Export transactions can't be compared with domestic transactions for TP study

IT/ILT : Profit margins of transaction of export of parts and components could not be compared with domestic sale of manufactured products in computing ALP

Goods purchased by branch office and transferred to head office situated in other State wasn't 'inte

CST & VAT : CST - Where branch office of assessee situated in State of Andhra Pradesh had purchased Beedi leaves by participating in auction conducted by Forest Department of Andhra Pradesh and received them subsequent to payment made to seller and thereafter transferred said leaves to head office in State of Maharashtra, transaction was not an inter-State sale under section 3(a)

CLB isn't empowered to enquire that acquirers acting in concert acquired shares in violation of Take

CL: CLB, in exercise of its rights and powers conferred upon it by virtue of provisions contained in section 59(4) is not empowered to make investigation/enquiry into allegation that acquirers acting in concert have acquired shares in violation of Takeover Code

State development authority works with predominant object of public welfare; out of ambit of proviso

IT : Proviso to section 2(15) was not applicable to assessee-city development authority established for providing housing, roads, sewerage system, etc.

Now non-resident ECB lenders can undertake swap transactions with overseas banks to extend loan in I

FEMA/ILT : External Commercial Borrowings (ECB) Denominated in Indian Rupees (INR) – Mobilisation of INR

Trading limit under rupee drawing arrangement raised to Rs 15 lakhs

FEMA/ILT : Rupee Drawing Arrangement – Increase In Trade Related Remittance Limit

NBFCs can use historical spot gold price data published by Commodity Exchange for valuation of gold

NBFCs : Lending against Security of Single Product – Gold Jewellery

Banks gets one more year to spread losses on early sale of NPAs

BANKING : Prudential Norms on Income Recognition, Asset Classification and Provisioning Pertaining to Advances – Spread Over of Shortfall

Deptt. couldn't allege suppression if all facts were conveyed to it through applications/certificate

Excise & Customs : Extended period cannot be invoked, if details of clearance made without payment of duty to 100 per cent EOU were already informed to department vide CT-3 certificates and department was aware of all facts

Brought forward business loss is to be set-off while computing income u/s 10A

IT : Post amendment from assessment year 2001-02, claim of set-off of business loss for assessment year 2002-03 against profits of erstwhile section 10A unit for assessment year 2005-06 were allowable

Value of free of cost supplies made by recipient isn't includible in gross amount charged for abatem

Service Tax : For availing 67 per cent abatement in respect of construction services by service provider, value of 'free of cost' supplies made by service recipient would not form part of 'gross amount charged'.

Sum paid for transmission of electricity couldn't be held as 'FTS'

IT : Where in terms of agreement, assessee purchased electricity from UPPCL which was transmitted through UPPTCL, payment of transmission charges was not payment for fee for technical services, therefore provisions of section 194J were not attracted

CBEC puts in place a system to regularly monitor cases of litigation

EL : Putting of System to Monitor Regularly Litigation Cases for Safeguarding Interests of Union of India

CBEC strives to improve indirect tax administration

EL : Steps Needed to Be Taken to Improve Indirect Tax Administration

CBDT unveils draft rules to apply multiple year's data and 'range concept' for determination of ALP

IT/ILT : Section 92C of the Income-Tax Act, 1961 - Transfer Pricing - Computation of Arm’S Length Price – Draft Scheme of Proposed Rules for Computation of Arm's Length Price (ALP) of An International Transaction or Specified Domestic Transaction Undertaken on or after 1-4-2014

Doctors not entitled to gratuity and PF aren't employees of hospitals; sums paid to them would attra

IT: Remuneration paid to consultant doctors employed by assessee hospital would be subject to TDS under section 194J and not under section 192

Mere expressing unhappiness with compounded scheme doesn't tantamount to opting out of such scheme

Excise & Customs : Where assessee filed declarations opting for compounded levy scheme and assessee merely expressed unhappiness with scheme but never formally opted out of scheme, said scheme would apply for subsequent years

Steamer agent's services provided to foreign clients on Indian shores against foreign exchange amoun

Service Tax : Steamer agent's services provided to foreign client against consideration in convertible foreign exchange amounted to 'export services' and not liable to service tax, even if services have been rendered on Indian shores

Export transactions can't be compared with domestic transactions for TP study

IT/ILT : Where, assessee exported goods to its AEs and made sales in domestic markets, keeping in view material differences which affected substantially profitability of export transactions vis-a-vis domestic transactions, it would not be fair and proper to compare exports made by assessee to its AE with sales made by assessee-company to in domestic segment

Imported decorative items predominantly made by hand held as ‘Handicrafts’; taxable at 4% and not 12

CST & VAT : Delhi VAT - Where assessee was in business of sale of decorative items of glass and it imported said items from Italy, since above items were predominantly made by hand and were graced with visual appeal, they would fall in category of 'Handicrafts' under Entry No. 128 of Third Schedule to VAT Act

Accused abused process of law by filing criminal complaint as a counter blast against complaint of c

Negotiable Instruments Act : Where accused filed criminal complaint against appellant as a counter blast for complaint filed by appellant against accused under section 138, complaint filed by accused was in abuse of process of law

Losses already set-off against other income couldn't be set-off again while computing relief u/s 80-

IT : Where assessee, engaged in windmill power generation, claimed deduction under section 80-IA, since losses incurred by assessee had already been set off against other income of business enterprise, profits earned by its industrial undertaking would be eligible for deduction

No denial of sec. 80G approval due to non-registration of land in name of trust, being held for char

IT : Where assessee-charitable society had fulfilled requisite conditions of section 80G, approval under section 80G could not be denied merely because land required for establishing its activities had not been registered in its name

Assessee wasn't 'assessee-in-default' in absence of demand notice; provisional attachment of propert

IT : In absence of any notice of demand under section 156, assessee could not be treated as 'assessee in default'

Income can be determined on estimation basis only after rejection of books of account with a valid r

IT : Where Commissioner (Appeals) had accepted assessee's explanation regarding set off of unabsorbed loss and both members of Tribunal agreed that claim of assessee was acceptable if such explanation was correct, there was no need to send matter back to Assessing Officer for examining such explanation

Delayed appeal isn’t condonable even if ITAT decides it subsequently in favour of assessee on simila

IT: Where assessee took voluntary decision not to assail order of Tribunal and accepted same, only because assessee succeeded on same issue 5 years later, same could not be a sufficient cause to condone delay of 5 years in filing appeal before High Court

West Bengal VAT : AO couldn't cancel registration certificate on assessee's failure to file e-return

CST & VAT: West Bengal VAT - Cancellation of registration certificate of assessee on ground that he had not filed returns electronically was wrong and if assessee had complied with requirements of sub-section (4) of section 29, registration certificate had to be restored

No reassessment to disallow exp. due to TDS default by treating it as royalty if its details were di

IT/ILT : Where at time of making assessment, assessee disclosed all material facts showing that software licence fee paid to foreign company was in nature of revenue expenditure, AO could not initiate reassessment proceedings subsequently merely on basis of change of opinion that fee so paid was in nature of royalty and thus, assessee was required to deduct tax at source while making said payment

Sec. 80-IB relief allowed following order of ITAT couldn't be denied even if such was challenged in

IT: Where Commissioner (Appeals) allowed assessee's claim for deduction under section 80-IB by following earlier order of Tribunal in assessee's own case, merely because department had preferred an appeal before High Court against said order of Tribunal, it could not be a ground for rejecting assessee's claim

India Looks To Increase Oil Imports From Mexico

 India is looking at raising crude oil import from Mexico as it looks to broaden its import basket and cut reliance on volatile Middle-East.

Oil Minister Dharmendra Pradhan on his maiden visit to Mexico sought deeper collaboration with the Latin American nation that is opening up to foreign companies.

As part of strengthening bilateral ties through enhanced cooperation in the energy sector, ONGC Videsh Ltd (OVL), the overseas arm of state-owned explorer ONGC, has decided to open a dedicated office in the Latin American nation, an official statement said here.

Pradhan on a two-day official visit to Mexico held talks with his counterpart, Minister of Energy of Mexico Pedro Joaquin Caldwell. He also met Minister of Economy Ildefonso Guajardo Villareal and CEO of national oil company of Mexico PEMEX, EmilioLozoya Austin.

"India is trying to diversify its import sources of energy and more than 20 per cent of crude import of India is presently sourced from Latin America. Mexico figures high on the priority of India to enhance bilateral energy ties," Pradhan said during his meeting.

Presently, Indian Oil Corp (IOC), Reliance Industries and Essar Oil buy about 6 million tons of crude oil annually from Mexico.

India imports 78 per cent of its crude oil needs, close to 60 per cent of which come from Middle-East Asia.

Mexico last year opened up the energy sector for private and foreign participation. "The energy reforms in Mexico provides a window to transform the relationship from buyer-seller relationship to that of an energy partnership," the statement said.

During the meetings, Pradhan stressed Indian companies are keen to participate in the exploration and production activities in Mexico including in deep water and unconventional resources.

He also highlighted the fact that India has emerged as a modern refining hub with expertise to develop complex refineries at most cost effective manner.

OVL signed an MoU with PEMEX for cooperation in upstream sector.

The Mexican Energy Minister and CEO, PEMEX invited Indian investment in all streams of hydrocarbon sector, the statement said.

"The two sides agreed that it would be a win-win situation for both countries to intensify energy cooperation. The two ministers agreed to set up a joint working group on hydrocarbon at the official level to identify concrete areas of cooperation in the oil and gas sector," it added.

Source:- economictimes.indiatimes.com

India’S Auto Exports Hit A Record High In 2014-15

I want to appeal all the people world over from the ramparts of the Red Fort,” Prime Minister Narendra Modi said in August last year, “come, make in India; come, manufacture in India. Sell in any country of the world, but manufacture here.”

For inspiration, his target audience need not have looked beyond India’s vast automobile factories that build millions of vehicles for global markets every year. Just to illustrate, South Korean car maker Hyundai, which set up shop in the southern city of Chennai in 1996, now exports to 119 countries, shipping over 190,000 cars in 2014-15.

Exports of cars, utility vehicles, commercial vehicles and two-wheelers have grown every year since 2000. In the financial year that ended in March, Indian factories exported a record 3.5 million vehicles which, according to industry figures, was 15% more than what they managed a year back. This compares with domestic sales of just above 2.6 million units during the same period, up 5% from a year ago.

Exports have helped automobile companies mitigate risks from the cyclical demand in home and overseas markets. The tepid demand in the local market in the last three years saw a renewed exports thrust by automobile firms, particularly those that saw a sharp decline in domestic volumes.

Car sales in India contracted by 7% and 5% in fiscal 2012-13 and 2013-14, rising 5% in fiscal 2014-15.

Even as overall automobile exports rose, car exports fell 1.66% to 542,082 units in 2014-15 from 551,218 units in 2013-14. The reason: an 18% fall in overseas shipments by top exporter Hyundai Motor India Ltd to 191,221 units. An HMIL spokesperson attributed this to the sharper focus on domestic markets, adding that the maker of i20 small cars, Verna sedans and Santa Fe SUVs will “keep penetrating the existing markets and expand our business in the newer markets in the future”.

There is another reason, though. In September, Hyundai stopped shipments to Europe from its Chennai facility, assigning the task to its plants in Turkey and Czech Republic. The Indian operation continues to be the hub for Asia, Latin America and Australia, but it was Europe that accounted for 40% of HMIL’s exports.

“The decision to shift a product export to a specific overseas plant such as Turkey is a strategic decision to meet the customer demand in that specific market while balancing the domestic market demand,” the HMIL spokesperson said.

Where Hyundai slowed, others have leapt ahead. The local arm of Volkswagen AG, which makes Polo small cars and Vento sedans, raised 2014-15 exports by 95% to 64,994 units even as its domestic sales slipped by 14.3% to 45,018 units. Similarly, the local arm of Ford Motor Co., which saw domestic sales fall 11% to 75,138 units in 2014-15, raised exports by 70% to 81,703 units.
Ford, which makes Fiesta sedans, Figo small cars and EcoSport SUVs at its Chennai plant, is now building a second plant at Sanand in Gujarat, which will triple its exports. The $1 billion factory will produce 240,000 units per annum, out of which at least half will be shipped overseas.
The higher proportion of exports in overall volume was seen at the local arm of the local unit of Japan’s Nissan Motor Co. Ltd as well. Albeit a small base, local sales at the firm rose 25% to 47,474 units while exports rose 3.45% to 120,331 units in 2014-15.

Nissan’s India operations head Guillaume Sicard said this year could be even better for exports, with the government’s focus on manufacturing. “They have already streamlined documentation and consolidated schemes into simple and clear objectives for the enhancement of the automobile industry. We are also seeing increase in incentives for exports, especially for Europe,” Sicard said.

He, however, disagreed that exports are a strategy to compensate for poor domestic sales.
“We do not use exports as a strategy to tide over the slowdown in a market; we particularly prefer a robust environment in our domestic markets, as well as exports.”

Rakesh Batra, who heads the auto practice at consultancy EY India, said exports from India will continue to be the preserve of global automakers and not homegrown ones.
According to Batra, “unlike a Tata Motors Ltd or a Mahindra and Mahindra Ltd who need to invest in all the three areas—product, brand and distribution—making exports a strategic play, for the multinational firms it’s all about a sourcing decision”, since they own strong brands and networks.

With limited scope for products made in India, the addressable markets will also be select, he added, referring to countries in West Asia, Latin America, Africa and Southeast Asia. Trade agreements between South Korea and the European Union, too, have prompted companies such as Hyundai to shift some production out of India.

Sugato Sen, director general of industry body Society of Indian Automobile Manufacturers, said automobile export volumes are largely driven by smaller-ticket models like two-wheelers. Close to seven out of 10 automobiles shipped out of India in 2014-15 were either a scooter or a motorcycle. Two-wheeler exports rose by 15% to 2.4 million units.

The auto industry contributes to more than 40% of India’s manufacturing sector, according to R. Raghuttama Rao managing director at IMaCS (Icra management consulting services).
Most global vehicle makers have set up shop in India, clearly endorsing the point that India is competitive and capable of delivering quality despite several negative perceptions still associated with the country.

The auto industry provides guidance for the general manufacturing industry in terms of how to straddle the two ends of being a high quality player and cost competitive,” says Rao.
Nissan’s Sicard points out that taxation and sectoral reforms to encourage exports of made-in-India vehicles and lower cost of capital will help raise investments in manufacturing.
For now, though, global carmakers are sold on making in India.

On Monday, after meeting Prime Minister Modi in Seoul along with chiefs of several other companies, Chung Mong-koo, group chairman of Hyundai, said his company is looking at building a third plant in India. According to Reuters, Hyundai’s affiliate Kia Motors is also reported to be keen on building a factory in India. For global car makers at least, Make in India is truly on.

Source:- livemint.com

Duty On Rice Imports Fails To Cheer Farmers Despite Increase In Boro Paddy Prices, Say Experts

Bangladesh rice farmers are expressing concern that the imposition of import duty of 10% on rice imports has increased Boro (January - May) paddy prices by about 20% since its imposition last week but the increase has not benefited them apparently, according to local sources. Paddy prices are said to have increased to around Tk 600 - Tk 650 per 40 kilograms (around $193 - $209 per ton) from last week's Tk 500 - Tk 550 per 40 kilograms (around $161 - $177 per ton)

Local sources say most of the farmers had sold their output from the ongoing Boro harvest season even before the duty imposition and are now not left with any stocks to take advantage of the increased prices. Moreover, the prices are below the average production costs of around Tk 800 per 40 kilograms (around $260 per ton), say farmers.

They say the government's decision will only benefit big millers who have stocked enough paddy from the ongoing Boro harvest.

Some rice experts in the country told local sources that domestic paddy and rice prices had declined sharply before the Boro harvest due to higher imports, especially from India, despite sufficient production in the country. According to Food Ministry data, Bangladesh's private rice traders have imported around 1.36 million tons of rice from July 1, 2014 - May 7, 2015, compared to only 374,560 tons imported in the whole of 2013-14.

Absence of import duty on rice was said to be the main reason for a surge in imports. Therefore the government had imposed a duty of 10% on rice imports, with effect from May 10, 2015.

Millers and traders also expressed concern that the government's imposition of duty had led to a sharp decline in rice prices in India, especially in the eastern states and Andhra Pradesh, which usually export non-aromatic parboiled rice to Bangladesh. The duty hike may not protect the interests of farmers in this situation, they said. Some experts suggested that the government could either ban imports from India or increase the procurement price.

The government will reportedly procure one million tons of 2015 Boro paddy and 100,000 tons of Boro rice between May 1, 2015 and August 31, 2015. It has fixed the procurement price for paddy at Tk 22 per kilogram (around $283 per ton) and that for rice at Tk 32 per kilogram (around $412 per ton).

Source:- oryza.com

‘HR sheets and steel plates’ used for maintenance of ‘storage tanks’ are eligible for input credit

Cenvat Credit : HR Steel Sheets, Plates etc. used for repair and maintenance of storage tank (which is specifically covered under definition of 'capital goods'), are eligible for credit as 'inputs'

Mandap Keeper's services related to marriage were liable to service tax

Service Tax : Marriage is a social institution that existed much before religions came into being; hence, marriage is a social function and cannot be held as a religious function and services relating to thereto are taxable under Mandap Keeper's services

Lump sum payment made for procurement of right to use technical know-how is deductible u/s 37 and no

IT : In case of assessee, engaged in production of engineering related products, expenditure incurred towards procurement of right to use technical know-how by paying a lump sum consideration in course of business was a revenue expenditure falling under section 37 and provisions of section 35AB were not applicable to assessee's case

Seller was in default as he didn't collect TCS at time of sales without obtaining Form 27C from buye

IT : Furnishing of Form No. 27C by buyer at time when collection of tax at source is contemplated under section 206C, has to be construed as mandatory

India Eyes 15% Jump In Medicine Exports This Fiscal

Indian drug makers are hopeful of achieving double digit growth in exports this fiscal after being confined to single digit growth for two years, helped by factors such as several medicines going off patent, strengthening dollar and access to new markets in Asia.

"We hope to achieve 10-15 per cent growth in export of pharmaceutical products during the current fiscal," said PV Appaji, director general at Pharmaceuticals Export Promotion Council (Pharmexcil). This optimism is driven mainly by anticipated increase in the US Food & Drug Administration (FDA) approvals as a large quantum of medicines are going off patent.

"Increased focus of Indian drug makers on complex and high value generics and growing acceptance to our generics in key new markets like Japan and appreciating dollar should also help us achieve the targeted exports," Appaji told ET.

India failed to achieve targeted growth in export of medicines in the last two years. As against the targeted growth of 10 per cent during 2014-15 set by the commerce ministry, the country's pharmaceutical exports saw only 5 per cent growth at Rs 95,000 crore, largely on account of delayed regulatory approvals and price erosion due to increased global competition.

The North American market, which accounts for nearly a third of the country's pharmaceutical exports, proved a drag on revenues of several domestic drug makers, owing to slower product approvals in the US and piled up applications before USFDA.

Increased scrutiny and import alerts by the global drug regulators on facilities and products of Indian drug makers over the last couple of years, too, had adversely affected exports and profitability of several large medicine manufacturers, Appaji said.

Currency devaluations and geopolitical uncertainties in certain countries like Russia, Ukraine, Venezuela and Brazil also contributed to lower than anticipated exports.

Things are expected to improve this year. Large Indian drug makers such as Dr Reddy's Laboratories, Lupin, Sun Pharma, Glenmark and Aurobindo Pharma have lined up several complex generics for launch and are waiting for global regulatory approvals.

Many of them expect double-digit growth in sales this fiscal, anticipating quicker approvals.

GV Prasad, co-chairman and chief executive officer at Dr Reddy's, said India's second largest drug maker is targeting double digit growth this year. "Europe started to turn around and it is profitable now due to new launches. We are looking at working with a partner to enter in to the lucrative, however difficult, Japanese market," he said. The Hyderabad-headquartered company's chief operating officer Abhijit Mukherjee said the company was expecting increased ANDA approvals this fiscal.

Dr Reddy's, which has clocked $1 billion revenue from the US market alone, has 68 ANDAs pending for approval before the FDA for months. Analysts tracking the sector project faster regulatory approvals to drug applications under the FDA's new Generic Drug User Fee Act in the place of existing system that took at least 30 months for approvals.

"The target set by India of achieving double digit growth in exports appears to be feasible," said Alok Dalal, pharmaceutical analyst with CLSA.

Nitin Agarwal, analyst with IDFC Securities, expects FDA to review and act on 75 per cent of the ANDA applications within 15 months of submission.

Neha Manpuria, analyst with JP Morgan, in a report released in January had said, "Growth in the US has been affected by the lag in new product launches. While the trend so far has been tepid, any pickup in ANDA approvals would be a key driver for growth in the near term."

Source:economictimes.indiatimes.com
 

Indian Dgft Announces Relaxation On Scrap Metal Import Regulation

India’s Directorate General of Foreign Trade (DGFT) has announced certain relaxations to the earlier announced regulations on scrap metal imports into the country. The revised rule is on the back of concerns raised by several recycling bodies including Institute of Scrap Recycling Industries (ISRI), Bureau of International Recycling (BIR) and the Metal Recycling Association of India (MRAI).

The metal scrap import regulations will come into effect from July 1st. Current pre-shipment inspection certificates are valid only until June 30th, 2015. All existing certifications will go invalid by that time. According to DGFT, pre-shipment inspection agencies need to reapply for certification by an Inter-Ministerial Committee on or before 7th June. The status will be renewed once in every three years, DGFT public notice stated.

As per the stringent scrap import policy announced by Indian authorities in April this year, the Pre-Shipment Inspection Agency (PSIA) in the source country was required to make a video of duration between 3 to 5 minutes covering the inspection process carried out at containers. However, May 18 notice states that photos would be acceptable as an alternative.

The DGFT is believed to have come ahead with the new regulations after scrap shipments into the country were found containing radioactive and explosive materials in it. The Indian administrators stated that the country’s security is their top priority, while admitting that the new rules may lead to lesser scrap imports into India.

Meantime, MRAI has sought for several concessions in the proposed rule. The recycling association has urged to allow self-certification of scrap yards. In addition they also called upon DGFT to exempt shredded scrap from inspection certification requirement.

Source:metal.com

Rupee Opens Higher At 63.74 Per Dollar

The Indian rupee on Thursday strengthened against the dollar, tracking the gains in the local and Asian currencies market. The local unit opened at 63.74 per dollar and touched a high and a low of 63.68 and 63.74, respectively. At 9.07am, the home currency was trading at 63.69, up 0.22% from its previous close of 63.83. The Sensex rose 0.17% or 47.34 points to 27,884.55 points.

The yield on India’s 10-year benchmark bond was trading at 7.847% compared with its Wednesday’s close of 7.858%. Bond yields and prices move in opposite directions.

Since the beginning of this year, the rupee has lost 1%, while foreign institutional investors have bought $6.76 billion from local equity and $6.03 billion from bond markets.

Most of the Asian currencies were trading higher. Thai baht was up 0.34%, Malaysian ringgit was up 0.32%, Taiwan dollar was up 0.19%, Japanese yen was up 0.16%, South Korean won was up 0.15%, Philippines peso was up 0.14%, Singapore dollar was up 0.14% and Indonesian rupiah was up 0.08%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.396, down 0.05% from its previous close of 95.448.

Federal Reserve officials signalled they are unlikely to raise interest rates in June, while leaving open the option of tightening later in the year, Bloomberg reported.

Minutes of their April meeting released on Wednesday also confirmed that the Fed expects growth to pick up after stalling in the first quarter, even as officials fretted about the strength of consumer spending that makes up two-thirds of the economy, it added.

Source:livemint.com

Tribunal cannot follow discriminatory approach on same issues

Service Tax : Where, in earlier matters, pre-deposit had been waived and matter was remanded back to Commissioner (Appeals) for disposal on merits, Tribunal cannot adopt a different approach and order pre-deposit in other matters involving same issue

CESTAT applies brakes on assessee’s practice of taking back-dated credit after departmental audit

Cenvat Credit : If some credit is admissible on basis of cenvatable documents existing with assessee on date of visit of audit officers, but credit is not taken, then same can be taken only after date of visit of audit officers; assessee cannot take back-dated credit and file revised returns

Notice asking assessee to file block return couldn't be challenged in writ as assessee could file ap

IT : Against notice issued to assessee requiring him to file block assessment return as a result of disclosure made in search of premises of other person, assessee had remedies under Income-tax Act to file an appeal against said notice; writ petition against same was not maintainable

Condition of mandatory pre-deposit isn’t onerous as deposit is to be refunded if assessee succeeds i

Excise & Customs : Since : (a) right of appeal granted by statute is a conditional right; (b) condition of mandatory pre-deposit of 'small percentage' (i.e., 7.5 per cent) of duty/penalty confirmed, prior to filing appeal, is 'not so onerous' as to deprive assessee of an effective right of appeal, and (c) same is refunded in event of assessee succeeding in appeal; hence, said condition of pre-deposit is valid

Cash expense incurred by Actor in excess of Rs. 20,000 on travelling, costumes and makeup was allowa

IT: Where assessee was a film artist and incurred expenditure in cash in excess of Rs. 20,000 on costumes, makeup, wig material, travelling expenses etc., at different places of shooting same was to be allowed

CIT(A) gets flak from ITAT for holding that assessee didn't have PE in India as per DTAA without giv

IT/ILT: Where Commissioner(Appeals) had dealt with DTAA but had not discussed actual work and nature of job done by assessee nor had he given reasons as to how he arrived at conclusion that provisions of article 5 of DTAA of Indo-Netherland were not applicable, matter required readjudication

Duty paid goods’ doesn’t mean duty has to be paid before using the goods in manufacture

Excise & Customs : Goods on which duty is paid by 5th/6th of next month must be regarded as 'duty paid' goods; and therefore, if an exemption is conditional upon use of 'duty paid' motor spirit, said exemption may be availed in respect of final product using 'motor spirit', on which duty is paid by 5th/6th of next month

Vendor abused its dominance by forcing appellant to purchase software kit alongwith electronic ticke

Competition Act : Where OP having dominant position in relevant market of Point of Sale (POS) terminals in India had forced informant to purchase Software Development Kit (SDK) with Electronic Ticketing Machine (ETM), OP abused its dominant position

Sum paid to affiliate as per formula provided by Govt. for wind-farm taken on lease couldn't be held

IT : in absence of any material on record, Assessing Officer could not reject assessee's claim for depreciation on purchase of windmills taking a view that cost of said windmills had been inflated

Interest would be leviable if assessee doesn’t contest demand on merits

Cenvat Credit : If assessee has not contested on merits, liability to pay interest is automatic; however, evasion penalty alleging suppression/fraud cannot be levied, if notice fails to invoke reasons leading to said allegations

Matter remanded as assessee was dealing in securities frequently which rebutted his claim of being i

IT : Matter was to be reconsidered where assessee claimed that he was an investor in securities but facts revealed that he was both trader and investor in securities

SEBI allows AMCs to provide management and advisory services to category-1 FPIs

SEBI/INDIAN ACTS & RULES : SEBI (Mutual Funds) (Amendment) Regulations, 2015 – Amendment in Regulation 24

Govt. announces major initiatives on improving 'Ease of Doing Business in India'

Competition Act : Major Initiatives on Improving 'ease of Doing Business' in India – Simplification and Rationalization of Existing Rules and Introduction of Information Technology to Make Governance More Efficient and Effective

Jharkhand VAT : Inter-State stock transfer was not eligible for benefit of concessional rate of tax

CST & VAT: Jharkhand VAT - To avail benefit of concessional rate of tax under section 13(1)(b) of Bihar Finance Act [as adopted by State of Jharkhand], goods manufactured using goods purchased at concessional rate of tax had to be sold within State of Jharkhand or in course of inter-State trade and commerce

Interest received on RBI securities even after their sale due to non-recording of change of ownershi

IT : Where interest was received by assessee on R.B.I. securities after sale of same, as R.B.I. did not record change of ownership such interest belonged to purchaser and could not be taxed in assessee's hands

No TDS from sum paid to 'All India Tennis Association' for seeking approval to conduct tennis tourna

IT/ILT : While making payments to non-resident sports association, i.e., Association of Tennis Professionals (ATP), assessee was required to deduct tax at source under section 194E

Now manufacturer has to pay 7% of value of exempted goods under Rule 6(3) of CCR, 2004

EL/NNT : Cenvat Credit (Third Amendment) Rules, 2015 – Amendment in Rule 6

Indian Rupee Opens Lower At 63.77 Per Dollar

The Indian rupee opened lower by 10 paise at 63.77 per dollar versus 63.67 Tuesday. The dollar continues to gain on unexpectedly better US April housing data. Euro sells off spurred by hints the European Central Bank could take more action to lower euro zone bond yields and boost inflation.

Himanshu Arora of Religare said, “The rupee is expected to trade higher today amid persistent strength in dollar index on worries that Greece may miss debt repayments next month.”

“Also ECB said it may buy bonds more than its monthly target of (E) 60 billion. This is expected to add to dollar's strength against euro.”

“Fresh statements from FOMC, related to interest rate hike in the US may provide more cues for the rupee going forward. Range for the day is seen between 63.40-64.05/dollar,” he said.

Source:moneycontrol.com

‘Hooka’ partakes the character of ‘utensil as utensil can’t be confined to kitchen items only

CST & VAT : Haryana GST : Since 'hooka' is a receptacle/container used for storing water, through which smoke is passed before it is inhaled, it would necessarily partake nature of a utensil and liable to sales-tax at 3 per cent; word 'utensil' cannot be confined to 'kitchen' items only

CIT gets flak from ITAT for revising order of AO after rejecting books without pointing out any erro

IT: Where Commissioner rejected books of account and applied higher GP rate than that declared by assessee in spite of fact that assessee had filed all relevant documents before assessing authorities which were duly accepted by them, order passed by Commissioner was unjustified

HC upheld disallowance of rent paid to relatives on failure of assessee to justify payment of excess

IT : Where assessee engaged in jewellery business had not brought any explanation for payment of commission to his son, daughter and daughter-in-law, moreover, there was no agreement between said parties, his claim for deduction under section 36(1)(ii) was to be rejected

Interest on NPAs couldn't be taxed on accrual basis in hands of non-scheduled co-op. bank

IT : It cannot be said that interest relatable to NPAs is includible in total income of a non scheduled co-operative bank on accrual basis

Pr. CCITs to re-fix seniority of I-T officers by 31-07-2015 on basis of SC's judgment in case of N.R

IT : Meeting to Review the Progress in Implementation of N.r. Parmar Judgment of Supreme Court [2012] 28 Taxmann.com 249 (SC) /[2013] 212 Taxman 97 (SC) and Decisions Taken Thereon

Service tax exemption to sporting events and other specified events is effective from June 1, 2015

ST LAWS : Section 66B of the Finance Act, 1994 - Charge of Service Tax on and after Finance Act, 2012 - Exemption to Specified Services – Amendment in Notification No.6/2015-St, Dated 1-3-2015

TRU explains service tax provisions applicable from June 1, 2015

ST LAWS/C : Finance Act, 2015 – Clarification on Enforcement of Specified Sections of Said Act

Govt. exempts service tax on services provided under Power System Development Fund Scheme

ST LAWS/N : Section 66B of The Finance Act, 1994 - Charge of Service Tax on and After Finance Act, 2012 - Exemption to Specified Services – Services Provided Under Power System Development Fund Scheme

New composition rates of service tax are effective from June 1, 2015

ST LAWS/N : Service Tax (Amendment) Rules, 2015 - Amendment in Rules 2, 4, 5 & 6 and Insertion of Rule 4C – Amendment in Notification No.5/2015-ST, Dated 1-3-2015

Govt. omits meaning of 'chit' from 'Abatement Notification'

ST LAWS : Section 66B of the Finance Act, 1994 - Charge of Service Tax on or after Finance Act, 2012 - Abatement Notification – Amendment in Notification No. 26/2012-ST, Dated 20-6-2012

14% service tax rate notified; applicable from June 1, 2015

ST LAWS : Finance Act, 2015 – Notified Date for Enforcement of Specified Sections of Said Act

Pre-deposit can’t be a condition for remand if revenue had violated principles of natural justice

Excise & Customs : While remanding matter back, Tribunal may impose conditions as to pre-deposit but only after assigning valid reasons and no such pre-deposit can be ordered, if remand is made to violation of principles of natural justice by department

Assembling of instruments and apparatus for measuring/detecting ionizing radiators held as manufactu

IT : Assembling of instruments and apparatus for measuring and deleting ionizing radiators is a manufacturing activity eligible for deduction under section 10B

Denying extension of stay by ITAT beyond 365 days to 'well-behaved' assessee is unconstitutional: Hi

IT : Expression 'even if delay in disposing of appeal is not attributable to assessee' as inserted in third proviso to section 254(2A) by virtue of Finance Act, 2008 failed to achieve its object that assesses should not misuse stay orders granted in their favour by adopting delaying tactics, same is to be struck down

Department can’t invoke extended period if it is aware of modus operandi of assessee

Excise & Customs : Issue of invocation of extended period of limitation raises a mixed question of fact and law; hence, if Tribunal found that department was aware of assessee's activities, extended period could not be have been invoked

Exemption couldn't be denied to a trust created for benefit of Christians but also serving public at

IT : Where objects of assessee-trust were strictly not for Christian community in particular, but were both for purposes of Christian community and other public at large, assessee was a charitable religious trust and provisions of section 13(1)(b) would not be applicable

Re-opening of assessment is valid as AO later found that foreign co. had a subsidiary PE in India

IT/ILT : Where at time of making assessment, assessee did not disclose about existence of PE of its parent company in India and as a result, Assessing Officer could not examine as to whether tax was deductible at source while making remittances to parent company located abroad, it was to be regarded as a valid ground for reopening of assessment

IRDA calls for prompt issue of acknowledgment on collection of premium; unveils guidelines for the p

INSURANCE : Guidelines on Issuance of Premium Acknowledgements – Acknowledgements on Collection of Premiums and Procedures for Refund of Premiums Received/deposits Remitted for Insurance

In case of common appeal, failure to comply with pre-deposit requirement by one assessee would affec

Excise & Customs : Where : (a) stay order provided for dismissal of 'all common appeals' in event of failure of 'P' in making pre-deposit and (b) said stay order was not challenged by 'other assessees', failure of 'P' in making pre-deposit would lead to dismissal of appeals filed by 'other assessees' as well

Calcutta HC didn't have jurisdiction to entertain suit for specific relief in respect of land situat

CL : Where suit for land situated in Maharashtra was filed in Calcutta High Court and parties had granted exclusive jurisdiction to Court of Mumbai, jurisdiction of Court at Calcutta was clearly ousted as per law

No deemed registration to a trust if its application under sec. 12AA wasn’t disposed of within given

IT : Non-disposal of an application for registration within 6 months as fixed by section 12AA(2) would not result in a deemed grant of registration

Loss arising on assignment of right to receive Iraqi debt in lieu of bonds issued by Indian Govt. wa

IT : Indian Government issued compensation bonds to assessee in consideration of assignment of debt receivables (in US dollars) from Iraqi Government. The assessee contended that the Iraqi debt was a capital asset which was transferred and that the full value of such consideration on account of transfer fell short of indexed cost of acquisition of bonds. Thus, assessee claimed loss under the head "Capital Gain" on account of assignment of right to receive its debts from Iraqi Government.

Settlement application can’t be rejected as ‘barred’ after same is allowed to be proceeded with

Excise & Customs : Once settlement commission is allowed to be proceeded with and revenue had no objection thereto, then, without even putting assessee to notice, Settlement Commission cannot reject application as barred under section 32-O on ground that 'an earlier settlement order levied penalty on assessee'

Notarized copy of passport can be relied on to determine residential status of individual if origina

IT/ILT: On loss of passport, secondary evidences such as notarized copy of passport, etc., were to be relied on where total stay in India of assessee for assessment years under consideration was less than 182 days in each of years assessee would fall in category of 'being outside India

CBEC asks field formations not to file SLP wherein disputed amount doesn't exceed 25 lakhs

EXCISE LAWS : Section 35L of the Central Excise Act, 1944 – Appeal to Supreme Court – Clarification on Non-Filing of Slps before Supreme Court in Cases Where Presently Revenue Is below Threshold Limit while Appeal Filed in High Court Before 1-9-2011

Activated Carbon Export Slumps By 8% As Coconut Production Falls

The exports of coconut and allied products have recorded an increase in the country but the activated carbon shipment has slipped 8% in the last fiscal year. Activated carbon, which is used in gold extraction and water purification, accounts for a major chunk of coconut products exports from the country.

The total exports registered 13.5% jump at Rs 1,312 crore in 2014-15. The activated carbon export of Rs 558 crore during the period is at value. Significantly, in volume, it plunged 44% to 54,345 tonne. The principal reason for the slump was the drop in coconut production.

Charcoal made from coconut shells are the main raw material for making activated carbon. "In addition to the paucity of raw material, the operation of an international company with branches in other coconut-producing countries like Indonesia, Thailand and Philippines has started affecting the domestic production. The company is able to reduce production cost by sourcing raw material from its other units," said MM Abdul Basheer, managing director of Indo German Carbons.

Around 24 companies, mostly located in south India, are producing activated carbon. They are dependent on coconut shells from Tamil Nadu, Karnataka and Kerala. "The prospects in the current year do not appear good unless the production gets better. Already many activated carbon producers have slashed the capacity by 50% to 60%," said Basheer, the president of Coconut Activated Carbon Manufacturers Association.

As per the survey conducted by the Coconut Development Board, the overall coconut output in the country registered a 10% fall in 2014-15. The fall has been severe in Andhra Pradesh, which faced multiple cyclonic storms, Kerala and Karnataka. The export of dry coconuts, however, has recorded an increase of 20% with Pakistan buying large quantities. "Pakistan and Gulf countries use it for edible purpose. There was heavy demand last year. However, it has tapered off a bit this year," said Mayilsamy, proprietor of Shrika Oil Industries.

Indian dry coconuts are preferred over the produce of other Asian countries because of better oil content and taste. Sri Lanka, Indonesia and Philippines also export coconuts to the Gulf countries. Pakistan used to buy more from other countries like Sri Lanka. But a shortage in Sri Lanka forced the country to increase purchases from India. The export of dry coconuts showed 20% increase at Rs. 194 crore in 2014-15.

"The demand is continuing despite the shortage of nuts. We export around 25 containers of coconuts to the Gulf countries every month," said Sujith, manager of Fair Exports India, which supplies to the hypermarkets of EMKE group.

Source:economictimes.indiatimes.com

Engagement of advocate isn’t required for hearing before Redressal Committee

Banking Laws : At stage of identifying a company as wilful defaulter, Grievance Redressal Committee merely classify wilful defaulter and does not decide any lis/dispute; engagement of advocate for hearing is not required

Notarized copy of passport is to be relied on to determine residential status of individual if origi

IT/ILT: On loss of passport, secondary evidences such as notarized copy of passport, etc., were to be relied on where total stay in India of assessee for assessment years under consideration was less than 182 days in each of years assessee would fall in category of 'being outside India

Doctrine of unjust enrichment introduced from 13-07-06; can't apply to assessments made before that

Excise & Customs : Doctrine of unjust enrichment was introduced in section 18 by way of amendment from 13-7-2006; hence, said doctrine cannot apply to refunds arising on finalization of provisional assessment under section 18 for period prior to 13-7-2006

Haryana VAT : No revision of order after expiry of 3 years from last date of filing of annual return

CST & VAT: Haryana VAT - Where for assessment year 2003-04 assessee filed annual return on 19-11-2004 and Assessing Authority passed a formal order on 25-11-2005 under section 15(1) as deemed assessment and thereafter Revisional Authority passed under section 34 revisional order dated 13-6-2008, limitation for passing order under section 34 was up to 30-11-2007

India’S Higher Potash Import Price Threatens Volumes

Having failed in a bid to avoid a price hike in the first two potash import deals for the financial year, fertiliser producers in India expected inward shipments of fertiliser minerals to drop during 2015/16.

Indian potash importers have concluded their first two deals of the year, of 1.3-million tonne and 80 000 t respectively with Canadian potash exporter Canpotex and Russia’s Urakali. Both the shipments would be at $332/t and remained fixed through the current year.

Senior government officials in the Department of Fertilisers said that the contracted price was a hike of $10/t over average price of shipments during previous financial year, and while price increases had been resisted, importers had clearly failed to negotiate deals with potash exporters, at last year’s prices.

However, having concluded two deals for the year, potash importers would set the price of $332/t as the ceiling for all other contracts for potash supplies for rest of the current year, the official said.

A section in the Department of Fertilisers was apprehensive that with the government keeping subsidy on potassic fertilisers unchanged for 2016/16, the higher contracted price for potash imports would push up retail prices of di-ammonia phosphate (DAP) and muriate of potash.

This, coupled with forecast of poor monsoon rains across the country, could depress demand for high-priced potassic fertilizers and imports of potash could dip by minimum of 50 000 t from a import estimate of five-million tontones during the year, the highest projected since 2011, the official added.

In fact, the government has ruled out any increase in subsidy to keep retail price of potassic fertilisers in check in wake of higher contracted price.

In 2010, the Indian government de-controlled potassic fertiliser prices, giving producers freedom to fix the maximum retail price (MRP). However, the government continued to provide a fixed subsidy announced each year based on retail price of fertilisers. Earlier this month, the government decided to keep the subsidies unchanged at previous year’s level of  $196 /t in case of DAP and $147/t for muriate of potash.

Officials said that forecast of poor monsoon, would not only depress demand for potassic fertilisers and resultant possible reduction in imports of five-million tonnes as estimated last month, there would be larger shift to urea by farmers as this was sold at government administered retail prices entailing higher subsidy element.

The Indian Meteorological Department in the first of the series of monsoon forecast last month said that the country “would face 33% probability of rains being less than 93% of long term average” or drought conditions.

Deficient rainfall for the second consecutive year would definitely lead to fall in fertiliser consumptions and the demand situation would only get aggravated by the rise in potash import prices which would have to be passed onto farmers in absence of higher subsidy allocation, the official said.

Source:miningweekly.com
 

India Containerized Shredded Scrap Import Prices Remain Stable; Aluminium Scrap Prices Up

Indian containerized shredded scrap import prices remained flat in the week ended May 08, while Indian aluminium scrap prices on Scrap Register Price Index traded up.

According to The Steel Index, containerized shredded scrap prices for Indian imports remained stable at $298 a ton CFR Nhava Sheva during the week.

Scrap buying has been slow this week as local prices for sponge iron and scrap continue to offer more competitive routes to steel making.

Furthermore the inventories of most mills seem relatively well stocked for the period up to the middle of June, particularly when you take into account the slowdown in steel demand associated with the upcoming monsoons.

Rumours continue to circulate of parliamentary pressure to increase steel import duties from 5-15%, however until this measure has actually been implemented market sentiment looks set to remain depressed.

As per the Scrap Register Price Index, scrap prices for Aluminium Accessories, Aluminium ingots, Aluminium Rod Company, Aluminium Rod Local, Aluminium Sheet cutting, Aluminium utensil, Aluminium Wire traded up during last week.

Source:metal.com
 

India Utilities' April Thermal Coal Imports Rise 8% On Year To 7.8 Mil Mt

Indian power utilities imported around 7.8 million mt of thermal coal in April, the first month of fiscal 2015-16, up 8% year on year, according to latest data from the Central Electricity Authority (CEA) seen by Platts Tuesday.

Of the total, 4.3 million mt of coal were imported by 37 utilities for blending while 3.5 million mt were imported by nine utilities for power plants that use only imported coal. NTPC Ltd imported the largest amount of thermal coal in April at 1.6 million mt, followed by private sector power producer Adani Power at 1.3 million mt.  For the current year, utilities are set to import 115 million mt of thermal coal.

Source:platts.com

India State Firms To Import Up To 8.9 Mil Mt Lpg In Fiscal 2015-16, Up 11%

Indian state oil firms plan import 8.5 million-8.9 million mt of LPG in fiscal 2015-16 (April-March), up 6%-11% from 8 million mt the previous fiscal year, prompted by lower prices and as customers adjust to lower government subsidies.

India, once a major importer of various oil products such as diesel, now only imports LPG. It does so mainly via term contracts from major Middle Eastern producers Saudi Aramco, Qatar's Tasweeq, Abu Dhabi National Oil Co. and Kuwait Petroleum Corp., sources said.

The expected volume for fiscal 2015-16 translates to 193-202 cargoes of 44,000 mt each, in a ratio of 33,000 mt of butane and 11,000 mt of propane.

A source familiar with the matter said it has been difficult in past years to get butane cargoes from Saudi Aramco at the requested price and volume, but this year Indian buyers have been able to receive their requirements.

All Western trading firms and a few Asian traders have terminated their 2015 term contracts with Middle Eastern suppliers. And although major Asian buyers such as Japan's Astomos Energy and Gyxis Corp. as well as South Korea's SK Gas have raised or maintained their contracts, there are still excess volumes that are taken up by Indian buyers, traders said.

Saudi Aramco's monthly Contract Prices have fallen almost 43% between May 2014 and May 2015, with prices plunging to 5 1/2-year lows.

Platts Saudi Aramco Contract Prices FOB daily assessments for physical propane cargoes slid to $445/mt in early May 2015, down 44% from $800/mt in early May 2014, while butane prices have fallen to $470/mt, down 42% over the same period from $815/mt, Platts data showed.

India's LPG demand -- split 60% butane and 40% propane -- had been projected to grow 3.5% to 18 million mt in fiscal 2015-16, the Petroleum Planning & Analysis Cell, the Indian oil ministry's research arm, said in March. This was slower than industry predictions of 5%-6% growth.

A direct cash transfer scheme that the government hopes will cut its subsidy bill by 15% initially dampened LPG demand. But now that customers have adjusted to it, demand has started to recover.

FULL EFFECTS OF SUBSIDY CHANGE EXPECTED BY JUNE

Indian sources said 85% of active consumers have enlisted in the scheme, which they consider a significant share.

One source said the 15% of higher-income consumers "that are not enlisted in the subsidy scheme are staying back largely of their own accord and are paying a market price," one source said.

He said the full benefits of the project will be seen in June after more comprehensive data is gathered and aggregated.

Sources said as the new subsidy scheme gains a stronger foothold, the latest projection is for LPG demand growth of around 7%-8% in the next three to four years. But this could slow to around 2%-3% after 2019, they added.

"So far we have a low LPG penetration -- in the urban area there is around 70% penetration while in the rural markets there is around 23% penetration," one source said.

"The main concerns around Indian growth is the port capacity," he added. "Indian ports are already operating at overcapacity. There is new construction at Cochin and Paradip. The issue is the plans of the national oil companies, if they get commitment [from buyers] they will develop [the port infrastructure]?"

Another industry source said the idea is to get the very poor to switch from burning wood for fuel and cooking to LPG.

"Once the current subsidy system is in place and the savings have been made by the government, as they no longer indirectly subsidize industrial LPG, then the government can start making LPG free for the poor," he said, adding that 25%-30% of the country's population was considered very poor. By fiscal 2017-18, supply will fall short of demand by more than 9 million mt, requiring more imports, industry sources said.

"There is only 5.9 million mt or so of capacity to import, so India is using 125% of port capacity currently. This is leading to huge demurrage bills," the first source said.

Persistent congestion at Indian ports and this year's higher imports have exacerbated the shortage of very large gas carriers in international markets and again sent freight rates above $100/mt in recent weeks.

"The influence Indian charterers have on the market East of Suez moved beyond mere tonnage absorption [last week]," one ship brokerage said.

"A few vessels have been delayed in Indian ports to such an extent that they missed any chance of making the dates of their next commitment," the same source said, adding that Indian charterers have been forced to re-quote and re-schedule cargoes, even widening laycan spreads, in order to secure tonnage.

Source:platts.com

Indian Rupee Opens Lower At 63.79 Per Dollar

The rupee is expected to trade in the 63.50-64/dollar range today with likely support from the Central Bank at higher levels, says Ashutosh Raina of HDFC Bank. The Indian rupee opened with marginal loss of 8 paise at 63.79 per dollar on Tuesday against previous close of 63.71.

The US dollar recovers ground after several weeks of selling aided by higher yields. The euro, which rose nearly 9 percent in value against the US dollar in the course of a month, pulled back more than 1 percent.

Ashutosh Raina of HDFC Bank said, “The rupee is back in the 63-64/dollar range on the back of recent dollar weakness, some aggressive intervention and better than expected trade deficit numbers.”

“Market may again try to approach 64 level due to underlying bullish dollar trend still being intact. The rupee is expected to trade in the 63.50-64/dollar range today with likely support from the Central Bank at higher levels,” he added.

Source:moneycontrol.com

Mobile telephone services consumed by employee/staff is eligible for credit

Cenvat Credit : Service tax paid on mobile phones used by its employees/staff can be said to have been used in relation to manufacture and therefore, same is eligible for input service credit

Credit could be taken on basis of invoice of unregistered dealer if invoice of manufacturer was encl

Cenvat Credit : Though invoice of unregistered dealer is ineligible for credit, an assessee may take credit : (a) on basis of invoice of manufacturer enclosed along with commercial invoice of unregistered dealer; and (b) without any time-limit for receipt of goods after clearance by manufacturer

Mere participation of assessee in block proceedings couldn’t validate assessment if warrant wasn’t i

IT: In absence of warrant of authorization for search in name of assessee, proceedings initiated for block assessment would be void ab initio

Depreciation allowed on leased out gas cylinders as leasing was treated as business income of assess

IT : Where assessee purchased gas cylinders for business purpose but since manufacturing unit had not started functioning, it leased out said cylinders to other party and income from such leasing was treated as assessee's business income, assessee was entitled to depreciation on those cylinders

Odisha VAT : Reassessment was invalid as AO failed to serve notice within time pursuant to Tribunal’

CST & VAT : Odisha VAT - Where Tribunal vide order dated 2-5-2009 allowed appeal of assessee with a direction to Assessing Authority to complete reassessment after service of proper notice and thereafter Assessing Authority issued on assessee a notice dated 13-2-2015, impugned notice having been issued beyond period of limitation was non-est, Assessing Authority was to be directed to refund amount due to assessee pursuant to order passed by Tribunal

Making assessment in name of non-existent entity couldn’t be cured by resorting to sec. 292B

IT : Assessment in name of company which had been amalgamated with other company would be null and void

Notification restoring ‘exemption’ which was withdrawn by mistake is clarificatory and retrospective

Excise & Customs : Where exemption to 'compounded rubber' was : (a) withdrawn from 1-3-1994 inadvertently vide an omnibus notification rescinding various notifications and (b) same was restored subsequently from 28-3-1994 vide another Notification, then, in view of consistent policy of Government to exempt 'compounded rubber', said restoration was clarificatory and retrospective from 1-3-1994

No revocation of trust’s registration as it didn’t prove that trustees had siphoned of undisclosed i

IT: Where there were no findings by revenue that assessee trust was indulging in any activity other than promoting education and there were no conclusive findings to prove that trustees had siphoned out undisclosed income of trust, Commissioner was not justified in withdrawing registration granted under section 12A(a) by invoking provisions of section 12AA(3)