India's exports registers 9.3% growth rate in December;

Chief Secretaries' meet: PM calls for better administrative coordination between States and Centre ;

Ad hoc promotion to Commissioner-level: CBEC replies to query raised by DoP&T; File all set to be put on ACC route;

Export and Import of Currency;

Can FM do an Obama to Union Budget? ;

Disclosure of information under RTI Act by SC judges: Law Minister hints at amendment in RTI Act;

India's coal production is up by 7.8%; also imports 59 mn tonnes coal last fiscal;

It's profit-booking time - Sudden selling trigger!;

Nair Panel submits report on MSMEs; PM calls for vibrant small enterprises;

China rolls out financial reforms in 2010;

TIOL COMMENTARY

ddt 01 feb.pdf

CESTAT questions very definition of 'input Services';

ice cubes.pdf

Can FM do an Obama to Union Budget?

story.pdf

It's profit-booking time - Sudden selling trigger!

RBI CIRCULARS

rbi09cir030.pdf

Export and Import of Currency;

MIXED BUZZ

mbuzz1276.pdf

Chief Secretaries' meet: PM calls for better administrative coordination between States and Centre;

mbuzz1275.pdf

India's exports registers 9.3% growth rate in December;

mbuzz1274.pdf

Nair Panel submits report on MSMEs; PM calls for vibrant small enterprises;

mbuzz1273.pdf

China rolls out financial reforms in 2010;

2010-TIOL-51-ITAT-DEL.pdf + perot story.pdf

Perot Systems Tsi (India) Ltd Vs DCIT, New Delhi (Dated: October 30, 2009)

Income tax - Transfer pricing - Sec 92, 14A - assessee is incorporated in India - a part of MNC Group - extends foreign currency loan to two of its associated enterprises located in Bermuda and Hungary - loans are advanced interest-free - whether the loan advanced to the AEs is capital contribution by a Group company - whether notional interest is to be attributed and taxed in such arrangement - whether such transactions tantamount to transfer of profits to AEs located in tax haven - whether ALP is to be computed in such cases:DELHI ITAT;

2010-TIOL-50-ITAT-DEL.pdf

DCIT, New Delhi Vs M/s PEC Ltd (Dated: January 8, 2010)

Income Tax - Sec 271(1)(c) - AO makes disallowances on account of Foreign Usance Bill Interest paid and Prior Period expenses - CIT(A) dismisses  appeal but directs AO to verify claims relating to the amount of interest paid and applicability of DTAAs - AO gives  appeal effect of the  order u/s 250/154/143(3) and allows relief as per the direction of the CIT (A), being the amount of foreign usance bill interest paid by the Associates of the assessee company. On the balance amount addition made  confirmed by the  CIT (A) - AO initiates penalty proceedings - CIT(A) observes  that it cannot be held that the assessee has furnished inaccurate particulars of income for the purpose of concealment of income. Accordingly, penalty u/s 271 (1)(c) on this issue does not appear justifiable - Held, AO has not been able to prove that the explanation offered by the assessee is false. Even under explanation 1 to section 271(1)(C) penalty is not leviable. It is now settled law that only because addition is sustained, the penalty is not automatic. Revenue's appeal dismissed.:DELHI ITAT;

2010-TIOL-92-HC-DEL-IT.pdf

CIT Vs Woodward Governor India Ltd (Dated: January 19, 2010)

Income tax - Sec 37(1) - Assessee claims deduction for warranty on actual basis as well as the provision for warranty expenses - AO allows deduction for first part but disallows for the provision of warranty expenditure on the ground that it was contingent in nature - Tribunal holds that since the assessee has switched over to new accounting system on accrual basis, the provision for warranty for previous years to be scaled down but is allowable deduction - no infirmity in Tribuna's decision as the HC earlier decision is now confirmed by the Apex Court - Revenue's appeal dismissed:DELHI HIGH COURT;

2010-TIOL-91-HC-DEL-IT.pdf

CIT Vs Goyal M G Gases Ltd (Dated: January 18, 2010)

Income tax - Sec 263, 41(1) - Assessee files loss return - AO computes book profits u/s 115JB - CIT invokes powers u/s 263 for alleged exclusion of receipt from non-resident - Tribunal disagrees as the same was credited to the P&L and book profit was computed on the same - held, since no deduction was ever claimed on this loan, cessation of the liability does not attract Sec 41(1) - no infirmity in Tribunal's order - Revenue's appeal dismissed:DELHI HIGH COURT;

2010-TIOL-90-HC-MUM-IT.pdf + 147 story.pdf

Mr Bhavesh Developers Vs AO, Mumbai (Dated: January 12, 2010)

Income tax – Reassessment - power u/s 147 cannot be sustained on a mere change of opinion - conditions should be strictly fulfilled before using such exceptional power – assessment can be challenged by writ: an exceptional power has been conferred upon the Revenue to reopen an assessment after a lapse of four years. The conditions which are prescribed by the statute for the exercise of such a power must be strictly fulfilled and in their absence, the exercise of power would not be sustainable in law. Though an attempt was made on behalf of the Revenue to urge that the assessee should be relegated to the ordinary remedy of an appeal against the order of the assessment, we are of the view that a petition under Article 226 of the Constitution would be maintainable for questioning reopening of the assessment in a case such as this where the preconditions for the exercise of the power have not been fulfilled. recourse to the power under Section 147 cannot be sustained on a mere change of opinion, there being no failure of the assessee to disclose fully and truly, all material facts necessary for assessment.:BOMBAY HIGH COURT;

SERVICE TAX SECTION

2010-TIOL-180-CESTAT-MAD.pdf + chemplast story.pdf

Chemplast Sanmar Ltd Vs CCE, Salem (Dated: December 18, 2009)

Service Tax – CENVAT Credit – Eligibility of credit on input services on the basis of debit notes – Enabling provision i.e. Section 37(2) of Central Excise Act only allows for pubsequent to completion of manufacturing and for sale of goods cannot be considered as input service used in or in relation to manufacture – Matter remanded to providing credit of service tax paid or payable on taxable services ‘used in or in relation to manufacture of excisable goods' – Services which are used by manufacturer sriginal authority to examine eligibility of credit on input services like consignment agents service & selling agents service apart from eligibility of taking credit on debit notes :CHENNAI CESTAT;

2010-TIOL-179-CESTAT-BANG.pdf

M/s FCM Travel Solutions (India) Pvt Ltd Vs STC, Mysore (Dated: September 18, 2009)

Service Tax – Appeals – It is settled law that if a stay petition for waiver of pre-deposit of dues is pending before Tribunal, lower authorities should not proceed to recover the dues – Chief Commissioners and Commissioners under jurisdiction of Bangalore Bench to adhere to this law – Since entire amount of Service tax, interest and penalty stands recovered, stay petition is infructuous and dismissed :BANGALORE CESTAT;

2010-TIOL-178-CESTAT-BANG.pdf

CCE, Mangalore Vs M/s Dakshina Kannada Mogaveera Mahajana Sangha (Dated: March 31, 2009)

Service Tax – Mandap keeper Service – Eligibility of exemption notification 14/2003-ST for marriage hall located in temple premises –Marriage hall located in a separate building enclosed within an outer wall is regarded as within temple precincts, eligible for exemption under Notification No.14/2003-ST – Impugned order legal and proper:BANGALORE CESTAT;

CENTRAL EXCISE SECTION

2010-TIOL-184-CESTAT-MUM.pdf + mercedes story.pdf

M/s Mercedes-Benz India Pvt Ltd Vs CCE, Pune-I (Dated: November 20, 2009)

Excess amount collected from the dealer over and above the actual amount incurred towards Road Delivery Charges (RDC) is liable to be added to the assessable value and charged to duty – however, excess RDC is to be treated as cum-duty price – CESTAT: MUMBAI CESTAT;

2010-TIOL-183-CESTAT-BANG.pdf

CCE, Hyderabad Vs M/s Shree Siddhi Vinayaka Agro Extractions (P) Ltd (Dated: August 4, 2009)

Central Excise – Soap stock and wax emerging during process of manufacture of vegetable refined oil is waste and not a by-product – Eligible for exemption under Notification No. 89/95-CE – Impugned order requires no interference – No merit in revenue appeal : BANGALORE CESTAT;

2010-TIOL-182-CESTAT-BANG.pdf

M/s Jindal Praxair Oxygen Company Pvt Ltd Vs CCE, Belgaum (Dated: April 3, 2009)

Central Excise - CENVAT Credit - Eligibility of 100% MODVAT Credit of CVD paid on capital goods procured prior to 01.03.2000 but not installed before 01.03.2000 - Old MODVAT scheme replaced by new scheme w.e.f. 01.03.2000 wherein Rule 57 AC(2)(c) allows 100% credit on capital goods subject to availment of 50% in first year and remaining 50% in subsequent years - Impugned order liable to be set aside : BANGALORE CESTAT;

2010-TIOL-181-CESTAT-BANG.pdf

M/s Andhra Sugars Ltd Vs CCE, Guntur (Dated: May 7, 2009)

Central Excise – Refund – Short receipt of goods at customer's end resulting in proportionate availment of CENVAT credit to the extent of receipt of goods by customer – Proportionate availment of CENVAT Credit certified by customer's jurisdictional central excise officer – Excess duty paid by assessee eligible for refund – Refund claim also not hit by unjust enrichment as excess duty paid was not passed on to customer : BANGALORE CESTAT;

2010-TIOL-176-CESTAT-BANG.pdf

Decpro Paints, Hyderabad Vs CCE, Hyderabad (Dated: October 7, 2009)

Central Excise – Exemption from excise duty available only to manufacturers specified in Notification 63/95-CE for their clearances to Ministry of Defence – Exemption not available under this notification for clearances made to such specified manufacturers – No infirmity in impugned order : BANGALORE CESTAT;

CUSTOMS SECTION

DGFT PUBLIC NOTICE

dgft09pn037.pdf

Amendment in ANF 2-A of HBP vol.1

CASE LAWS

2010-TIOL-93-HC-MAD-CUS.pdf + cus story.pdf

M/s Parmar Exports Vs ACC (Drawback), Chennai (Dated: January 11, 2010)

Customs – Denial of Drawback on the ground that investigations are pending - when an alternative remedy is effectively and efficaciously available, no writ is maintainable – Petitioner directed to Appellate Authority: When an appeal remedy is statutorily provided, it is the obligation on the part of the petitioner to prefer such an appeal, before approaching this court. Though the respondent has indicated in his order itself that an appeal would lie against the order impugned, without exhausting the appeal remedy, the petitioner has challenged the impugned proceedings before this court. Therefore, when an alternative remedy is effectively and efficaciously available to the petitioner, it is appropriate for them to exhaust such remedy as provided under the Rules.

Accordingly, the petitioner is directed to prefer an appeal to the appellate authority against the order impugned in this petition, within a period of four (4) weeks from the date of receipt of a copy of this order.:MADRAS HIGH COURT;

2010-TIOL-177-CESTAT-MAD.pdf

M/s Sanmar Shipping Ltd Vs CC, Chennai (Dated: October 28, 2009)

Customs – Exemption under Notification 11/97 as dt. 1/3/07 for safety equipment installed on a vessel – matter remanded as the case laws relied on by the appellants were not available at the time of passing the impugned order. : BANGALORE CESTAT;