Service Tax : Where Commissioner (Appeals) has invoked section 80 to reduce penalty on ground that assessee may not be aware of legal compliances and charge of service tax, his decision to retain even reduced penalty was incompatible with his finding; hence, penalties under sections 76 and 78 were set aside
Thursday 7 August 2014
Specific funds received by a Society of Anesthesiologists to fulfil specific objects were capital re
IT: Contribution towards specific funds of a society created for fulfilling specific objective, would be capital in nature
Input/capital goods used in construction of rented property weren’t eligible for credit, rules HC
Cenvat Credit : Inputs/Capital goods used in construction of rented property are not, prima facie, eligible for credit, when construction was carried out by contractor availing of benefit of abatement notification; however, pre-deposit was reduced in line with earlier judgments of Tribunal
Non-disclosure under Takeover Code within specified time attracts penalty even if it didn’t cause lo
SEBI: Violation of regulation 8(3) of SEBI (SAST) being failure to make disclosure within stipulated time period, attracts penalty under section 15A(b) of SEBI Act, 1992 in spite of fact that whether or not such failure occurred for first time or such failure has not caused any loss to investors or gained benefit to company
No TP adjustment if comparables chosen by TPO were functionally diverse and earning supernormal prof
IT/ILT : Where TPO made certain addition to assessee's ALP in respect of rendering information technology enabled back office support services to its associated enterprise, in view of fact that some of comparables selected by TPO were inappropriate on account of functional difference and earning of supernormal profits whereas some other comparables were accepted without giving assessee a proper opportunity to raise its objections on their selection, impugned addition was to be set aside and, mat
SC: Red tape couldn’t be a valid ground to condone delay of more than a year in filing appeal
Excise & Customs : Delay of 481 days in filing petition/appeal by Government cannot be condoned on insufficient explanation of 'moving of file from one Department/Officer to other'
Appeals filed priod to 17-02-2011 couldn’t be dismissed for want of clearances from Committee on dis
Service Tax : Even if an appeal has been filed prior to 17-2-2011, same cannot be dismissed on or after 17-2-2011 for want of clearance from Committee on Disputes (CoD)
U.S. Scotches Duties On Import Of Steel Threaded Rod From India
The U.S. International Trade Commission on Wednesday scotched import duties on shipments of steel threaded rod from India after finding the imports did not injure or threaten the local industry.
Imports were worth an estimated $19 million in 2013 and drew a complaint from U.S. firms All America Threaded Products, Bay Standard Manufacturing and Vulcan Threaded Products.
The Department of Commerce found last month the goods were made using unfair government subsidies and sold too cheaply in U.S. markets, but the ITC vote means the duties set in Commerce's final decision will not proceed.
The rod is often used in commercial construction to support electrical conduits, pipes for plumbing, ductwork and sprinkler systems and for bolting together pipe joints in the waterworks industry.
Source:- in.reuters.com
India Finds New Gold Smuggling Route: Tax-Free Special Economic Zones
India is scrambling to crack down on a new gold smuggling tactic that it fears could accelerate a flood of illegal imports of the precious metal into the world's second-biggest buyer.
India - whose appetite for gold is only rivalled by China - last year imposed a record 10 per cent import duty and made it mandatory to export a fifth of all bullion imports, seeking to curb bullion demand that has blown out the trade deficit.
With the lure of big profits from avoiding duty, smugglers have come up with innovative ways to bring in gold ranging from swallowing nuggets to hiding bars in dead cows.
In the latest smuggling case, a gold exporting firm attempted to use a tax-free special economic zone to try to bypass restrictions and sell to the local market.
The scam was uncovered after police stopped a car trying to take 25 gold bars, worth about $1 million, out of a tax-free special economic zone in Surat in June to sell to the domestic market, according to a government document seen by Reuters. The owner of the firm was arrested.
The new government of Prime Minister Narendra Modi had been expected to loosen the policies, but its first Budget maintained the tough stance.
The June arrest was the first time authorities had seized gold being smuggled out of a special economic zone, according to a government source, and appears to reveal a more sophisticated scam to get gold into the local market.
"We had intelligence report and intercepted the car, with the manager of the firm in it. The manager said the gold was concealed by the proprietor of the firm," said another senior government official with direct knowledge of the case, adding that the gold was to be illegally sold in the domestic market.
The ministry of commerce, which is in charge of special economic zones, did not reply to requests for comment.
Government figures show that only 2.34 tonnes of smuggled gold was retrieved last year, while the World Gold Council estimated 150-200 tonnes of gold illegally entering India.
Illustrating the extent of smuggling, India's junior civil aviation minister said this week staff of the national carrier, Air India, had been found smuggling in gold in 13 instances in the last few years.
But special economic zones could be especially vulnerable since exporters do not pay duty to bring gold into India, and thus can make a huge profit by diverting supplies to the domestic market. There are 185 such zones in India.
Last year's restrictions on imports have curbed supply and pushed up domestic premiums - the difference between local and global prices - to a record $160 or 9800 rupees an ounce last December.
Indian gold imports plunged by a fifth last year to 825 tonnes though jewellery and investment demand rose 13 percent.
One of the government sources said that others are likely to be using special economic zones to bring in gold.
"After all how would you know if somebody is taking out gold in their cars?"
To account for the disappearance of the gold, exporters are likely to be using either fake receipts or imitation copper jewellery, according to the official.
Source:- ndtv.com
Drop In Cotton Prices, Unpredictable Monsoon Increase Imports, Distress Farmers
Unpredictable monsoon and a decline in cotton prices overseas have boosted cotton imports in India in the recent weeks.Africa is one of the beneficiaries of increasing cotton imports by the country as the mills in the coastal textile hubs of south India are buying cotton from them due to its lower freight costs. The fibre is supplied in shiploads since the prospects of rapid increase in global supply has resulted in decline of cotton prices.
"Imports of cotton mainly from West Africa have increased because their prices are much cheaper than India's and the quality is also good," managing director of Shail Exports and former chairman of the Cotton Corp of India MB Lal told Reuters.
The data released by "The US Department of Agriculture" show that an increase in cotton output in the US could expand worldwide inventories to about 106 million 480-lb bales by the end of the US crop year, i.e., July 2015, reported Reuters.
Meanwhile, the Indian buyers will be forced to sign extended import contracts due to delayed sowing, which in turn will bring a delay in the arrival of new crops to the market.
"Imports may rise (further) if new season supplies get delayed or prices increase in the absence of supply," Arun Kumar Dalal, a trader in the main cotton growing state of Gujarat told Reuters.
The farmers in India depend on rainfall for the production of cotton. The erratic monsoon rains in India have delayed cotton sowing, raising concerns about production. India is among the largest cotton producers and a delay in its production often resulted in suicides of desperate farmers in the past.
Recently, a cotton farmer from Telangana had committed suicide as she ran into debt owing to crop loss. Meanwhile, Maharashtra topped the list of farmer suicides with 3,146 farmers ending their lives in the last one year.
Source:- ibtimes.co.in
Pesticide-Laced Veggies Being Exported To India
After the government increased its vigilance against sale of pesticide-laced vegetables, the vegetables grown in mid-Tarai are being exported to India.
Vegetables grown in Sarlahi, Rautahat, Makawanpur, Chitwan used to be supplied to major cities inside the country including Kathmandu. However, after government agencies tightened the screw against the harmful vegetables, export of vegetables has grown swiftly.
Green vegetables are being exported to India via the Gaur border point to the Indian market in Bairganiya on a daily basis.
Cauliflower, cabbage, tomato, cucumber from Palung of Makawanpur; and tomato, bitter gourd, bottle gourd of Rautahat are being exported to India via the Gaur border point.
District Agriculture Development Office Rautahat Chief Raj Narayan Yadav said as per law Nepal and India can import and export vegetables and seeds if there is a plant quarantine at the border point. “Despite the quarantine, we are having a problem importing and exporting vegetables” .
Source:- thehimalayantimes.com
DRP can't shift his burden to adjudicate impugned matter; he isn't empowered to remand matter back t
IT/ILT : Where DRP instead of clearly adjudicating issue relating to existence of assessee's PE in India, remanded matter back to Assessing Officer to decide said issue after taking into consideration various evidences filed by assessee, order so passed being in violation of provisions of section 144C(8), was to be set aside
Reassessment notice held valid as foreign co. was doing business in India via subsidiary PE but didn
IT/ILT : AO justified in issuing notice u/s 148 to foreign parent co where material impounded during survey shows that Indian WOS(100% subsidiary) is not functioning as independently but as PE of the foreign parent and the foreign parent has not filed income-tax returns as regards transactions with its Indian WOS on which Indian WOS hasn't deducted full TDS under the DTAA
Exclusive domain to decide rate of commission was that of parties, AO couldn’t go into such issues,
IT : Exclusive domain to decide rates of commission is that of parties to contract; Assessing Officer could not go into such matter to disallow a part and rate accepted in earlier years is to be allowed in current year
Mere department’s permission to re-export prohibited goods doesn’t provide relief from levy of redem
Excise & Customs : Merely because permission is granted to assessee to re-export prohibited goods imported by assessee, same would not mean that section 112 (penalty) or section 125 (redemption fine) would not apply
Approval of prescribed authority is essential to claim sec. 10(23C)(vi) relief and not sec. 10(23C)(
IT : Approval of prescribed authority is necessary for claiming exemption only under section 10(23C)(vi) and not under section 10(23C)(iiiad)
Revenue couldn’t impose VAT penalty without enquiring into genuineness of docs accompanied with good
CST & VAT: Where Assessing Authority without making enquiry about genuine of documents accompanied with goods under transport from Bundi to Punjab concluded that it was case of contravention of section 78(2) of Rajasthan Sales Tax Act, 1994 and imposed penalty upon assessee under section 78(5), imposition of penalty was not justified
Income of trust to be computed on commercial principles, deduction to be allowed for depreciation, r
IT : Income of a trust registered under section 12A has to be computed on commercial principles and in doing so depreciation on fixed assets utilized for charitable purposes should be allowed
Prior to 01-03-2007, no penalty was leviable on issuance of Cenvatable invoices without actual deliv
Excise & Customs : Where assessee had issued Cenvatable invoices without actual delivery of goods prior to 1-3-2007, no penalty could be imposed under rule 26(2) of Central Excise rules, 2002 and further, no penalty could be imposed under rule 25(1)(b), as alleged goods were never manufactured
Sham transactions disclosed in return to be re-assessed in income escaping assessment and not in blo
IT: Authorities were justified in not including gift cheques in block assessment proceedings where during post search enquiry it became known that gift cheques shown by assessee in its return filed under section 139 were not regular transactions but were purely arranged transactions to avoid income-tax
CCI approved of proposed combination of retailers as their share was not significant in retailer’s m
Competition Law: Where in proposed combination relating to business of retail in India share of parties to combination was insignificant as compared to overall retail market, proposed combination was not likely to have appreciable adverse effect on competition in India and, therefore, same was to be approved
Activity of letting out buses to Cos for transportation of their employees isn’t a ‘rent-a-cab’ serv
Service Tax : Hiring of buses to various companies for carrying employees from their residence to office and back does not amount to 'rent-a-cab' services
Sec. 80-IB(10) stipulating furnishing of completion certificate of housing project is applicable pro
IT : Law requiring furnishing of completion certificate in respect of a housing project was brought into statute only with effect from 1-4-2005, hence, would apply prospectively
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