Economic Outlook for 2009-10: 6.5% growth projected;

CIC Chief Wajahat Habibullah, IAS (1968-J&K) resigns to take over as RTI Chief in J&K;

India, Switzerland to amend DTAA under OECD guidelines: FM;

Global remittances top USD 300 bn annually ;

RBI directs RRBs to furnish credit information to Credit Information Companies;

TIOL COMMENTARY

ddt 21 oct.pdf

Windows 7 – India to miss launch because of beneficial Customs exemption?

stgst.pdf

GST White Paper needs to address major concerns of industry;

MIXED BUZZ

mbuzz0949.pdf

Economic Outlook for 2009-10: 6.5% growth projected;

mbuzz0948.pdf

Maran going abroad to attract FDI into textiles sector;

mbuzz0947.pdf

Global remittances top USD 300 bn annually;

2009-TIOL-646-ITAT-AHM-TM.pdf + interest story.pdf

M/s Kanel Oil & Export Inds Ltd Vs JCIT, Ahmedabad (Dated: August 21, 2009)

Income Tax - the levy of interest is automatic and mandatory and has to be charged without reference to the assessee; Special bench order in Ashima Syntex (2009-TIOL-36-ITAT- AHM -SB) followed in preference to High Court decision in Snowcem India (2009-TIOL-39-HC-MUM-IT) . sub-section (4) of section 115JA specifically stipulates that all other provisions of the Act apply to an assessment made on book profit under that section; the decision of a Special Bench is binding on division benches of the Tribunal, otherwise the very purpose of constituting them will get frustrated and the decision can be disregarded or distinguished only if there is any contrary view expressed by the jurisdictional High Court or the Supreme Court. " if there were conflicting decisions of the High Courts, other than the jurisdictional High Court, the Benches of the Tribunal were free to adopt the view which to the Benches appear to be better and that in certain circumstances the view which was favourable to the taxpayer should be adopted ".:AHMEDABAD ITAT (THIRD MEMBER);

2009-TIOL-645-ITAT-MUM.pdf

ACIT, Mumbai Vs M/s RPG Life Sciences Ltd (Dated: August 31, 2009)

Income tax - Sec 2(42C) - Assessee is in the business of manufacturing pharmaceutical and agrochemical products - sells its agrochemical division to a non-resident buyer - AO treats it as a slump sale and capital gains taxable u/s 50B - Assessee claims it has been an itemised sale - CIT(A) agrees with the AO - held, since the CIT(A) has examined the facts in details and found the schedules reflecting assets and liabilities valued in itemised format, it cannot be said that it is a slum sale - Revenue's appeal dismissed:MUMBAI ITAT;

2009-TIOL-644-ITAT-MUM.pdf

DCIT, Mumbai Vs M/s Reliance Petroleum Ltd (Dated: September 18, 2009)

Income tax - Sec 154, 244A - Revenue objects to CIT(A) admitting appeal for allowing interest u/s 244A when TDS deducted not deposited before April 1st - held, since tax effect of the case is less than the monetary limit fixed by the CBDT, the appeal is dismissed:MUMBAI ITAT;

2009-TIOL-643-ITAT-MAD.pdf

N Saroja Vs ACIT, Tiruchirapalli (Dated: March 13, 2009)

Income Tax - Search u/s 132(4) - Assessees are engaged in carrying on jewellery business - During the course of block assessment AO, on the basis of material collected during the course of search computed the undisclosed income and makes addition – CIT(A) partly allows assessee's appeal – Revenue contends that CIT(A) has failed to appreciate that total investment in the property as per seized slip - Assessee contends that CIT(A) erred in giving credence to the loose sheet - Held, the loose sheet found at the premises of the assessees at the time of search evidencing undisclosed payment to seller has been rightly taken as basis for computation of undisclosed income. Claim by the assessee that only some portion of the loose sheet entry are correct cannot be taken as cogently rebutting the material found in the form of loose sheet. It is more so when a part of the entries in loose sheet has also been reflected in assessee's books of accounts and assessee has no explanation as to how other matters written in the loose sheet are wrong or what was the reason for such "wrong" entries. Hence, the evidence found in the form of entries in loose sheet stand corroborated. CIT (A) order upheld.

On the issue of telescoping of deficit in explained cash towards the addition of undisclosed income - Held, the claim that there are actually deficit in cash balances which should be given credit towards on-money payment in this transaction is not proved. CIT(A) order granting benefit of telescoping towards the addition set aside. Assessee Appeal dismissed, Revenue Appeal Partly allowed.:CHENNAI ITAT;

2009-TIOL-642-ITAT-DEL.pdf

M/s Xebec Exports Vs ACIT, Moradabad (Dated: August 28, 2009)

Income tax - Sec 36(1)(iii) - Assessee is a partnership firm, engaged in exports - AO disallows bank interest payment on the ground that the assessee has advanced interest-free loan out of borrowed funds to some partners - CIT(A) agrees with the AO - held, since credit balance in capital account of all partners is more than the debit balance, no addition is called for

Foreign travel - AO makes 10% disallowance of total expenditure - held, since the assessee has failed to furnish details of the sum spent on the trip, disallowance is valid:DELHI ITAT;

SERVICE TAX SECTION

2009-TIOL-1679-CESTAT-BANG.pdf

M/s Indian School Of Business Vs CC & CCE, Hyderabad (Dated: March 16, 2009)

Service Tax – Institution of higher learning imparting knowledge through courses at Post Graduate level and Research is not Commercial training or coaching center – Such institution cannot be placed on same footing as that of coaching or training imparted by tutorial colleges or institutions preparing students for imparting certain skills or preparing for examination for getting higher marks – Activity of imparting education at Post Graduate and Research level not liable to service tax under Commercial training or coaching service – Impugned order demanding tax and imposition of penalty having no merits set aside: BANGALORE CESTAT;

2009-TIOL-1678-CESTAT-BANG.pdf

M/s MSPL ltd Vs CCE, Belgaum (Dated: May 19, 2009)

Service tax – Gas cylinders transported using own vehicles and freight charges collected thereon not leviable to service tax by manufacturer of gases under GTA service – Service tax liable to be paid by person who pays freight on transportation of goods in a goods carriage in terms of Rule 2 (1)(d) (v) of Service Tax Rules, 1994 – No infirmity in impugned order : CHENNAI CESTAT;

2009-TIOL-1677-CESTAT-MAD.pdf

M/s Salem Cooperative Sugar Mills Ltd Vs CCE (Service Tax), Salem (Dated: July 3, 2009)

Service Tax – Stay/dispensation of pre-deposit – Goods Transport Agency Service – prima facie the appellants' contention that they are covered under clause (1) of Notification 34/2004 ST as the amount charged was less than Rs.1500/- is not acceptable – Pre-deposit ordered: CHENNAI CESTAT;

2009-TIOL-1676-CESTAT-DEL.pdf

Mr Sharwan Kumar Vs CC, Chandigarh (Dated: August 7, 2009)

Service tax – Bringing activity of body building of vehicles using materials supplied by contractee under ‘Business Auxiliary Service' questionable – Prima facie case for full waiver of pre-deposit: DELHI CESTAT;

CENTRAL EXCISE SECTION

2009-TIOL-1683-CESTAT-MUM.pdf + electricity story.pdf

M/s Awahar SSK Ltd Vs CCE, Pune II (Dated: September 8, 2009)

Electricity although mentioned in the CETA, 1985 from 28.02.2005 is not ‘exempted goods' in terms of rule 2(d) of the Cenvat Credit Rules, 2004 – Rule 6(3)(b) has no application – Prima facie case for granting waiver of pre-deposit of Rs.3.89 Crores, says CESTAT.

Tribunal's observations –

However, in view of Supreme Court judgment in Commissioner of Central Excise vs. Gujarat Narmada Fertilizers Co. Ltd . [ 2009-TIOL-96-SC-CX ] , wherein, reversal of Cenvat credit to be effected to the extent of electricity cleared to the Grid and to the Township for purposes other than manufacture of dutiable goods within the factory - R eversal should be done to the satisfaction of the Commissioner within a period of 4 weeks . Subject to this condition, there will be waiver of pre-deposit and stay of recovery in respect of the amounts demanded under Rule 6(3)(b) .: MUMBAI CESTAT;

2009-TIOL-1682-CESTAT-MUM.pdf

CCE, Nagpur Vs ACC Ltd (Dated: August 12, 2009)

Order of Appellate Authority under challenge by the revenue is in their favour and no relief is sought in the appeal against the same hence the appeal is without any relief and not maintainable as infructuous.

Order for dismissal of appeal and stay application as well as condonation of delay application stands disposed off accordingly.: MUMBAI CESTAT;

2009-TIOL-1681-CESTAT-DEL.pdf

M/s Dabur India Ltd Vs CCE, Ghaziabad (Dated: July 6, 2009)

Central Excise – Refund claim of excess duty paid on clearance of rose water from factory to depot for assessing duty by mistake under s. 4 instead of s. 4A – Excess duty shown as recoverable in Balance Sheet – Matter remanded to Appellate Commissioner to consider evidence of balance sheet for deciding refund claim: DELHI CESTAT;

2009-TIOL-1680-CESTAT-BANG.pdf

M/s Andhra Pradesh Paper Mills Ltd Vs CCE, Visakhapatnam (Dated: May 15, 2009)

Central Excise – Penal interest collected from buyers for delayed payments not includible in assessable value – Impugned order set aside: BANGALORE CESTAT;

CUSTOMS SECTION

2009-TIOL-565-HC-MUM-EXIM.pdf + exim story.pdf

Baker Gauges India Limited Vs UoI (Dated: August 26, 2009 )

Customs – Import of second hand machinery - Change in EXIM POLICY – goods already ordered and extension allowed – Import valid and goods not liable for confiscation: the authority in whom the power was conferred to issue a clarification understood the policy to mean and understand that if an importer satisfied the requirements of the Import and Export Policy April 1988 to March, 1991 and the Open General Licence No.2 /88 even if a new import policy had come after Import and Export Policy April, 1988 to March, 1993 the clarification given would be binding on all authorities including the customs. In the circumstances it is not necessary to address the issue either of promissory estoppel or for that matter about the consequences of the savings paragraphs of the two policies. The clarification would result in the petitioners having acted in good faith on the said clarification and consequently the import, therefore, cannot be said to be illegal.: BOMBAY HIGH COURT;

M/s Gujarat Ambuja Exports Vs CC, Kandla (Dated: June 9, 2009)

Customs – Classification of imported palm oil and two different classifications proposed by department – As per HSN palm oil produced by mechanical extraction shall be as 'crude' provided it has undergone no change in colour, odour or taste when compared with oil obtained by pressure – Once a product is held as crude palm oil irrespective of sub-headings, the product would be assessed on the basis of tariff value – Imported crude palm oil classifiable under Chapter 1511 10 00 : AHMEDABAD CESTAT;