High-level probe ordered into Jaipur IOCL depots;

CBDT issues transfer order of six CCITs ;

Income Tax issues TDS default notice to Vodafone International Holdings for payment of USD 11.2 bn; Nov 15 fixed as compliance deadline;

Govt puts ban on sale of pre-paid SIM cards in J&K from Nov 1;

Govt modifies Colour Code for 'contract carriage' in NCR;

Tender floated for six AIIMS-like hospitals;

Combating Financing of Terrorism - Unlawful Activities (Prevention) Act, 1967 - Obligation of Banks;

Cabinet gives nod to hike in rates for scheme of National Research Professorship;

Combating Financing of Terrorism - Unlawful Activities (Prevention) Act, 1967 - Obligation of Banks ;

TIOL COMMENTARY

ddt 30 oct.pdf

Central Excise Chief Commissioners Conference today at Shillong

spl down.pdf

Central Excise - Penaly under Sec 11AC - Controversy continues ... ;

RBI NOTIFICATION

rbi09cir014.pdf

Participants under ACU Mechanism- Inclusion of Maldives Monetary Authority

RBI Notification.pdf

Combating Financing of Terrorism - Unlawful Activities (Prevention) Act, 1967 - Obligation of Banks;

MIXED BUZZ

mbuzz0982.pdf

Govt puts ban on sale of pre-paid SIM cards in J&K from Nov 1;

mbuzz0981.pdf

Govt modifies Colour Code for 'contract carriage' in NCR;

mbuzz0980.pdf

Tender floated for six AIIMS-like hospitals;

mbuzz0979.pdf

Cabinet gives nod to hike in rates for scheme of National Research Professorship;

cbdtorder155_2009.pdf

CBDT issues transfer order of six CCITs;

CBDT Press Release on Vodafone.pdf

Income Tax issues TDS default notice to Vodafone International Holdings for payment of USD 11.2 bn; Nov 15 fixed as compliance deadline;

CASE LAWS

2009-TIOL-25-ARA-IT.pdf + international tyre story.pdf

M/s International Tire Engineering Resources LLC (Dated: October 28, 2009)

India USA – DTAA - consideration received towards technology transfer /technical know-how and the services connected clearly liable to be taxed as royalty: The power of taxation cannot be denied to the Indian Government from the standpoint of territorial nexus. The technical know-how embodied in various documents is received by the applicant in India from time to time and is put to use in India with the assistance and advice offered by the technical personnel of the applicant deputed to India. The role played by the applicant is perceivable at every stage till the plant is set up and the goods are manufactured. No doubt can possibly arise from the stand point of territorial nexus. Payment received by the applicant squarely falls within clause (a) of Art.12.3 . The consideration received for consultancy, assistance and training is liable to be taxed as fee for included services under the Treaty and as fee for technical services under the Income-tax Act.

Deduction of tax at source . Under part II of the First Schedule to the Finance Act, 2009, the rates for deduction of tax at source in certain cases are specified. In regard to royalty and fees for technical services payable by an Indian concern in pursuance of an Agreement made by a foreign Company with the Indian concern on or after 1st June 2005, 10% rate is prescribed, where it relates to a matter included in the Industrial Policy, for the time being in force, of the Government of India and the Agreement is in accordance with that Policy. The tax deduction follows the same pattern as that envisaged in S.115A ( 1) of I.T.Act which prescribes the tax rates on royalty and FTS . There is no doubt that the Agreement entered into between the applicant and the CEAT is in respect of a matter covered by the Industrial Policy of the Government of India. Various objectives specified in the opening part of the Industrial Policy and other specific provisions clearly point to that conclusion.: ADVANCE RULING;

2009-TIOL-670-ITAT-MUM.pdf

ITO, Mumbai Vs M/s Satish A Shah (HUF) (Dated: April 23, 2009)

Income tax - Sec 147 - Assessee is an HUF - sells diamond jewellery declared under VDIS Scheme, 1997 - Search conducted - CA's house also raided - papers relating to front firms found and bogus transactions detected - AO treats it as unexplained expenditure - CIT(A) disagrees with the AO - held, since the Revenue fails to substantiate that the sale transactions are fictitious, CIT(A) order upheld - Revenue's appeal dismissed :MUMBAI ITAT;

2009-TIOL-669-ITAT-BANG.pdf

M/s G E Medical Systems (India) Pvt Ltd Vs CIT, Bangalore (Dated: August 4, 2009)

Income tax - Sec 10A benefits - Assessee is a subsidiary of the US-based company - engaged in high quality software development and provides testing and support services - incures foreign currency expenses on travel for providing softtware services - AO reduces such expenditure from export turnover - held, it is settled law now that if it is reduced from export turnover, the same is to be deducted from total turnover also for computing Sec 10A benefits - Assessee's appeal allowed:BANGALORE ITAT;

2009-TIOL-668-ITAT-BANG.pdf

ITO, Bangalore Vs M/s CGI Information Systems & Management (Dated: July 17, 2009)

Income tax – TDS – Held thatNo TDS is required to be deducted in respect of acquisition of software following the decision of M/s Samsung Electronics Ltd. ( 2005-TIOL-83-ITAT-BANG ) - No TDS is required to be deducted in case of reimbursement of expenses following the decision of BIAL vs ITO, Bangalore ( 2008-TIOL-536-ITAT-BANG ):BANGALORE ITAT;

SERVICE TAX SECTION

2009-TIOL-578-HC-MUM-ST.pdf

A C Nealsen Org-Marg Pvt Ltd & Anr Vs UoI & Ors (Dated: July 22, 2009)

Service Tax – Import of services before 18.04.2006 – when the High Court lays down the law that law is binding on all Tribunals and Authorities functioning within the jurisdiction of the Court: Considering the judgment of the Court in Indian National Shipowners Association v. Union of India , - 2008-TIOL-633-HC-MUM-ST , the Tribunal has misdirected itself in law in not granting waiver insofar as demand of service tax with interest payable thereon is concerned: Once this Court lays down the law that the recipient of the service is not liable for paying service tax, that law is binding on all Tribunals and Authorities functioning within the jurisdiction of this Court.:BOMBAY HIGH COURT;

2009-TIOL-1755-CESTAT-MUM.pdf + deccan story.pdf

Deccan Mechanical & Chemical Industries Pvt Ltd Vs CCE, Pune (Dated: September 8, 2009)

Appellant collecting Service Tax from customers and asking the department the head under which the same is to be deposited – After a long hiatus, department proffers advise - appellants bonafides proved – no reason to impose penalty u/s 76 of Finance Act, 1994:MUMBAI CESTAT;

2009-TIOL-1754-CESTAT-AHM.pdf

CST, Ahmedabad Vs M/s Shah Alloys Ltd (Dated: August 13, 2009)

Service tax – Denial of abatement for GTA service under Notification No. 01/2006-ST on procedural aspect in the absence of any dispute over their eligibility for benefit of notification not justified – No reason to interfere with Appellate Commissioner's order:AHMEDABAD CESTAT;

CENTRAL EXCISE SECTION

2009-TIOL-1750-CESTAT-MAD.pdf

CCE, Tirunelveli Vs Oothu Tea Factory (Dated: July 23, 2009)

Central Excise - Tea put up in container exceeding 20 Kgs. per unit and bearing the brand name/mark of the company is not tea put up in unit container with brand name and hence is not liable to duty.:CHENNAI CESTAT;

2009-TIOL-1749-CESTAT-BANG.pdf

M/s Trident Interwood Pvt Ltd Vs CCE, Bangalore (Dated: April 27, 2009)

Central Excise – Kitchen cabinets and wardrobes manufactured at customer's site which cannot be removed without cannibalization are not excisable goods – Not liable to excise duty – No merits in impugned order, liable to be set aside:BANGALORE CESTAT;

2009-TIOL-1748-CESTAT-AHM.pdf

M/s Osatwal Processors Pvt Ltd Vs CCE, Ahmedabad (Dated: July 30, 2009)

Central Excise – Since question of validity of Rule 96ZQ(5) is pending before High Court matter remanded to original authority to decide on quantum of penalty after declaration of law by High Court – Assessee at liberty to raise any other issue before original authority:AHMEDABAD CESTAT;

2009-TIOL-1747-CESTAT-DEL.pdf

CCE, Indore (MP) Vs M/s Parryware Roca Pvt Ltd (Dated: May 6, 2009)

Central Excise – Input credit reversed under protest due to remission of duty on final products destroyed within factory premises available as refund in view of LB decision in Grasim Industries case 2007-TIOL-135-CESTAT-DEL-LB and Hindustan Coca Cola beverages case 2007-TIOL-1035-CESTAT-AHM – Order of remission cannot be equated to order of assessment – No infirmity in Appellate Commissioner's order :DELHI CESTAT;

CUSTOMS SECTION

2009-TIOL-1753-CESTAT-AHM.pdf + adani story.pdf

M/s Adani Exports Limited Vs CC, Jamnagar (Dated: August 31, 2009)

Variation in Ash Contents would depend upon the method used and most importantly the drawing of sample – samples not drawn as per IS:436 and report of the Chemical Examiner/CFRI does not state that the testing was done as prescribed in IS:1350 - Load Port certificate, certifiying that samples were analyzed in accordance with ASTM method to be given credence – Benefit of Notification 11/97-Cus extended – CESTAT

Drawing of samples according to the ISI method was very essential and in the absence of establishment that these procedures are followed the report of the laboratory cannot be accepted.:AHMEDABAD CESTAT;

2009-TIOL-1752-CESTAT-BANG.pdf

M/s Tirupati Fin Trade Vs CC, Cochin (Dated: March 18, 2009)

Customs – Redemption fine and penalty on import of second hand photo copiers reduced to 10% and 5% respectively – Impugned orders modified accordingly:BANGALORE CESTAT;

2009-TIOL-1751-CESTAT-BANG.pdf

M/s Vamsadhara Paper Mills Ltd Vs CC, Visakhapatnam (Dated: June 23, 2009)

Customs – Non-production of end use certificate for imported goods destroyed in fire accident at factory – Since fire accident is beyond control of assessee duty demand not sustainable – Impugned order set aside :BANGALORE CESTAT;