TIOL launches ONLINE CONSULTING SERVICE (See 'Subscriptions' for details)

CBDT voices serious concerns but Revenue Secretary, TPL-led Direct Taxes Code caravan goes on ...! (See 'TIOL Commentary')

GST White Paper to be released tomorrow but exemption threshold continues to elude both Centre as well as Empowered Committee;

Empowered Committee to release GST White Paper tomorrow at 3.30 PM at Vigyan Bhawan;

CBI busts international illegal trafficking in wildlife articles;

14 Addl judges appointed for Madras HC;

CBEC all set to issue posting order for recently-promoted ACs;

Kolkata Income Tax raids 50 premises of a leading transporter + biscuit manufacturer and detects concealment of over Rs 40 Crore;

GST roll-out: Differences between Centre & States continue over threshold limit for exemption;

NFSG benefits: CBDT says non-submission of ACRs delaying DPC;

India needs to deepen corporate bond market: PM;

27000 addl educational institutions required to meet GER target by 2020: HRD Minister;

TIOL COMMENTARY

ddt 09 Nov.pdf

Withdrawal of facilities – Board may delegate Member's power to Chief Commissioner: Supdts of Central Excise may get Adjudication Powers;

tiol top.pdf

CBDT voices serious concerns but Revenue Secretary, TPL-led Direct Taxes Code caravan goes on ...!

MIXED BUZZ

mbuzz1011.pdf

CBI busts international illegal trafficking in wildlife articles;

mbuzz1010.pdf

14 Addl Judges appointed for Madras HC;

mbuzz1009.pdf

India needs to deepen corporate bond markets: PM;

mbuzz1008.pdf

27000 addl educational institutions required to meet GER target by 2020: HRD Minister;

CBDT Corrigendum No 2.pdf

100% Export Oriented Unit - Eligibility for deduction under section 10B - Instruction 2/2009 - Corrigendum - regarding;

CASE LAWS

2009-TIOL-695-ITAT-DEL-SB.pdf + special bench story.pdf

ACIT, New Delhi Vs Sushila Milk Specialities Pvt Ltd (Dated: October 30, 2009)

Income Tax – Special Audit – Principles of Natural Justice essential, but only from date of Supreme Court order in Sahara India - 2008-TIOL-73-SC-IT-LB – Not applicable to cases prior to 11 04 2008 :DELHI ITAT SPECIAL BENCH;

2009-TIOL-694-ITAT-MAD.pdf

M/s Sri Lakshmi Finance Vs DCIT, Salem (I) Ltd (Dated: May 27, 2009)

Income Tax - Section 158B(b), 158BB (1) - Assessee-firms are of one Group - derive income from finance business, and operate from the same business premises - search  conducted at the business premises of the assessee and its sister concerns - In the assessment order passed by the AO u/s 158BC(c), undisclosed income assessed - CIT (A)  upholds the AO's action - Held, the provisions of clause (b) of section 158B and sub-section (1) of section 158BB are squarely applicable to this case. The transaction that was taking place at the time of search, and was detected by the authorized officers, represented the modus operandi of suppressing income which had not been offered by the assessee-firms for tax. And the statements recorded during the search,  represented the evidence on the basis of which the 'undisclosed income' was computed. This evidence brought out the falsity of the entries made by the assessee-firms in their regular books of account, to hide the taxable income. CIT(A) order upheld. Appeal of the assessee-firms dismissed.:CHENNAI ITAT;

2009-TIOL-605-HC-DEL-IT.pdf

Ansal Housing And Construction Ltd Vs CIT (Dated: October 30, 2009)

Income tax - Sec 35D - Assessee is a real estate company, engaged in the business of construction and sale of multi-storeyed buildings - issues public shares - treats expenses as revenue expenditure - AO disallows - Tribunal also goes with the AO - held, to avail Sec 35D the assessee needs to be an industrial undertaking and by no stretch of imagination, construction can be treated as a manufacturing activity or production - Assessee's appeal dismissed:DELHI HIGH COURT;

2009-TIOL-604-HC-P&H-IT.pdf

CIT Vs M/s Hero Cycles Ltd (Dated: November 4, 2009)

Income tax - Sec 14A - Assessee is a manufacturer of cycles and parts of two-wheelers - earns dividend income which is exempted u/s 10(34) - AO makes disallowance on the ground that some expenditure must have been incurred to earn this exempted income - CIT(A) partly upholds the disallowance - held, there is no nexus between the income earned and the expenditure incurred - in view of clear-cut findings that the entire investments were made out of dividend proceeds and in some cases, interest income exceeds the expenditure by way of interest - no substantial question of law involved - Revenue's appeal dismissed:PUNJAB AND HARYANA HIGH COURT;

2009-TIOL-603-HC-ALL-IT.pdf

Deep Chand Gupta Vs ITO (Dated: October 28, 2009)

Income tax - Sec 148 - Assessee is an individual - his land is acquired by the State - compensation with interest paid - Notice u/s 148 - Assessee files return and claims refund - Revenue passes re-assessment order but refuses to part with a copy to the assessee - held, Sec 148 notice is to tax escaped income and not to regularise the belated returns with refunds - Revenue not justified in denying a copy of the re-assessment order - Assessee's appeal allowed:ALLAHABAD HIGH COURT;

cbecorder232_2009.pdf

CBEC promotes 15 officers as DC;

SERVICE TAX SECTION

2009-TIOL-1815-CESTAT-MAD.pdf

M/s Fifth Avenue Vs CST, Chennai (Dated : March 23, 2009)

Service Tax – Business Auxiliary Service vis-à-vis Business Support Service – the activates of evaluation of prospective customers for the companies, processing of purchase orders, customer management, processing of transactions, information and tracking of delivery schedules, operational assistance for marketing, formulation of customer service and pricing policies, managing distribution and logistics are taxable under Business Support Services which is taxable with effect from 1st May 2006 – demand under Business Auxiliary Service is not sustainable.

Services received from outside India are taxable only with effect from 18.4.2006 under Section 66A of the Finance Act, 1994.:CHENNAI CESTAT;

2009-TIOL-1814-CESTAT-MAD.pdf

CCE, Trichy Vs M/s LEO Travels Pvt Ltd (Dated : August 21, 2009)

Service Tax – Penalty – the lower authority has discretion to reduce the penalty under Section 76 and 78 of the Finance Act, 1994 by invoking Section 80.:CHENNAI CESTAT;

2009-TIOL-1813-CESTAT-KOL.pdf

M/s New Swadeshi Sugar Mills Vs CCE & ST, Patna (Dated : May 18, 2009)

Service Tax - Goods Transport Agency - Exemption Notification - Fulfillment of conditions - The applicant has filed affidavits/certificate of service providers to prove that credit of input or capital goods is not availed nor benefit of Notification No. 12/03 is availed. Matter remanded with directions to verify the evidence produced and pass appropriate orders. (Para 5):KOLKATA CESTAT;

CENTRAL EXCISE SECTION

2009-TIOL-1821-CESTAT-KOL.pdf + tired story.pdf

M/s Mansi Steels (P) Ltd Vs CCE, Patna (Dated : May 22, 2009)

Central Excise – Demand of duty for manufacture & clearance of products claimed as agricultural implements – Appellants not to press their grounds provided their claim for MODVAT credit on inputs consumed allowed – Following ratio of Apex Court judgment in Formica India case 2002-TIOL-599-SC-CX , despite procedural lacuna of non filing of declarations etc, MODVAT credit allowed – Credit availability after adjusting 8% amount payable and non availability of credit during SSI exemption period being higher than total duty demand of Rs. 4.5 crores – Long pending dispute settled (twice remanded by Tribunal) after assessees undertake not to seek refund of balance of excess credit after adjustment – Duty demands, interest and penalty set aside as no duty demand survives after allowing MODVAT credits: KOLKATA CESTAT;

2009-TIOL-1820-CESTAT-MUM.pdf

P D Velvet & Fur Industries Vs CCE, Mumbai-II (Dated : August 31, 2009)

Denial of benefit of notification no.14/2002-CE and duty demand on processed pile fabrics manufactured out of grey fabrics procured from SSI units – Board's Circular 680/71/2002-CX, dated 10-12-2002 clarifies that textile fibres, raw materials bought from market deemed to be duty paid in view of Explanation to Notification 14/2002-CE - Prima facie support is found in Tribunal decision in Simplex Mills case and on limitation - Waiver of pre-deposit ordered and Stay granted.: MUMBAI CESTAT;

2009-TIOL-1819-CESTAT-MAD.pdf

CCE, Pondicherry Vs M/s Nilkamal Plastics Ltd (Dated : August 3, 2009)

Central Excise – Packing material cleared as such with finished goods without packing – since the packing material has not been used, the respondents are liable to reverse the CENVAT credit taken – Order of the Commissioner (A) is set aside and revenue appeal allowed.: CHENNAI CESTAT;

2009-TIOL-1818-CESTAT-MAD.pdf

CCE, Pondicherry Vs M/s Godrej Sara Lee Ltd (Dated : August 20, 2009)

Central Excise – power to remand – Commissioner (A) continues to have the power to remand even after the amendment of Sec 35A (3) of Central Excise Act – Revenue appeal dismissed: CHENNAI CESTAT;

2009-TIOL-1811-CESTAT-DEL.pdf

M/s Chadha Brass Ltd Vs CCE, Meerut-II (Dated: July 16, 2009)

Central Excise – Billets, untrimmed sheets, trimmed sheets, circles manufactured from scrap of brass and copper and used in further manufacture of handicrafts and utensils – Wastes arising out of trimming does not make assessees ineligible for Notification 67/95-CE, duty demand thereon not sustainable – As regards rest of demand, assessees have not made prima facie case for full waiver of pre-deposit – Pre-deposit of Rs. 50 lakhs ordered:DELHI CESTAT;

2009-TIOL-1810-CESTAT-AHM.pdf + cess story.pdf

M/s Shri Ukai Pradesh Sahkari Khand Udyog Mandli Ltd Vs CCE, Surat (Dated: June 22, 2009)

Central Excise – Non-export of sugar resulting in differential payment of cess – Interest on differential cess not leviable in terms of Section 11AB of Central Excise in view of no specific mention for such levy in Section 7(4) of Sugar Export Promotion Act, 1958 which adopts Central Excise Act, 1944 for only certain specific levies – Impugned order for levy of interest set aside:AHMEDABAD CESTAT;

CUSTOMS SECTION

2009-TIOL-602-HC-MAD-COFEPOSA.pdf + cofeposa story.pdf

Chinnasamy Vs The State Of Tamil Nadu (Dated: July 9, 2009)

COFEPOSA - Merely because the detenu was found smuggling once, that by itself would not constitute legitimate basis: the detaining authority must look for, whether there are any specific authenticated material to indicate that had the propensity and potentiality to continue to indulge in such activities in future; in the absence of the same, the order of detention cannot be found to be legal:MADRAS HIGH COURT;

2009-TIOL-1817-CESTAT-MUM.pdf + trend story.pdf

Trend Setters Vs CC, Mumbai (Dated : October 6, 2009)

Mis-declaration in Shipping Bill to secure undue DEPB credit – Malfeasance cannot go unpunished – since no finding given that the goods were prohibited or dutiable, section 113(h)/113(i) of Customs Act mis-applied – Confiscation not sustainable – Redemption fine set aside - Exporter liable to be mulcted with penalty u/s 117 of Customs Act – CESTAT:MUMBAI CESTAT;

2009-TIOL-1816-CESTAT-MAD.pdf

ITC Ltd Vs CC, Tuticorin (Dated : September 7, 2009)

Customs – confiscation – unsorted paper waste along with quantities of unsorted scrap with leaching and foul smell – goods have rightly been held liable for confiscation under Customs Act/FTP/Hazardous waste Rules – Sections 111(d) and Section 112 of the Customs Act, 1962 - Penalty reduced. :CHENNAI CESTAT;

2009-TIOL-1812-CESTAT-KOL.pdf

M/s Inland Road Transport (P) Ltd Vs CC (PREV), West Bengal (Dated: August 11, 2009)

Customs – Transporter cannot absolve himself when ownership of seized consignments is unclaimed and fictitious – Pre-deposit of Rs. 25,000/- ordered:KOLKATA CESTAT;