TIOL wishes its esteemed members a Merry Christmas;

Govt fixes effective rate of export duty at 5% for iron ore fines and 10% for iron ore & concentrates;

Let us make the provisions flawless to avoid cenvat trauma at the cost of exchequer;

Union Cabinet gives nod to National Policy on bio-fuels and two bio-fuel panels;

Mobile banking: RBI hikes quantum of daily cap on funds transfer to Rs 50,000 per customer ;

DoP&T content with host of initiatives taken during year 2009;

Core Sector grows by 5.3% in November;

TIOL COMMENTARY

guest column.pdf

Let us make the provisions flawless to avoid cenvat trauma at the cost of exchequer;

ore story.pdf

Export Duty on Iron Ore;

MIXED BUZZ

mbuzz1156.pdf

Union Cabinet gives nod to National Policy on bio-fuels and two bio-fuel panels;

mbuzz1155.pdf

Mobile banking: RBI hikes quantum of daily cap on funds transfer to Rs 50,000 per customer;

mbuzz1154.pdf

DoP&T content with host of initiatives taken during year 2009;

2009-TIOL-799-ITAT-MUM.pdf

T Two International Pvt Ltd Vs DCIT, Mumbai (Dated: August 27, 2009)

Income tax - Sec 10A - Assesee is into manufacture and exports of gold jewellery - AO disallows 20% of wages on ad hoc basis on the ground that as compared to the previous AY, the wages and incentives paid to workers are higher - CIT(A) restricts the disallowance to 10% - held, since there is no unusual increase in the wages paid in terms of percentage of exports sales and the wages paid, there is no valid reason for the Revenue to make disallowance on ad hoc basis

Sale of gold dust - AO treats the same as 'income from other sources' - held, since the dust is generated during the manufacture of jewellery meant for exports, it is business income - Assessee's appeal allowed: MUMBAI ITAT;

2009-TIOL-798-ITAT-MUM.pdf

Geometric Software Solutions Co Ltd Vs ACIT, Mumbai (Dated: July 10, 2009)

Income Tax - Section 10A, 115JB & 263 - Assessee is a software development company - files return declaring total income as per normal provisions and book profits u/s 115JB - AO considers the expenditure relatable to earning of dividend income and, subsequently, computes the business income as per the Act and book profits. Since the tax payable on the total income at the rate of 35 per cent is higher than the tax payable on book profits computed u/s 115JB at the rate of 7.5 per cent, he assesses the total income as per the act - CIT revises the assessment order u/s 263 and holds that the order of the AO is erroneous and prejudicial to the interests of revenue and sets aside the same to the extent of its claim of deduction u/s 10A - Held, in the revision proceedings, the CIT cannot travel beyond the reasons given by him for revision in the show-cause notice. The revision on the ground that part of the sale proceeds is yet to be received by the assessee is not tenable. The nature of the expenditure incurred by the assessee is not in the nature of technical expenditure for providing technical services outside India. The assessee has correctly not reduced the same from the export turnover while computing the deduction u/s 10A and the CIT has no jurisdiction to revise the order u/s 263. Assessee's appeal allowed.: MUMBAI ITAT;

SERVICE TAX SECTION

2009-TIOL-2118-CESTAT-MAD.pdf

CST, Chennai Vs Elegant Publicities (Dated: September 9, 2009)

Service Tax – Advertising Agency Service – the respondent is only engaged in selling publicity material and collecting scanning charges – not taxable under Advertising Agency Service. :CHENNAI CESTAT;

2009-TIOL-2116-CESTAT-BANG.pdf

M/s Sahara Power Products Vs CCE, Mangalore (Dated: July 7, 2009)

Service Tax – Maintenance & Repair Service – Repair and reconditioning of faulty distribution transformers of different capacities – Service tax liability discharged for the demand for the period 16.06.2005 to 31.03.2006 with interest – Penalty liable to be paid under Sections 76 & 77 for failure to discharge service tax on time and non filing of returns – Provisions of Section 78 not invokable when there is no fraud, collusion, willful mis-statement, suppression of facts or contravention of any provisions with an intention to evade service tax - Impugned order to the extent of imposing penalty under Section 78 set aside :BANGALORE CESTAT;

CENTRAL EXCISE SECTION

2009-TIOL-2115-CESTAT-BANG.pdf

CCE & CC, Guntur Vs M/s Crane Betel Nut Powder Works (Dated: June 18, 2009)

Central Excise – Refund – When duty is paid under protest after clearance of goods from factory, question of unjust enrichment does not arise – No merit in revenue appeal – Impugned order upheld :BANGALORE CESTAT;

2009-TIOL-2114-CESTAT-MAD.pdf

M/s Brakes India Ltd Vs CCE, Chennai (Dated: September 14, 2009)

Central Excise – Valuation – freight and warehousing charges collected at depots are includible in the assessable value. :CHENNAI CESTAT;

CUSTOMS SECTION

NOTIFICATION

ctariff09_145.pdf + ctariff09_146.pdf + ctariff09_147.pdf

Govt fixes effective rate of export duty at 5% for iron ore fines and 10% for iron ore & concentrates;

CASE LAWS

2009-TIOL-2117-CESTAT-MAD.pdf + madura coats story.pdf

M/s Madura Coats Private Ltd Vs CC, Tuticorin (Dated: June 2, 2009)

Customs – CVD debited to EPCG licence though exempted under Notification No 6/2002 CE dated 1.3.2002 – the appellants are directed to file an amended Bill of Entry in terms of Section 149 of the Customs Act, 1962 seeking assessment of the impugned goods in terms of Notification No.6/2002-CE dated 1.3.2002 and the respondents allow the benefit of assessment sought.:CHENNAI CESTAT;