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2013-TIOL-NEWS-189

Tuesday, August 13, 2013
 
     
 

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News Flash

SEZ Rules Amended (See 'DDT' Column)

Section 4 of CEA, 1944 - over years - need for separate legal cell (See 'Guest Column')

Fee for compounding of FEMA violations: RBI streamlines refund procedure

RIIs + QIBs authorised to subscribe tax-free bonds of 15 or 20 years

Mega Power Projects exemption - amendments made, new project included

Govt hikes import duty on gold & silver to 10%

Sahar Airport Customs seizes gold worth Rs 34 lakh in two cases

Commerce Ministry plans outreach progammes to improve trade ties with CIS countries

BCCI not to keen to come under purview of RTI Act: Minister

Mega Power Projects exemption - amendments made, new project included

Panel set up to suggest roadmap for establishment of Universities for Research & Innovation

Identification of Export Sector

There is complete defiance on part of refund sanctioning authority of orders passed by this Tribunal - If order is not complied with, authority shall be liable to contempt proceedings (See 'DDT')

IGI Airport Customs seizes 6 gold biscuits recovered from rectum of pax coming from Dubai

FM announces more measures to contain CAD and improve capital inflows; Tariff rates of many items to be hiked

Govt imposes final anti-dumping duty on resin or other organic substances bonded wood

Imphal Customs seizes 3443 'Ecstasy' tablets & nabs one Myanmarese national

Govt appoints N L Meena as Member Secretary of Law Commission of India

Industrial Production registers 2.2 per cent growth in June

ADB to provide USD 300 mn additional finance to upgrade 254 km Bihar roads

   
Common Basket

TIOL COMMENTARY

DDT (Daily Dose of Taxation)

SEZ Rules Amended

GUEST COLUMN

Section 4 of CEA, 1944 - over years - need for separate legal cell

BREAKING NEWS

FM announces more measures to contain CAD and improve capital inflows; Tariff rates of many items to be hiked

CASE LAW

2013-TIOL-618-HC-MAD-CT

M/s ECE Industries Ltd Vs State Of Tamil Nadu

Tamil Nadu General Sales Tax Act - Section 3-B(2)(a) - Whether the assessee is eligible for deduction u/s 3-B(2)(a) of the Tamil Nadu General Sales Tax Act when the goods were customised one and manufactured as per the specifications of the customers and the movements of the finished goods from Ghaziabad to Tamil Nadu was only in pursuance of the sale cum contract. - Assessee’s revision allowed : MADRAS HIGH COURT

RBI CIRCULARS

rbi13cir022

Exim Bank's Line of Credit to the Government of the Federal Democratic Republic of Ethiopia

rbi13cir021

Exim Bank's Line of Credit to the Republic of Zimbabwe

rbi13cir020

Foreign Exchange Management Act, 1999 (FEMA) Foreign Exchange (Compounding Proceedings) Rules, 2000 (the Rules) - Compounding of Contraventions under FEMA, 1999

MIXED BUZZ

Govt hikes import duty on gold & silver to 10%

Commerce Ministry plans outreach progammes to improve trade ties with CIS countries

BCCI not to keen to come under purview of RTI Act: Minister

Panel set up to suggest roadmap for establishment of Universities for Research & Innovation

Identification of Export Sector

 
   
Direct Tax Basket

NOTIFICATION

it13not061

RIIs + QIBs authorised to subscribe tax-free bonds of 15 or 20 years

CASE LAWS

2013-TIOL-617-HC-DEL-IT + Story

CIT Vs Hcil Kalindee Arsspl

Income Tax Act, 1961 - Sections 80IA, 80IA(13), 271(1)(c) - Forms No 3CB & 3CD, works contract - penalty - furnishing of inaccurate particulars - CA report. Whether no penalty u/s 271(1)(c) is warranted even if assessee makes false claim of Sec 80IA benefits on sub-contracted work and also furnishes a CA Certificate in this regard - Whether the onus of establishing that the explanation was bonafide and the facts and material relating to computation of his income disclosed, is on the assessee, so that penalty is not attracted - Whether penalty for concealment can be imposed and is justified when interpretation or claim of the assessee is rejected . - Revenue's appeal allowed : DELHI HIGH COURT

2013-TIOL-698-ITAT-HYD

KMR Constructions Vs ACIT

Income Tax - Sections 43B, 143(3), 201(1A), 263 - Whether action u/s 263 by the CIT is justified when the AO has not at all examined the various issues on the basis of which action u/s 263 was initiated - Whether the CIT is correct in straight away directing the AO to add the amount of Rs.42,28,292/- without affording an opportunity to the assessee - Whether the CIT has jurisdiction U/S 263 to direct the AO to initiate proceedings u/s 201(1A).- Assessee’s appeal partly allowed : HYDERABAD ITAT

2013-TIOL-697-ITAT-MUM

Karan R Bahl Vs ITO

Income Tax - Sections 28, 45 - Whether delivery based transactions, where the holding period exceeds one year, the assessee claiming it to be LTCG, is eligible to tax exemption u/s.10(38) when all the shares have been bought by the assessee in the regular course of his business, employing common funds, depositing them in the same D-Mat account, and even through the same broker and infrastructure and there was no such classification done by the assessee, that the share classified as a long term capital asset was indeed bought/acquired as an investment. - Assessee’s appeal dismissed : MUMBAI ITAT

2013-TIOL-696-ITAT-MUM

M/s Marico Industries Ltd Vs ACIT

Income Tax - Sections 43(1), 115JB(2), 253 - Whether interest payable in connection with acquisition of an asset up to the period till the asset is first put to use is required to be included in the actual cost of the asset and interest paid thereafter has to be allowed as revenue expenditure - Whether the CIT was correct in directing the AO to add Rs.7.19 crores to the book profit under the provisions of Explanation (c) of section 115JB(2) when the assessee itself found the ascertained liability for the year at Rs.5.25 crores and added back the balance amount of Rs.7.19 crores, in the same year.- Assessee’s appeal Allowed. : MUMBAI ITAT

2013-TIOL-695-ITAT-MUM

J M Financial Services Pvt Ltd Vs Addl.CIT

Income Tax - Sections 14A, 32, 194J, Rule 8D - Whether Rule 8D is applicable in the A.Y 2007-08 - Whether depreciation on BSE and NSE cards is allowable - Whether the provisions of section 194J were applicable in the case of lease line charges and V– SAT charges. - Assessee’s appeal allowed & Revenue’s appeal dismissed : MUMBAI ITAT

2013-TIOL-694-ITAT-ALL

M/s Kesarwani Sheetalaya Sahson Vs Dy.CIT

Income Tax Act - Sections 37, 132, 143(2), 143(3), 153A, 234A, 234B , 234C, 271(1)(c). Whether disallowance on account of loading and unloading expenses at the rate of 20 per cent is warranted - Whether the AO is wrong in rejecting expenses simply on the basis of DVO's report ignoring the facts on record - Whether charging of penal interest under section 234A, 234B and 234C is warranted even when the assessee has not been given reasonable opportunity to be heard. - Assessee's appeal partly allowed : ALLAHABAD ITAT

   
Indirect Tax Basket

SERVICE TAX SECTION

2013-TIOL-1212-CESTAT-MUM + Story

Central Industrial Security Force Vs CCE

ST - In view of ad-hoc exemption order no. 1/1/2011 dated 01/07/2011 exempting Security Agency Service rendered by the appellant CISF, Nashik, there is no tax liability on appellant - if delay not condoned ad hoc exemption order issued would be rendered a nullity - therefore, delay of 826 days in filing appeal condoned and appeal allowed by extending exemption granted by Central Government -: CESTAT [para 6] - Appeal allowed : MUMBAI CESTAT

2013-TIOL-1211-CESTAT-BANG

M/s Hyderabad Power Installation Pvt Ltd Vs CC, CE & ST

Service Tax - services rendered relating to transmission of electricity are covered under exemption Notification No.45/2010-ST dated 20.7.2010 which gives retrospective exemption for services rendered relating to transmission and distribution of electricity; rent received in respect of vacant land not liable to tax prior to 2010 – prima facie case made – balance of pre – deposit waived.: BANGALORE CESTAT

2013-TIOL-1210-CESTAT-DEL

M/s Maltex Malsters Ltd Vs CCE

ST - Manpower Recruitment or Supply Agency - Rule 5(1) of Service tax (Determination of value) Rule, 2006 has been held ultra vires Section 67 of the Finance Act, 1994 by Delhi High Court in case of Intercontinental Consultants & Technocrats Pvt. Ltd. and, therefore, this Rule cannot be relied on by the adjudicating authority - Similarly value on which tax is demanded is required to be segregated from total lease amount - Without expressing any view on merit, case remanded: CESTAT - Matter remanded : DELHI CESTAT

 


CENTRAL EXCISE SECTION

TARIFF NOTIFICATION

etariff13_25

12/2012 amended to substitute tariff rates

CASE LAWS

2013-TIOL-02-ARA-CX + Story

M/s ELG India Private Limited

Central Excise - processing of various grades of stainless steel scrap ('metal scrap') to produce 'blended metal scrap' amounts to manufacture: 'Manufacture' is a transformation of an article, which is commercially different from the one, which is converted. The essence of manufacture is the change of one object to another for the purpose of making it marketable.

The crucial question, therefore, is whether the goods to be taxed have been subjected to a manufacturing process so as to produce a new marketable commodity with the determining factor to decide whether excise duty is leviable or not on those goods. The steps to be put in place in the proposed activity have been detailed. It has not been denied that scrap of specific grades alone can be used in the manufacture of stainless steel and that the processes to be adopted by the applicant would result in the transformation of their raw materials, namely, metal scrap of assorted sizes, grades, composition etc. into metal scrap of specific grades which is directly usable for manufacture of stainless steel. Therefore what emerges from the processes would be a product having distinct identity and use, different from the raw material from which it is made.

Hence, in the case at hand, it can be termed as 'manufacture' - Ruled in favour of the applicant: ADVANCE RULING AUTHORITY

2013-TIOL-1209-CESTAT-MAD

CCE Vs M/s Kaleeswarar Mills

Central Excise - Default in payment of duty under Rule 8 - Utilization of CENVAT credit for discharging the differential duty liability during the period of forfeiture under Rule 8(4) of the Central Excise Rules, 2002 - The issue is no longer res integra - Assessee is entitled to utilize CENVAT Credit - Demand of duty from PLA and interest set aside. - Appeal disposed of: CHENNAI CESTAT

2013-TIOL-1208-CESTAT-KOL

M/s Hindusthan Engineering & Industries Ltd Vs CCE

Central Excise – Refund claim – Limitation – Downward revision of price – Just because the contract has price variation clause, and the prices are provisional, the assessments cannot be treated as provisional for the purpose of ‘relevant date' under Section 11 B of the Central Excise Act, 1944 - Procedure for resorting to provisional assessment has been prescribed under the Central Excise Rules which had not been followed by the Appellant in the present case – Date of finalization of the price by the buyer cannot be treated as date of finalization of the assessments – Refund claim rightly rejected as barred by limitation. - Appeal dismissed : KOLKATA CESTAT

 


CUSTOMS SECTION

TARIFF NOTIFICATION

ctariff13_041

Duty on gold hiked to 10%

ctariff13_040

Mega Power Projects exemption - amendments made, new project included

ANTI DUMPING DUTY

ctariffadd13_018

Govt imposes final anti-dumping duty on resin or other organic substances bonded wood

DGFT PUBLIC NOTICES

dgft13pn022

Option to close cases of default in Export Obligation

CASE LAWS

2013-TIOL-1213-CESTAT-MUM

Sai Organic & Chemical Vs CC

Cus - There is a complete disregard and defiance on the part of the refund sanctioning authority of the orders passed by this Tribunal - If the order is not complied with, the authority shall be liable to contempt proceedings: CESTAT - Application disposed of : MUMBAI CESTAT

2013-TIOL-1207-CESTAT-DEL

M/s National Copier Equipment Vs CC

Customs - Import of old and used photocopiers - Valuation - Enhancement of value based on NIDB data - The appellant failed to argue that they have a good case on the basis of evidence as to the valuation - Impugned goods imported without licence - They also failed to argue that they had not imported in the past old and used photocopier causing detriment to the interest of Customs - They failed to show the reason why fine and penalty to the extent levied in adjudication were unwarranted dose - When it is not possible to find that the value declared by both the importer appellants was correct, the valuation aspect confirmed by Appellate Authority below remained undisturbed - Reduction of fine by the Commissioner (Appeals) set aside and fine imposed by original authority restored - Penalty imposed by original authority modified. - Appeals disposed of : DELHI CESTAT

 
     
 

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