Appeal of revenue against part of order couldn't be rejected because assessee didn't challenge anoth

Excise & Customs : Where revenue has filed appeal against a part of order Commissioner (Appeals) unfavourable to it, Tribunal cannot dismiss said appeal merely because assessee had not challenged balance part of order of Commissioner (Appeals)

Income from mixing of rubber to manufacture compound rubber would be eligible for sec. 80-IB relief

IT: Income from job work of mixing rubber with chemicals to make compound rubber for tyre manufacturing companies would be eligible for deduction under section 80-IB

Input service credit was available even when service provider had deposited the service tax belatedl

Cenvat Credit : Cenvat credit of input service is available after payment of value of input service (along with tax) and there is no requirement that service tax should have been deposited by service provider before availment of credit; if service provider has not deposited service tax, revenue's remedy lies at end of service provider

Service of show cause notice via speed post is a valid mode of transmission under SEBI norms, says S

SEBI : Transmission of show cause notice by speed post is recognised mode of transmission as per MSSNB Regulations of SEBI

ITAT directs AO to examine agreement with NR agents and ascertain whether services rendered by them

IT/ILT : Where agreement entered into by assessee with foreign agents was not available to determine type of services, matter had to be considered afresh to decide applicability of section 9(1)(vii)

HC directs AO to consider representation filed by assessee for VAT refund alleging illegal collectio

CST & VAT : Where Assistant Commissioner in appeal set aside levy of tax upon assessee and thereupon assessee approached for refund of tax illegally collected from it and finally it had sent a representation on 2-5-2014, which was not considered so far, Assessing Officer was directed to consider representation and pass appropriate order

Sec. 155(15) covers situations in which stamp duty value is revised and not where reference is made

IT : Section 155(15) is invoked only in case of situations covered by section 50C(2)(b) which refers to only values adopted or assessed by stamp valuation authorities; DVO's value is outside scope of section 155(15)

In case of defective appeals Tribunal shall grant opportunity to rectify defects before rejecting it

Excise & Customs : When Tribunal notices defects in appeal, Tribunal must not dismiss appeal; instead, Tribunal should afford an opportunity to appellant to rectify defects in view of powers under rule 11(2) of CESTAT (Procedure) Rules, 1982 by extending time

Holding period of property is to be counted from its allotment date and not from its registration da

IT : In order to determine taxability of capital gain arising from sale of property, it is date of allotment of property which is relevant for purpose of computing holding period and not date of registration of conveyance deed

Sums paid to agent located abroad for services rendered outside India couldn’t be taxed under sec. 6

Service Tax : Payments made to agents located abroad for services rendered outside India cannot, prima facie, be taxed under section 66A, as services are not 'received' in India; hence, pre-deposit was reduced/waived accordingly

Contribution to chit fund isn't an approved mode of investment under sec. 11(5)

IT : Chit fund business is governed by principles of mutuality as contribution to a chit fund is contribution to one self and, hence, it is not an investment as contemplated by section 13(1)(d)

No export rebate if assessee failed to prove that goods were exported using those inputs on which du

Excise & Customs : Only if it is established and proved by assessee that assessee exported goods by using inputs on which duty was paid, then only, assessee shall be entitled to rebate

MCA abolished concept of maximum useful life of asset; allows flexible life supported by technical a

COMPANIES ACT, 2013/AAA : Section 123 of the Companies Act, 2013 - Declaration of Dividend – Amendment in Schedule II

Exp. disallowed by TPO while computing ALP couldn’t be considered for determining operating margin a

IT/ILT : Where assessee company had already deducted tax under section 192 on entire salary including salary reimbursed to parent company, disallowance under section 40(a)(iii) was not proper

HC recalls winding-up order as applicant’s argument regarding repayment of debt wasn’t controverted

CL: Where erstwhile director of company-in-liquidation filed instant application seeking recall of winding up order passed earlier contending that amount due to creditors had been paid, in view of fact that said contention was not controverted by concerned creditors, instant application was to be allowed

Even prior to Sept. 10, 2004, ancillary services of tour operator were liable to service tax

Service Tax : All services provided by Tour Operator in relation to tour (porterage, monuments visit, guide, food and general assistance services etc.) are liable to service tax both prior to 10-9-2004 and subsequent to 10-9-2004; amendment in section 65(115) enlarging definition of tour operator is clarificatory

CBDT directs officials to maintain appointment schedule with taxpayers in spirit of Citizen's Charte

IT/ILT : Section 119 of the Income-Tax Act, 1961 – Income-Tax Authorities – Instructions to Subordinate Authorities – Instructions to Maintain Schedule of Appointments with Tax Payers etc.

HC sets aside rectification order of ITAT as it was made without analyzing disputed issues and relev

IT : Law requires Tribunal to record findings supported by reasons to sustain order

Domestic Rubber Prices See Sharpest Fall In Five Years

The price of local natural rubber fell below Rs 130 a kg for the first time since 2009. Markets on Thursday quoted Rs 129 a kg for the benchmark RSS-4 grade.

In three weeks, the price has eased Rs 8 a kg. There is panic in Kerala's growing areas as the price is likely to fall. In most small- and medium-sized plantations, tapping is not taking place, as wages and other expenses are much higher than returns, according to growers.

The local market is facing a demand slide. Imports are much higher in the current financial year. For industrial users, imports make sense, as the Bangkok market on Thursday quoted Rs 108 a kg for RSS-4. According to experts, industrial users import SMR-20 grade, much cheaper in the world market. For SMR-20, the Bangkok market on Thursday quoted Rs 99 a kg. There is a steep rise in the import of this variety. According to latest data of the Rubber Board, in April to July, 133,789 tonnes were brought into the country. This is for the first time that the import has crossed 100,000 tonnes in four months.

N Radhakrishnan, director, Cochin Rubber Merchants Association (CRMA), told Business Standard the price was likely to go down. According to him, there is a possibility the price would touch Rs 120 a kg. The price saw a peak of Rs 240 a kg in April 2011, but started falling from November 2012.

Meanwhile, the global market faces a grim situation. The Thailand military government has approved a plan to sell its 200,000 tonnes on Monday. This could hit prices in the short term.

Thailand, the world's biggest exporter, normally ships 300,000 tonnes a month. Global prices have fallen 25 per cent this year from a year ago, due to oversupply and worries about a fall in demand from top consumer China.

According to experts, the global market will see a surplus for another three years, causing gluts of 652,000, 483,000 and 316,000 tonnes in 2014, 2015 and 2016, respectively.

China is expected to register a gross domestic product growth rate of 7.5 per cent in 2014, the lowest since 2002. This means a slowdown in rubber demand. This could cast a shadow on prices.

The Tokyo Commodity Exchange quoted a lower price on Thursday and all contracts starting September registered a fall ranging from 0.2 per cent to 1.1 per cent. The global market parameters indicate a low price regime for the next few years.

Source:- business-standard.com

Next Challenge For Modi Govt: Coal Shortage May Lead To Major Power Crisis In India

A sharp fall in output at a large power plant due to a coal shortage may lead to power cuts in some areas, underlining the challenge the new government faces in overhauling the sector and its creaking infrastructure.

Adani Power Ltd has reduced output at its Mundra facility in Gujarat by about 2,300 megawatts due to a shortage of coal, two senior officials at state-owned power transmission utility Power Grid Corp of India Ltd said.

Adani Power declined to comment.As a result of the cut, India's total generation capacity on Thursday was about 9,110 MW less than its potential demand at peak periods of the day. That gap was nearly twice as wide as at the beginning of the week, according to Power Grid data.

"Well I don't know about the possibility of a breakdown ... There is a problem, I think, with many of the coal supplies," Power and Coal Minister Piyush Goyal told reporters in Mumbai on Thursday. He declined to give details.

India, which uses coal to generate more than two-thirds of its electricity, is struggling to provide enough power to meet rising demand. The power sector has not been able to obtain sufficient domestic coal and has become reliant on costlier imports.

"As of now there is no major supply cut, but if the output is not increased soon, we may see outages in some states. We have asked the states not to draw excessive power," one of the officials at Power Grid said.

"We are monitoring the situation and are hopeful that there will not be major disruptions."

The states that could be hit with blackouts include Maharashtra and Haryana, the official said, declining to be named as he was not authorised to speak to the media.

A court this week declared scores of coal block mining allocations made since 1993 unlawful and arbitrary. If it cancels the blocks after a further hearing due to start on Monday, India may have to import even more coal to keep the lights on.

Prime Minister Narendra Modi stormed to office in May on promises to boost the economy and improve basic services for millions of Indians who still lack running water and electricity.

Power generation has been further hit by a 1,600 MW drop in output due to a technical fault on Wednesday at a plant owned by Tata Power Company Ltd, the utility said.

Source:- firstbiz.firstpost.com