CBI traps three Rajkot Central Excise Superintendents deputed for service tax audit in Bhuj

Sugar import: Govt extends EO period for advace licence holders ;

International Customs Day in India on 27 th January 2010 (See 'DDT' Column)

56 Food Parks already operational in country: Govt;

Industrial production further picks up; grows by 11.7% in last November;

Environment Ministry gives nod to diversion of forest land for Posco project in Orissa;

HRD Minister for Majoli Island in Brahmaputra to be UNESCO site;

TIOL COMMENTARY

ddt 12 jan.pdf

DRI releases Draft Preventive Manual – Invites Comments from Departmental Officers;

guest column.pdf

DGFT's communication to Foreign Trade players;

CASE LAW + ANALYSIS

2010-TIOL-29-HC-DEL-FEMA.pdf + fema story.pdf

Piyush Saxena Vs Enforcement Directorate (Dated: December 17, 2009)

FERA - Once the retraction of a confessional statement takes place the burden to prove that the statement was voluntary is on the prosecution: there is nothing on record which may go to show that any evidence has been led on behalf of the respondents to rebut the contentions of the petitioners that the alleged confessional statement which is the sole evidence relied upon by the prosecution had not been obtained without torturing the petitioner and further that the said statement was not retracted immediately. Rather, there is an admission on the part of the respondents that the said statement had been retracted. There is also no corroboration of the said statement. This matter was listed for clarification on 15.12.2009 when again counsel appearing for the respondents accepted the position that there is nothing on record to show that any evidence has been led on behalf of the respondents to rebut the case of the petitioners that the confessional statement was recorded under duress.: DELHI HIGH COURT;

MIXED BUZZ

mbuzz1208.pdf

56 Food Parks already operational in country: Govt;

mbuzz1207.pdf

Industrial production further picks up; grows by 11.7% in last November;

mbuzz1206.pdf

Environment Ministry gives nod to diversion of forest land for Posco project in Orissa;

mbuzz1205.pdf

HRD Minister for Majoli Island in Brahmaputra to be UNESCO site;

2010-TIOL-21-ITAT-DEL.pdf + hyundai story.pdf

ACIT, Dehradun Vs M/s Hyundai Heavy Industries Co Ltd (Dated: October 16, 2009)

Indo-Korean DTAA - Article 25 - Income tax - Sections 147, 90 - Whether assessment can be reopened on the basis of a decision of the AAR- whether business income of the Korean Company could be charged to tax at a rate higher than that applicable to a domestic company-Non-discrimination article-Effect of clarification issued under MAP - Effect of legislative amendment :DELHI ITAT;

2010-TIOL-33-HC-HP-IT.pdf

Spray Engineering Devices Ltd Vs ACIT (Dated: November 7, 2009)

Income tax - Sec 80IB - Assessee manufactures energy saving devices - claims deduction for modvat credit and installation and erection charges earned for plants and machinery sold to customers - Revenue disallows - held, since modvat credit lying in account is something which was earned by paying excise duty on inputs utilised for manufacture of finished goods, it is derived from the business itself. The assessee cannot sell the modvat credit. It can utilise it only for paying excise duty on goods manufactured by the undertaking. Similarly, the erection charges are earned on plant and machinery manufactured and sold to customers. It is also derived by the business - deduction is admissible to the assessee - Assessee's appeal allowed:HIMACHAL PRADESH HIGH COURT;

2010-TIOL-32-HC-P&H-IT.pdf

CIT , Faridabad Vs Smt Sita Devi Juneja (Dated: December 2, 2009)

Income tax - Sec 41(1) - Assessee's balance-sheet shows outstanding sundry credit balances - AO finds such liabilities have been there for the past six years and there is no trace of the creditors - invokes Explanation 1 to Sec 41(1) to treat the same as deemed income - CIT(A) and Tribunal go with the assessee - held, merely because such liability is outstanding for the last six years, it cannot be presumed that the said liabilities have ceased to exist. It is also conceded position that there is no bilateral act of the assessee and the creditors, which indicates that the said liabilities have ceased to exist. In absence of any bilateral act, the said liabilities could not have been treated to have ceased. Revenue's appeal dismissed:PUNJAB AND HARYANA HIGH COURT;

2010-TIOL-31-HC-MAD-IT.pdf

CIT, Coimbatore Vs M/s Shiva Texyarn Limited (Dated: December 22, 2009)

Income tax - Sec 115JA - Assessee deals in hire purchase, financing and equipment leasing - admits NIL income u/s 115JA after setting off of brought forward losses - AO redetermines the income and raises demand - CIT invokes powers u/s 263 - directs AO to add back provision for non-performing assets and investments - Tribunal sets aside the order - held, in view of the Apex Court decision in HCL Comnet ( 2008-TIOL-182-SC-IT ) , Revenue has no case - Revenue's appeal dismissed:MADRAS HIGH COURT;

2010-TIOL-30-HC-HP-IT.pdf

CIT, Shimla Vs M/s Baghat Urban Cooperative Bank Ltd (Dated: December 9, 2009)

Income tax - Sec 80P(2)(a)(i) - Assessee is a registered cooperative bank - claims exemption for income earned on non-SLR reserves - Revenue disallows - held, the first word used by the Legislature is attributable, which is much wider in scope than the word derived. The second phrase used is any one or more of such activities. Any banking business providing credit facilities to its members and investing the sums deposited by the members of the society is part of banking business. The investment of the funds by the banks including the non reserves were part of the banking activities since no bank would like its reserve funds to remain idle and not earn any interest. This is not only prudent business management but is also a part of the activity of banking. Therefore, the interest earned on such deposits is directly attributable to the business of banking. Revenue's appeal dismissed:HIMACHAL PRADESH HIGH COURT;

SERVICE TAX SECTION

2010-TIOL-68-CESTAT-MAD.pdf

M/s Switzer Instruments Ltd Vs CST, Chennai (Dated : September 17, 2009)

Service Tax – Consulting Engineer Service vis-à-vis Intellectual property service – payment of Running Royalty is taxable as Intellectual property service only from 10/9/04. :CHENNAI CESTAT;

2010-TIOL-67-CESTAT-BANG.pdf

M/s Louis Berger International Inc Vs CCE, Hyderabad (Dated : March 16, 2009)

Service Tax – Consulting Engineer's service – Reimbursement expenses collected from clients not includible in value of taxable service and service tax not liable to be paid on reimbursement expenses – Impugned order not legal and correct, liable to be set aside:BANGALORE CESTAT;

2010-TIOL-66-CESTAT-MAD.pdf

M/s Ocen Interiors Pvt Ltd Vs CST, Chennai (Dated : September 14, 2009)

Service Tax – Stay/Dispensation of pre-deposit – Commercial construction vis-à-vis works contract service – the appellants have discharged service tax under works contract – prima facie case for waiver of pre-deposit.:CHENNAI CESTAT;

CENTRAL EXCISE SECTION

2010-TIOL-72-CESTAT-MUM.pdf + contech story.pdf

M/s Contech Instruments Ltd Vs CCE, Belapur (Dated : October 7, 2009)

Stand taken by department at cross-purposes – Revenue neutral exercise – Commissioner(A) has proceeded on a basis extraneous to the SCN – CESTAT is well within its powers to entertain plea of revenue neutrality.:MUMBAI CESTAT;

2010-TIOL-71-CESTAT-MAD.pdf

Hinduja Foundries Ltd Vs CCE, Chennai (Dated : September 24, 2009)

Central Excise – CENVAT Credit – Stay/Dispensation of pre-deposit – service tax paid in respect of Wind Mill located outside the factory – electricity from the wind mill is transferred to electricity board and equal quantity drawn to the factory – prima facie case made out for waiver of pre-deposit.:CHENNAI CESTAT;

2010-TIOL-70-CESTAT-BANG.pdf

M/s Hindustan Petroleum Corpn Ltd Vs CCE & CC, Visakhapatnam (Dated : August 13, 2009)

Central Excise – Valuation – Inclusion of delivery charges, barge/wharfage charges recovered in excess of assessable value – Assessees claim for abatement of excess collection as representing transportation costs in terms of Rule 5 of Central Excise Valuation Rules not adequately presented before original authority – Matter remanded for de novo adjudication :BANGALORE CESTAT;

2010-TIOL-69-CESTAT-MAD.pdf

CCE, Chennai - II Vs M/s Sundaram Clayton Ltd (Dated : October 7, 2009)

Central Excise – CENVAT Credit – input service – the appellants are entitled for Credit of service tax paid on employees' medical insurance and employees' personal accident insurance.:CHENNAI CESTAT;

CUSTOMS SECTION

NOTIFICATION

ctariff10_001.pdf

Govt imposes anti-dumping duty on import of tyre vulcanisers;

CIRCULAR

cuscir10_001.pdf

Sugar import: Govt extends EO period for advace licence holders;

CASE LAWS

2010-TIOL-65-CESTAT-DEL.pdf

M/s Delhi International Airport (P) Ltd Vs CC, Delhi (Dated : June 30, 2009)

Customs – Refund – Appellant being an airport authority, acting as custodian auctioned imported goods with permission from proper officer and paid entire duty under protest – Apex Court decision in Flock India 2002-TIOL-208-SC-CX not applicable since they are neither importers of goods nor challenged the assessment of Bill of Entry – Original authority rejected claim without examining merits – Matter remanded: DELHI CESTAT;