No service-tax on unit of body corporate as it couldn't be regarded as a 'assessee' or 'person'

Service Tax : Karnataka Central Diocese, being a unit of body corporate 'Church of South India Trust Association (CSITA)' is not a 'a separate legal entity' or 'person' or 'assessee' under service tax and cannot be made liable for services provided by CSITA

Sum received by Warner Bros. for distribution of films in India isn't 'royalty'; ITAT follows previo

IT/ILT : Where assessee, a US based company, engaged in distribution of cinematographic films, received certain amount from its divisional office on account of distribution of films in India, following order passed by Tribunal in assessee's own case relating to earlier assessment years, amount in question could not be taxed as royalty within meaning of Act or DTAA and, at same time, it could not be taxed as 'business income' because assessee did not have Permanent Establishment in India

CLB dismissed petition against oppression as matter was still sub-judice with arbitral proceeding

CL: Company petition filed under section 397 for similar reliefs as sought in arbitration proceedings by petitioner would not be maintainable

IRDA lays down stringent norms for changes in shareholding pattern of broking entities

INSURANCE : Changes in the share holding pattern of a broking entity

Co-op. bank gets deduction under sec. 36(1)(viia) for NPA created in line with RBI and NABARD guidel

IT : Where assessee-bank had claimed deduction for 'Provision for Non-Performing Assets' under section 36(1)(viia), in view of fact that taxonomy of provision had been done by assessee to keep it in line with RBI and NABARD guidelines, but in pith and substance provision had been created for 'Bad and Doubtful Debts', deduction was claimed in accordance with section 36(1)(viia) and assessee was entitled to benefit of same

RBI cast an obligation on investee-co. to file form FC-TRS on acquisition of shares by NR under FDI

FEMA/ILT : Foreign Direct Investment (FDI) in India – Reporting mechanism for transfer of equity shares/ fully and mandatorily convertible preference shares/ fully and mandatorily convertible debentures

HC set aside penalty proceedings under Tamil Nadu VAT as it was barred by period of limitation

CST & VAT : Where for assessment years 1985-86 and 1986-87 Assessing Authority vide his order dated 30-11-1998 levied penalty under section 22(2) of Tamil Nadu General Sales Tax Act, 1959 upon assessee, proceedings levying penalty were barred by period of limitation

Assessee can’t either seek withdrawal of appeal or file revision petition when appeal was pending be

IT : Where an application is filed seeking withdrawal of appeal but no order is passed by Commissioner (Appeals), appeal will remain pending and subsequent revision petition will not be maintainable

Underground telephone cables used for communication within factory are eligible for credit as 'capit

Cenvat Credit : Underground Telephone Cables falling under Heading 8544.90 and used for communication purposes in various places inside factory are eligible for credit as 'capital goods'

Income earned by subsidiary from reinvestment of sum infused by Indian Holding Co. couldn’t be taxed

IT/ILT : Where AO sought to reopen assessment taking a view that income of assessee's wholly owned foreign subsidiary company was not offered for taxation, in view of fact that there was no failure on part of assessee to disclose all material facts at time of assessment, initiation of reassessment proceedings after expiry of four years from end of relevant assessment year was bad in law

Sudden payment of commission to an employee for his routine work wasn’t justifiable; HC confirms dis

IT: Commission paid to employee was not allowable where there was no material on record to prove that there was any contribution made by said employee, more than his liaison work, to assessee's business to justify payment of huge commission to him

No penalty under Rajasthan VAT merely for non-filling of invoice number and date in Form ST-18A

CST & VAT : Where assessee was carrying goods in a vehicle through State of Rajasthan and Authorised Officer on checking of goods having found that column of 'invoice number and date' of declaration form No. ST-18A accompanied with goods was not filled in and left blank imposed penalty under section 78(5) of Rajasthan Sales Tax Act, 1994 upon assessee, imposition of penalty was not justified

No stay of demand by ITAT beyond 365 days after insertion of third proviso to sec. 254(2A)

IT: Even if Tribunal is unable to hear appeal within 365 days, stay of demand cannot be extended beyond 365 days

HC quashed assessment order as it was barred by limitation period specified under Assam VAT Act

CST & VAT : Where Assessing Officer completed assessment of assessee for assessment year 2005-06 on 13-7-2012, in view of limitation prescribed under section 39 of Assam Value Added Tax Act, 2003, order of assessment was barred by limitation

CCI ruled out dominance by opp. parties as several other developers existed in business of developin

Competition Law: Where there were ten Opposite Party developers who were developing different projects in new township and none of OPs was dominant in township or surrounding areas, there was no abuse of dominance by OPs

Central Govt. notifies ' National Bank for Agriculture and Rural Development' for purposes of sec. 3

IT : Section 36(1)(xii) of the Income-tax Act, 1961 - Other deductions - Corporate or body corporate established under a statute - Expenditure incurred by - Notified corporate body

IRDA amends registration norms of Indian Insurance Cos.; recognizes 'Core Investment Co.' as Indian

INSURANCE/INDIAN ACTS & RULES : IRDA (Registration of Indian Insurance Companies) (Sixth Amendment) Regulations, 2014 - Amendment in regulations 2 and 11

No disallowance of genuine exp. of trust against its taxable income even if it failed to get sec. 12

IT: Even though assessee sports promotion board was denied registration as charitable trust and its income was brought to tax as 'income from other sources', all relevant expenditures were also to be allowed under section 57(iii)

Strict Rules of precedents are not applicable to stay orders and pre-deposit orders, rules HC

Excise & Customs : Strict rules of precedents are not applicable to interim or interlocutory or stay or pre-deposit orders; therefore, quantum required to be pre-deposited could vary if total demand increases

HC raps AO for issuing fresh reassessment notice when previous proceedings were dropped on similar g

IT: Second notice for reopening of assessment on same ground on which previous notice was issued for same purpose, but later on dropped not on technical but substantive grounds, was wholly impermissible

HC order winding-up of jeweler as it neither supplied agreed ornaments nor returned petitioner's gol

CL : Where respondent failed to supply ornaments and return petitioner's gold given for making of such ornaments and had admitted its debt, respondent was to be ordered to be wound up

Income earned by subsidiary from reinvestment of sum infused by Indian Holding Co. could be taxed in

IT/ILT : Where AO sought to reopen assessment taking a view that income of assessee's wholly owned foreign subsidiary company was not offered for taxation, in view of fact that there was no failure on part of assessee to disclose all material facts at time of assessment, initiation of reassessment proceedings after expiry of four years from end of relevant assessment year was bad in law

No invocation of extended period when penalty was set aside due to bona fide confusion as to levy of

Service Tax : Once authorities have come to conclusive finding that for relevant period, there was : (a) genuine cause for confusion regarding correct legal position and also (b) scope for doubt about service tax liability, for purposes of deleting penalty, same is also to be factored in to conclude that extended period cannot be invoked

ITAT raps revenue for invoking sec. 40(b) by treating only those partners as working who were entitl

IT : Where in terms of partnership deed assessee-firm paid bonus to all partners including working partners, conditions prescribed under section 40(b) stood fulfilled and, thus, Assessing Officer could not disallow said payment in case of one partner holding that he was not a working partner

HC dismissed appeal as issue relating to interpretation of SSI exemption was not appealable before i

Excise & Customs : Question 'whether assessee can avail of SSI-exemption simultaneous with Cenvat credit in respect of goods' relates to interpretation of exemption notification and 'rate of duty' and not appealable before High Court

HC denies sec. 254 rectification as assessee was seeking rectification in garb of review

IT : Where assessee did not point out any mistake apparent from record, application for rectification of Tribunal's order was not maintainable

Prior to 27-2-2010, vocational training was exempt from ST even when institutes weren't affiliated b

Service Tax : Prior to 27-2-2010, definition of 'vocational training institute' nowhere mandates that institute must be recognized or accredited; therefore, export import management and retail management and merchandising activities are exempt from service tax even if courses are not approved/affiliated

Courtyard of residential unit isn’t includible in built-up area to determine sec. 80-IB(10) relief,

IT : Area of courtyard which is open to sky and appurtenant to residential unit is not to be included to compute built-up area in terms of section 80-IB(10)

‘Sudhir Mital’ appointed as new member of Competition Commission of India

Competition Act : Section 8 of The Competition Act, 2002 - Composition of Commission - Appointment of Member of The CCI - Notified Member

Penalty upheld in absence of transit form under MP VAT Act; no rectification to file docs against pe

CST & VAT: Where Assessing Officer in absence of requisite documents submitted by assessee levied penalty under section 57(8) of Madhya Pradesh Value Added Tax Act, 2002 upon it and thereafter assessee received relevant documents and submitted same before Assessing Officer in form of request for rectification under section 54 of penalty order, provision of rectification was not attracted in matter

Income of NR agent for arranging NR Artists in India not taxable in status of ‘Entertainer’ under In

IT/ILT : The assessee, an event management company, engaged the services of a non-resident agent to bring the foreign Artists to India. The assessee paid remuneration to the Artists and commission to the agent. It deducted tax on the amounts paid to the Artists but did not deduct tax on the commission paid to the agents. Whether the sum paid to agent could not be deemed to have arisen from the personal activities in a contracting State in status of entertainer or athlete - Held, yes - Whether co

'Directorate of revenue intelligence' officers have jurisdiction to issue notice under sec. 28 of Cu

Excise & Custom : Joint Director in Directorate of Revenue Intelligence (DRI) is an officer of customs and a proper officer notified under section 2(34) for purposes of section 28 and, therefore, has jurisdiction to issue show-cause notice under section 28

Conduct of appellant was oppressive as he set up false and fabricated docs to show increased shareho

CL : Where petitioners filed a false document setting up their shareholding as more than 10 per cent in respondent company, petition filed under section 397 on face was not maintainable for want of qualification under section 399

IRS Officer held guilty of contempt of Court as he was disobeying orders of Court; HC upheld restrai

IT : Where appellant had repeatedly disobeyed orders of court and was thus guilty of contempt of Court, order of Single Judge imposing punishment and fine on appellant for violating/disobeying restraint order was justified

HC affirmed penalty under UP Act as blank field in Form 38 could be used for evasion of VAT

CST & VAT : Where assessee had imported goods into State of U.P. from outside State and column 6 of Form 38 accompanied with goods was not filled in and left blank and Assessing Authority after recording a finding that by keeping column 6 of Form 38 blank such form could be repeatedly used for successive import so as to evade payment of tax, imposed penalty under section 54(1)(14) of U.P. Value Added Tax Act, 2008 upon assessee, imposition of penalty was justified

[Indian Customs Order] : Appointment of Common Adjudicating Authority

F.No.437/38/2014-Cus-IV

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

*****

New Delhi, dated 30th April, 2014

ORDER

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 (as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice F.No. VIII/26/08/2010-DRI HRU dated 15.02.2014 issued by Additional Director General, Directorate of Revenue Intelligence, Zonal Unit, Chennai in the case of M/s Mahanagar Telecom Nigam Limited, (MTNL), Jeevan Bharati Tower-I, 13th Floor, 124, Connaught Circus, New Delhi – 110 001 and others to the Commissioner of Customs (Import), Jawaharlal Nehru Custom House, Nhava Sheva, Uran Taluk, Raigad, Maharashtra for the purpose of adjudication.

(R.P.Singh)

Director (Customs)

Copy to:-

1. The Additional Director General, Directorate of Revenue Intelligence, 25, Gopalakrishna (Iyer) Road, T. Nagar, Chennai-600017.

2. The Commissioner of Customs (Import), Jawaharlal Nehru Custom House, Nhava Sheva, Uran Taluk, Raigad, Maharashtra.

3. The Commissioner of Custom, ICD, Tughlakabad, New Delhi

4. The Commissioner of Customs (Import) New Custom House, Air Cargo Complex, near IGI Airport, New Delhi.

5 The Commissioner of Customs, Air Cargo Complex, Sahar, Andheri (E), Mumbai.

6. webmaster.cbec@icegate.gov.in.

[Indian Customs Order] : Appointment of Common Adjudicating Authority

F.No.437/29/2014-Cus-IV

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

*****

New Delhi, dated 30th April, 2014

ORDER

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 (as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice http://ift.tt/1jnhUHn dated 28.01.2014 issued by Additional Director General, Directorate of Revenue Intelligence, Zonal Unit, Ahmedabad in the case of M/s Krishna Colour Chem, Morbi Parshwanath Complex-1, Trajpar, Morbi and others to the Commissioner of Customs, New Custom House, Near Balaji Temple, Kandla for the purpose of adjudication.

(R.P.Singh)

Director (Customs)

Copy to:-

(i) The Additional Director General, Directorate of Revenue Intelligence, Zonal Unit, Ahmedabad, Rupen Bungalow, near Jain Merchant Society, Paldi, Admedabad-380007.

(ii) The Commissioner of Customs, New Custom House, Near Balaji Temple, Kandla.

(iii) The Commissioner of Customs (Imports), Air Cargo Complex, Sahar, Andheri (E), Mumbai.

(iv) The Commissioner of Customs, Customs House, Near All India Radio, Navrangpura, Ahmedabad-380009.

(v) webmaster.cbec@icegate.gov.in.

[Indian Customs Order] : Appointment of Common Adjudicating Authority

F. No.437/43/2013-Cus-IV

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

*****

New Delhi, dated 30th April, 2014

ORDER

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 (as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice http://ift.tt/1jnhUHh dated 06.05.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Mumbai Zonal Unit, Mumbai in the case of M/s H.V. Jewels (P) Limited, Dreamland Building, 3rd Floor, Block No.A1, Opera House, Mumbai to the Commissioner of Customs, Chhatrapati Shivaji International, Airport, Mumbai for the purpose of adjudication.

(R.P.Singh)

Director (Customs)

Copy to:-

1. The Additional Director General, Directorate of Revenue Intelligence, Mumbai Zonal Unit, UTI Building, 13, Vithaldas Thackersey Marg, New Marine Lines, Mumbai-400020.

2. The Commissioner of Customs (Import & General), New Delhi.

3. The Commissioner of Customs, Chhatrapati Shivaji International, Airport, Mumbai.

4. The Additional Commissioner of Customs, Ahmedabad

5. webmaster.cbec@icegate.gov.in

Sec. 40(b) couldn't be invoked to disallow bonus paid to non-working partner pursuant to partnership

IT : Where in terms of partnership deed assessee-firm paid bonus to all partners including working partners, conditions prescribed under section 40(b) stood fulfilled and, thus, Assessing Officer could not disallow said payment in case of one partner holding that he was not a working partner

HC dropped contempt proceedings against revenue for coercive recovery after unconditional apology of

Excise & Customs : Where revenue had initiated coercive recovery during pendency of stay application of assessee, said proceedings were quashed and contempt proceedings against revenue were dropped after unconditional apology

SAT upheld penalty slapped by SEBI as appellant was involved in synchronized trading and price manip

SEBI : Where appellants had traded in a huge number of shares of a company via off-market transactions and transferred said shares in and on-market transactions by way of reversal/synchorised trades within a short span of period, appellants were guilty of manipulating price of scrip

ITAT sets aside TP adjustment as comparables selected by TPO were improper pursuant to higher turnov

IT/ILT-I : Where in transfer pricing proceedings, TPO made adjustment to assessee's ALP in respect of software development services, in view of fact that two comparables selected by TPO were improper on account of very high turnover, impugned adjustment was to be set aside and, matter was to be remanded back for disposal afresh

Entry tax paid on JCB excavator was not allowable as rebate against Kerala VAT

CST & VAT : As per section 12 of Kerala VAT, all conditions and restrictions applicable to claim of input tax credit are applicable to claim of rebate; therefore, when JCB excavator is in negative list and ineligible for benefit of input tax credit, benefit of rebate is also not available

Asstt. Commissioner can issue notice to transporters and drivers to check docs accompanied with good

VAT : Where Assistant Commissioner checked two vehicles transporting goods from Jalandhar to Raipur through State of UP and Assistant Commissioner having found that documents accompanied with goods were bogus issued notice on transporter and drivers of vehicles under section 50 of U.P. Value Added Tax Act, 2008, Assistant Commissioner issued impugned notice within his jurisdiction

Entry tax paid or JCB excavator was not allowable as rebate against Kerala VAT

CST & VAT : As per section 12 of Kerala VAT, all conditions and restrictions applicable to claim of input tax credit are applicable to claim of rebate; therefore, when JCB excavator is in negative list and ineligible for benefit of input tax credit, benefit of rebate is also not available

No denial of sec. 54 relief if property was eventually converted into commercial property

IT: It is intention of parties when development agreement was entered into and municipal permissions were obtained, which determines nature of property sought to be acquired, and subsequent change in user of property does not disentitle assessee to relief under section 54

Assessee couldn’t claim pendency of COD clearance merely by re-filing COD clearance request

Excise & Customs : Where assessee's application for clearance from Committee on Disputes (CoD) was rejected in 2006, right of assessee to pursue challenge stood terminated; therefore, application filed on 11-2-2011 for reconsideration could not be regarded as 'pending' on 17-2-2011 so as to automatically allow appeal

Successor Co-op. Societies can’t claim set-off losses of amalgamating societies; Sec. 72A meant for

IT: Section 72A provides for setting off losses on amalgamation of companies only - There is no provision in the Income-tax Act, which would permit the amalgamating co-operative society to carry forward and adjust such losses against the profits of the amalgamated co-operative society – Benefits conferred to one class of legal entities does not mean that the legal entities not referred to in the Act would also get the same benefit

HC calls for swiftly disposal of appeals, sets aside order as there was excessive delay in verdict e

Excise & Customs : Undue delay in delivery of judgment after hearing is, in itself, sufficient to set aside impugned order without considering merits of order

HC directed RBI to allow NBFC Co. to use its SLR investment for payment of interest to depositors

RBI : Where petitioner NBFC requested RBI to permit it to use SLR investment for making payment to secured creditor banks under a OTS proposal, in view of fact that company court was monitoring recovery and payment of dues of petitioner NBFC and on discharging dues of petitioner to creditor banks under OTS all other assets would become available for benefit of depositors, RBI was obliged to exercise its discretionary power to grant exemption to liquidate SLR investment so that suffering of depos

Sec. 80-IB(12) doesn't restrict relief to cases of transfer made under amalgamation or demerger sche

IT: In terms of sub-section (12) of section 80-IB, it is not necessary that deduction has to be allowed only where transfer of unit/industrial undertaking is under scheme of amalgamation or demerger

Tribunal doesn't have power to extend period of limitation prescribed by law for entertaining appeal

Service Tax : Appellate Tribunal does not have power or authority to extend period of limitation prescribed by statute, for entertaining appeal before Commissioner (Appeals)

Case remanded for de novo assessment as rental value of property wasn't determined as per direction

IT: Where while making de novo assessment, Assessing Officer relied upon decision of co-ordinate bench of Tribunal but failed to take into consideration directions given by Commissioner for making necessary enquiries for determining fair rental value of property, matter was to be restored to file of Assessing Officer for de novo assessment in accordance with law

Prior to 1-4-2008, transport service for clearance of goods from place of removal was eligible 'inpu

Cenvat Credit : Prior to 1-4-2008, transport service for clearance of goods from place of removal is eligible for Cenvat credit as 'input service'

Pact between customer and seller wasn't anti-competitive as party wasn't working at horizontal level

Competition Law: Where OP had competitive constraints due to presence of other developers in relevant market of provision of services for development and sale/purchase of residential apartments in Tamil Nadu, OP could not be said to be dominant in relevant market

Sales commission paid to NR agent for services rendered outside India wasn't taxable in India; no wi

IT/ILT : Where assessee-company made payment of sales commission to a foreign party by direct remittance for services rendered outside India, amount in question not being chargeable to tax in India, assessee was not required to deduct tax at source while making said payments

Penalty couldn't be imposed on stock transfer merely because it was not followed by a duly filled up

CST & VAT : Where Assistant Commercial Tax Officer intercepted a vehicle on 15-10-1996, wherein goods of assessee were being transferred as stock transfer, and having found that declaration Form No. ST-18A accompanied with goods was lying blank imposed penalty under section 78(5) of Rajasthan Sales tax Act, 1994 upon assessee, imposition of penalty was not justified

No reassessment as profit was treated as capital gain after detailed inquiry during original assessm

IT : Where transactions were treated in nature of capital gain after making detailed inquiry in scrutiny, no reassessment would be sustainable

Interest was payable on differential duty even if it duty was paid before finalization of provisiona

Excise & Customs : In case of provisional assessment, where there is delay in payment of duty (part or full) for whatsoever reason, interest is required to be paid from first day of month succeeding month for which such duty is determined to date of payment of duty even if assessee has paid duty before finalisation of assessment

Selection of wrong code in I-T return won't turn a Public Co. into Private Co. to recover unpaid tax

IT: Where assessee-company was registered as a public limited company and also it came out with public issue, then merely because wrong code number applicable to private company was selected in return, section 179 could not be applied making its director liable for arrear of tax

Telecom operators are eligible to avail of credit of ST paid on inter usage connection services

Cenvat Credit : A telecom operator providing telecom services is, prima facie, eligible to take credit of Inter Usage Connection (IUC) charges paid against bills raised by other telecom operators

HC upheld imprisonment sentence against appellant-Director for violating Collective investment schem

CL : HC convicted appellant-company and its Managing Director for contravening sub-section (1B) of section 12 of SEBI Act as it collected money from the investors under its CIS schemes without registration with SEBI and it also committed contravention of the provisions of section 24 of the Act by not complying with the Regulations framed by SEBI and the directions issued by the Chairman.

Question of retrospective effect of notification which is co-related with rate of duty isn't appeala

Excise & Customs : Question whether exemption Notification can be given retrospective effect is a question having direct co-relation with rate of duty for purpose of assessment and appeal involving such matters is not maintainable before High Court.

HC quashed reassessment notice as info provided by banks about fake accounts didn't pertain to relev

IT : Where information about fake bank accounts created by certain companies for channelising fund was not related to relevant year, notice for reassessment was to be quashed

Scope of term 'Total Income' under sec. 5 can't be used for determining additional tax for settlemen

IT : For computing additional tax for settlement application, definition of 'total income' under section 5 not applicable in view of the deeming fiction contained in Clause (ii) of sub-section (1B) of section 245C whereby total income has to be considered as if the aggregate of the total income returned and the income disclosed would be the total income. Such deeming fiction must be allowed its full effect

Payment to seconded employees is FTS; Foreign co. is real employer if Indian co. can cancel secondme

IT/ILT: Overseas entity was the real employer of seconded employees when Indian entity had only the right to terminate the secondment without conferring the right to terminate the original employment. Reimbursement of salary of seconded employees to the overseas entities could not be characterized as stewardship and was to be regarded as FTS when they rendered quality control services till the necessary skills were acquired by the resident employee group

Excise duty of prior years was to be allowed in year of adjudication even if books were maintained o

IT : Where assessee's liability to pay excise duty relating to earlier years was adjudicated during relevant assessment year, assessee could claim deduction of amount so paid in assessment year in question even though books of account were maintained on mercantile system of accounting

Penalty couldn't be imposed on stock transfer because it was not followed by a duly filled up Form S

CST & VAT : Where Assistant Commercial Tax Officer intercepted a vehicle on 15-10-1996, wherein goods of assessee were being transferred as stock transfer, and having found that declaration Form No. ST-18A accompanied with goods was lying blank imposed penalty under section 78(5) of Rajasthan Sales tax Act, 1994 upon assessee, imposition of penalty was not justified

Income arising to FIIs from derivative transactions would be capital gains and not business income

IT : Following order passed by Tribunal in assessee's own case relating to earlier assessment year, income arising from transactions of derivatives to assessee, a FII, could not be treated as business profit rather same had to be assessed under head 'capital gain'

HC of State where first court was situated is correct authority for appeal; situs of Tribunal won't

Excise & Customs : High Court situated in State where first court is located should be considered to be appropriate appellate authority and situs of Tribunal is not determinative factor for said purpose

Does withholding of tax guarantees deduction HC deleted disallowance of exp. as tax was deducted the

IT: Where TDS was deducted on payments made to sub-contractors and other details were also furnished expenditure was to be allowed

HC condoned delay in filing appeal as reasons for delay were explained by revenue and it involved hu

CST & VAT: Where revenue filed appeal before High Court late by 924 day and sought condonation of delay, since not only delay was explained by revenue but monetary impact in terms of tax involved was also considerable, delay deserved to be condoned

Dishonour of post-dated cheque proves fatal; HC admits winding-up petition on ground of failure to p

Banking Laws : Where respondent company issued post dated cheques to discharge its outstanding dues to petitioner-company and same were dishonoured, objections taken on behalf of respondent company were without merit and hence winding up petition was to be admitted

ALP can't be computed on consolidated basis under TNM Method by merging diverse international transa

IT/ILT: While applying TNMM, assessee cannot combine various international transactions for determining ALP on a consolidated basis

Russia's New Crop Wheat Price Seen Down

Russia's wheat export prices are expected to fall by 7 percent from current levels when the new crop starts to arrive on the market in large volumes in July, the Institute for Agricultural Market Studies (IKAR) said in a note on Monday.



Russia, expected to be the world's fifth-largest wheat exporter this season, is shipping modest volumes now after massive supplies in previous months have cut into its stocks. The country shipped more than 16.5 million tonnes of wheat between the start of the 2013/14 season on July 1 and April 20, IKAR said. By the end of the season, Russia will export an additional 1 million tonnes, it added.



Future prices for the new wheat crop with 12.5 percent protein content are quoted by market participants at $270 per tonne on a free-on-board (FOB) basis in the Black Sea now, IKAR said. That is its first estimate for the price of the new crop. Southern Federal District, the country's main wheat-exporting region, usually starts the harvesting campaign in June.



For the old crop, the tension between Russia and Ukraine, which are adding to concerns over supplies from the Black Sea, continued to lend support to prices last week. Prices for old crop wheat with 12.5 percent protein content rose $2 to $291 per tonne last week on the FOB basis in the Black Sea, IKAR said. Russia's spring grains sowing campaign has continued to proceed faster than last year thanks to the dry weather, and farmers expect to sow a larger area for sunflower and maize (corn) this year, agriculture analytical firm SovEcon said.



Farmers had sown 5.3 million hectares as of April 25, or 16.5 percent of the whole planned area for spring grains, which was 1.2 million hectares more than on the same day a year ago, according to data from the Agriculture Ministry. Spring wheat was sown on 498,400 hectares (3.8 percent of the whole planned area), barley - 2.9 million hectares (33.6 percent), maize - 801,000 hectares (30.9 percent) and sunflower - 1.2 million hectares (17.4 percent).



Market participants expect the first new crop grain - winter barley - to arrive on the market in mid-June, earlier than usual and thanks to an early spring, SovEcon said. It estimated that Russian sunflower seed prices declined by 100 roubles to 13,125 roubles ($360) a tonne at the end of last week. IKAR pegged its sunseed price index at $379 per tonne, up $4. Export prices for sunflower oil were flat, at $870-880 a tonne on the FOB basis in the Black Sea, according to SovEcon. The white sugar price index in Russia's South was flat at 27,950 roubles ($780) per tonne last week, IKAR added.

Source:- brecorder.com

Indian Steel Prices In For Windfall Gain On Input Shortage

The splendid run in long and flat steel might be escalating in the coming days. Going by the direction and mood of Supreme Court in recently it seems iron ore production will be curtailed severely after scrapping of all deemed lease after 2007.

Judgment on Goa mining heralding peril today’s observation on Orissa mining inched closer to disaster. SC firmly indicated at Goa-style ban on all mining in Odisha for three months till the state government sorted out all mining illegalities and granted fresh leases.

Suspense remained with the court reserving its order. Of the 56 operating leases in Odisha, 26 fall under second and subsequent renewal. This include six of Tata Steel's iron and manganese leases and three of SAIL's, leases held by Roongta's mines. Aditya Birla group's Essel Mining, a mine owned by KJS Ahluwalia and two mines owned by state-owned PSU Orissa Mining Corporation.

In Goa the permission to mine 20 million tonne will be ineffectual as except for Vedanta-Sterlite most of the other miners will suffer the axe.

If this were to come out true Indian steel mills will be starved of iron ore and sponge iron leading to production shortage as the capacity utilization will decline. Odisha caters to nearly 50% of iron ore production in the country.

The secondary sector contributes nearly 30% of crude steel production but more than 60% of long steel production. This sector is dependent on imported scrap (4.5 million tonnes) and sponge iron about 23-24 million tonne. Moreover the primary sector steel production is solely dependent on iron ore.

Indian steel price have gained 4% since January. Trend remains up as the cost of production has led to hiked conversion cost by INR 1000-1500 per tonne from scrap/sponge iron to ingot and TMT.

Imported Scrap offers from European suppliers have gone upto USD 8-10 per tonne on anticipation of GRI (General Rate Increase) on freight of container transportation from Europe to Asian countries to be implemented in the month of May ’14. Moreover with domestic consumption of scrap going up in European and US market its availability is likely to be restricted in the coming months .Current offers are hovering at USD 385-390/MT CFR Mumbai against USD 380-385/MT CFR last week for HMS 1&2 and USD 405-408/MT CFR Mumbai for Shredded Scrap.

Flat steel price levels despite looming threat from cheap Chinese imports has maintained parity gap of around INR 3000 per tonne and is unlikely to decline in the coming days if shortage becomes reality. Moreover with summer demand from white good sector picking up price will be ascendant.

In all steel market in India is held on tenterhooks by the Supreme Court rather than by market fundamentals of demand and supply. Heady days are ahead for the steel price levels. Moreover with stable government being formed the prospects of economic and monetary reforms becoming brighter demand from construction, auto, white good sector will pick up giving much desired traction.

Source:- steelguru.com

Rental income from business of letting out of commercial property would be treated as business recei

IT: Where assessee carried on business of letting out commercial property rental income therefrom, would be assessable as business income

Existence of prima-facie case isn't enough to waive off pre-deposit in absence of financial hardship

Excise & Customs : Prima facie case is not sole criteria for deciding pre-deposit, but financial hardship has also to be considered side by side and it is wrong to say that financial difficulty is a subordinate criteria

Dream Knitwear Technology Mission Project To Become Reality Next Week

The long awaited Knitwear Technology Mission in nearby Tirupur to promote product and fabric diversification and value addition across the apparel value chain, would become a reality from May six.

The Rs 13 crore Mission Center, under the aegis of Apparel Export Promotion Council, would offer necessary services to trade and industry to develop innovative apparel categories for sports wear, swimwear and varieties of performance wear mainly from man-made fibres like polyester and nylon, A Shaktivel, Chairman, KTM, told reporters last night at Trirupur.

With majority of the countries now going for high fashion wear from man made fibre yarn, as against almost 95 per cent cotton yarn in India, KTM has imported latest version of Tricot Warp knitting machine from Germany, which can be utilised by Indian apparel exporting community for their sampling needs, he said.

As there was huge market for sports wear and swim wear, crossing 75 to 80 billion dollars, Indian exporters can tap these markets, Shaktivel said.

Stating that the Council has recently discussed with the textile ministry the issue of expanding the Centre and also more funds, he said Zohra Chatterji, Secretary, Union textile ministry, will inaugurate the Centre.

KTM Centre would also impart consultancy and training in the fields of knitting, processing, garmenting, CAD/fashion designing, new product development, testing and consultancy for yarn and fabrics, he said, adding, it has a facility to train at least 5,000 personnel every year.

Source:- economictimes.indiatimes.com

Erratic Weather To Trim India's 2014 Tea Output, Exports

Tea output in India's top-producing Assam state is likely to fall by 10 percent in 2014 due to scanty rainfall and a sharp rise in temperatures, hitting exports of premium grade leaf from the world's biggest black tea producer, industry officials said.

A drop in India's production and exports could push up global prices and boost shipments from competing countries like Kenya, Sri Lanka and Vietnam.

India's north-eastern Assam state produced 618 million kg tea in 2013, more-than half of the country's total production of 1,200 million kg.

"We have lost production since the start of the year due to extreme dry weather. There could be a 10 percent drop in production this year," Rajib Barooah, chairman of Assam Tea Planters' Association, told Reuters.

"Higher temperatures are hitting the growth of tea bushes. There is a concern of pest infestation due to erratic weather."

In Assam and West Bengal, the country's second-biggest tea producer, temperatures were hovering 2 to 5 degrees Celsius above normal, the weather department said on Tuesday.

"Tea plantations badly need rainfall. Further dryness will increase crop damage," said Sujit Patra, joint secretary at the Indian Tea Association.

Tea production in West Bengal, centred on Darjeeeling tea gardens known for their superior quality, could drop if adverse weather conditions prevail for next few weeks, Patra said.

From March 1 to April 23, Assam received 69 percent less rainfall than normal, while rainfall in West Bengal was 63 percent below average. The two states accounted for nearly 80 percent of the tea production last year.

Rainfall in March and April determines production in May and June, when Indian tea gardens produce their premier second flush crop.

"Quality-wise second flush is the best and most sought by exporters. If its production and quality goes down, then obviously it will have a negative impact on exports," Barooah said.

India's tea exports rose 2 percent to 212 million kg in 2013 due to higher purchases from Iran.

India exports CTC (crush-tear-curl) tea mainly to Egypt, Pakistan and the UK, and orthodox variety to Iraq, Iran and Russia.

"Early onset of the monsoon and average rainfall could limit the crop damage. But if the monsoon remains patchy as forecast by weather department, then production would suffer in the second half of the year," said a researcher at Tea Research Association.

India usually produces the bulk of its tea in the second half of the year. The country is likely to receive below-average rainfall in 2014, the government's weather office said on Thursday, citing a risk to the June-September monsoon rain season from the El Nino weather pattern.

Adverse weather could trim tea output at the world's biggest tea producer McLeod Russel and Jay Shree Tea and Industries as they have plantations in Assam and West Bengal. But the impact on earnings would be limited due to a likely rise in tea prices.

"On auction platforms we are getting lower supplies than last year and this is being reflected in tea prices," Kalyan Sundaram, secretary of Calcutta Tea Traders Association, said.

Source:- in.reuters.com

Reviving Indian Manufacturing May Not Be Easy

The economic policy discourse in India, which is on the cusp of getting a new government, is considerably devoted to stimulating large-scale manufacturing.

Historically, this has been the route to absorb a vast pool of surplus labour, otherwise engaged in low-productivity agriculture. However, for various reasons, India has leapfrogged the development trajectory—from agriculture to manufacturing and then, services. As such, unlike in the past when agriculture provided bulk of the gross domestic product (GDP), now it is the services sector, which has far lower employment capacity. As manufacturing is capable of generating more jobs per unit of output, hence the focus.

However, going by past trends, this may not be so easy. Consider the five years to 2007-08, a period of India’s strongest ever growth, 8.9% each year. Manufacturing grew at an annual average rate of 10% in real terms. It also contributed to more than half the increase in private investment, which grew by an annual average of 17%, adjusted for inflation; and spending on machinery and equipment, which directly reflects manufacturing demand, grew at a much faster pace, 31%. Despite this spectacular performance, how much did its share of the GDP pie increase? Just one percentage point!

Global demand is critical in uplifting Indian manufacturing to another level altogether. In the aforesaid period, world output growth was unprecedented, an average 5% annually, outstripping the previous record average of 4% over 1984-89. This fuelled robust growth of Indian exports, which grew 22% each year. Even though direct exports account for just 15% of manufacturing output, manufacturing growth correlates very strongly with lagged export growth (over 2000-10 period), reflecting globalization effects.

But the external environment is far less compelling now; the International Monetary Fund forecasts a much slower pace of world output—3.6% in 2014 (from 3% last year) and then inching up to 3.9% in 2015. Foreign demand structures are changing too. Advanced countries are growing more on the strength of their exports to the developing world, whose exports are projected to grow at a relatively slower pace. That’s one reason for concern in the medium-term.

It is hard to reorient manufacturing towards the domestic market in a short while especially at a time when large-scale foreign direct investment into export-oriented industries has completely bypassed India. Moreover, structural and institutional changes, like better infrastructures, labour market flexibility and so on, requires attracting foreign capital, which again takes time.

In the near term therefore, the best strategy is to expand export shares in other directions—from the established markets in the developed countries to emerging economies and other developing countries. Macroeconomic policies must be suitable too; in a world where almost all currencies have weakened equally, the challenge is to preserve competitiveness.

Indian manufacturing has steadily lost competitiveness since the start of the millennium. Losses are comparatively much higher in some areas, e.g., textiles, which exports two-fifths of its output, adds 14% to industrial production and employs nearly 8% of labour force. Such trends must have a bearing upon policy settings to revive manufacturing.

Source:- livemint.com

Testing Firm Tuv Sud Witnesses Surge In Business From Indian Seafood Sector

Certification and testing agency TUV SUD has observed a surge in business from Indian seafood sector in last 12 months. The seafood export industry is showing signs of recovery after initial hiccups in the past few years when the European Union, Japan and US tightened inspection norms for marine products.

With seafood exports growing exponentially, there has been an increasing need for third party testing and inspection agencies who can help businesses adhere to stringent import norms.

With the government setting up a new breeding centre, tiger shrimp aquaculture in India is set to increase by one lakh tonnes annually with an export value of $1 billion. India's seafood exports recently crossed the one million tonne mark for the first time in history, clearly indicating calibrated growth of the marine exports in the country.

While many factors have contributed to this growth, quality assurance is one aspect that has progressively grown in precedence in the past decade. Seafood exporters are therefore increasingly seeking international third party quality assurance providers to improve the global acceptance of their consignments.

US and Japan being the largest importers of Indian shrimps, international third party assurance agencies provide the quality edge to exporters in India.

TUV SUD's services have helped seafood exporters minimise the risk of legal penalties and costly product recalls through globally acclaimed quality assurance services.

"Presence of antibiotics and unhygienic breeding conditions are some of the most common reasons for seafood consignments being rejected. Exporters in India are often found grappling with dynamic import norms in various countries, the most recent one being; Japan objecting to the levels of ethoxyquin, an anti-oxidant used as preservative in shrimp feed. Our services help exporters comply with the most updated import norms and thereby reduce the risk of large scale rejection of consignments. Seafood exports have a very strong potential of become huge foreign exchange earners for the country and the growth of our marine business is a testament of the growing seafood export sector in India." opines Dr. Pankaj Jaiminy, AVP, Food testing Services, TUV SUD South Asia.

Source:- economictimes.indiatimes.com

Indian Consumers Of The Fruit Rejoice, As European Union Bans Mango Imports

There is probably not even a kernel of truth in the importers' fear that the estimated 16 million Indian mangoes usually headed for Europe in the summer — as compared to the mere half-million aam Indians who apply for European visas annually — will be burned by despondent Indian exporters because of the impending EU ban on them from May 1.

Indeed, if El Nino leads to deficient monsoons in India, a bumper consignment of juicy mangoes in local markets courtesy the EU ban would certainly impart seasonal cheer to squeezed exporters and parched local consumers.

While Europeans' fear of desi parasites arriving as illegal immigrants along with the consignments has trumped their greed for mangoes, given India's population and predilection for the fruit, none will be left unconsumed.

However, Britain — and indeed all European governments who will have to implement the ban — should watch out for the rise of local aam aadmis or aficionados, as they are likely to be incensed by this denial of their basic right to access the "king of fruits" because of the Brussels bureaucracy.

Time is ripe for all sorts of revolutions and there is no telling what form this upsurge could take too, provoked by enticing images of their mango-sated counterparts elsewhere. After all, the adage goes, "If you can't lick 'em, join 'em".

Source:- economictimes.indiatimes.com

MCA releases list of new e-forms under 2013 Act alongwith corresponding e-forms under 1956 Act

COMPANIES ACT, 1956/ COMPANIES ACT, 2013 : Mapping of e-forms prescribed under the Companies Act, 2013 with e-forms prescribed under Companies Act, 1956

SEBI specifies requisite infrastructure and controls for proper functioning of FPI regime

SEBI : Infrastructure facilities and submission of periodic reports

Back to basics: Unabsorbed depreciation could be carried forward without fixed limit of 8 years, HC

IT: Unabsorbed depreciation of assessment years 1997-98 to 2001-02 could be allowed to be carried forward and set off even after a period of eight years, in view of amended section 32(2)

Work contracts for fixing metal crash barriers on roads to prevent accidents are liable to VAT at 2%

CST & VAT : Where assessee had undertaken a contract for preparing and installing metal crash barriers on both sides of roads for prevention of accidents, installation of such barriers was basically in nature of civil work of buildings which, in turn, was a part of construction of a road and, therefore, assessee was liable to pay tax at rate of 2 per cent as against 12 per cent demanded by Commissioner

Rupee Strengthens To 60.48 Amid Dollar Sales; Global Factors Weigh

The rupee was trading higher against the US dollar on Tuesday amid dollar sales by exporters in quiet trade as dealers awaited new cues.

At 2.45pm, the home currency was trading at 60.48 per dollar, up 0.27% from previous close. It opened at 60.62 and touched a high and a low of 60.43 and 60.64, respectively.

India’s benchmark index, S&P BSE Sensex, was trading at 22,529.93 points, down 0.45%.Traders were cautious ahead of the two-day US Federal Open Market Committee (FOMC) meeting starting later on Tuesday.

Dollar inflows from exporters supported the rupee.“Overall range-bound movement in the rupee is mainly dictated by global factors such as tensions in Ukraine while locally investors are awaiting the outcome of the elections,” India Forex Advisors, a local foreign exchange advisory firm, said in a note earlier on Tuesday.

Since the beginning of this year, the rupee has gained 2.23%, while foreign institutional investors (FIIs) have bought $5.05 billion during the period from local equity markets.The yield on India’s 10-year benchmark bond was trading at 8.855%, compared with its Monday’s close of 8.857%. Bond yields and prices move in opposite directions.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 79.632, down 0.06% from the previous close of 79.683.

Source:- livemint.com

New Exim Policy To Promote Exports - Imports Substitution'

The new government's Foreign Trade Policy (FTP) document will vigorously promote export as well as import substitution with equal emphasis and lay greater thrust on engaging the rest of the world with Indian pharma, engineering and other such products, said Sumeet Jerath, Additional DGFT, Centre Licensing Area (CLA).

Presiding over the Interactive Session of Members of PHD Chamber of Commerce and Industry with DGFT CLA on Niryat Bandhu Initiative in New Delhi on Monday, Jerath also disclosed that the DGFT's second committee report on reducing transaction cost was ready for public consumption and suggest a way forward as to how the new government should tackle the issues, relating to higher transaction cost to enable exporters achieve the desired level of exports to both developed and developing economies.

"India being part of WTO cannot only think in terms its export promotion without equally supporting import substitution. Therefore, the focus of the new Export & Import Policy would be to vigorously promote both exports and imports with significantly substantial focus on exports," said Jerath.

However, he assured the Indian industry that while the new government would deepen its external engagements with exploring potential markets, it would also make sure that domestic pharma industry gets a fair deal and not subjected to uncalled for regulations as happened with one of the leading pharma company of India recently. The domestic pharma exports would exceed to an extent of thousand of crores after the new EXIM Policy is put in place by the new government, indicated Jerath.

He also said that age old procedures and regulations, governing exporters would be trimmed and pruned to suit the exports requirements of the modern times so that the realistic targets for exports set from time to time are made achievable to enhance the contribution of Indian exports to its national GDP. In the meanwhile, it would be the attempt of the policy makers to take India’s share in global trade to over 5 percent from current level of 2 percent in next five year period for which the new government will unveil its foreign trade policy after constitution of 16th Lok Sabha.

In his welcome remarks, Alok B Shriram, Sr. Vice President, PHD Chamber demanded fair deal for exporters out of the new foreign trade policy and urged the policy makers to restore some of the export promotion policies that were earlier in vogue.

He also urged the officials of the DGFT present during the occasion that the new policies should be such as could help India deepen its external engagements with the rest of the world so that India makes a mark.

Source:- smetimes.in

ITAT denies sec. 80-IB relief as return was filed by assessee after due date specified under sec. 13

IT: Where assessee had sufficient reasons which prevented it from producing various documents before Assessing officer, documents sought to be admitted as additional evidence

Sugar cess paid as additional duty of customs on imported sugar is excise duty and eligible for cenv

Cenvat Credit : Sugar cess is tax, and to be precise it is 'duty of excise' and not 'fee'; it is a duty of excise on all sugar produced by any sugar factory in India

SC: Once an open offer is made through public announcement it can’t be withdrawn later if it becomes

CL : Whether an open offer voluntarily made through a Public Announcement for purchase of shares of the target company can be permitted to be withdrawn at a time when the voluntary open offer has become uneconomical to be performed. Held- No

Demurrage charges to be excluded from value of closing stock; rules ITAT

IT : Demurrage/detention charges were not liable for inclusion in valuation of closing stock

Pre-deposit requirement to be waived off if same issues were decided by HC in favour of assessee

CST & VAT : Pre-deposit must be waived by Tribunal, if identical issue decided finally by jurisdictional High Court

‘Ready to use’ rig isn’t an Installation PE as per India-USA DTAA; HC denies interpreting term ‘used

IT/ILT: The term'used'as specified in Article 5 of India-USA DTAA does not include 'ready to use' as specified by the Income-tax Act - Held Yes - When 'rig' was lying 'ready for use', it could not be considered as 'used' for purpose of said Article 5 - Held Yes -Whether the Tribunal had rightly concluded that the word 'used' as specified in said DTAA clarifies usage of an installation or structure for exploration of natural resources and if it was so used for a period of 120 days in 12 months, o

Issues concerning levy of custom duty and classification of goods were not appealable before the Hig

Excise & Customs : Where issues involved are levy of customs duty and classification of goods, grievance that 'Tribunal has not given a specific finding with regard to classification of goods' is also appealable before Supreme Court only, not High Court

Sec. 80-IB relief available to assessee manufacturing products which are essential for cigarettes ma

IT: Deduction under section 80-IB cannot be denied to an assessee who is in manufacturer of cigarette filter rods which are used for manufacture of filter cigarettes

Issues concerning levy of custom duty and classification of goods were not appeal before the High Co

Excise & Customs : Where issues involved are levy of customs duty and classification of goods, grievance that 'Tribunal has not given a specific finding with regard to classification of goods' is also appealable before Supreme Court only, not High Court

No liability of director to pay taxes of Co. if he was appointed after conversion of private co. int

IT : Where a company was initially incorporated as a private company in September, 1991 and it was converted into a public limited company on 5-4-1995 and thereafter assessee became its director on 9-3-1996, since assessee joined company as a director only after it was converted into a public limited company, outstanding dues of company could not be recovered from him under section 179

Electricity charges and donations for booking of marriage hall are liable to luxury tax

CST & VAT : Electricity charges and voluntary contributions or donations received from persons booking marriage hall are includible in 'marriage hall charges' and are liable to luxury tax