Assessee couldn't challenge validity of auction proceedings after transferring his interest in prope

IT : Where in respect of tax arrears due from assessee, TRO made a proclamation for auction of land belonging to assessee, in view of fact that assessee had already sold her interest over property to a third person, she could not file appeal before Chief Commissioner challenging validity of auction proceedings

ICSI plans to place ceiling of five Cos for which Secretarial audit report can be issued by practici

COMPANIES ACT, 2013 : Guidelines for Issuing Secretarial Audit Report, Signing and Certification of Annual Return by Practising Company Secretaries

In computing sec. 80-IA relief losses of eligible business not to be reduced if it was set-off from

IT : Where assessee's company's losses had already been set off against income of business enterprise, assessee would be eligible for deduction claimed under section 80-IA

Short-payment of duty was recoverable even if it was paid on basis of any approval or assessment by

Excise & Customs : Bus/truck body built on chassis supplied by customers are classifiable under Heading 8707 of Central Excise Tariff Act, 1985

HC admitted winding-up plea against respondent-co. as it failed to pay debt even after acknowledging

CL: Where respondent was a beneficiary of goods sold and delivered for value and debt, which was acknowledged and liability having been accepted, a clear case of inability to pay debt having been established by petitioner, winding up petition was to be admitted

Employment of more engineers won't show Co. as technical service provider for transfer pricing purpo

IT/ILT : Where TPO made addition to assessee's ALP taking it as a technical service provider, mere fact that out of total staff of 69 employees there were 37 engineers, was not enough to conclude that assessee rendered technical services

Govt. notifies ‘Uttar Pradesh Electricity Regulatory Commission’ for the purpose of exemption under

IT : Section 10(46) of the Income-Tax Act, 1961 - Exemptions - Statutory Body/authority/board/commission - Notified Body or Authority - Uttar Pradesh Electricity Regulatory Commission

AO cannot make revision on basis of material existing at the time of original assessment

CST & VAT : Andhra Pradesh VAT - Assessing Authority could not have exercised his powers under section 14(4) of Andhra Pradesh General Sales Tax Act on existing material

Employment of more engineers won't show Co. as technical provider for transfer pricing purpose

IT/ILT : Where TPO made addition to assessee's ALP taking it as a technical service provider, mere fact that out of total staff of 69 employees there were 37 engineers, was not enough to conclude that assessee rendered technical services

No reassessment after 4 years alleging wrong allowance of exp. if assessee had disclosed all materia

IT : Where assessment in case of assessee was completed under section 143(3) wherein assessee's claim for salary paid to partners was allowed, in absence of assessee's failure to disclose all material facts necessary for assessment, Assessing Officer could not initiate reassessment proceedings on basis of change of opinion that claim for payment of salary was wrongly allowed

Delay in filing appeal by revenue due to delay in convening review committee held condonble by High

Excise & Customs : Delay in filing appeal by revenue owing to delay in convening Review Committee, as Commissioners comprising Committee were pre-occupied with work relating to standing committee and other administrative reasons, is condonable, as there is sufficient cause

AAR couldn't reject application without explaining how transaction via Mauritius route was made for

IT/ILT : AAR could not reject application filed by assessee, a Mauritius based company, seeking advance ruling on question as to whether capital gain arising on sale of shares of Indian company to another foreign company was taxable in India in terms of article 13(4) of India-Mauritius DTAA taking a view that said transaction was prima facie designed for tax avoidance without assigning any reasons therefor

Multi-piece packing of soaps on job-work basis prima facie amounts to manufacture

Service Tax : Soaps are covered under third schedule to Central Excise Act, 1944; hence, multi-piece packing of soaps on job-work basis prima facie amounts to deemed manufacture under section 2(f)(iii) and same is not liable to service tax under Business Auxiliary Services

AO can't make reference to Valuation Officer without declaration of lesser sale price by assessee

IT: Where nothing was brought on record by Assessing Officer indicating that assessee had disclosed lesser sale price of property, reference under section 55A was not justified

CCsIT to be ready for briefing by SC at short notice as it would deal with tax matters on all workin

IT/ILT : Section 261 of the Income-Tax Act, 1961 - Appeal to Supreme Court - Constitution of Bench of Supreme Court to Deal Exclusively with Tax Matters

India's Food Exports Dip, Wheat Hit Hardest

India's food export volumes have shrunk in the current fiscal with other countries eating into its business share by offering lower prices for their agricultural and food products. European Union's ban on Indian mangoes, though lifted now, and other agri produce also contributed to the slide.

A recent report of the Agricultural and Processed Food Products Export Development Authority (APEDA) has showed that exports of some major commodities in agricultural and food products from India dipped in 2014-15 as compared to last year.

The highest drop in export volumes has been recorded for wheat (36%), pulses (37%) and fruits and seeds (33%) in the April to December period last year as compared to the same period in 2013. Exports of fresh vegetables fell by 3%, fruits by 7% and basmati rice by 6%, the report stated.

Officials in the agricultural and processed food authority said that the demand for Indian produce came down this year in particular, because other exporting countries were selling their produce at a much lower price than India.

Apart from basmati rice and wheat, other cereals registered an export drop of about 10%. Exports of non-basmati rice from India, however, increased by 12% last year in the April-December period as compared to the same period in 2013.

A senior official from the agricultural and processed food authority said that general demand for Indian produce has come down internationally due to competition from other countries. "Devalued currency in Russia, Latin America, Commonwealth of Independent States (CIS) among others had these countries exporting the same produce at a lower price than India," the official said.

Other factors too led to the drop. For instance, India's rice is exported to Iran, but this time Iran had old stock and better domestic production of rice, which led to a dip in rice exports from India to the country.

India's fruits and vegetables are exported to all the major countries, mainly to the Middle East, Far East and SAARC countries.

Officials in the state agriculture department, however, said that the dip in exports was also due to a ban by EU on mangoes, eggplant, the taro plant, bitter gourd and snake gourd and on chillies by UAE in 2014.

"Also, this year, India did not have a good supply season. Every item is exported in a particular supply period. If before India's supply season, other supplying countries are able to sell their produce in a big way and at lower prices, then the importing countries do not exhibit much demand for Indian produce at competitive prices. At this juncture, selling the produce in the local or domestic market is more viable for the exporters," the official added.

Source:timesofindia.indiatimes.com

RBI directs banks to report Sukanya Samridhhi Account transactions

IT : Sukanya Samriddhi Account Rules, 2014 – Reporting of Sukanya Samriddhi Account Transactions

Payment made to partners for purchase of land above prevalent market rate would lend to Sec. 40A(2)

IT : Where assessee-firm having purchased land from its erstwhile partners, enhanced sale consideration five times subsequent to reconstitution of firm, Commissioner rightly passed revisional order had making disallowance u/s 40A(2)

CESTAT set aside order of Commissioner(A) as it wrongly enhanced penalty without issuing prior notic

Excise & Customs : Where Commissioner (Appeals) had enhanced penalty levied on assessee without even issuing prior notice, Tribunal set aside said enhancement and denied remand of matter back to Commissioner (Appeals)

Poland Wants Import Certification For Polish Food Products In India

Poland wants to see the prolonged import certification negotiations for their food products into India concluded without further delay so that Polish food products can promote their products in the Indian consumer market.

Marek Sawicki, Minister of Agriculture and Rural Development, Poland, who is currently on a visit to India had discussions with his Indian counterparts in this regard. “We have been negotiating with India for Import certification for our food products for the last four years and yet not concluded. We want to place our products in the India market ,” the Minister said.

Poland is the fifth largest food producer in Europe and food exports from Poland exceeded Euro 21.3 billion last year. He said that Polish agricultural sector is quite modern and well developed and the government had invested around Euro 45 billion in modernizing the farm sector over the last decade. “Our endeavour has been to convince the India government that we have one of the best farm products in Europe and we export to over 100 countries in the world,” he said. The Polish Minister had extended an invite to Indian Agriculture Minister to visit one of the key food exhibitions in Poland in coming autumn.

When asked about the key export items from the farm sector for Poland, Sawicki said that Poland exports comprise milk and dairy products, poultry, pork, fruits and vegetables including Mushrooms, etc. “We have been observing strong trends in bilateral trade between India and Poland for the last few years, but food products do not figure much,” he informed.

The Minister said that they would organize Polish food promotion campaigns in cities like Delhi and Mumbai later this year to create awareness about Polish food products. Poland is participating in the ongoing AAHAR, international food and hospitality exhibition, in Delhi.

Source:hospitalitybizindia.com

Dive In Shrimp Prices Means India Will Miss $6Bn Export Target

Indian seafood exports may fall short of the $6 billion target set by the Marine Products Exports Development Agency (MPEDA) this financial year, The Hindu reports.

MPEDA will compile figures for the whole financial year next month, but the performance recorded for the last ten months until January indicate the value of seafood exports will be below $5.5bn. The hope of hitting the $6bn mark this year was dashed by price fluctuations in the global market.

Although vannamei export volumes increased, prices fell substantially in the second half of last year.Also, the value and volume of frozen fish and dried items exports registered negative growth in the first ten months of India's financial year. Squid shipments fell by 23.35% in volumes and 28% in value.

Seafood exports last year topped a record $5bn and authorities and exporters had hoped that a new record would be set this financial year, but the total value of fish exports in ten months is $4.72bn.

This, however, is $500,0000 more year-on-year. In volumes, India exported 876,000 metric tons of seafood, up 4.9% over the previous year.

Frozen shrimp, which now makes up a third of seafood exports in terms of quantity and two-thirds in terms of value, continues to improve, as value has increased by 20% and volumes by 17%. Of frozen shrimp, more than 80% is vannamei, farmed extensively in coastal areas of Andhra Pradesh, Tamil Nadu and Odisha.

Indian vannamei is in high demand in Southeast Asia, the US and the EU because of the low production in countries such as Thailand, Vietnam and Indonesia.

Source:undercurrentnews.com

Eu's Move To Lift Ban On Indian Mango Imports May Offer Little Relief

Mango exporters fear a significant decline in shipments even as the European Union has lifted the ban on Indian mangoes. They feel the king of fruits may not be able to withstand the condition of being treated with hot water for an hour. Government agencies like Agricultural and Processed Foods Exports Development Agency said they initiated scientific trials of mango treatment to assess this claim.

The EU reversed the two-year ban it had imposed on the import of Indian mangoes, citing evidence of fruit flies, after its team visited facilities in the country and the authorities promised that mangoes meant for exports will be treated with hot water so as to rid them of the same.

Unlike the produce from other prominent mango-exporting countries, Indian mangoes are exported via air, which keeps the eggs of fruit flies alive. A fruit fly cannot survive in cold temperatures of storage in the sea route.

Officials in the ministry concerned told ET the decision of hot-water treatment was taken based on existing data available from government agencies. Accordingly, the mangoes have to be treated at 48 degree Celsius for one hour. However, Sanjay Pansare, a prominent wholesaler of mangoes and a member of Agricultural Produce Management Committee (APMC) said, "Mangoes will be destroyed if we treat them at the prescribed temperatures. Our own research shows that we can get rid of fruit flies if we treat mangoes at 55 degree Celsius, for just six minutes."

According to traders, 40% of the mangoes that arrive at the Vashi APMC are exported, 35% of them to the Middle East. Of the total mangoes that go to Europe, about 70% are Alphonso. APEDA is optimistic about finding a solution before April when exports to the EU are due to begin.

"We have awarded a project to the Dr Balasaheb Savant Konkan Krishi Vidyapeeth, Dapoli and the Maharashtra State Agricultural Marketing Board to study hot-water treatment of mangoes. Their report is expected to come by the end of March or first week of April," said Sudhanshu, deputy general manager of APEDA.

In a response to the ban imposed by the EU, Maharashtra, the biggest mangoexporting state in the country, has implemented 'Mangonet', a traceability system that is successfully used in export of grapes and pomegranates. "We have registered 3,500 orchards under Mangonet and these farmers have also been trained," said Govind Hande, Maharashtra's phytosanitary officer. Irradiation and vapour heat treatment are the other two methods of treating mangoes.

The US insists on irradiation and sends its own inspectors for supervision of mango treatment, while Japan has asked for VHT. The EU does not approve of irradiation of fruit and vegetables.

Source:economictimes.indiatimes.com

CIT(E) notified as prescribed authority wef Nov 15, 2014 for granting approval to religious/charitab

IT : Section 10(23C)(iv)/(v) of the Income-Tax Act, 1961 - Exemptions - University/educational Institutions/hospitals - Prescribed Authority - Supersession of Notification No.75/2014 [F.No. 196/26/2014-ITA.I]/SO 3026(E), Dated 1-12-2014

South Korea’S Oilmeal Imports From India Down By 198,000 Tonnes

South Korea oilmeal imports from India has recorded a drop of 198,000 tonnes at 831,967 tonnes during April 2014 to February 2015 as compared to 1.02 million tonnes imported during the same period last year, the Solvent Extractors’ Association of India (SEAI) which work for vegetable oil industry said in a report.

SEAI said that not only South Korea, import from Iran, Thailand, Taiwan and from European countries were also down during 11 months period in this fiscal.

Iran imported 362,091 tonnes, as compared to 1.14 million tonnes last year consisting of 220,300 tonnes of soybean meal and 141,791 tonnes of rapeseed meal. Imports from Thailand were at 190,639 tonnes, against 311,297 tonnes; consisting 182,259 tonnes of rapeseed meal and 8,380 tonnes of soybean meal.

Taiwan imported 68,292 tonnes, against 108,606 tonnes last year; consisting of 31,148 tonnes of rapeseed meal, 24,192 tonnes of castor meal, 12,053 tonnes of soybean meal and 899 tonnes of groundnut meal, Europe imported 209,011 tonnes, as compared to 567,868 tonnes last year.

Deoiled rice bran extraction rallied imports from Vietnam that was increased to 281,682 tonnes from 202,072 tonnes of oilmeal imports during the same period last year; consisting of 67,043 tonnes of rapeseed meal, 18,122 tonnes of soybean meal and 1,449 tonnes of groundnut meal.

The export from Kandla port was reported at 1.58 million tonnes with 71 per cent, followed by Mumbai including JNPT handled 269,074 tonnes with 12 per cent share, Kolkata port handled 224,116 tonnes with 10 per cent share, Mundra port handled 83,775 tonnes with 4 per cent, Bedi port handled 32,197 tonnes 1 per cent share and Pipavav port handled 37,386 tonnes with 2 per cent share.

Source:thecropsite.com

India’S Current Account Deficit Narrows To $8.2 Billion

A pick up in net exports of services on the back of an improvement in net earnings and steep fall in gold imports helped India’s current account deficit (CAD) narrow to $8.2 billion (1.6 per cent of GDP) in Q3 of 2014-15 from $10.1 billion (2.0 per cent of GDP) in Q2. On a year-on-year (y-o-y) basis, however, the CAD doubled (from $ 4.2 billion or 0.9 per cent of GDP in Q3 of 2013-14).

The lower CAD was also primarily on account of a decline in the trade deficit as decline in imports, specially gold imports, was sharper than that in exports. Gold imports amounted to $5.3 billion, against $15.8 billion in Q4 of 2012-13.

On a BoP basis, merchandise exports declined by 1.3 per cent to $83.7 billion in Q4 of 2013-14 as against an increase of 5.9 per cent in Q4 of 2012-13. Remittances by Indians employed overseas, amounted to $17.5 billion and provided sustained support to the BoP with a share of 12.6 per cent of current receipts. Care Ratings chief economist Madan Sabnavis said they expect the CAD to narrow down further in Q4 with the trade deficit declining further.

“Typically the invisibles account bring in a net amount of $28-30 billion. The trade balance has been in the range of $38-39 billion in the last 2 quarters and will be guided a lot by both movement in exports and imports. The Q3 does not capture fully the lower oil prices and hence the import bill may be expected to fall further. However, exports growth are not picking up which can keep the trade balance above $ 30 bn thus not allowing the deficit to turn to surplus,” he said.

Source:deccanchronicle.com

Dollar Hits 12-Year High Against Euro: Where Is Rupee Headed

The Indian rupee could temporarily hit the 64 levels against the US dollar amid speculations of an earlier-than-expected hike in interest rates, says Ashutosh Khajuria, president of treasury at Federal Bank.

The rupee on Wednesday hit an over 2-month low of 62.84 against the US dollar, as the greenback rose to a 12-year high against euro and an 8-year high against Japanese yen. Driving up the US dollar is speculation that the US Federal Reserve will hike rates earlier than expected after better-than-expected jobs data.

There is a chance that the US Fed could prepone its rate hike to June this year from the fourth quarter to avoid heating up of the economy in the future, Mr Khajuria said. Importantly, he expects Fed chief Janet Yellen to drop the word "patience" from its next meet on March 17-18. For analysts "patience" has been the buzzword in Fed's policy statements in the past to get an indication of rate hikes.

But Mr Khajuria does not expect the rupee to witness the same volatility it saw in August 2013 when the Indian currency hit its all-time low of 68.80 levels on concerns over tapering of the US stimulus. The rupee's weakness was exacerbated by India's record high current account deficit and high fiscal deficit.

Mr Khajuria says the rupee is much better placed than two years ago and it could remain in 62 and 63.50 levels against the dollar. India's current account deficit has dropped to an estimated 1.3 per cent as compared to a record high of 4.6 per cent in 2013. Also, India's foreign reserves have swelled to a record high of close to $340 billion.

The banker also sees the Reserve Bank of India being comfortable at rupee levels of 63-64.50/dollar. Despite the rupee's slide against the US dollar, it has appreciated against other currencies like euro, affecting India's exports, Mr Khajuria said.

The rupee was at 60.85 levels against the US dollar exactly a year ago. But against currencies like euro it has appreciated sharply to current levels of 67.44/euro from 84.45 a year ago.

In a statement on March 4, RBI chief Raghuram Rajan also voiced concerned over the rupee's strength. "The rupee has remained strong relative to peer countries. While an excessively strong rupee is undesirable, it too creates disinflationary impulses," the RBI chief said.

Source:profit.ndtv.com

CIT(E) notifies as prescribed authority wef Nov 15, 2014 for granting approval to religious/charitab

IT : Section 10(23C)(iv)/(v) of the Income-Tax Act, 1961 - Exemptions - University/educational Institutions/hospitals - Prescribed Authority - Supersession of Notification No.75/2014 [F.No. 196/26/2014-ITA.I]/SO 3026(E), Dated 1-12-2014

Revenue couldn’t complain of genuineness of Sec. 10(23C) relief if prescribed authority was satisfie

IT: Where authority was satisfied with regard to essential requirements or ingredients of section 10(23C)(via), it was not open for revenue to complain

MAT stat is liable to interest under section 234B and 234C, rules Gujarat High Court

IT : Assessee was liable to pay interest under sections 234B and 234C in respect of tax determined on basis of book profit under section 115JA

Loans and advances to employees are outside the purview of Sec. 186 of Companies Act, 2013, MCA clar

COMPANIES ACT, 2013 : Section 185, Read with Section 186 of the Companies Act, 2013 - Loan to Directors, Etc. – Clarification with Regard to Sections 185 and 186 – Loans and Advances to Employees

Department rightly denied input stage rebate as assessee didn’t follow prescribed procedure in this

Central Excise : Where necessary declaration describing inputs to be used with input-output ratio was not made, Excise Authorities had no opportunity to verify said ratio; hence, assessee could not be granted input-stage rebate even if rebate was as per standard input-output norms (SION) under Foreign Trade Policy

Painting of residential premises not covered under 'commercial or industrial construction services'

Service Tax : Services of painting of residential premises, prima facie, may not fall under category of 'commercial or industrial construction services', as they are not associated with premises which are used for commerce or industry

Depreciation allowable even though asset was written off in books without adjusting block as it had

IT : Where certain assets forming part of block of assets were converted into stock-in-trade by deducting nominal value of Rs. 1 from block of assets and whenever same were sold surplus was offered for taxation, depreciation on said asset could not be disallowed by reducing value of same from block of assets

Keyman Insurance Premium paid by firm for its partners was allowable as business exp.

IT : Where partnership firm obtained insurance policy on life of two partners, expenditure was incurred for benefit of firm and same was allowable under section 37(1)

Repair and maintenance during warranty period can't be regarded as 'exempted service' for Cenvat pur

Cenvat Credit : Repair and maintenance during warranty period where customer was not charged anything on value of goods incorporated in service cannot be regarded as 'exempted service' for Cenvat Credit purposes

SC: Lessor rightly demanded transfer fee from respondent-Co as it transferred industrial plot to fam

CL: Where respondent-companies' shareholders transferred their company/shares to new shareholders for material financial gains, without taking written consent of lessor i.e. appellant-corporation, this adversely affected aims and objectives of appellant-corporation and amounted to transfer of interest, hence, appellant-corporation rightly issued notice demanding transfer fee

Co. having related party transactions of more than 15% is excludible from list of comparables

IT/ILT : Comparable having RPT at more than 15 per cent should be excluded from comparable list as 15 per cent is cut off mark for applying RPT filter

CBDT authorizes CIT(E) to act as prescribed authority u/s 10(23C) with effect from Nov 15, 2014

IT : Section 10(23C)(vi)/(via) of the Income-Tax Act, 1961 - Exemptions - University/educational Institutions/hospitals - Prescribed Authority - Supersession of Notification No. 76/2014[F.No. 153/41/2007-TPL]/SO 3027(E), Dated 1-12-2014

India Manages To Defend Raw Sugar Export Subsidies At Wto, For Now

India has managed to ward off criticism at the World Trade Organisation (WTO) for its raw sugar export subsidies by once again claiming that it has not made any payments under the programme. However, the country’s defence is unlikely to work for long as subsidy payments are slated to kick-off soon.

The Food and Public Distribution Ministry was recently sanctioned the first tranche of subsidy payment due to exporters for last year, a Food Ministry official told BusinessLine.

“While no export subsidy payments have yet been made for the period between February (when the incentive scheme had been announced) and September 2014, the Ministry has now been sanctioned ?200 crore (around $32 million) to be paid out to raw sugar exporters for the period,” the official said.

The subsidy payments, claimed by 80 sugar mills from Maharashtra, Karnataka, Tamil Nadu and Gujarat, is likely to be paid out from March 15, according to industry officials.

Several WTO members, including the European Union, Australia and Colombia, were critical of India for announcing export subsidies for raw sugar in February last year, accusing India of going against the understanding reached at the WTO’s Bali Ministerial meeting in December 2013, which said all export subsidies would be reduced and gradually eliminated.

Since India is a major producer of sugar and also exports from time-to-time, these countries claim that such export subsidies distort the world market.

In the WTO committee of agriculture meeting last week, many countries questioned India about the recent announcement of increasing raw sugar export subsidy to ?4,000/tonne in 2015 from ?2,277-3,371/tonne between February and September 2014.

India’s representative reiterated the argument made in the last meeting that it was not answerable on the subsidies, as no payments had been made yet. On the EU’s question about its intention to give payments in the future, the Indian representative said it was only providing facts.

India had earlier defended its raw sugar export subsidy programme on the grounds of encouraging sugar producers to diversify from refined to raw sugar.

“This is a valid justification for our subsidy programme and we will reiterate it if our small subsidy payments are questioned,” a Commerce Ministry official told BusinessLine.

Last year, the Centre had announced a subsidy for exports of raw sugar up to 4 million tonnes to help the cash-starved industry clear cane arrears to farmers that have crossed ?14,500 crore.

The Indian Sugar Mills Association estimates production at 26 million tonnes in the current marketing year, against last year’s 24.3 million tonnes. Domestic demand is pegged at 24.8 million tonnes for this year.

Source:- thehindubusinessline.com

Pesticides Issue Cleared, Tea Exports To Iran Will Rise This Year

Exports of premium Indian orthodox tea to Iran are expected to double this year as both countries have sorted out the pesticide issue that hurt shipments, said industry executives. Tea planters are aiming to export 30 million kg to Iran in 2015.

The countries have set up a joint working committee comprising representatives from both countries to facilitate tea trade, said Azam Monem, vice-chairman of Indian Tea Association. "The committee is responsible to remove technical obstacles and facilitate trade. We have been able to communicate to the Iranian government and all stakeholders in tea trade there that Indian tea is not at all harmful," he toldET.

Representatives of Indian tea trade and government officials recently visited Iran to improve trade ties between the two nations and clear the air following allegations that shipments from India contained traces of pesticides.

Representatives from Iranian tea trade are scheduled to visit India next month. The countries have signed a MoU whereby the Islamic nation has agreed to import 30 million kg of tea from India this year. India's efforts come at a time when Sri Lanka and Kenya are trying hard to enter the Iranian market.

According to Tea Board figures, Iran imported 12.20 million kg between April and December 2014 at Rs 267.30 per kg. For the whole year, the industry is expecting to achieve 16 million kg of tea exports. India's total tea exports slipped to 141.83 million kg in the first nine months of the current fiscal year from 166.36 million kg in the corresponding period of the previous year. Iran is a major export market for Indian tea. The country is ready to pay higher prices for quality teas. Orthodox tea, produced through hand-processing or using machines that mimic hand-rolling, is used in most specialty tea (the other variety, CTC, is machine-processed).

In 2014, India was not able to produce good volumes of orthodox teas as a long, dry spell affected tea leaves. "This in turn has left an impact on our exports to Iran," said Monem. Iran's annual consumption is around 120 million kg.

Source:- economictimes.indiatimes.com

India's Feb Natural Rubber Imports Jump 42 Pct Y/Y - Govt Source

India's natural rubber imports in February jumped nearly 42 percent to 28,806 tonnes from a year earlier as lower prices in the world market prompted tyre makers to raise overseas purchases, a government official, who declined to be named, told Reuters.

The south Asian country imports natural rubber from Indonesia, Thailand, Vietnam and Malaysia.Natural rubber price in the Indian market was nearly a third higher than Malaysia or Indonesia in February, said a Kochi-based dealer.

Source:- :in.reuters.com

Tribunal rightly directed GTA to make pre-deposit on its failure to show payment of ST under reverse

Service Tax : Where assessee, a goods transport agency, could not prove payment of service tax under reverse charge by consignor or consignee, Tribunal order directing pre-deposit by assessee-GTA was valid

MAT companies are liable to pay advance tax; default in its payment would trigger sec. 234B interest

IT : An assessee covered by provisions of sections 115JA and 115JB is under obligation to pay advance tax and delay or failure to pay said tax would result in levy of interest

Retracted statement of partner on alleged shortage of goods doesn't prove clandestine removal of goo

Excise & Customs : In absence of evidence of clandestine removal, confirmation of demand of duty based upon alleged doubtful shortages read with statement of authorised person recorded at time of search of factory itself, which stands retracted later, is bad

Rent of premises where job-work is undertaken is eligible for input service credit

Cenvat Credit : Where assessee was undertaking job work in rented premises and was clearing final products therefrom on payment of duty, assessee was entitled to credit of service tax paid on renting services

Tribunal can’t impose conditions for considering stay application; it has to decide stay application

CST & VAT: U.P. VAT - Where against order of assessment, assessee filed appeal before Tribunal along with stay application and Tribunal by an order required assessee to deposit 10 per cent of disputed tax within 25 days, whereafter stay application would be considered, what had been done by Tribunal was not contemplated in statute

CESTAT dismissed appeal as assessee didn't appear even after five adjournments

Excise & Customs : Where, an assessee, who had been granted five adjournments had sought further adjournment, CESTAT dismissed appeal for non-prosecution opining that assessee is not interest in pursuing appeal

ITAT lashes out at TPO for making TP additions without selecting any comparable to justify additions

IT/ILT: Where TPO had not even brought a single comparable to justify arm's length percentage of royalty either under CUP or TNMM , approach of TPO in estimating royalty at 2 per cent as against 3 per cent as claimed by assessee being in complete violation of TP provisions had to be struck down

Entertainment tax subsidy granted to cinema halls is capital receipt, rules Delhi High Court

IT: Entertainment tax exemption subsidy granted to assessee engaged in business of running of multiplex cinema halls and shopping malls is capital receipts

Toned milk is 'pasteurised milk'; eligible for exemption under Tamil Nadu General Sales Tax Act

CST & VAT: Tamil Nadu VAT - Where assessee was in business of sale of toned milk in tetra pack and it pointed out that product was pasteurised toned milk and at no stage of pasteurisation, preservatives or additives were added to milk, toned milk in question was pasteurised milk falling under Entry No. 6 of Part B of Third Schedule to Tamil Nadu General Sales Tax Act

No sec. 254 rectification on basis of info procured in survey subsequent to order passed by ITAT

IT : Where material and information relied upon by revenue had been procured subsequent to passing of order by Tribunal, there was no mistake rectifiable under section 254(2)

Registration granted to trust couldn't be revoked due to amendment in definition of 'charitable purp

IT: Where activities carried on by assessee trust were in accordance with objects of trust, registration could not be cancelled; unless assessee falls within section 2(15) excluding first proviso, assessee would not be entitled to exemption

[Central Excise Tariff Notification] : Seeks to amend notification No. 12/2012-CE, dated the 17th March, 2012 so as to make necessary changes in the specified entries therein.

[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)

New Delhi, the 4th March, 2015

Corrigendum

G.S.R. (E).- In the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 12/2015-Central Excise, dated the 1st March, 2015, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 142(E), dated 1st March, 2015,

(i) in page 45, in line 25, for "52" read "52A";

(ii) in page 47,

a) in line 34, for "51" read "52";

b) in line 38, for "52." read "52A.".

[F. No. 334/5/2015- TRU]

(Pramod Kumar)

Under Secretary to the Government of India

COMPAT quashed appeal alleging abuse of dominance as it was filed with ulterior motive to coerce opp

Competition Law : Where informant filed information against OPs alleging abuse of dominant position by imposing unfair and discriminatory price in purchase or sale of goods and sole object of information was to coerce OPs to extend term of agreement which stood terminated, information being motivated and no case of abuse of dominance being made out, appeal was to be dismissed

No invocation of extended period against assessee when department had dropping his earlier proceedin

Excise & Customs : Where proceedings for earlier period are dropped by department, assessee may have a bona fide belief for subsequent period that duty/tax is not payable; hence, since all facts are already within knowledge of department, department cannot invoke extended period of limitation

ITAT rejected internal CUP method applied by TPO following its earlier order as facts remained uncha

IT/ILT : Following Tribunal's order for preceding assessment year rejecting internal CUP method applied by TPO on identical facts and remitting matter to Assessing Officer, issue of TP adjustment for relevant assessment year was remitted to Assessing Officer for fresh adjudication

Tribunal had to reconsider imposition of penalty as it failed to appreciate peculiar facts of case

CST & VAT : Uttar Pradesh VAT - Where Tribunal had not considered whether goods in question was taxable and further, demand notices were served on assessee company instead of receiver appointed by High Court, issue of imposition of penalty was to be reconsidered

No revision by CIT to make sec. 68 addition if AO had obtained confirmation of parties in support of

IT: Where assessee furnished confirmations from all debtors and creditors having balance in excess of one lakh in their bank account which was duly verified by Assessing Officer, impugned revisional order passed by Commissioner on ground that a case for addition under section 68 was made out, was not sustainable

Pre-deposit ordered by Tribunal without considering plea of undue hardship wasn't justified

Excise & Customs : Where Tribunal passed stay order directing full pre-deposit : (a) without even considering merits and financial hardship and (b) that too, in non-appearance of assessee where it was not established that assessee had received notice of hearing, Tribunal order was 'prejudiced' against assessee and was set aside

No VAT liability on assessee as it had raised bill only for labour charges and not for materials

CST & VAT : Karnataka VAT - Where assessee, a sub-contractor, raised bill for certain amount, which was only labour charges, assessee was not liable to pay tax on said amount under section 15

Bank issuing letter of credit was liable to seller for purchase price when seller had furnished rele

UCP - Letter of Credit has effect of creating a bargain between banker and vendor of goods, a deemed nexus between seller and Issuing bank, rendering latter liable to seller to pay purchase price or to accept a bill of exchange upon tender of documents envisaged and stipulated in LC

HC stayed pre-deposit as revenue already had 25% of demand in the form of refund dues of assessee

IT: Where 25 per cent of demand was already with revenue in form of refund due to assessee, condition to deposit 50 per cent of demand for stay of assessment order pending disposal of appeal was not proper

Credit of additional excise duty on textile articles can't be used to pay BED

Excise & Customs : Accumulated credit of Additional Excise Duty (Textile and Textile Articles) cannot be used to pay Additional Excise Duty (Goods of Special Importance) or Basic Excise Duty; however, assessee can claim refund thereof as per law

Sec. 10A : Exp. incurred in foreign currency to provide technical services abroad is excludible from

IT: Expenses incurred in foreign currency on telecommunication charges and providing technical services outside India should be excluded from total turnover for purpose of computation of deduction under section 10A

Liability to pay duty is on supplier for inputs sent to jobworker and received by him within 180 day

Cenvat Credit : Liability to pay duty in respect of goods moved under Rule 4(5)(a) is on supplier of goods and not on job-worker even if said goods are not included in Notification No. 214/86

ICAI to re-adjudicate disciplinary proceedings against CA as he was held guilty ex-parte and was den

CA Act : Where a CA was held guilty of professional misconduct by Disciplinary Committee of CA institute without hearing him when he sought adjournment on medical grounds, matter was to be readjudicated

CIT(A) couldn't accept comparables chosen by assessee without allowing TPO to examine them

IT/ILT : A potential comparable having more than 25 per cent of related party transactions is to be ignored

Interest received on FDR was taxable as business receipt if FD was made in connection with finance b

IT : Where after passing special resolution of shareholders, assessee company started business of financing and investment along with trading in chemical, interest received from bank FDR and commission from sister concern was to be assessed as income from business and not as income from other sources

Department couldn’t allege suppression on assessee while issuing subsequent notices on same issues

Excise & Customs : Where all relevant facts were in knowledge of authorities when first show-cause notice was issued, while issuing second and third show-cause notices on same and similar facts, department cannot allege suppression of facts by assessee

Assessment order quashed as revenue failed to prove that it was dispatched in time with demand notic

IT : Where on basis of available evidence appellate authorities came to conclusion that assessment order was passed after period of limitation, no substantial question of law arises for consideration

Provision not in force during relevant period, cannot be used to deny credit

Cenvat Credit : Where notification restricting credit was not in force during relevant period, credit could not be denied to assessee

Non-supply of docs relied upon by deptt. to prove clandestine removal of goods results in denial of

Excise & Customs : Where demand of clandestine removal was based on railway documents and statements of witnesses, non-supply of said documents and not allowing cross-examination of said witnesses would violate principles of natural justice; hence, matter was remanded back

No reassessment alleging understatement of closing stock if all material facts were disclosed at ass

IT : Where assessee had disclosed all material facts pertaining to closing stock, reopening of assessment on ground of understatement of closing stock was not justified

Refund had to be granted in cash and not by way of re-credit when factory of assessee was closed dow

Cenvat Credit : Where assessee's factory is closed, refund of amount paid by assessee by using credit, must be granted in cash and not by way of re-credit

RBI relaxes loan norms on low-cost housing; allows addition of stamp duty/other charges in Loan-to-

BANKING : Review of instructions on housing loans

Brought forward loss not to be reduced while computing sec. 80-IA relief if it was set-off against o

IT : Where assessee was engaged in generation of power and its carry forward losses had already been set off against other income of business enterprise, deduction under section 80-IA was to be allowed

Tribunal dismissed appeal on assessee’s failure to submit proof of mandatory pre-deposit

Excise & Customs : Where assessee failed to submit proof of mandatory pre-deposit as per section 35F(iii), as amended by Finance (No. 2) Act, 2014, his appeal could not be entertained by Tribunal; hence, appeal was dismissed for said non-compliance

No denial of bad-debts claim merely because assessee doesn't have license to conduct money lending b

IT : Merely because assessee does not have license to conduct money lending business, could not be ground to deny deduction of bad debt in respect of amount lent in ordinary course of this business

Unabsorbed research exp. claimed as revenue exp. can’t be carried forward if hit by Sec. 79

IT: If assessee did not capitalize scientific research expenditure and claimed it as revenue expenditure, any unabsorbed portion of such research exp. would be in nature of business loss and not in nature of unabsorbed depreciation - Therefore, it would be subject to restriction imposed under Section 79 in case of closely held company

No sec. 14A disallowance when investment was made out of sale proceeds of shares and not from borrow

IT: Where assessee purchased shares from his own funds which were shown as investment and valued at cost price, income earned on sale of those shares was taxable as 'short term capital gain'.

Assessee can't claim interest on interest on income tax refund, says Kerala High Court

IT: Assessee cannot claim interest on interest on amount that are due to him by way of refund

Demanding security equivalent to maximum penalty to release seized goods wasn’t justified, says High

CST & VAT : U.P. VAT - Where Assessing Authority seized goods of assessee under transport and demanded security equal to 40 per cent of value of goods for releasing same, demand of security equivalent to maximum percentage of penalty was unjustified at stage of seizure

HC didn’t accept argument of penalty wavier as it was raised for the first time before it

CST & VAT : Kerala VAT - Where, contentions raised before High Court were not raised before the lower authorities, High Court's judgment levying minimum penalty equal to amount of tax needed no interference

No penalty on appellant alleging violation of FEMA norms when he had explained all remittances

FEMA : Where all remittances made by appellants had been explained and there was likelihood that appellant company had utilized remittances for import as claimed by it, violation of provisions of FEMA had not been established and impugned order imposing penalty was to be quashed

TPO couldn't determine ALP at Nil merely because assessee didn't derive any benefit from services re

IT/ILT : TPO cannot determine arm's length price of payments made by assessee to its AE at 'NIL' for reason that assessee did not derive any benefit from services rendered by AE

No sec. 69C addition alleging payment to Petroleum Minister merely on basis of statement of his secr

IT : Where statement made by additional private secretary of 'S' before enquiry officer did not establish payment by assessee to 'S', invocation of section 69C was not justified

ITO can't act as an Excise Officer to determine quantity of production for making addition of unexpl

IT: Where Assessing Officer verified registers maintained under Central Excise Act and doubted accuracy of figures mentioned therein, he was totally unsuited for undertaking exact production of material as same was outside his purview

Benefit of SSI exemption would be available from date of application to register trade mark

Excise & Customs: As per section 23 of Trade Marks Act, registration becomes effective from date on which application was filed and hence, in case of branded goods, trademark would belong to assessee from date of filing application and SSI-exemption would be available accordingly

CESTAT set aside penalty on failure of assessee to pay ST as it had paid 25% if demand as penalty un

Service Tax : Where penalty under section 78 was paid at 25 per cent of service tax within 1 month from adjudication order, assessee could not be asked to pay any further penalty under section 76 or 78, even prior to 10-5-2008

No disallowance of interest if AO failed to prove that borrowed sum was passed on to affiliate witho

IT: In absence of any finding to effect that amount borrowed by assessee from financial institutions was straight away passed on to sister concern without levying interest, interest on borrowed amount could not be disallowed

Units located adjacent to each other with common ST registration may take credit of invoices issued

Cenvat Credit : Where two units are located adjacent to each other and have common service tax registration, practice of taking credit belonging to either of units without considering whether invoice was addressed to Head Office or to units is valid; department cannot seek segregation of credit along with separate registration

Bending iron and steel to create anchor rods won't amount to manufacture under Karnataka VAT Act

CST & VAT : Karnataka VAT - Where assessee manufactured RCC pole clamps, anchor rods, cross arms and H-frames out of iron and steel by just bending of iron and steel and supplied same to a purchaser, process undertaken by assessee could not be considered as any manufacturing activity and, therefore, levy of tax should be only at 4 per cent as declared goods

Revenue couldn't recover disputed demand when assessee had filed stay petition during pendency of ap

IT: Where assessee's appeals were pending before appellate authority in respect of assessment order and after filing of said appeals, assessee filed stay petition under section 220(6), revenue was not justified in calling upon assessee to pay demand

Sum received under bogus sale and purchase of shares was an undisclosed income: HC

IT: Where assessee could not explain receipt of alleged share transactions profits credited in his bank accounts, then sale proceeds had to be added as income of assessee under section 68

Assessee had to pay customs duty with interest as it failed to take extension for fulfilling export

Excise & Customs : Where assessee has failed to fulfil export obligation in time and has also not applied for extension thereof, demand of customs duty along with interest is valid

No insurance claim for damages as vehicle owner didn't apply for registration on expiry of temporary

Motor Vehcile Act : Where an accident had taken place, petitioner as owner of vehicle would not be entitled to claim compensation for damages in respect of vehicle when admittedly vehicle was being driven on date of accident without any valid registration

Mobile trader has to make advertisement every year to remain in limelight; such exp. is allowable as

IT: Annual expenditure incurred on advertisement to make and keep public informed and, aware as also to remain in limelight, would be revenue expenditure

Sale of Scented Supari wasn't eligible for set off under Bombay Sales Tax Rules since it wasn't liab

CST & VAT: Maharashtra VAT - Where assessee effected sale of scented supari against declaration form N-14B and claimed set off under rule 42H of Bombay Sales Tax Rules, since goods sold were not liable to tax under Bombay Sales Tax Act, assessee was not eligible for set off

AO couldn't make provisional attachment of properties without showing that assessee would not pay VA

CST & VAT : Gujarat VAT - Where Assessing Authority passed order under section 45 on assessee attaching its properties on ground that a huge tax demand was likely to arise against it for unpaid tax, since revenue had not placed any material that if ultimately any additional tax liability was finalized, assessee would not pay such taxes, resorting to such power of attachment would not be permissible

CESTAT remanded matter where test results furnished before it weren't made available to AO

Excise & Customs : Where test certificates and results were made available to CESTAT and had not been produced before adjudicating authority and appellate authority, matter was to be remanded back to adjudicating authority