CBEC clarifies bagasse, aluminium/zinc dross and other similar waste are excisable products;

Govt bans direct or indirect export / import of nuclear-related materials from North Korea;

CBDT circulars on taxability of non-residents' income: How legitimate it is to cry wolf over withdrawal!

Indian economy is healing fast; Core sector grows by 4% in Sept;

CVC for major penalty against 4 from CBEC & 3 from CBDT in August;

Kolkata DRI seizes FICN worth Rs five lakh; One person arrested

Anti-dumping duty on Styrene Butadiene Rubber extended;

CBEC imposes anti-dumping duty on phosphorus pentachloride;

RBI Governor's Quarterly Review Report on Monetary Policy 2009-10;

3000 to be recruited for Coast Guard: Defence Minister;

National Police Mission: Four Micro Missions all ready for roll-out: PC;

TIOL COMMENTARY

ddt 28 oct.pdf

Service Tax on Renting of Immovable Property – live and kicking;

tiol top.pdf

CBDT circulars on taxability of non-residents' income: How legitimate it is to cry wolf over withdrawal!

stgst.pdf

Import of Services - Disputes carrying on;

MIXED BUZZ

mbuzz0975.pdf

CVC for major penalty against 4 from CBEC & 3 from CBDT in August;

mbuzz0974.pdf

Indian economy is healing fast; Core sector grows by 4% in Sept;

mbuzz0973.pdf

3000 to be recruited for Coast Guard: Defence Minister;

mbuzz0972.pdf

National Police Mission: Four Micro Missions all ready for roll-out: PC;

mbuzz0971.pdf

India-Nepal sign Agreement of Cooperation to curb unautherized trade;

2009-TIOL-577-HC-HP-IT.pdf + hc story.pdf

CIT Vs M/s Kiran Enterprises (Dated: October 6, 2009)

Income tax - Sec 80IA benefits - Assessee is a manufacturer - receives 'freight subsidy' in the hill State of Himachal Pradesh - Subsidy is given to compensate the industrial units for lack of rail netwok in the hill state - Assessee claims Sec 80IA benefits on suhc subsidy - AO disallows on the ground that as per the provisions of the Section 80IA, only profits 'derived from the undertaking' and not 'attributable to the industrial undertaking' is eligible for deduction - Held, given the fact that the transport subsidy received by the assessee is not a profit derived from business since it is not an operational profit and source of the subsidy is not the business of the assessee but scheme of the Central Government, it is not an eligible profit for deduction u/s 80IA - Revenue's appeal allowed :HIMACHAL PRADESH HIGH COURT;

2009-TIOL-663-ITAT-MUM.pdf

DCIT, Mumbai Vs Allied Digital Services Pvt Ltd (Dated: August 26, 2009)

Income tax - Sec 36(1)(vii) - Assessee does trading in computer hardware, multimedia and network project - writes off certain amount as bad debts - AO disallows on the ground that the assessee fails to establish reasons for writing off sum due from big corporate clients - held, in view of Bombay HC decision in the case of Oman International Bank, once a sum is written off in the books of account, it is allowable - Revenue's appeal dismissed :MUMBAI ITAT;

2009-TIOL-662-ITAT-MUM.pdf

M/s Teksons Cooling Systems Pvt Ltd Vs ITO, Mumbai (Dated: March 24, 2009)

Income tax - Sec 80IA, 271(1)(c) - Assessee is a manufacturer of automobile radiators - claims deduction for interest income u/s 80IA - AO allows it - Notice u/s 148 - In reassessment proceedings AO disallows the claim and treats the interest income under the head 'income from other sources' - also initiates penalty proceedings - held, merely because of change of head of income it cannot be said that the assessee concealed income and such a change in head also does not affect the total income - since the assessee has relied on the CA's certificate to make the claim, it cannot be penalised for the ambiguity of law at the relevant time which became clear later that such deduction cannot be claimed - there is also no evidence that the CA's intention was mala fide in issuing such a certificate - penalty not sustainable:MUMBAI ITAT;

2009-TIOL-661-ITAT-BANG.pdf

M/s Wipro Ge Medical Systems Pvt Ltd Vs DCIT, Bangalore (Dated: July 10, 2009)

Income tax - Sec 10A - Assessee claims exemption - AO allows it - reassessment initiated and Sec 10A benefits disallowed on the ground that the STPI units were only expanded from the existing business and were not new units - CIT(A) disagrees with the AO that the benefits were eligible from April 1, 1993 and if Sec 10A benefits are disallowed, the assessee is eligible for Sec 80HHE benefits. Besides all the facts are available in the return and the AO has not brought to notice any new information - held, the reassessment beyond four years is time-barred and there is no infirmity in the CIT(A) order - Assessee's appeal allowed:BANGALORE ITAT;

SERVICE TAX SECTION

tru_renting.pdf

Judgement of Delhi High Court in respect of Service Tax on “Renting of immovable property”- Instruction – Regarding;

CASE LAWS

2009-TIOL-1736-CESTAT-MAD.pdf

M/s Roots Industries Limited Vs CCE, Coimbatore (Dated: July 3, 2009)

Central Excise – Stay/dispensation of pre deposit – CENVAT Credit of service tax paid on outward transportation – stay granted in view of Larger Bench decision in 2009-TIOL-830-CESTAT-BANG-LB:CHENNAI CESTAT;

2009-TIOL-1734-CESTAT-MUM.pdf

Jawahar SSK Vs CCE, Pune (Dated: August 26, 2009)

Cenvat credit in respect of outward goods transport services and applicability extended period of limitation - Declaration of availment of cenvat credit on GTA service in monthly returns - no suppression of facts - Appeals of revenue rejected

Remand of case of assessee to original adjudicating authority for denovo adjudication in terms of Ambuja Cement Ltd. Vs UOI 2009-TIOL-110-HC-P&H-ST and LB decision in ABB Ltd. 2009-TIOL-830-CESTAT-BANG-LB with direction to pass appropriate orders - Appeals of party allowed by way of remand.:MUMBAI CESTAT;

2009-TIOL-1728-CESTAT-BANG.pdf

M/s Sree Royalaseema Alkalies & Allied Chemicals Limited Vs CC, CCE & ST, Tirupati (Dated: May 29, 2009)

Service tax – C & F Agents service, Storage & Warehousing service, Business Auxiliary service, Maintenance & repair service etc are input services – Prima facie case for waiver of pre-deposit and grant of stay:BANGALORE CESTAT;

2009-TIOL-1727-CESTAT-DEL.pdf

M/s Uttam (Bharat) Electricals Pvt Ltd Vs CCE, Jaipur-I (Dated: April 22, 2009)

Service tax – Transitional provision in Rule 11 of CENVAT Credit Rules, 2004 allows credits earned by manufacturer to be utilized for payment of excise duty in terms of Rule 3(4) – Service tax credit lying in books eligible to be allowed as credit for payment of excise duty on final products :DELHI CESTAT;

CENTRAL EXCISE SECTION

CIRCULAR

excircular904.pdf

Clarification regarding excisability of Bagasse, Aluminium/Zinc Dross and other such products termed as waste or residue or refuse arising during the course of manufacture – reg

CASE LAWS

2009-TIOL-1735-CESTAT-MUM.pdf + bajaj story.pdf

M/s Bajaj Auto Ltd Vs CCE & CC, Aurangabad (Dated: October 16, 2009)

Appellant procuring inputs against contractual agreements for agreed prices – later reducing the price with retrospective effect and issuing debit notes – No cause for reducing the Cenvat Credit availed by treating reduced portion of value as deposit – CESTAT.:MUMBAI CESTAT;

2009-TIOL-1733-CESTAT-MUM.pdf

CCE, Goa Vs M/s Funskool India Ltd (Dated: August 4, 2009)

SSI Notfn 8/2001-CE - Value of intermediate goods viz. Blister packs and game boxes not to be considered for computing the aggregate value of first clearances of specified final products viz. toys and games – CESTAT decision in Gothi Thermoforming Industries 2006-TIOL-1718-CESTAT-MAD relied upon – Revenue appeal dismissed.:MUMBAI CESTAT;

2009-TIOL-1732-CESTAT-DEL.pdf

M/s ACE Glass Containers Ltd Vs CCE, Meerut-I (Dated: June 5, 2009)

Central Excise – CENVAT Credit on colomony powder, welding electrodes, Plastic Crates/Pallets, Taxi Service, Mobile Phones and Telephones not deniable – Penalty set aside – Impugned order set aside:DELHI CESTAT;

CUSTOMS SECTION

NOTIFICATION

ctariff09_120.pdf

Anti-dumping duty on Styrene Butadiene Rubber extended;

ctariff09_119.pdf

CBEC imposes anti-dumping duty on phosphorus pentachloride;

dgft09not017.pdf

Govt bans direct or indirect export / import of nuclear-related materials from North Korea;

CASE LAWS

2009-TIOL-1731-CESTAT-MUM.pdf + ganapati story.pdf

Ganapati Warehousing Ltd Vs CC, Mumbai (Dated: September 17, 2009)

In view of the fact that appeals relating to year 2002-2003 are coming up for final hearing now, CHA's application for early hearing allowed:MUMBAI CESTAT;

2009-TIOL-1730-CESTAT-KOL.pdf

M/s Jenson & Nicholson (I) Ltd Vs CC, Kolkata (Dated: May 28, 2009)

Customs – Clearance of warehoused goods liable to duty as on the date of deemed clearance in the absence of extension of warehousing period by Commissioner or Chief Commissioner within the stipulated time after expiry of warehousing period – Commissioner cannot grant extension beyond six months – No reason to interfere with order of Commissioner (Appeals):KOLKATA CESTAT;

2009-TIOL-1729-CESTAT-MUM.pdf

CC, Mumbai Vs Oil & Natural Gas Corpn Ltd (Dated: August 24, 2009)

Appeal involving public limited company - clearance from the Committee of Disputes not sought for reason of smallness of amount - Clearance from COD is must for prosecution of case in terms of law laid down by the Supreme Court in ONGC Ltd. Vs CCE – 2002-TIOL-196-SC-CX - Appeal dismissed for want of clearance from the Committee of Disputes.:MUMBAI CESTAT;