Assessee wasn’t entitled to input tax credit with respect to goods sold to manufacturer for export p

CST & VAT : U. P. VAT - Where assessee purchased goods after payment of tax and sold same to manufacturer-exporter against form 'E' and took input tax credit on said transaction, since sale of goods was exempted from tax under section 7(c), in view of provisions of section 13(7), assessee was not entitled for input tax credit

Sum paid by bank for installation of application software which enhanced efficiency of operations wa

IT : Payment for application software, though there is an enduring benefit, does not result in acquisition of any capital asset and it merely enhances productivity or efficiency of business of assessee and, hence, it has to be treated as revenue expenditure

Exp. incurred by a Co. on production of TV commercial for its products is revenue exp.

IT : Expenditure incurred by assessee on film production by way of advertisement films was allowable as revenue expenditure

Sec. 11AC penalty to be levied on invocation of extended period even if duty is paid prior to issuan

Excise & Customs : Once order is passed invoking extended period of limitation, invocation of section 11AC is automatic and no discretion is vested with authorities to reduce penalty; said penalty is leviable even if duty is paid prior to issuance of notice

Mere routing of gift through banking channel won’t establish its sanctity, says Bombay High Court

IT : Mere routing of a gift through a banking channel would not by itself establish that gift is genuine

[Indian Customs ADD Notification] : Seeks to extend the validity of Notification No. 01/2010-Customs dated 08-01-2010 for a further period of one year i.e. upto and inclusive of 07-01-2016.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

NOTIFICATION

No. 06/2015-Customs (ADD)

New Delhi, dated the 03rd March, 2015

G.S.R. (E).-Whereas, the designated authority vide notification number 15/22/2014-DGAD, dated the 7th January, 2015, published in Gazette of India, Extraordinary, Part I, Section 1, dated the 7th January, 2015, have initiated review, in terms of sub-section (5) of section 9A of the Customs Tariff Act, 1975 (51 of 1975) and in pursuance of rule 23 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 (hereinafter referred to as the said rules), in the matter of continuation of anti-dumping duty on "Tyre Curing Presses, except Six Day Light Curing Press for curing bi-cycle tyres" falling under the tariff item 8477 51 00 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), originating in, or exported from, the People’s Republic of China, imposed vide notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 01/2010-Customs, dated the 8th January 2010, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 21 (E), dated the 8th January, 2010, and have requested for extension of anti-dumping duty for a further period of one year, in terms of sub-section (5) of section 9A of the said Customs Tariff Act;

Now, therefore, in exercise of the powers conferred by sub-sections (1) and (5) of Section 9A of the said Customs Tariff Act and in pursuance of Rule 23 of the said Rules, the Central Government hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 01/2010-Customs, dated the 8th January 2010, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 21(E), dated the 8th January 2010, namely: -

In the said notification, after Paragraph 2, the following shall be inserted, namely:-

"3. Notwithstanding anything contained in Paragraph 2 above, this notification shall remain in force up to and inclusive of 7th January, 2016 unless revoked earlier.".

[F. No.354/80/2009-TRU (Pt-I)]

(Akshay Joshi)

Under Secretary to the Government of India

Note.-The principal NOTIFICATION No. 01/2010-Customs, dated the 8th January, 2010 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 21 (E), dated the 08th January, 2010 and was last amended vide NOTIFICATION No. 26/2012-Customs (ADD), dated the 14th May, 2012 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 361 (E), dated the 14th May, 2012.

Rajasthan VAT provisions imposing conditions to avail of input tax credit aren't arbitrary, says Hig

CST & VAT : Rajasthan VAT - Provisions of sub-section (3) of section 18 of Rajasthan VAT Act imposing conditions to avail input tax credit are not arbitrary, illegal and violative of articles 14, 19(1)(g) and 300A of Constitution and they are valid

A potential comparable Co. can't be excluded merely because of its high or low turnover

IT/ILT : Company with marked differences as regards risk profile, nature of services, ownership of IP rights, expenditure on R&D etc. cannot be selected as comparable company

Assessee had to reverse credit alongwith penalty on his admission of shortage of inputs

Cenvat Credit : In case of admitted shortage of inputs as compared to that shown in Cenvat records, assessee is liable to reverse attributable credit along with penalty

RBI further extends existing all-in-cost ceiling of ECBs by 3 months-

FEMA/ILT : Trade Credits for Imports into India — Review of All-In-Cost Ceiling

Existing all-in-cost ceiling related to trade credit for imports further extended by 3 months

FEMA/ILT : External Commercial Borrowing (ECB) Policy — Review of All-In-Cost Ceiling

Cut flowers sold by EOU to DTA was liable to customs duty as it was made of imported material

Excise & Customs : Where 100 per cent EOU cleared 'cut flowers' to DTA, no excise duty can be charged on such non-excisable 'cut flowers'; only customs department can demand customs duty on imported inputs used in making 'cut flowers

Trust applying 85% of its income on charitable activities would be entitled to sec. 11 relief

IT : Where 85 per cent of gross income of assessee-trust was spent on charitable activities, assessee would be entitled to exemption under section 11

Claiming exemption on declared turnover won’t amount to suppression of turnover; no penalty leviable

CST & VAT : Kerala VAT - Where assessee had declared entire sales turnover and also claimed exemption of said turnover by stating it to be second sales and Assessing Authority had imposed penalty upon it under section 45A, since assessee had declared entire sales turnover and a mere claim for exemption could not be treated at par with suppression of turnover, imposition of penalty was not justified

Excess ST paid in one unit can’t be adjusted with another unit having different registration number

Service-tax : Where assessee's Mumbai unit had made excess payment of service tax under its separate registration, said excess payment cannot be regarded as made on account of different registration at Silvassa unit; hence, Silvassa unit was directed to pay short-paid service tax with interest

Advance to shareholder was deemed dividend as money lending wasn’t part of business of lending Co.

IT : Where lending of money was not part of business of lending companies, loan/advance given to assessee-shareholder would be treated as deemed dividend under section 2(22)(e)

Block assessment proceedings is invalid unless initiated on basis of incriminating material found du

IT : Where there was no incriminating material belonging to assessee found during course of search under section 132A, proceedings under section 153C were not valid

Chairperson and other members of CCI to be governed by provisions of 'New Pension Scheme': MCA

COMPETITION LAWS/INDIAN ACTS & RULES : Competition Commission of India (Salary, Allowances and Other Terms and Conditions of Service of Chairperson and Other Members) Rules, 2003 – Substitution of Rule 4

Assessee not entitled to interest on refund of excess self-assessment tax paid by him, rules Delhi H

IT : Refund of excess self-assessment paid by assessee would not be eligible for interest under section 244A as the provisions of section 244A would not apply thereto

Pre-deposit reduced as assessee had raised arguable points for commencement of production

Excise & Customs : High Court reduced pre-deposit in a case where assessee availed area based exemption claiming commencement of commercial production by 31-3-2010 and department denied same on ground that machinery essential for commercial production and electricity connection was obtained on 31-3-2010 only

Purchase of technical know-how couldn't be taxed as royalty, says ITAT

IT/ILT : Purchase of technical know-how could not be taxed as royalty and, therefore, provisions of section 195 were not applicable