EXCISE LAW : Section 5A of the Central Excise Act, 1944 - Power to Grant Exemption from Duty of Excise - Exemption to Anti-Retroviral Drugs (Arv Drgus) and Diagnostics and Equipments
Wednesday 10 June 2015
Apex Court confirms one year's conviction against public servant for taking bribe in lieu of registr
Prevention of Corruption Act : Where evidence on record showed that respondent, a public servant, had demanded and accepted bribe in lieu of registration certificate, respondent was to be convicted for offence under sections 7 and 13
Losses already set-off couldn't be set-off again from initial year's income to restrict sec. 80-IA r
IT: Where losses in year earlier to initial assessment year already set off against other income of earlier years, such earlier losses could not be considered again for computing admissible deduction under section 80-IA
Terminal Handling incurred in export of goods were eligible for credit even when invoice was only is
Service Tax : Service tax paid on Terminal Handling Charges used for export goods is eligible for refund, even if invoice thereof is issued by Customs House Agent, who is himself not authorised for provide port services
Notice/summons listing doubts against assessee cannot be regarded as imputing a motive against asses
Excise & Customs : If department wants to seek information from assessee on doubts entertained by it, said doubts have necessarily to be stated by department; hence, notice/summons merely listing said doubts and asking for information cannot be regarded as motivated against assessee and cannot, therefore, be challenged on ground of being prejudiced
Deptt. seized bank account of assessee as it contained sale proceeds of smuggled goods
Excise & Customs : Where department alleges that assessee's bank account was credited with sale proceeds of smuggled goods and assessee fails to prove, prima facie, that proceeds were not tainted, department's action in freezing bank account was valid
A merchant banker couldn't be chosen as comparable for an investment advisor under TP study
IT/ILT : Company in business of investment, merchant banking and corporate finance cannot be compared to company engaged in investment advisory activities
Deptt. can't treat two units of same assessee differently so as to confer benefit to one unit and de
Cenvat Credit : Where, in assessee's own case, in respect of their Hinjewadi Unit, benefit of credit on outward freight services has been extended for period after 1-4-2008, same benefit cannot be denied to assessee's Chakan Unit
Buyer isn't liable to sales tax when he offered an amount inclusive of all taxes to purchase assets
CST & VAT : Kerala VAT - Where Official Liquidator issued a notice inviting tenders in respect of sale of assets of a company in liquidation and appellant had offered its highest bid which was inclusive of all statutory levies such as sales tax, etc. and offer so made was accepted by Official Liquidator, liability to pay taxes could not be imposed on appellant
Tribunal rightly disallowed purchases as assessee had inflated purchases by showing invoices of fict
IT: Assessee inflated expenditure by showing higher purchase price through fictitious invoices in name of 33 fictitious parties, Tribunal was justified in disallowing 25 per cent of purchase price
AO not to raise direct demand against an assessee wherein TDS credit mismatch arises due to default
IT/ILT : Section 199 of the Income-Tax Act, 1961 – Deduction of Tax at Source – Credit for Tax Deducted – Non-Deposit of Tax Deducted at Source
TP adjustment set aside as rate of interest on loan given to AE was higher than rate prescribed unde
IT/ILT : Where TPO made addition to assessee's ALP in respect of interest on loan given to its AE, since interest rate charged by assessee from its AE was higher than LIBOR rate in year under consideration, impugned addition was to be set aside
Apex Court upholds plea of revenue neutrality to set aside invocation of extended period
Excise & Customs : When entire exercise is revenue neutral i.e., credit of duty paid on captive consumption is available to assessee itself, extended period cannot be invoked, as assessee could not have achieved any purpose to evade duty
AO rightly rejected books due to under-reporting of output and sales of products: High Court
IT : Where on comparison of financial results of earlier year with current year, it was found that besides low G.P. rate, there were other deficiencies in books of account such as under reported yield of rice, paddy milling, sales of husk etc., books of assessee were to be rejected
Ford To Export India-Made Ecosport To Us From 2017
Auto major Ford is reportedly planning to export its popular made-in-India SUV, EcoSport, to US by 2017.
A report in Economic Times, citing sources close to the matter states that Ford is working on strategies to export its EcoSport SUV from India to the US. If this turns out to be true, Ford will be the first US car-maker to export the India-made model to its home country.
Apparently, the export order to US is for 90,000 units a year, which is more than the number of vehicles sold by the Ford in India. The sales of EcoSport in US are expected to begin in October, 2017 and considering this, Ford is likely to export the facelifted avatar of SUV to the US.
The export of India-made vehicles have helped Ford to cut down the cost of production per car and this has even led the company's Chennai plant to function 24×7 for the first time in 2014. If the company gets green signal to export EcoSport to the US market, the Chennai plant of the company is likely to be EcoSport's production base.
The latest report also adds that Ford Thailand is also trying to fetch the order for the US and Canadian markets.
Source:- ibtimes.co.in
Government To Import Pulses To Check Prices; Crackdown On Hoarders
To check rising price of pulses, the government today said it will import lentils in large quantities to boost supply and also asked states to take action against hoarders.
In a meeting chaired by Prime Minister Narendra Modi, the Cabinet expressed concern over rising prices and decided to increase imports, among other measures.
Pulses prices have risen by up to 64 per cent in the last one year as the domestic production fell by nearly two million tonnes in 2014-15 crop year due to unfavourable weather conditions.
"The government is very serious on rising pulses prices. There has been less production of pulses. We will import pulses whatever quantity is required," Food and Consumer Affairs Minister Ram Vilas Paswan told PTI.
"We have asked state governments to take action against hoarders," he added.
Briefing media after the Cabinet meet, Road Transport Minister Nitin Gadkari said: "Cabinet discussed about rising pulses prices and expressed concern about the same. Prime Minister has directed to import pulses in large quantity to keep domestic prices under check."
When asked which agencies which will import pulses, Paswan said the modalities will be finalised soon.
Pulses production is estimated to have fallen to 17.38 million tonnes in 2014-15 crop year (July-June) from 19.25 million tonnes in the previous crop year due to deficient monsoon last year and unseasonal rains and hailstorms during March-April this year.
India imports about four million tonnes of pulses, largely through private trade, to meet domestic shortfall.
Source:- economictimes.indiatimes.com
India Sees 58% Rise In Steel Imports, Domestic Producers Face Threat
India’s steel imports increased to 0.91 million tonnes (MT) in May this year, registering an increase of 58% as compared to the same month’s figure last year.
As compared to the April 2015 data, the import grew by 20.4%, said the latest report of the Joint Plant Committee under the Ministry of Steel.
“Import of total finished steel stood at 1.666 MT in April-May 2015-16 and saw a growth of 54.5% over the same period of last year,” the report said, pointing towards 7% increase in the consumption of the metal in April.
Source: thedollarbusiness.com
Govt Weighs Stepping Up Pulses Import
India’s pulse imports may touch a record five million tonne (mt) in the current fiscal if production suffers for a second straight year due to a deficient monsoon, as predicted by the India Meteorological Department (IMD), analysts and industry executives said.
The production of pulses dropped almost 10% in 2014-15 to 17.3 mt, as dryspells in summer as well as unseasonal rains before the harvesting of winter crops hurt yield, and even quality. India’s pulse imports rose to 4.5 mt in 2014-15 from 3.4 mt in the previous year. The IMD last week predcited a 12% rainfall deficit for the June-September monsoon season, the same as last year, although private forecaster Skymet has forecast normal showers this season.
India, the world’s largest producer, consumer and importer of pulses, needs 20-21mt of pulses for annual consumption. “Based on the monsoon predictions by the IMD and the fact that pulses output was adversely affected by erratic weather in 2014-15, imports may rise in 2015-16 to meet domestic demand,” said Harish Galipelli, the head of Commodity and Currency at Inditrade Capital. Since only 16% of the total area under various pulses crops have irrigation facilities, a severe dry spell in key producing regions could hurt production, although such crops are less water intensive than paddy or cane.
Pulses prices have already skyrocketed in the recent months, with wholesale price inflation in the segment having risen to 15.4% in April, the fourth straight month of double-digit inflation, even when the overall primary food inflation was just 5.73%. In 2009-10 when the country faced the worst drought in 37 years, pulses inflation of 22.4% helped drive up food inflation to as high as 15.3%.
Some analysts, however, have blamed excessive speculation in anticipation of deficient monsoon and “hoarding” for the recent “irrational” spike in pulse prices, adding, although production was affected in 2014-15, imports were as high as 4.5 mt and, therefore, there were adequate stocks in the market. Although some amount of increase in pulse prices was natural, the sharp rise isn’t in sync with fundamentals, they added.
Pravin Dongre, the chairman of the India Pulses and Grains Association (IPGA) and the executive vice-president of the Global Pulses Confederation, said reliance on imports won’t be susbtantial if rains are normal, as predicted by private forecaster Skymet. “However, if indeed monsoon fails and production is adversely affected, the government may consider imports,” he said.
Dongre, however, added that the government should enter the import market for bulk deals only after August when fresh supplies from Canada and the US reach the global market, or even in October when Australia starts pumping in new crops.
Meanwhile, Maharashtra, the second-largest producing state, has asked the Centre to import pulses to tide over a local shortage. Pulse output in the state, which was affected by droughts in Marathwada and parts of Vidarbha last year, were further dealt a blow by unseasonal rains in winter. Chief minister Devendra Fadnavis last week said although there were adequate rice and wheat stocks, pulses were a matter of concern.
Inditrade’s Galipelli said prices of chick peas, which were ruling Rs 2,600 per quintal six months ago in the wholesale market, have now touched Rs 4,700 per quintal. Similarly, prices of tur and urad have shot up to Rs 8,500 per quintal each from Rs 4,500 and Rs 6,000, respectively, six months earlier.
Last week, agriculture minister Radha Mohan Singh said the centre had asked states to submit their pulses demand so that the protein-rich grain could be imported accordingly. He assured that the centre would ensure there were enough availability of pulses in the domestic market even if monsoon failed again.
Source:timesofindia.indiatimes.com
Protecting, maintaining and developing Indian breed of cows are charitable purpose's
IT : Where assessee-trust was established with object to protect, preserve, maintain and develop Indian breed of cows and its progeny, it was to be regarded as charitable purpose within meaning of section 2(15) and, thus, assessee's application seeking registration under section 12AA was to be allowed
Notice u/s 158BC wasn't valid as revenue didn't produce evidence that AO of searched person had reco
IT : Where revenue had not produced any evidence to show that Assessing Officer of searched person had arrived at a satisfaction that undisclosed income belonged to assessee, notice under section 158BC was not valid
No need to issue separate notice to directors before filing complaint for check dishonouring against
Negotiable Instruments Act : No individual notice under section 138 is required to be sent to directors of a company before a complaint could be filed against such directors along with company
Rupee Opens Lower At 64.03 Against Us Dollar
The Indian rupee on Wednesday weakened against the dollar, tracking losses in Asian currencies. The local unit opened at 64.03 per dollar. At 9.09am, the home currency was trading at 64, down 0.13% from its previous close of 63.92. The Sensex index gained 0.23% or 59.92 points to 26,541.17 points in pre-opening trade.
Most of the Asian currencies were trading lower against the dollar. Malaysian ringgit was trading down 0.072%, Indonesian rupiah was down 0.188%, Thai baht 0.098%, South Korean won 0.096, Singapore dollar 0.155% and Japanese yen 0.088%.
The yield on India’s 10-year benchmark bond was trading at 7.80% compared with its Tuesday’s close of 7.79%. Bond yields and prices move in opposite directions.
Since the beginning of this year, the rupee has lost 1.38%, while foreign institutional investors have bought $12.46 billion from local equity and bond markets.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.16, the same level as its previous close.
Source:livemint.com
ITAT sets aside reassessment as AO failed to record reasons for making addition of unexplained inves
IT : Where Assessing Officer passed reassessment order taking a view that assessee made unexplained investment in different items exceeding funds available with him, since said belief of Assessing Officer was not based on any relevant material and, moreover, impugned order was passed for bringing to tax only those incomes in respect of which no reasons were recorded, same deserved to be set aside
Entity level margin couldn't be adopted to determine ALP if one segment didn't have any transaction
IT: When bio-division of assessee did not have any international transactions with AEs, profit or loss from said division should not affect ALP of international transaction of software development services to AEs and only margin of software services was to be considered
Prior to SC's verdict, jurisdiction of Court to entertain cheque bouncing case would be the place of
Negotiable Instruments Act : Where proceedings under section 138 were initiated prior to judgment in Dashrath Rupsingh Rathod v. State of Maharshtra [2014] 128 SCL 26 which restricted territorial jurisdiction to Court where cheque is dishonoured by bank, proceedings would be preserved at place where they were filed only when post summoning and appearance of alleged accused, recording of evidence had commenced as envisaged under section 145(2)
To disallow tax credit, assessee must have given reasonable opportunity to prove genuine of purchase
CST & VAT: Gujarat VAT - Where assessee claimed input tax credit on purchases made from one 'L' and Revisional Authority disallowed claim on ground that registration certificate of 'L' had been cancelled by appropriate authority by holding that all transactions made by 'L' were bogus and not genuine, matter required to be remitted back to Revisional Authority to consider assessee's claim afresh after providing it copy of order passed in case of 'L'
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