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CBEC Member (Cus) + Member (P&V) get OSDs + CBDT posts seven IRS officers as Under Secretary in Board; CBEC amends 20/2006 to grant exemption to goods listed againt S. No. 400A; CBEC amends tariff notification 69/2004 to grant exemption to entires inserted in the table after serial no 54; Govt exempts import undertaken for expansion of mega power project; Govt levies anti dumping duty on import of saccharin; Anti dumping duty on acrylic fibre from Belarus extended unto June 2010; Anti-Dumping on import sodium hydrosulphite levied; Inclusion of After Sale Service and Pre-delivery Inspection Charges in the assessable value.; CBDT posts seven IRS officers as Under Secretary in Board; Safeguard Duty on import of Caustic Soda Iye extended upto March 3, 2010; Anti-dumping duty on Acrylic Fibre - Date extended upto June, 2010; Leave Amendment Rule 2009; Affordable Housing: Ministry examining Task Force Report; World bank launches 'green' index of businesses in emerging markets; CCEA approves establishment of third permanent research station at Antarctica; |
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| Dear Member, Sending the following files: |
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TIOL RUN UP TO GST Will GST handle contentious service tax issues?TIOL COMMENTARY CENVAT Credit on Service Tax on outward transport Larger Bench decision in ABB Ltd stayed by Karnataka HC; Rationalisation of Cess rates; MEMORANDUM Central Civil Service Notification.pdf Leave Amendment Rule 2009; MIXED BUZZ Affordable Housing: Ministry examining Task Force Report; World bank launches green' index of businesses in emerging markets; |
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CBDT posts seven IRS officers as Under Secretary in Board;
CASE LAWS 2009-TIOL-127-SC-IT-LB.pdf + sc story.pdf ITO, Udaipur Vs M/s Arihant Tiles & Marbles (P) Ltd (Dated: December 02, 2009) Income tax - conversion of marble blocks by sawing into slabs and tiles and polishing amounts to "manufacture or production of article or thing" - entitled to the benefit of Section 80IA : in numerous judgments of the Court, it has been consistently held that the word "production" is wider in its scope as compared to the word "manufacture". Further, Parliament itself has taken note of the ground reality and has amended the provisions of the Income Tax Act, 1961 by inserting Section 2( 29BA ) vide Finance Act, 2009. The word "production", when used in juxtaposition with the word "manufacture", takes in bringing into existence new goods by a process which may or may not amount to manufacture. The word "production" takes in all the byproducts , intermediate products and residual products which emerge in the course of manufacture of goods. The original block does not remain the marble block, it becomes a slab or tile. In the circumstances, not only there is manufacture but also an activity which is something beyond manufacture and which brings a new product into existence. If it is held to be not manufacture , it may affect Central Excise Duty: If the contention of the Department is to be accepted, namely that the activity undertaken by the respondents herein is not a manufacture, then, it would have serious revenue consequences. As stated above, each of the respondents is paying excise duty, some of the respondents are job workers and the activity undertaken by them has been recognised by various Government Authorities as manufacture. To say that the activity will not amount to manufacture or production under Section 80IA will have disastrous consequences, particularly in view of the fact that the assessees in all the cases would plead that they were not liable to pay excise duty, sales tax etc. because the activity did not constitute manufacture : SUPREME COURT (Larger Bench); CIT, Shimla Vs M/s Kiran Enterprises (Dated: November 16, 2009) Income tax - Sec 80IA - assessee is a manufacturer of plywood - sets up unit in backward areas - gets transport subsidy - treatment of subsidy questioned as assessee adds the same to total income derived from the industrial undertaking for claiming deduction u/s 80IA - AO finally disallows - Tribunal allows it - held, it is settled law that the transport subsidy is not a profit derived from industrial undertaking as it is not an operational profit. Since the source of subsidy is not the business of the assessee but a promotional scheme of the central govt, the assessee cannot include the same for claiming benefits - Revenue's appeal allowed:HIMACHAL PRADESH HIGH COURT; CIT, Bangalore Vs M/s ITC Hotels Ltd (Dated: November 16, 2009) Income tax - Sec 37 - Assessee claims deduction for convertible and non-convertible debentures - AO disallows - CIT(A) allows expenses relating to non-convertible debentures - Tribunal allows both - held, issue is no longer res integra as Apex Court has dismissed Revenue's SLP in M/s Secure Meters Ltd case ( 2008-TIOL-600-HC-RAJ-IT ) where Rajasthan HC has held that such expenses are revenue expenditure - Revenue's appeal dismissed:KARNATAKA HIGH COURT; CIT Vs West Inn Limited (Dated: November 25, 2009) Income tax - depreciation and penalty - Sec 32, 271(1)(c) - Assessee claims depreciation @ 20% on hotel buildings - AO allows only 10% - makes addition and initiates penalty u/s 271(1)(c) - CIT(A) confirms the penalty order - held, the fact that the assessee has been claiming the higher rate of depreciation for 12 years and the same being certified by tax professionals and the rate being reduced only during the relevant AY, it cannot be said that the assessee made a false claim - Tribunal order upheld - Revenue's appeal dismissed :GUJARAT HIGH COURT; DDIT, Mumbai Vs M/s ARC Line (Mauritius) (Dated: November 30, 2009) Income tax - Indo-Mauritius DTAA - Article 8 - Assessee is a non-resident shipping company - assessee's agent obtains 100% DIT Relief Certificate from AO in respect of foreign income as per Article 8 of DTAA - whether assessee is liable to pay advance tax under such circumstances - whether assessee is liable to pay interest u/s 234B if it fails to pay advance tax Having obtained the DIT Relief Certificate the assessee was under the belief that it was not liable to pay advance tax - files NIL return - while assessing its income for other AYs, Revenue holds that the assessee is not eligible for relief under Article 8 of DTAA - AO assessing its income for the relevant AY finds that no advance tax is paid on its income - passes order for interest liability u/s 234B - CIT(A) holds that since the assessee had bona fide belief that it was not liable to pay advance tax, it cannot now be faulted for having not paid tax in advance and Revenue cannot saddle it with interest liability - AO's order set aside - held, no infirmity in CIT(A)'s order which is in conformity with HC decision in the case of Sedco Forex International Drilling Co Ltd ( 2003-TIOL-85-HC-UTTRANCHAL-IT ) .:MUMBAI ITAT; |
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CBEC Member (Cus) + Member (P&V) get OSDs; SERVICE TAX SECTION 2009-TIOL-2043-CESTAT-BANG.pdf + ex-servicemen industrial story.pdf EX-Servicemen Industrial Guards Pvt Ltd Vs CCE, Trivandrum (Dated: May 21, 2009) Service Tax 'Bird scaring service at airport' not security agency service: From the definition, it is clear that the activity of bird scaring does not fall under the purview of the activities of the security agency. If an activity or a service is not covered under a particular service it cannot be taxed. Other operations provided by the Security agency cannot be considered as the services rendered by the Security agencies: BANGALORE CESTAT; M/s Radaan Media Works (I) Ltd Vs CST, Chennai (Dated: July 21, 2009) Service Tax Stay/Dispensation of pre-deposit permanent assignment of broadcasting right to the broadcaster is prima facie not taxable under Intellectual property Service Pre-deposit waived.: CHENNAI CESTAT; Shri P Sugumar Vs CCE, Pondicherry (Dated: September 4, 2009) Service tax Rent - a - cab operator - supply of vehicles to BSNL demand of service tax upheld matter remanded to complete the tax liability by extending cum tax benefit.: CHENNAI CESTAT;
CENTRAL EXCISE SECTION CIRCULAR Inclusion of After Sale Service and Pre-delivery Inspection Charges in the assessable value.; CASE LAWS 2009-TIOL-676-HC-MUM-CESTAT.pdf + cestat story.pdf M/s Chemipol Vs UoI (Dated: September 17, 2009) CESTAT tribunal has inherent power to dismiss an appeal for non-prosecution, but it cannot be merely on account of absence of an appellant on a solitary occasion; where the appellant in spite of notice is persistently absent and the Tribunal on facts of the case is of the view that the appellant is not interested in prosecuting the appeal, it can in exercise its inherent power to dismiss the appeal for non-prosecution. Of course, the conclusion of the Tribunal that the appellant is not interested in prosecuting the appeal must be reached on the facts of each case and not merely on account of absence of an appellant on a solitary occasion. Tribunal has only four five branches in India and it is expensive and difficult for all the appellants to attend at all times, especially when there are several adjournments; The Tribunal presently has its benches only at four or five places in India. An appellant who on account of his place or residence or business being far away from the place of sitting for the Tribunal may not except at a high cost be able to attend the hearing especially when as we know that the matters are adjourned for several times. In such an event, if the appellant files on record his submissions in writing, the Tribunal must decide the appeal on merits on the basis of the said submissions. In that case, the Tribunal would not have a power to dismiss the appeal :BOMBAY HIGH COURT; M/s Kejriwal Yarns Pvt Ltd Vs CCE, Surat (Dated: July 1, 2009) Central Excise PTY being base duty paid material consumed in manufacture of twisted PY and ultimately dyed twisted PY, condition under notification 6/2000-CE and 3/2001-CE stands satisfied No suppression or mis-statement as assessee also declared the availment of benefit of notification in statutory records - Demand of duty and penalty liable to be set aside both on merits and limitation :AHMEDABAD CESTAT; Tristarr Hortitech Vs CCE, Tirunelveli (Dated: August 25, 2009) Central Excise remission of duty on goods procured on the strength of CT3 and lost due to fire accident no material has been brought out to establish carelessness or negligence on the part of the assessee remission allowed.:CHENNAI CESTAT; M/s Ahmednagar Alloys P Ltd Vs CCE & CC, Aurangabad (Dated: August 12, 2009) Bill of Entry is a specified document for availment of Cenvat credit - Credit not allowable on xerox copies as not specified or reliable documents - Request for getting xerox copies attested from Custom Officer allowed Case remanded.:MUMBAI CESTAT; M/s Alagappa Cements (P) Ltd Vs CCE, Trichy (Dated: August 31, 2009) Central Excise manufacture limestone purchased in bulk and broken into small pieces the process does not amount to manufacture raw meal / slurry is also not excisable.:CHENNAI CESTAT;
CUSTOMS SECTION NOTIFICATION CBEC amends 20/2006 to grant exemption to goods listed againt S. No. 400A; CBEC amends tariff notification 69/2004 to grant exemption to entires inserted in the table after serial no. 54; Govt exempts import undertaken for expansion of mega power project; Govt levies anti dumping duty on import of saccharin; Anti dumping duty on acrylic fibre from Belarus extended unto June 2010; Anti-Dumping on import sodium hydrosulphite levied Safeguard Duty on import of Caustic Soda Iye extended upto March 3, 2010; Anti-dumping duty on Acrylic Fibre - Date extended upto June, 2010; CASE LAWS 2009-TIOL-2036-CESTAT-BANG.pdf CC, Bangalore Vs M/s Hitachi Koki (I) Pvt Ltd (Dated: June 12, 2009) Customs Extra duty deposits made during pendency of investigations by SVB cannot be equated to duty payment but to be treated as duty deposit only Claim for refund also filed before customs authorities in 2004, not acted upon by authorities, cannot be held as hit by limitation of time Revenue duty bound to refund even without letter of application Tribunal decision in MICO Ltd 2005-TIOL-922-CESTAT-BANG followed - No infirmity in impugned order : BANGALORE CESTAT; |
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