CBEC introduces new entries in Drawback Schedule like gold and silver jewellery,and issues clarification on many issues;

CEIB Chief A P Kala retires today; CBEC Member S Dutt Majumder to hold addl charge; CoS to meet soon to select a candidate;

Remittances to non-residents u/s 195: CBDT lays down special procedure for receipts by diplomatic establishments;

The economics of foreclosure of home loans ;

OECD calls for feedback on application of DTAAs to state-owned entities, sovereign funds;

Sunil Gupta of 1987 batch is all set to be new Joint Secretary (TPL-I) in CBDT;

Reference made to third party and third party's comments also needs to be shared with applicant under RTI Act - Copies of inspected documents also to be provided to applicant without requiring filing of a separate application: CIC ;

A range of tax sops available for food processing sector: Minister;

The rise and fall of sand-made real estate of Dubai ;

OECD updating guidelines for consumer protection in e-commerce ;

Withdrawal of fiscal stimulus package: Care must be taken, says FM;

India willing to be a party to global target for cut in emission provided it is equitable: PM;

TIOL RUN UP TO GST

gst story.pdf

Transition from CST to IGST: An Innovative Solution;

TIOL COMMENTARY

ddt 30 nov.pdf

Service Tax on chartering of Aircrafts - CBEC clarifies;

third party story.pdf

Reference made to third party and third party's comments also needs to be shared with applicant under RTI Act, 2005 – Copies of inspected documents also to be provided to applicant without requiring filing of a separate application: CIC;

MIXED BUZZ

mbuzz1075.pdf

A range of tax sops available for food processing sector: Minister;

mbuzz1074.pdf

The economics of foreclosure of home loans;

mbuzz1073.pdf

OECD calls for feedback on application of DTAAs to state-owned entities, sovereign funds;

mbuzz1072.pdf

The rise and fall of sand-made real estate of Dubai!;

mbuzz1071.pdf

OECD updating guidelines for consumer protection in e-commerce;

CIRCULAR

it09cir09.pdf

Remittances to non-residents under section 195 of the Income-tax Act - remittances of Consular receipts - clarification reg;

Dispute Resolution Panel.pdf

CBDT nominates Members for Dispute Resolution Panels;

CASE LAWS

2009-TIOL-644-HC-ALL-IT.pdf

M/s Pannalal Mahesh Chandra Jewllers Vs DCIT (Dated: November 13, 2009)

Income tax - Writ - Sec 147, 80HHC - Assessee is in the business of trading jewllery, import of gold, bullion etc - files returns - Assessee's premises searched - block assessment u/s 158BC also framed - notice u/s 148 - Revenue initiates re-assessment on the ground that the assessee has been claiming deduction u/s 80HHC as 'trader exporter' where as the assessee is a manufacturer exporter - writ filed to quash reassessment notice - held, since it is not clear from the assessment orders that whether assessee is a manufacturer exporter or trader exporter, it is a fit case for invoking powers Sec 147

The block assessment is done under special procedure along with regular assessment - since the assessee has been taking deduction u/s 80HHC (3)(b) whereas the regular case is that excessive benefit has been claimed and it should have taken deduction u/s 80HHC (3)(a), invocation of powers u/s 147 even in the block assessment is valid - writ petition dismissed: ALLAHABAD HIGH COURT;

2009-TIOL-643-HC-MUM-IT.pdf

CIT, Mumbai Vs M/s The West Coast Paper Mills Ltd, Mumbai (Dated: November 21, 2009)

Income tax - Sec 260A - Delay in filing review petition - power of review - held, since the power of substantive review is not provided under the I-T Act, the review petition is not maintainable - since the Review is not maintainable, there is no question of considering whether there is sufficient cause for the same - Revenue's petition dismissed:BOMBAY HIGH COURT;

2009-TIOL-642-HC-MUM-IT.pdf

CIT Vs Mr Emilio Ruiz Berdejo (Dated: October 15, 2009)

Income tax - Sec 234A, 234B & 234C - Assessee is an individual employee of a non-resident company - deputed to work with its Indian branch - receives salary in India and also part salary outside India - decides not to disclose the same in its return - AO makes additions - whether interest is leviable on delayed payment of advance tax

AO invokes Sec 147 and includes salary received outside India in his income earned in India - additions made and assessment order passed - also levies interest u/s 234A, 234B & 234C - CIT(A) confirms AO's order - Tribunal goes by the Special Bench decision in Sumit Bhattacharya and also Apex Court decision in Prannoy Roy Vs CIT case and rules agains the Revenue - held,

++ since the deductee has already discharged tax liability with interest payable under Section 201(1)(a) of the Act, no further interest can be claimed by the revenue from the assessee either under Section 234A or 234B or 234C of the Act.

++ No fault can be found with the Tribunal's decision:BOMBAY HIGH COURT;

2009-TIOL-741-ITAT-COCHIN-TM.pdf

Society Of Presentation Sisters Vs ITO, Calicut (Dated: September 22, 2009)

Income tax – Charity and/or religious – the or /and dilemma? Benefits to assessees carrying on activities of charitable as well as religious nature, no provocation to read down the law and state that the benefits will be available only if the assessee is carrying on charitable purposes alone or religious purposes alone. It is clear from plethora of authorities where after considering provisions of section 11(1 )( a) that so for as aforesaid provision is concerned, no distinction is made between charitable and religious purposes. A charitable institution can have religious purposes; whereas a religious institution may be partly charitable Even otherwise relief and help to the poor, medical help to the needy, looking after of deity and temples (mosque, church included) are no doubt religious purposes but these are also considered as charitable in India. Therefore, the view taken in the two cases before me that exemption u/s 11(1)(a) cannot be allowed to a charitable trust as it is also carrying some purposes which are termed as 'religious' is totally unwarranted.:COCHIN ITAT THIRD MEMBER;

2009-TIOL-740-ITAT-DEL.pdf

M/s Bharti Comtel Limited Vs DCIT Circle-2(1), New Delhi (Dated: October 9, 2009)

Incomne tax - Sec 147 - Assessee files loss return - AO accepts the same by sending an intimation u/s 143(1)(a) - later AO invokes Sec 147 to disallow pre-operative expenses claimed as revenue expenditure - CIT(A) goes with the AO - held, since the material in the possession of the AO in the form of Director's report and Notes of account clearly reveal that though the assessee had not commenced commercial operation but the expenses were claimed as revenue expenditure which is not allowable, and such information is sufficient to invoke Sec 147 - Assessee's appeal dismissed :DELHI ITAT;

SERVICE TAX SECTION

2009-TIOL-1958-CESTAT-AHM.pdf + supply story.pdf

Jivanbhai Makwana Vs CCE, Ahmedabad (Dated : October 21, 2009)

Service tax – Supply of workers for housekeeping, toilet cleaning etc,. – liable to ST under recruitment or supply of manpower: Nowhere in the annexure, the actual quantum of work to be done is indicated. Further, the contract also requires the contractor to provide labourers as per the company's requirement for house keeping work, for loading and unloading purpose etc. The payment to be made by the company is related to the number of labourers supplied during a specific period and not related to the quantum of work carried out. For example, in case of house keeping work, it can be related to the area of the building to be cleaned which can be given in square feet. In the case of loading and unloading it can be number of trucks or the weight of the goods loading and unloading etc. whereas both these items do not find place in the contract.: AHMEDABAD CESTAT;

2009-TIOL-1957-CESTAT-BANG.pdf

M/s Dell International Services India Pvt Ltd Vs CCE, Bangalore (Dated :June 23, 2009)

Service Tax – Once activities like call centre services, IT support and back office data processing held as taxable services and accepted by department, input services utilized for export of taxable services entitled for rebate – Definition of ‘input service' to be interpreted in a liberal way in view of the phrase ‘activities relation to business' – Evidence also on record indicating that appellants fulfilled conditions of Notification 12/2005-ST – Impugned orders devoid of merits, liable to be set aside: BANGALORE CESTAT;

2009-TIOL-1951-CESTAT-BANG.pdf

M/s ECOF Industries Pvt Ltd, Malur Vs CCE, Bangalore (Dated : June 23, 2009)

Service Tax – Input tax credit distributed by head office registered as input service distributor in terms of Board Circular No. 97/2007 dated 23.08.2007 – Prima facie case in favour of appellants – Pre-deposit waived and stay granted.: BANGALORE CESTAT;

CENTRAL EXCISE SECTION

2009-TIOL-1959-CESTAT-DEL.pdf + vikram story.pdf

M/s Vikram Cement Vs CCE, Indore (Dated : July 24, 2009)

Cenvat Credit on Welding Electrodes is inadmissible – Rajasthan HC decision in Hindustan Zinc ( 2008-TIOL-408-HC-RAJ-CX ) binding only to parties to the case – View taken by LB in Jaypee Rewa ( 2003-TIOL-246-CESTAT-DEL-LB ) stands approved by SC in SAIL case ( 2007-TIOL-2272-CESTAT-RANCHI ) and is to be followed :DELHI CESTAT;

2009-TIOL-1956-CESTAT-MUM.pdf

M/s Racold Terma Ltd Vs CCE, Pune-I (Dated : October 15, 2009)

Buyer is entitled for credit of entire amount of duty paid by it towards supplies of liquid nitrogen gas including duty on the facility charges paid – Strong prima facie case in view of Tribunal decision in Pricol Ltd. vs. CCE, Salem 2009-TIOL-175-CESTAT-Mad – pre-deposit waived and stay granted.:MUMBAI CESTAT;

2009-TIOL-1955-CESTAT-BANG.pdf

CCE, Mangalore Vs M/s MRPL (Dated : March 17, 2009)

Central Excise – Clearance of naphtha under warehousing procedure for further use in manufacture of exempted goods – Credit reversal amounts to not taking credit at all, no requirement to pay 8%/10% as per Rule 6 of CENVAT Credit Rules – No merit in Revenue appeal:BANGALORE CESTAT;

2009-TIOL-1954-CESTAT-MUM.pdf

Hindustan Fastners (P) Ltd Vs CCE, Nasik (Dated : July 16, 2009)

Scheme by govt. of Maharashtra permitted assessee to collect sales tax from the buyer to pay the part of collected sales tax immediately and retain balance amount and repay it in five yearly installments after ten years - Applicant receives abatement on account of pre-mature repayment of Sales Tax liability accrued – Inclusion in assessable value – Strong prima face case in view of the fact that had the applicant not opted for the scheme, they would have required to deposit the fully sales collected – Unconditional waiver of pre-deposit of duty, penalty and interest – Matter stayed.:MUMBAI CESTAT;

2009-TIOL-1950-CESTAT-MUM.pdf + sai metaplast story.pdf

M/s Sai Metaplast Vs CCE, Navi Mumbai (Dated : October 8, 2009)

Common cenvatted inputs used for job work – no cause for payment of any amount under rule 6(3)(b) of the CCR, 2004 – LB decision in Sterlite Industries clearly applies – job worked goods cleared to 100% EOU – rule 6(3)(b) of CCR, 2004 not applicable.: MUMBAI CESTAT;

CUSTOMS SECTION

PIB PRESS RELEASE

tariff_value_nov30.pdf

PIB Press Release on Tariff Value edible oils, brass scrap and poppy seeds;

NOTIFICATION

ctariff09_126.pdf

Import of white sugar - Government extends validity period upto Mar 31, 2010;

cnt09_175.pdf

CBEC introduces new entries in Drawback Schedule like gold and silver jewellery;

CIRCULAR

cuscir09_033.pdf

Introduction of new entries in the Drawback Schedule and clarification on certain issues-reg.;

CASE LAWS

Rashtriya Metal Industries Ltd Vs CC, Nhava Sheva (Dated : October 23, 2009)

Principle of unjust enrichment is not applicable to a claim for refund of redemption fine - Bombay High Court decision in United Spirit ltd. vs. CC [ 2009-TIOL-316-HC-MUM-CUS ] relied upon – no binding case law overriding HC decision cited – refund claim to be reconsidered without reference to principle of unjust enrichment – Matter remanded.: MUMBAI CESTAT;

2009-TIOL-1952-CESTAT-MUM.pdf

M/s Fancy Corpn Ltd Vs CC (Import), Mumbai (Dated : August 24, 2009)

No demand can be made u/s 142 without finalization of provisional assessments under section 18 of the Customs Act, 1962 – Appeal allowed by way of remand.

Stay of recovery of customs duty on directions of Delhi High Court which was vacated on 12.10.1992 and finally dismissal of writ petitions for non-prosecution on 25.11.2004 - Demand notice for recovery of duty under Section 142 of the Customs Act on ground of final assessment of bill of entry whereas appellant claims that recovery proceedings cannot be initiated till finalization of provisional assessment – No demand can be made without finalization of provisional assessments under section 18 – Appeal allowed by way of remand.: MUMBAI CESTAT;