TIOL-DDT 1179 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1179 </font><br>
20.08.2009 <br>
Thursday </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Safeguard investigation – LAB – date extended </strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Government has extended the period upto and inclusive of 18th day of November, 2009 for submission of final findings on safeguard investigation concerning imports of Linear Alkyl Benzene into India. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2009/cnt09_123.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 123 /2009- Cus .,( N.T. ), Dated: August 18, 2009 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SCOMET – Export – Permission of Government before entering into agreements </strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT has amended Appendix 3 of Schedule 2 of ITC (HS) Classification of Export and Import Items, 2004-2009. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is now made mandatory for all companies and their subsidiaries registered in India and all other business entities operating in India and involved in the manufacture, processing and use of Special Chemicals, Organisms, Materials, Equipment and Technologies ( SCOMET ) to obtain permission of the Central Government before entering into any arrangement or understanding that involves an obligation to facilitate or undertake site visits, on-site verification or access to records/ documentation, by foreign Governments or foreign third parties, either acting directly or through an Indian party or parties. Requests for such permissions shall be considered in the manner in which requests for export/import licence are considered. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Provided that where obligations involving site visits, on-site verification or access to records/ documentation by foreign governments or foreign third parties are to be undertaken pursuant to a bilateral agreement or a multilateral treaty to which India is a party, the provisions of the relevant agreement or treaty shall apply. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2008/dgft08not122.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT Notification No. 122 (RE-2008)/2004-2009, Dated: August 19, 2009 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Slush Foreign Funds - IRS to Receive Unprecedented Amount of Information in UBS Agreement – Swiss banks no more Secret </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While we, in India, engage in a lot of talk about getting at those slush funds slashed away in foreign countries, the US IRS has negotiated an agreement that will result in the IRS receiving an unprecedented amount of information on United States holders of accounts at the Swiss bank UBS. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Until now, Switzerland has, like other tax haven countries, only shared banking records with foreign law enforcement agencies if they're investigating an action that would be considered criminal under Swiss law. Switzerland hasn't changed any of its laws but has changed its interpretation of existing laws that cover <em>"tax fraud and the like." </em></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT to bring out Book on “Case laws in favour of Department</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT is to bring out a 454 page book on <strong><font color="#FF6633">“Case laws in favour of Department”</font>. </strong>They have called for quotations for the printing. Sealed quotations (in two parts) addressed to the Director of Income-Tax ( PR,PP&OL ), 2nd Floor, Hans Bhawan , B.S.Z. Marge, New Delhi – 110002 and superscribed “Confidential / Quotation for Printing of Publications” must be dropped in the Tender Box placed in the Room No. 201, 2nd Floor, Hans Bhawan,Bhadurshah Zafar Marg , New Delhi – 110002. <strong>The last date of submitting the Tender in the Tender Box is 24.08.09 at 6:00 p.m.</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
</font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Jurispruden</font><font color="#FF6633" size="5">tiol</font><font color="#006600"> – Friday's cases</font></strong></font></strong></font></p>
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color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CENVAT
Credit – No Credit on Fuel used for exempted final products – Gujarat
High Court's order quashed: Supreme Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The fuel gates are open – The Apex Court has now held that Credit cannot be allowed on fuel that is used for manufacture of exempted goods. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The short question which arises for determination in this batch of civil appeals is : whether the assessee(s) was required to reverse the CENVAT credit in terms of Rule 6(1) of Cenvat Credit Rules, 2002 on the quantity of LSHS which was used as "fuel" for producing steam and electricity, which, in turn, was used in or in relation to the manufacture of exempted goods, namely, fertilizers, during the disputed period(s). </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>power project - SEB backs out - project abandoned - assessee reclassifies pre-operative expenses as revenue expenditure - Nature of expenditure is determined at time it is incurred and cannot be altered based on subsequent events: ITAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DOING business involves multiple risks. And one of the risks, albeit rare, is to abandon a project if it becomes unviable. Once it is abandoned, can the assessee who has claimed pre-operative expenses as capital in nature, reclassify the same as revenue expenditure? This is the gist of dispute in this case. And the verdict has gone against the assessee on two counts - when a business should be treated as commencement of the business and reclassification of expenditure. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Essar's Rs 36 Crore Customs fraud case involving Customs officers – CBI allowed to reinvestigate case in view of Supreme Court judgement upholding penalty – No double jeopardy in investigation: Gujarat HC </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AN </strong>offence came to be registered by the Central Bureau of Investigation, Gandhinagar on 29th December, 2000 against one Shri M. K. Bhada , Commissioner of Central Excise and Customs and seven others for the offences punishable under Section 120B read with Section 420 of the Indian Penal Code and Section 13(2) read with Section 13(1 )( d) of the Prevention of Corruption Act, 1988. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow for the judgements </font></strong></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT </strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day. </font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></font></p>
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