP High Court + Piyush Mathur for Madhya Pradesh HC + Alok Singh for Uttarakhand High Court;

Industrial production bounces back to 10.4% growth in August - highest in last 22 months;

DGFT allows granite sector EOUs to procure spares beyond 5% of value of capital goods to quarry site;

CBEC all set to give Diwali Gift to Customs and Central Excise Superintendents; DPC for promotion to AC-level for 87 vacancies wrapped up last Friday;

Two Prithvi missiles successfully launched today;

DRI's Nitco Tiles case - list of officials allegedly working for importer found - CBI takes over corruption case from DRI + Mumbai Court rejects Nitco Tiles' MD Rajiv Talwar's bail application;

PM rules out military action against naxalites;

Dr Manmohan Singh says NO to regulating salaries of CEOs in private sector;

TIOL COMMENTARY

ddt 12 oct.pdf

IPL under Income Tax Net? Or Service Tax?

tiol top.pdf

MoF 'Interactive Session' on DTC: Dear FM, did anyone give you this feedback?

editorial.pdf

Mega power policy changes rekindle hope;

MIXED BUZZ

mbuzz0923.pdf

Industrial production bounces back to 10.4% growth in August;

mbuzz0922.pdf

Two Prithvi missiles successfully launched today;

mbuzz0921.pdf

UN & Interpol are natural partners in ensuring golbal security: UN Chief;

2009-TIOL-538-HC-MAD-IT.pdf

S Pankajam Vs CCIT, Trichy (Dated: September 10, 2009)

Income tax - Writ - waiver of interst u/s 234A, 234B & 234C - there are disputes among the partners and family members - they are all partners in various partnership firms as well as Directors and shareholders in companeis - two groups are at loggerheads - fail to file returns - Revenue raids their premises and seized books of accounts - assessees further fail to file returns - file applications for waiver of interest - Revenue rejects it - assessees challenge the rejection order in writ - meanwhile, other group of assessees get partial relief in waiver of interest from another CCIT - held, case remanded for fresh examination:MADRAS HIGH COURT;

2009-TIOL-537-HC-ALL-IT.pdf

M/s Kraft Place Vs CIT (Dated: October 5, 2009)

Income tax - Sec 37(2A) - Assessee is into the business of sale of marble goods, embroidery handicrafts and imitation jewellery - claims expenditure incurred on entertaining foreign tourists - AO treats the expenses like providing mineral water, soft drinks, beer, hot and cold drinks as entertainment expenses - CIT(A) allows mineral water and hot drinks - Tribunal agrees with the AO - held, there is no illegality in the decision of the Tribunal - Assessee's appeal dismissed: ALLAHABAD HIGH COURT;

2009-TIOL-618-ITAT-MUM.pdf + siemens story.pdf

JCIT, Mumbai Vs M/s Siemens Aktiengesellschaft (Dated: June 30, 2009)

Income tax - Sec 9(1)(i) - Indo-German DTAA - assessee is a German supplier of telecom equipment - makes offshore supplies - provides after-sale support services through subsidiary company in India - taxability of business profits - whether income is taxable under the domestic law or is exempted under the DTAA? :MUMBAI ITAT;

2009-TIOL-617-ITAT-MUM.pdf

M/s Laxmi Development Corpn Vs ACIT, Mumbai (Dated: May 6, 2009)

Income Tax - Assessee, a partnership firm engaged in the business of land and buildings, did not file IT return - AO issued notice u/s 148 holding that income on account of lad sold had escaped assessment - CIT(A) dismissed assessee's appeal—Held, mere length of period for which the land had been held by the assessee is not sufficient to rebut the material on record that the assessee had always intended to carry on the business and the large part of the land purchased was meant for the purposes of business and not to be kept as an investment in contrast to the business—Held, profit on sale of land is assessable under the head ‘profits and gains of business' - Assessee's appeal dismissed.:MUMBAI ITAT;

SERVICE TAX SECTION

2009-TIOL-1618-CESTAT-MUM.pdf + khemka story.pdf

CCE, Nagpur Vs Khemka Travels (Dated: September 17, 2009)

Rent-a-Cab operator – Notification 1/2006-ST – Cenvat Credit taken erroneously reversed with interest – Benefit of notification not to be denied – CESTAT:MUMBAI CESTAT;

2009-TIOL-1617-CESTAT-BANG.pdf

M/s Prestige Estates Projects Pvt Ltd Vs CST, Bangalore (Dated: August 24, 2009)

Service tax – Employee left service without informing management about O-I-O issued by Commissioner for demand of tax and levy of penalties – Delay of 503 days condonable as length of delay not material but plausible reasons for delay in filing appeal:BANGALORE CESTAT;

2009-TIOL-1615-CESTAT-MUM.pdf

Dic India Ltd Vs CCE, Mumbai (Dated: September 11, 2009)

Cenvat Credit on Mobile Phone service – No allegation that mobile phones were not used in or in relation to manufacture of final product – presumption is in favour of assessee – Credit allowable – Tribunal decision in Telenet Systems Pvt. Ltd. vs. CCE, Belapur 2009-TIOL-1286 CESTAT-MUM relied upon – Appeal allowed with consequential relief.:MUMBAI CESTAT;

2009-TIOL-1612-CESTAT-MUM.pdf

M/s International Transmission Product P Ltd Vs CCE, Mumbai (Dated: August 28, 2009)

Cenvat Credit on Goods Transport Service, Mobile phone service, credit card service and Air Travel Agent – adjudicating authority correctly allowing the credit after going through each and every aspect of documents supplied by appellants with regards to use of the impugned services in or in relation to manufacture of final products – Commissioner(A) setting aside the order without giving a detailed reasoning is bad in law – Appeals allowed with consequential relief.:MUMBAI CESTAT;

2009-TIOL-1611-CESTAT-MUM.pdf

Eaton Industrial Systems Pvt Ltd Vs CCE, Aurangabad (Dated: August 27, 2009)

Garden Maintenance Service – Cenvat credit not allowable as this service has no nexus even remotely with manufacture and clearance of excisable goods – Tribunal decision in Kirloskar Oil Engines Ltd. 2009-TIOL-790-CESTAT-MUM followed – Appeal rejected.:MUMBAI CESTAT;

CENTRAL EXCISE SECTION

2009-TIOL-1616-CESTAT-MUM.pdf + unique story.pdf

M/s Unique Enterprises Vs CCE, Mumbai-I (Dated: August 24, 2009)

Appeals filed in time before CEGAT, later withdrawn for filing application for Settlement – Settlement Commission rejecting the application on the ground of non co-operation – ROA filed before CESTAT dismissed as time barred – HC asking petitioners to pay costs for restoration of appeals – Petitioners comply and CESTAT restores appeals.:MUMBAI CESTAT;

2009-TIOL-1614-CESTAT-AHM.pdf

CCE, Surat-I Vs M/s Reliance Industries Ltd (Dated: July 31, 2009)

Central Excise – Ceramic balls used for refining or purifying of petrochemicals eligible as input credit so long as they are used in or in relation to manufacture of final products – Revenue appeal is not on the ground that ceramic balls are equipment and thus excluded as inputs – No infirmity in Appellate Commissioner's order: AHMEDABAD CESTAT;

2009-TIOL-1613-CESTAT-MAD.pdf

M/s Sun Pharmaceuticals Industries Ltd Vs CCE, Pondicherry (Dated: May 18, 2009)

Central Excise – conversion to DTA Unit to EOU – there are no provisions to lapse the balance of credit available with DTA unit – no bar for a DTA unit carrying over inputs and the cenvat credit balance in its accounts when it got converted into an EOU - The EOUs are also entitled for Cenvat Credit under the amended provisions of CER'02:CHENNAI CESTAT;

CUSTOMS SECTION

NOTIFICATION

ctariff09_116.pdf

Definitive anti-dumping duty on Plain Medium Density Fibre Board imposed;

ctariff09_115.pdf

Anti-dumping duty on poly Vinyl Chloride Paste Resin extended;

cnt09_155.pdf

Adjudicathing authority appointed for M/s TT Enterprises;

cnt09_154.pdf

Adjudicathing authoriy appointed for M/s PFZ Corporation;

cnt09_153.pdf

Adjudicathing authority appointed for M/s. Sarjan;

cnt09_152.pdf

Adjudicathing authority appointed for M/s. Siddharath Oils;

cnt09_151.pdf

Adjudicathing authority appointed for M/s. R.K.Soap and Oil Traders;

cnt09_150.pdf

Adjudicating authority appointed for M/s. Kalpataru Colours and Chemicals Limited;

CIRCULAR

cuscir09_027.pdf

Audit of assessments arising out of clearance of goods in minor ports or the foreign post office – regarding

dgft09cir010.pdf

Clarification to enable procurement of spares beyond 5% by granite sector EOUs.;

Order.pdf

Adjudicating authority appointed for M/s Regular Exports, Ludhiana;

CASE LAWS

2009-TIOL-536-HC-MUM-CUS.pdf

M/s Goodlass Nerolac Paints Ltd Vs UoI (Dated: September 24, 2009)

Customs – Exemption Notification - Description of the goods shown correctly, but there is a typographical error in the tariff heading – befit cannot be denied solely on that ground: Though the goods at column 3 of the table have been referred to as Ethyl Glycol and Butyl Glycol, insofar as column 2 are concerned they are shown under Tariff Heading 29.05. In the first part of the notification, it is mentioned that the Central Government in public interest exempts the goods specified under column 3 of the table. It is therefore clear that what is exempted was Ethyl Glycol and Butyl Glycol. The affidavits of the expert of the respondents would themselves show that they fall under Tariff Heading 2909.43. Clearly therefore the entry under column no.2 of Tariff Heading 29.05 is a typographical error and the petitioner cannot be denied the benefit solely on that ground.:BOMBAY HIGH COURT;

2009-TIOL-1610-CESTAT-BANG.pdf

CC, Cochin Vs M/s Chennai Marine Trading (Pvt) Ltd (Dated: May 22, 2009)

Customs – Valuation of cylinders containing import of R134 gas – Corrigendum issued by Appellate Commissioner to rectify order with regard to valuation takes care of revenue's grievance – Imposition of redemption fine of 10% of value of goods does not require any interference :BANGALORE CESTAT;