Power Sector long-term outlook: Its India's untapped gold mine;

How does investment in ULIP work?

PM inaugurates IInd phase of Science city at Kolkata;

Real Estate business - Long term call can be taken in 2010;

Is Inland water transport cost effective for bulk cargo?;

FICCI urges Govt to levy import duty on capital goods;

CPM veteran Jyoti Basu is no more;

FDI in broadcasting sector: TRAI releases consultation paper;

National Security Adviser goes as Governor of West Bengal;

TIOL COMMENTARY

article.pdf

What all have prompted gold prices to go berserk?

story.pdf

Power Sector long-term outlook: Its India's untapped gold mine;

MIXED BUZZ

mbuzz1227.pdf

How does investment in ULIP work?

mbuzz1226.pdf

PM inaugurates IInd phase of Science city at Kolkata;

mbuzz1225.pdf

Real Estate business - Long term call can be taken in 2010;

mbuzz1224.pdf

Is Inland water transport cost effective for bulk cargo?;

mbuzz1223.pdf

FDI in broadcasting sector: TRAI releases consultation paper;

2010-TIOL-04-SC-IT.pdf + oracle story.pdf

CIT, New Delhi Vs M/s Oracle Software India Ltd (Dated : January 13, 2010)

Income tax - Sec 80IA - Assessee is a subsidiary of a US-based software giant - specialises in developing, designing, marketing and distributing computer softwares - imports Master Copy of software and duplicates the same on blank disc - claims deduction u/s 80IA(12)(v) - AO disallows on the ground that there is no element of manufacture involved in the process of copying from master media - High Court goes with the assessee - Revenue is before the apex court - held,

++ in this case, the software on the Master Media is an application software. It is not an operating software. It is not a system software. It can be categorized into Product Line Applications, Application Solutions and Industry Applications. A commercial duplication process involves four steps. For the said process of commercial duplication; one requires Master Media, fully operational computer. CD Blaster Machine, blank/ unrecorded Compact Disc also known as recordable media and printing software / labels. The Master Media is subjected to a validation and checking process by software engineers by installing and rechecking the integrity of the Master Media with the help of the software installed in the fully operational computer. After such validation and checking of the Master Media, the same is inserted in a machine which is called as the CD Blaster and a virtual image of the software in the Master Media is thereafter created in its internal storage device. This virtual image is utilized to replicate the software on the recordable media.

++ The term "manufacture" implies a change, but, every change is not a manufacture, despite the fact that every change in an article is the result of a treatment of labour and manipulation. However, this test of manufacture needs to be seen in the context of the above process. If an operation/ process renders a commodity or article fit for use for which it is otherwise not fit, the operation/ process falls within the meaning of the word "manufacture".

++ in the present case, the assessee has undertaken an operation which renders a blank CD fit for use for which it was otherwise not fit. The blank CD is an input. By the duplicating process undertaken by the assessee, the recordable media which is unfit for any specific use gets converted into the programme which is embedded in the Master Media and, thus, blank CD gets converted into recorded CD.

++ The duplicating process changes the basic character of a blank CD, dedication it to a specific use. Without such processing, blank CDs would be unfit for their intended purpose. Therefore, processing of blank CDs, dedicating them to a specific use, constitutes a manufacture in terms of Section 80IA(12)(b) read with Section 33B of the Income Tax Act.: SUPREME COURT;

2010-TIOL-47-HC-MAD-IT.pdf

M/s Super Spining Mills Limited Vs ACIT, Coimbatore (Dated: December 22, 2009)

Income tax - Sec 37 - Assessee is into manufacture and sale of cotton and blended yarn - claims 'replacement of plant and machinery' as revenue expenditure - AO partly allows - CIT(A) treats such expenditure as revenue in nature - Tribunal goes with the Revenue - held, the issue is to be decided in the light of SC's recent decisions on this issue - matter remanded to AO for fresh examination: MADRAS HIGH COURT;

2010-TIOL-27-ITAT-MUM.pdf

M/s Aristocrat Luggage Ltd Vs DCIT, Mumbai (Dated: November 9, 2009)

Income Tax - assessee claims expenses incurred on foreign travel expenses of directors - AO disallows substantive amount on the ground that the disallowed amount does not relate to business of the assessee but are incurred for exploring export possibility and the assessee could not identify as to what type of exports were done as a result of foreign tour conducted - CIT(A) agrees with the AO - Held, no such evidence was furnished before the CIT(A) or even before the Tribunal to substantiate that assessee has incurred the expenditure for exploring the possibility of expansion of business. It is only a general statement - Assessee's ground dismissed:MUMBAI ITAT;

SERVICE TAX SECTION

2010-TIOL-99-CESTAT-AHM.pdf

CST, Ahmedabad Vs M/s Purnima Advertising & Promotion Pvt Ltd (Dated : November 6, 2009)

Service Tax - Advertising Service - refund -  the service provided by the appellants is only in respect of booking the space or time and is taxable under Business Auxiliary Service, but not under Advertising Agency service - the assessee paid service tax on the gross amount without considering the discount of 12% offered by the client - the assessee is entitled for refund of the excess amount paid - claim for the period beyond 25.1.2004 is hit by limitation under Section 11 B.

Unjust enrichment - the issue of credit note is sufficient for claiming the refund from the department. :AHMEDABAD CESTAT;

2010-TIOL-95-CESTAT-DEL.pdf

CCE, Kanpur Vs M/s Vishal Cable Network (Dated : October 20, 2009)

Service Tax - Penalty - Cable operator service - irregular availment of CENVAT Credit by the MSO of the amount paid by the subscriber cable operator - no reason to interfere with the Commissioner (Appeals) order vacating the penalties by invoking Section 80 of the Finance Act, 1994.:DELHI CESTAT;

2010-TIOL-94-CESTAT-MAD.pdf

M/s Kannappa Corpn Vs CCE, Trichy (Dated : October 9, 2009)

Service Tax – Cargo handling Service – If someone hires labour for loading/unloading of goods in their individual capacity, he will not be liable to service tax as cargo handling agent.:CHENNAI CESTAT;

CENTRAL EXCISE SECTION

2010-TIOL-101-CESTAT-AHM.pdf + gabbar story.pdf

M/s Gabbar Engineering Company Vs CCE, Ahmedabad (Dated : August 28, 2009)

Central Excise – Non-portable bag closer machine and industrial sewing machine which have motors connected externally by v-belt and pulley eligible for exemption Notification 6/2002-CE – Position adopted by department in r/o a draft audit para and decision taken by CC's Conference being similar and in favour of allowing exemption benefits, Revenue cannot take a different stand – Portable bag closer machines with integrated motors not eligible for exemption – Classification aspect of portable bag closer machines not answered as it was not under consideration before original authority – Manufacture and clearance of crank shafts and waste & scrap generated during process of manufacture liable for duty – Levy of penalties set aside as it involves interpretation of exemption notification – Matter remanded to re-determine eligibility of SSI exemption benefit, re-quantification of duty liability :AHMEDABAD CESTAT;

2010-TIOL-100-CESTAT-BANG.pdf

M/s Karanja Industries Bidar Vs CCE, Belgaum (Dated : July 14, 2009)

Central Excise – Availment of exemption benefit in terms of S.No. 86 and 86A of Notification 6/2002-CE simultaneously – Condition No.14A thereof does not put any restriction on availment of benefit under S. No. 86A if the assessee had already availed benefit under Sl. No.86 – Impugned order set aside :BANGALORE CESTAT;

2010-TIOL-97-CESTAT-MAD.pdf

M/s Ponni Sugars (Erode) Ltd Vs CCE, Salem (Dated : October 22, 2009)

Central Excise – CENVAT Credit – credit is admissible on steel plates and angles used for manufacture of storage tanks.:CHENNAI CESTAT;

2010-TIOL-96-CESTAT-BANG.pdf

M/s Hindustan Cables Ltd Vs CCE, Hyderabad (Dated : June 16, 2009)

Central Excise – Refund – When provisional assessments are finalized, refund claim of excess duty paid is not hit by limitation – Impugned order denying refund unsustainable, liable to be set aside:BANGALORE CESTAT;

CUSTOMS SECTION

2010-TIOL-98-CESTAT-MAD.pdf

Sethu Samudhra Shipping Services Vs CC, Tuticorin (Dated : October 6, 2009)

Customs – Smuggling of Red Sanders - Nothing comes out from the statements recorded about the involvement of any of the three appellants in the attempt to smuggle out red sanders - Failure to discharge duties as required under the Customs House Agents Licensing Regulations may lead to action under those Regulations but certainly cannot lead to a conclusion from the evidences that they aided and abetted in the attempt to export red sanders - There is no evidence of any action (commission) or inaction (omission) on their part so as to render any goods liable to confiscation, in order to attract the provisions of Section 114 against them. :CHENNAI CESTAT;

2010-TIOL-93-CESTAT-BANG.pdf

M/s OM Shanti Satins Ltd Vs CC & CCE, Hyderabad (Dated : March 24, 2009)

Customs – 100% EOU – Clearance of grey cotton fabrics against AROs issued in terms of DFRCs in DTA – Clearances against DFRCs not included in DTA permission granted by DC, cannot be categorized as ‘goods allowed to be sold in India' – Proviso to Notification 125/84-CE excludes clearances which are ‘allowed to be sold in India' – In terms of Para 7.7 of EXIM Policy, supply of goods to DFRC holders is considered as deemed exports and eligible for exemption under Notification 125/84-CE – Demand of duty not sustainable, liable to be set aside :BANGALORE CESTAT;