"March, 2011" Archive

Regarding compliance for revision in the Customs part of Arrival Card for Passengers in Form ‘D’ – Notification issued by Ministry of Home Affairs

Circular No. 16/2011-Custom Duty (31/03/2011)

Circular No.16/2011-Customs - The issues of increasing imports of satellite phones in passenger baggages without obtaining authorization and import of foreign exchange in excess of amount of US $10,000/- or equivalent without declaration to Customs have been referred to MHA for redressal by making suitable modifications in the Customs par...

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Notification No. 25/2011 – Customs (N. T.) amends Notification No. 36/2001-Cus (N. T.), dated, the 3rd August 2001

Notification No. 25/2011-Customs (N.T.) (31/03/5201)

Notification No. 25/2011 - Customs (N. T.), New Delhi, 31st March, 2011. S. O… (E) – In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Board, being satisfied that it is necessary and expedient so to do, hereby makes the following further amendment in the notification of...

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Cenvat Credit (Third Amendment) Rules, 2011 – Amendment in rules 4, 6 and 9

Notification No. 13/2011-Central Excise (N.T.) (31/03/2011)

NOTIFICATION NO. 13/2011 - CENTRAL EXCISE (N.T.)- The CENVAT credit in respect of input service shall be allowed, on or after the day on which the invoice, bill or, as the case may be, challan referred to in rule 9 is received: Provided that in case of an input service where the service tax is paid on reverse charge by the recipient of th...

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Consolidated FDI Policy (Effective from 1-4-2011)

Condolidated FDI Circular No. 1 of 2011 (31/03/2011)

Circular 1 of 2011 on FDI- (i) Pricing of Convertible instruments. (ii) Inclusion of fresh items for issue of shares against non-cash considerations (iii) Removal of the condition of prior approval in case of existing joint ventures/ technical collaborations in the ‘same field” (iv) Guidelines relating to down-stream investments (...

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FEMA – Export of Goods and Software – Realisation and Repatriation of export proceeds – Liberalisation

A.P. (DIR SERIES) CIRCULAR NO. 47 (31/03/2011)

FEMA : Export of Goods and Software – Realisation and Repatriation of export proceeds – Liberalisation. A.P. (DIR SERIES) CIRCULAR NO. 47, DATED 31-3-2011. Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular No. 57, dated June 29, 2010 enhancing the period of realization and repatri...

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Govt liberalises FDI policy to boost inflows

Relaxing rules for foreign direct investment (FDI) in the country, the Government today decided to permit issuance of equity to overseas firms against imported capital goods and machinery. -- D. Gopalakrishnan...

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Posted Under: Custom Duty |

Collection of electricity bills and telephone bills on behalf of electricity boards and telecom companies is not taxable under Business Auxiliary Service

CCE Vs M/s Corporation Bank (CESTAT Bangalore)

I, however, find that prior to 10/09/2004 collection of cheques / bills etc. was not part of business auxiliary service and scope of customer care service cannot be stretched to cover such collection prior to this date under sub-clause (iii) of definition. Customer care service relates to post sale services rendered to the users / consume...

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Service Tax – 20% restriction under Rule 6(3) of the CENVAT Credit Rules 2004 not applicable to credit availed on capital goods

M/s BSNL Vs CCE (CESTAT Bangalore)

We find that as per the appellant, major amount of demand working out to Rs.12.07 crores pertains to capital goods credit utilised. We note that the Commissioner wrongly found that the restriction contained in Rule 6(3) of CCR as regards the use of cenvat credit above 20% of the tax paid applied to credit of capital goods also. In the cir...

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NBFCs can't be partners in partnership firms- RBI

The Reserve Bank on Wednesday prohibited Non-Banking Finance Companies (NBFCs) from contributing to the capital of a partnership firm or become a partner of such entities. The central bank also asked NBFCs, which have already contributed capital or are partner in such firms, to exit from such arrangements at the earliest. ...

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Posted Under: Custom Duty |

FII Investment in corporate bonds infra long term category – Limit Raised, Investment in Unlisted Company also allowed

Circular No. CIR/IMD/FIIC/5/2011 (31/03/2011)

Increase in overall limits- 1. The existing limit of USD 5 billion for investment by foreign Institutional investors (FIIs) in corporate bonds issued by companies in the infrastructure sector with a residual maturity of over five years has been increased by an additional limit of USD 20 billion taking the total limit to USD 25 billion. Th...

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Notification No. GSR 278(E), Dated 31.3.2011

Notification No. GSR 278(E) (31/03/2011)

NOTIFICATION NO. GSR 278(E), DATED 31-3-2011 - In exercise of the powers conferred under sub-section (1) of section 21 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, the Central Government hereby appoints Shri R.V. Verma, Chairman and Managing Director, National Housing Bank (N...

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Banking – Section 21 of the Securitisation and Reconstruction of Financial Assets & Enforcement of Security Interest Act, 2002 – Central Registry – Central Registrar – Notified place at which Central Registry is established

Notification No. GSR 277(E) (31/03/2011)

The Central Government hereby, entrusts the operations and administration of the Central Registry and the Maintenance of the Central Register to a Government Company licensed under section 25 of the Companies Act, 1956, namely, the Central Registry of Securitisation Asset Reconstruction and Security Interest of India, having its Registere...

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Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Central Registry) Rules, 2011

Notification No. G.S.R. 276(E) (31/03/2011)

These rules may be called the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Central Registry) Rules, 2011. 2) They shall come into force on the date of their publication in the Official Gazette....

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Notification No. 42 (RE-2010)/2009-2014, Dated: 31.03.2011

Notification No. 42 (RE-2010)/2009-2014 (31/03/2011)

NOTIFICATION No. 42 (RE-2010)/2009-2014- This notification is being issued to amend Para 2.1.3 of the Foreign Trade Policy in order to harmonise provisions of the Policy with the United Nations Security Council (UNSC) Resolution 1929 by which additional sanctions have been imposed on Iran related to its nuclear and missile development pr...

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Notification No. 41 (RE-2010)/2009-2014, Dated: 31.03.2011

Notification No. 41 (RE-2010)/2009-2014 (31/03/2011)

Minimum Export Price (MEP) of onions other than Bangalore Rose Onions and Krishnapuram onions will be US$ 170 per Metric Ton F.O.B. It was US$ 225 per Metric Ton as notified on 23.03.2011. There shall be no change in the MEP of Bangalore Rose Onion and Krishnapuram onion which continues to be USD 600 per Metric Ton F.O.B....

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Removal of restriction on export of cotton yarn

Notification No. 40 (RE-2010)/2009-14 (31/03/2011)

In exercise of the powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No.22 of 1992) read with Para 2.1 of the Foreign Trade Policy, 2009-14, the Central Government amends Notification No. 14(RE-2010) dated 22.12.2010 relating to export of Cotton Yarn with effect from 01.04.2011....

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Import policy of Vehicles

Notification No. 39(RE-2010)/2009-2014, (31/03/2011)

Notification No. 39(RE-2010)/2009-2014- The sale of vehicles imported by Foreign Diplomats and Other Privileged Persons is now permitted to other non privileged persons also in the manner specified in Foreign Privileged Persons (Regulation of Customs Privileges) Rules, 1957, as amended....

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Notification No. 38 (RE-2010) /2009-2014, Dated: 31.03.2011

Notification No. 38 (RE-2010) /2009-2014 (31/03/2011)

NOTIFICATION No.38 (RE-2010) /2009-2014- The FT(D&R) Act,1992 was amended in 2010. By this amendment, a new Chapter IV A has been introduced in the FT(D&R) Act,1992. It deals with controls on export of specified goods, services and technologies and empowers the Central Government to notify list of such goods, services and technologies. Th...

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KPMG Survey 2011 on Bribery and Corruption

Capital inflows, international trade and private and public enterprise have helped contribute significantly to India’s growth since liberalisation. With the idea of understanding how corruption is impacting each of these pillars and eventually the economy at large, KPMG in India conducted this survey with certain leading Indian corporat...

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Posted Under: Custom Duty |

Empanelment form for examiners – Revised and ICAI President Message

would like to inform you all that Schedule VI will be applicable from the year commencing April 1, 2011. Further, I am glad to inform you that till date 31, 093 no. of queries/complaints/grievances have been posted in the “e-Sahaayataa” portal out of which 30,820 no. of queries/complaints/grievances have been resolved & catered to. I...

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Posted Under: Custom Duty |

Non-availability of DEPB benefit on export of Cotton

Public Notice No. 45 (RE-2010) /2009-2014 (31/03/2011)

Benefit under DEPB scheme encourages export of concerned commodity. Hence when the intention of the Government is not to encourage exports of specific commodity, DEPB benefit on such a commodity would be contradictory to its intention. Accordingly, this Public Notice clarifies that DEPB benefit on export of cotton shall not be available...

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Minimum Export Price (MEP) for export of Sona Masuri, Ponni Samba and Matta rice

Public Notice No. 44 (RE-2010)/2009-2014 (31/03/2011)

The export of Sona Masuri, Ponni Samba and Matta varieties of non-Basmati rice shall be subject to a Minimum Export Price (MEP) of USD 850 per MT.” MEP of USD 850 per MT was prescribed for Sona Masuri rice and Ponni-Samba rice but not for Matta rice. Now the same MEP of USD 850 per MT is applicable for Matta rice also. ...

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Establishment of Financial Literacy and Credit Counselling Centre

RBI/2010-11/456 RPCD.CO.FID. BC.No.58 /12.01.018/2010-11 (31/03/2011)

RPCD.CO.FID. BC.No.58 /12.01.018/2010-11 - We invite your attention to our circular RPCD.CO.MFFI.BC.NO.86/12.01.018/2008-09 dated February 4, 2009 communicating a ‘Model scheme’ with regard to establishment of Financial Literacy and Credit Counselling Centres (FLCCs). In the Model Scheme, it was envisaged that in order to have maximum...

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Revised Reporting Limit U/s. 217(2A) of Companies Act

Notification No. G.S.R. 289(E) (31/03/2011)

The Ministry of Corporate Affairs has vide notification dated 31st March 2011 enhanced the limits for the purpose of disclosure of particulars of employees in Directors report as requisite under Section 217 (2A) read with Companies (Particulars of Employees) Rules, 1975 from the existing limit of Rs. 24 lakh/ year/ Rs. 2 lakh per month t...

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Tribunal can extend stay beyond 365 days if delay not attributable to assessee

M/s. Tata Communications Ltd Vs. ACIT (ITAT Mumbai)

“Whether in the facts and circumstances of the case where the delay in the disposal of the relevant appeals is not attributable to the assessee, the Tribunal can extend the stay already granted beyond the period of 365 days even after 01.1 0.2008 or it has no power to grant/extend such stay as a result of amendment made by the Finance A...

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Rescinds Notification No. 33/2006-Customs, dated the 7th April, 2006 vide Notification No. 33/ 2011- Customs,

Notification No. 33/2011-Customs (30/03/2011)

Notification No. 33/ 2011- Customs- Central Government hereby rescinds the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 33/2006-Customs, dated the 7th April, 2006, published in the Gazette of India, vide number G.S.R. 211(E), dated the 7th April, 2006, except as respects things done or om...

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The Banking Companies (Nomination) Rules, 1985 – Clarifications – RBI circular No. DBOD.No. Leg. BC. 83/09.07.005/2010-11

RBI/2010-11/454 DBOD.No. Leg. BC. 83/09.07.005/2010-11 (30/03/2011)

DBOD.No. Leg. BC. 83/09.07.005/2010-11- The Banking Companies (Nomination) Rules, 1985- Clarifications. 1. Witness in nomination forms. As you are aware, the Banking Companies (Nomination) Rules, 1985 have been framed in exercise of powers conferred by Section 52 read with Sections 45ZA, 45ZC and 45ZE of the Banking Regulation Act, 1949. ...

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NBFCs not to be Partners in Partnership firms – RBI Circular No. DNBS.PD/ CC.NO. 214/03.02.002/2010-11

RBI/2010-11/453 DNBS.PD/ CC.NO. 214/03.02.002/2010-11 (30/03/2011)

DNBS.PD/ CC.NO. 214/03.02.002/2010-11- It has come to the notice of the Reserve Bank of India that some NBFCs have large investments in / have contributed capital to partnership firms. In view of the risks involved in NBFCs associating themselves with partnership firms, it has been decided to prohibit NBFCs from contributing capital to a...

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FEMA – Draft Foreign Contribution (Regulation) Rules, 2011

In exercise of the powers conferred by section 48 of the Foreign Contribution (Regulation) Act, 2010 (42 of 2010), the Central Government hereby makes the following rules, namely: - 1. Short title and commencement. - (1) These rules may be called the Foreign Contribution (Regulation) Rules, 2011. (2) They shall come into force on the date...

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Posted Under: Custom Duty |

Notification No. DNBS.227/CGM(US)-2011, Dated 30.3.2011

Notification No. DNBS.227/CGM(US)-2011 (30/03/2011)

Insertion of new paragraph 19A– After paragraph 19 of the said Directions, the following paragraph 19A shall be inserted. "NBFCs not to be partners in partnership firms" 19A. (1) No non-banking financial company, which is accepting public deposit shall contribute to the capital of a partnership firm or become a partner of such firm. (2)...

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NBFCs – Amendment in NBF (Non-Deposit Accepting or Holding) Companies Prudential Norms (RB) Directions – Notification No. DNBS. 228/CGM(US)-2011, Dated 30.3.2011

Notification No DNBS. 228/CGM(US)-2011 (30/03/2011)

NOTIFICATION NO. DNBS. 228/CGM(US)-2011, DATED 30-3-2011- Insertion of new paragraph 20A– After paragraph 20 of the said Directions, the following paragraph 20A shall be inserted. "NBFCs not to be partners in partnership firms" 20A. (1) No non-banking financial company shall contribute to the capital of a partnership firm or become a pa...

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Notification – Amendment to A, C and D Schedule-Extention of Time Limit- Maharashtra VAT

Notification No. VAT. 1511/C.R.-47/Taxation-1 (30/03/2011)

In SCHEDULE A,—(a) in entry 9A, in column (2), for the figures, letters and words "31st March 2011 or the date on which the Goods and Services Tax Act comes into force, whichever is earlier" the figures, letters and word "31st March 2012" shall be substituted ; (b) in entry 51, in column (2), for the figures, letters and words "31st Mar...

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Asset Classification and NPA Provision for F.Y. ending 31st March 2011

Guidelines on Asset Classification- All accounts need to be classified into four categories taking into account the degree of well defined credit weaknesses and extent of dependence on collateral security for realisation of the dues as given under :- 1. Standard Assets- Standard asset is one which does not disclose any problem...

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Posted Under: Custom Duty |

Bank Audit 2011-Categorization of a Borrowal Account as NPA – Ready Recokner

Cash Credits and Overdrafts- A cash credit or overdraft account will be treated as NPA if the account remains out of order for a period of more than 90 days. An account is treated as “out of order” if any of the following conditions is satisfied: a. The outstanding balance remains continuously in excess of the sanctioned limit/drawi...

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Posted Under: Custom Duty |

Govt may roll back excise duty on branded garments

The government is considering to roll back 10 per cent excise duty on branded garments, due to large scale protest by industry bodies in many parts of the country, including West Bengal, which goes to polls next month. "The excise duty on readymade garments is being opposed heavily, especially in West Bengal. It might be rolled back ," a ...

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Posted Under: Custom Duty |

Revaluation reserve not routed through Profit and Loss Account could not be added to net profit while computing the book profit for the purpose of MAT

The ITO Ward -6(3)(1) Vs M/s. Galaxy Saws P. Ltd (ITAT Mumbai)

Recently, the Mumbai bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of ITO v. Galaxy Saws P. Ltd. (ITA No.3747/M/2010) (Judgement Date: 11 March 2011, Assessment Year: 2005-06) held that revaluation reserve not routed through Profit & Loss Account but directly transferred to balance sheet could not be added to net p...

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Frontier Issues on the Global Agenda Emerging Economy Perspective

In relative terms, both the Reserve Bank of India (RBI) and the Central Bank of Sri Lanka (CBSL) are young institutions. RBI was established in 1935, and we celebrated our Platinum Jubilee last year. Apart from relative youth, there are several other similarities between our two institutions. Both of us have a wider mandate than is typ...

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Posted Under: Custom Duty |

New Schedule VI – New Balance Sheet and Profit and Loss A/c format applicable from F.Y. 2011-12

F. No. 2/6/2008-C.L-V (30/03/2011)

In exercise of the powers conferred by clause(a) of sub-section(1) of section 642 read with sub-section(1) of section 210A and sub-section (3C) of section 211 of the Companies Act,1956, (1 of 1956), the Central Government hereby makes the following amendment to paragraph 2 of the notification No.447(E) dated the 28th February, 2011:- "The...

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IT dept conducts raids on Kanakia Group- Sources

The income tax department has conducted a search operation on Mumbai-based Kanakia Group. The raids were conducted early morning, in Mumbai and Lucknow, for alleged tax evasion pursued by Kanakia Group, reports CNBC-TV's Ashwin Mohan quoting sources....

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Posted Under: Custom Duty |

The relevant market condition for testing a transaction under CUP is that of the market where the goods are sold and not the place of origin of the goods

M/s Clear Plus India Pvt. Ltd., Vs. Dy. C.I.T. (ITAT Delhi)

The Delhi bench of the Income-tax Appellate Tribunal [“The Tribunal”] recently pronounced its ruling in the case of Clear Plus India Private Limited v. DCIT [ITA NO. 3944/DEL/2010], wherein it upheld the transfer pricing methodology adopted by the taxpayer to benchmark its export sale by the application of internal comparable uncontro...

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Documents not available in public domain at the time of assessment and first appeal that are essential for determining arm’s length price can be admitted for consideration

Asstt. Commissioner of Income-tax, Central Circle-8 Vs. M/s. NIT Ltd. (ITAT Delhi)

Income Tax Appellate Tribunal (“The Tribunal”), Delhi Bench recently pronounced its ruling in the case of ACIT v. M/s NIT Limited (Appeal no. -2011-TII-1 6-I TA T-DEL-TP or ITA No.1844 & 1871/Del./2009) on various transfer pricing issues. The most important issue dealt by the Tribunal was in respect of details submitted before the Tr...

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How to Download Form 16A online?

Download e-Tutorial – Form 16A (PPT) As per Income Tax Department (ITD) circular no. 03/2011 dated May 13, 2011 Companies and Banks are required to issue Form 16A from TIN to their deductees for deductions made from April 1, 2011 (F.Y. 2011-12). Form 16A is available to registered TANs at TIN. Form 16A is available from F.Y. 2010-11...

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Posted Under: Custom Duty |

Transfer Pricing – ACIT vs. M/s. NGC Network (India) Pvt. Ltd.

ACIT Vs. M/s. NGC Network (India) Pvt. Ltd. (ITAT Mumbai)

The Mumbai Bench ‘L’ of the Income Tax Appellate Tribunal (the “Tribunal”), on 23 February 2011, pronounced its ruling in the case ACIT vs. M/s. NGC Network (India) Pvt. Ltd., Mumbai, ITA No. 5307/M/2008. The Taxpayer’s position under appeal filed by the Department with the Tribunal related to the use of independent comparables ...

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Posted Under: Custom Duty |

Mumbai Tribunal holds that segmental accounts should be considered for the computation of the Profit Level Indicator

M/s Tecnimount ICB Pvt. Ltd. Vs ACIT (ITAT Mumbai)

The Mumbai bench of the Income Tax Appellate Tribunal (Tribunal) recently pronounced its ruling in the case of M/s Tecnimount ICB Pvt. Ltd. Vs ACIT, Mumbai, ITA No. 7098/Mum/2010, on transfer pricing issues arising from equipment supplied and technical services rendered by the Taxpayer to its Associated enterprises (AEs). The Tribunal rul...

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CBDT Order No 53 of 2011- Ad hoc promotion from DCIT to JCIT

ORDER NO. 53 OF 2011 (30/03/2011)

ORDER NO. 53 OF 2011- The President is pleased to appoint the following officers of Indian Revenue Service (Income Tax) to the grade of Joint Commissioner of Income Tax (OSD) purely on ad hoc basis in the PB 3-Rs. 15,600-39,100 +7,600/- with immediate effect and until further orders. 2. The promotions are intended to be purely of ...

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Risk adjustments can be given only on company to company basis and not as thumb rule

Ms. ADP Private Limited Vs. Dy. Commissioner of Income- tax (ITAT Hyderabad)

The Hyderabad bench of the Income Tax Appellate Tribunal (Tribunal) recently pronounced its ruling in the case of ADP Private Limited v. Dy. Commissioner of Income Tax (Hyderabad Bench), ITA No: 155/Hyd/2009 , on transfer pricing issues arising from provision of software services by the Taxpayer to its Associated enterprise (AE). The Trib...

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Orissa VAT rate change in items taxable at 12.50 percent

Effective 01 April, 2011, the rate of VAT in Orissa has been enhanced, as mentioned below: Goods falling under Part III of Schedule B and liable to tax at 12.5% will be taxable at 13.50 % from 01.04.2011. Source: Notification No. 12390-CTA-7/2011-F, dated 26 March, 2011 ...

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Posted Under: Custom Duty |

Expert Committee on Revenue Forecasting – Request for suggestions

Vision 2020 and Strategic Plan 2011-15 of the Income Tax Department lays emphasis on revenue optimization efforts of the Department, for which a scientifically developed revenue forecasting model is required to ascertain the potential tax base of the country. To develop a customized revenue forecasting model for the Direct Taxes, an Expe...

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Posted Under: Custom Duty |

EPFO decides to give monthly updates of contributions instead of annual statement

Faced with high defaults in provident fund contributions by employers, the Employees Provident Fund Organisation , or EPFO, has decided to give monthly updates of contributions instead of an annual statement. The EPFO expects this will bring instances of defaults by employers to the notice of workers, who, in turn, will put pressure to d...

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Posted Under: Custom Duty |

Amendment/modification of SION Nos. H-18 and H-51

Public Notice No. 43/(RE-2010)/2009-2014 (30/03/2011)

In SION No. H-18 of Plastic Product Group (Product Code H) (i) Description of Export Product is expanded by addition of “Or without plastic cases” and (ii) a “Note” is inserted below the SION. The amended description of Export Product would read as under: All Plastic (PVC) Playing Cards (Packed in relevant plastic cases or wit...

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Amendments in the Handbook of Procedures, Volume 1 (Appendices and Aayat Niryat Forms), 2009-14

Public Notice No. 42 (RE 2010)/2009-14 (30/03/2011)

Aayat Niryat Form 2E (ANF 2E) as given in Annexure to this Public Notice, shall replace the existing ANF 2E in the Handbook of Procedures, Volume 1 (Appendices and Aayat Niryat Forms), 2009-14. 2. This amendment shall be applicable w.e.f. 1.4.2011. All applications for permission for export of SCOMET items filed from 1.4.11 onwards must b...

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Service tax on rail freight deferred by 3 months – Fourth Such Defferment

Under pressure from Railway Minister Mamata Banerjee and concerned over rising inflation, the government has once again deferred a decision on levying service tax on transport of goods by rail to July 1. This is the fourth time that the government is postponing a decision on service tax on rail freight which was to be implemented from Apr...

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Posted Under: Custom Duty |

Revised Schedule VI to Companies Act,1956 applicable from 1 April 2011

Notification No. S.O. 653(E) (30/03/2011)

The notification shall come into force for the Balance Sheet and Profit and Loss Account to be prepared for the financial year commencing on or after 1.4.2011....

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Finance Bill 2011 – Significant Amendments in Custom Duty and Excise Duty Provisions

Central Excise- Changes in excise duty structure on textile goods . Branded ready-made garments which are returned to the factory and cleared there from after being re-made, re-conditioned, repacked are exempted from payment of excise duty subject to the following conditions: ─ CENVAT credit on the returned goods is not ava...

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Posted Under: Custom Duty |

MCA announces email ID of its Helpdesk and eGovernance Cell

In case of any grievance/ complaints or queries on policy matters, stakeholders are requested to send an email to MCA Helpdesk (appl.helpdesk@mca.gov.in ). In case, you do not receive any response to your query within 3-4 working days, you may send an escalation to MCA eGovernance Cell at (mcaegovcell@gmail.com )....

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Posted Under: Custom Duty |

Significant Tax Proposals in State Budgets of Bihar, Chhattisgarh, Delhi, Goa, HP, J&K, Maharashtra, Meghalaya, Rajasthan & Uttarakhand

Below is an extract of significant tax proposals by Bihar, Chhattisgarh, Delhi, Goa, Himachal Pradesh, Jammu and Kashmir, Maharashtra, Meghalaya, Rajasthan and Uttarakhand States in their State Budget announced in March, 2011:...

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Posted Under: Custom Duty |

Taxes on mineral rights- SC refers matter to Bench of nine-Judge

Vs M/s Steel Authority of India & Ors (Supreme Court of India)

Whether ‘royalty’ determined under Sections 9/15(3) of the Mines and Minerals (Regulation & Development) Act, 1957 (Act 67 of 1957,  as amended) is in the  nature of tax?...

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Transfer Pricing – If Arms Length Price determined by arithmetical mean, 5 percent deduction allowable

Cummins India Limited Vs. Dy.CIT (ITAT Pune)

Assessee has an option when there is arithmetical mean involved while computing the ‘arm’s length price’ and it happens only if more than one price is determined by the most appropriate method. The First Proviso becomes operational where more than one comparable price is determined. The assessee at his option can make claim of deduc...

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Direct Stay Application to ITAT maintainable. Not necessary that lower authorities must be approached first

Honeywell Automation India Limited Vs. DCIT (ITAT Pune)

Direct Stay Application filed before the Tribunal is maintainable and it is not the requirement of the law that assessee should necessarily approach the CIT before approaching the Tribunal for grant of stay....

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Coins of 25 Paise and below – Withdrawal from Circulation- RBI Circular No. UBD.CO.BPD(PCB) Cir.No.42 /09.73.000/2010-11

RBI/2010-11/458 UBD.CO.BPD(PCB) Cir.No.42 /09.73.000/2010-11 (29/03/2011)

UBD.CO.BPD(PCB) Cir.No.42 /09.73.000/2010-11- In partial modification of the above circular, we advise that the coins of 25 Paise and below will be exchanged at the branches of the specified banks as also the offices of the Reserve Bank of India till the close of business on June 29, 2011 (instead of June 30, 2011 as advised earlier). Th...

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Swan and Loop used as front companies to get spectrum – CBI to SC

The CBI today informed the Supreme Court that telecom companies - Swan Telecom and Loop Telecom - were used as front companies by established telecom players to get 2G spectrum illegally during the tenure of former Telecom Minister A Raja. The agency, which filed a status report in a sealed envelope before a bench of Justices G S Singhvi ...

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Posted Under: Custom Duty |

Govt suggests telcos employ only Indians in sensitive posts

With the telecom sector becoming a potential security threat due to use of imported equipment, the government has proposed that service providers employ only Indian nationals in sensitive positions like Chief Technical Officer and Chief Information Security Officer....

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Posted Under: Custom Duty |

Final decision on 2G spectrum pricing within 3 months

The Telecom Ministry will take a final decision on 2G spectrum pricing and on those holding airwaves beyond contracted limit of 6.2 Mhz, based on recommendations of TRAI, within next three months before seeking Telecom Commission's approval. "Decision on 2G spectrum pricing is expected in next 3 months. DoT internal committee is finalisin...

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Posted Under: Custom Duty |

Collection of account payee cheques – Prohibition on crediting proceeds to third party accounts

RBI/2010-11/452 UBD. BPD. No. 41/12.05.001/2010-11 (29/03/2011)

It has been brought to our notice that since co-operative credit societies are not even sub-members of clearing houses, members of such co-operative credit societies who do not have bank accounts face difficulties in collection of account payee cheques drawn in their name. With a view to mitigating the difficulties faced by the members o...

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Section 23 of Banking Regulation Act, 1949- Relaxations in Branch Licensing Policy

RPCD.CO.RRB.BC No. 56/ 03.05.90-A/2010-11 (29/03/2011)

we further advise that the RRBs eligible to open branches in Tier 3 to Tier 6 centres may do so without prior approval of RBI and approach the Regional Office of RBI for, post-facto automatic, issue of the licence/s. The licence should be displayed in the premise of the branch so opened for information of its customers/ public to instill ...

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Security Issues and Risk mitigation measures – Online alerts to the cardholder for usage of credit/debit cards

RBI/2010-11/449 DPSS. CO. PD 2224/02.14.003/2010-2011 (29/03/2011)

Recently, incidents of unauthorized /fraudulent withdrawals at ATMs have come to the notice of RBI. It is important to arrest the incidents of such frauds in order to further encourage card based transactions in the country where the use of credit/debit cards plays an important role. It is therefore decided that banks make take steps to p...

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Meeting of Committee on Investor Education and Protection Fund

RPCD.CO.RCB.BC.No.57/07.02.03/2010-11 (29/03/2011)

RPCD.CO.RCB.BC.No.57/07.02.03/2010-11- We advise that in a meeting of 'Committee on Investors Education and Protection Fund' held by the Government of India, Ministry of Corporate Affairs, New Delhi, it has, inter-alia, been decided that banks should make 'investor awareness' as one of the agenda items in their periodical meetings with th...

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Cooperatives seek exemption from direct tax code

Major national cooperatives today demanded that they should be kept out of the proposed direct tax code and continued to be given income tax exemption. They sought early approval to the Constitutional Amendment Bill on cooperative that was tabled in Parliament two years back. "Cooperatives should be kept out of the direct tax code that is...

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Dissemination of further information about FII activity – Discontinuance of Reporting

Circular No. CIR/IMD/FIIC/4/2011 (29/03/2011)

Please refer to Circular No. IMD/FII&C/32/2008 dated October 16, 2008 read with Circular No. IMD/FII&C/34/2008 dated October 20, 2008 and Circular No. IMD/FII&C/4/2010 dated June 29, 2010 related to reporting of information pertaining to securities lent by the FIIs to entities abroad. Based on these circulars, FIIs have been submitting we...

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Amendment in Rules & Form No.13 related to Certificate for deduction at lower rates or no deduction of tax from income other than dividends

Notification No. 16/2011- Income Tax (29/03/2011)

Notification No. 16/2011- Income Tax “Certificate for deduction at lower rates or no deduction of tax from income other than dividends. 28AA. (1) Where the Assessing Officer, on an application made by a person under sub-rule (1) of rule 28 is satisfied that existing and estimated tax liability of a person justifies deduction of tax at ...

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Rate of exchange of conversion of each of the foreign currency with effect from 1st April, 2011

Notification No. 24/2011-Customs (N.T.) (29/03/2011)

Notification No. 24/2011 - Customs (N.T.), 29th March, 2011. S.O. (E). – In exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.14/2011-CUSTOMS (N.T.), dated the 24th February,...

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2 customs officers nabbed in anti-graft exercise

In a massive anti-graft exercise, Malaysian authorities today arrested two senior customs officers for alleged money laundering and corruption involving billions of dollars in uncollected taxes. The arrests came after a massive nationwide operation involving several government agencies....

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SC gives CBI two more days to file charge sheet in 2G case

The Supreme Court today allowed a two-day extension to the CBI to file on April 2 its charge sheet against former Telecom Minister A Raja and others in the 2G spectrum allocation case even as the agency said it was readying an 80,000-page document for submission....

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Cabinet set to sanction 7,000 crore interest subsidy to textile units for modernisation

After a long wait by the industry, the government is likely to sanction tomorrow additional Rs 7,000 crore for interest subsidy to the textile units for modernisation. The proposal is expected to come up before the Cabinet Committee on Economic Affairs, sources said....

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Govt simplifies obtaining DIN by company directors

The Director Identification Number, which has to be obtained by all directors on the boards of listed as well as unlisted companies, will now be available online immediately as the government has simplified the process of getting DIN....

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MOU Signed Between ICWAI-MARF and Department of Post

Management Accounting Research Foundation of ICWAI (ICWAI-MARF) has been appointed as an advisor to the Department of Post, Ministry of Communications and IT (DOP) and a MOU has been signed to that effect here today. This appointment as per the MOU will be in vogue for a period of 24 months during which ICWAI-MARF will constitute a team w...

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Jaljira is an appetizer and not a masala and therefore liable to sales tax at the rate of 10 Percent and not 16 Percent

Commercial Taxes Officer Vs. M/s. Jalani Enterprises (Supreme Court of India)

whether Jaljira which is a product manufactured by the respondent herein is only an appetizer and is not a masala and therefore liable to sales tax at the rate of 10% and not 16% ….. There is no doubt that Jaljira is a drink. The contents of Jaljira is put into water and taken as digestive drink but when we look into the manner and meth...

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Parliament's Public Accounts Committee summons Niira Radia, Ratan Tata on Apr 4 in 2G case

Parliament's Public Accounts Committee has summoned corporate lobbyist Niira Radia and Tata Group Chairperson Ratan Tata on April 4 to discuss their role in the 2-G Spectrum allocation case. Sources said the PAC will meet on April 4 and 5 to discuss the 2-G spectrum allocation case which had led to the resignation of Telecom Minister A R...

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Tax returns can be made public – CIC

The Income Tax returns of individuals do not enjoy "absolute ban" from disclosure, the Central Information Commission has held while directing the Income Tax department to provide details of the total income of a person to his son-in-law who is facing a dowry case. ...

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Banking licence draft guideline by end of this month- Finmin

The Reserve Bank will announce draft guidelines for giving new banking licences in the next few days, the Finance Ministry today said. "RBI will come up with the guidelines by the end of this month," Department of Economic Affairs Secretary R Gopalan told reporters on the sidelines of a CII function. ...

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Companies may have to file balance sheet in XBRL form from July 2011

The government said it is planning to make it mandatory for corporates to file balance sheets with it in data form, using XBRL (eXtensible business reporting language) technology, from next fiscal. Currently companies file their annual returns and balance sheets with the Ministry of Corporate Affairs (MCA) by filing up an e-form. ...

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Disallowance U/s.14A can not be made for Depreciation and for deduction allowable to Assessee under chapter VIA of the Income Tax Act, 1961

Hoshang D Nanavati Vs. ACIT (ITAT Mumbai)

Depreciation is admittedly in the nature of allowance and, therefore, it cannot be subject matter of disallowance under section 14A, which must remain confined to expenditure incurred by the assessee. Similarly, as far as deduction under section 80D is concerned, it cannot be subject matter of disallowance under section 14A either. The de...

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Companies Bill likely to be tabled in next Parliament session

Parliament is likely to take up the new Companies Bill , which seeks to replace a half-a-century-old Act, in the next session. Sources in the Ministry of Corporate Affairs said that the Companies Bill, 2009, will be brought for passage before Parliament in the next session. The draft Bill will be sent to Cabinet in the first week of May, ...

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Simplification in Procedures and Rules to Bring Transparency in Service Delivery

Simplification of issuing Director Identification Number (DIN) process: As per section 253 of the Companies Act, 1956, no person can be appointed as Director of the Company unless he has been allotted a DIN from the Government on his application. At present it takes about 2 to 5 days in this process of filing applications, its examination...

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CBI to file first charge sheet against Raja and others

The CBI will file this week its first charge sheet into the 2G spectrum scam against former Telecom Minister A Raja and some of his close aides besides a couple of real estate companies for allegedly defrauding the exchequer and entering into a criminal conspiracy in securing the telecom licenses....

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Where shares are held as stock-in-trade no part of interest on borrowed funds can be disallowed u/s 14A as incurred in relation to Dividend income

Yatish Trading Co.P Ltd. Vs ACIT (ITAT Mumbai), ITA No. 456 /Mum/2009

In the case of a trader where shares are held as stock-in-trade no part of interest on borrowed funds can be disallowed u/s 14A as incurred in relation to Dividend income. The interest on borrowed funds used for trading activity is an allowable expenditure under section 36(1)(iii) and the same cannot be treated as the expenditure for earn...

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Mobile phones- A button to send emergency alerts!

In a bid to help pro-democracy campaigners, the US government is developing a mobile phone with a 'panic button' that can wipe out its address book and send emergency alerts. The new technology also includes a special application that can be activated if the smart phone is confiscated by security authorities. The US wants to equip the act...

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Transfer Pricing- ITAT Delhi held that for TNMM, interest on surplus and abnormal costs to be excluded

Marubeni India Pvt. Ltd. Vs ACIT (ITAT Delhi)

Marubeni India Pvt. Ltd. v ACIT (I.T.A. No.919/Del/2009) (ITAT Delhi)- Interest income is to be excluded from operating revenue for computing the net profit from operating activity unless such interest income has nexus with the international transaction. Under the captive service and cost plus model, if an expense has a direct link with t...

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ICAI International Study Tour to Karachi, Pakistan from 25th-28th July, 2011 (3 nights and 4 days)

The Institute of Chartered Accountants of Pakistan (ICAP) is celebrating year 2011 as the Golden Jubilee Year of their Institute. To commemorate the occasion, they are organizing an International Conference on 26th July -27th July 2011 at DAC&GC Karachi, Pakistan. The Conference is expected to include eminent local and international profe...

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ICAI panel to guide, support cooperative sector

The Institute of Chartered Accountants of India (ICAI) has formed a committee to guide and support the cooperative sector in streamlining their audit procedures and raise governance levels, President G Ramasamy said today. The ICAI has suggested replicating the successful laws in the sector in Maharashtra and Gujarat, so that the cooperat...

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Transfer Pricing – Prior Years’ data cannot generally be relied upon to justify Arms Length Price

TNT India Private Limited Vs Asst. Commissioner of Income Tax

The OECD guidelines are not of binding nature and even the Proviso to Rule 10B (4) provides that any subsequent year data cannot be considered. The contemporaneous data of relevant financial year is to be used for making the comparable analysis for arriving at the ALP unless it is proved otherwise...

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Hasan Ali case-Apex court loses cool at ED report

The Supreme Court Monday was angry at the Enforcement Directorate's (ED) which submitted its second status report on money laundering by India's top tax evader Hasan Ali. A bench of Justice B. Sudarshan Reddy and Justice S.S. Nijjar said: 'When we look at the (status) report, it is very difficult to remain calm and poised as to what was h...

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Hasan Ali's wife to be present in Supreme Court tomorrow

Rheema Khan, the wife of Pune-based stud farm owner Hasan Ali, would be present in the Supreme Court tomorrow when the Enforcement Directorate submits a status report of the probe into his alleged money-laundering activities. "Hasan Ali's wife would appear before the Supreme Court tomorrow," said his lawyer, advocate I A Bagadia here. ...

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The Budget Attains Finality

Perhaps, for the first time in Indian history, we have a situation that the Union Budget is presented and passed by both the houses of the Parliament in less than a month. Not only this, that too in the current financial year itself. Thanks to virtually no debate in the house even on crucial proposals impacting economy and growth of nati...

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Maharashtra Budget 2011- Changes in MVAT, Stamp Duty & State Excise Duty

Maharashtra Deputy Chief Minister presented the State budget for the year 2011-12 on 23 March 2011. The changes effected in various regulations shall be effective from a date to be notified unless otherwise specified. Considering a satisfactory rise in the sales tax revenue by 26% over earlier year, it is proposed to retain VAT rate on g...

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Introduction of Annual Return on Foreign Liabilities and Assets – Reporting by Indian Companies

In terms of Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000, Indian companies are required to report the details of Foreign Direct Investment (FDI) in Form FC-GPR to the Regional Office of RBI within whose jurisdiction the Registered Office of the Company operates, within 30...

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Delhi HC grants Permanent injunction against firm for violation of copyright

Castrol Limited & Others Vs Mr. Rajinder Kumar Gupta & Others (Delhi High Court)

Permanent injunction against firm for violating copyright - The Delhi high court last week passed permanent injunction against a firm which violated the copyright and trade mark of Castrol Ltd in the field of oils and lubricants. The court further asked the guilty firm to pay “punitive damages” of Rs 10 lakh. This, explained the judgm...

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SC remit back the Judgement passed without reasoning to HC and asked to pass reasoned judgement

Tikaula Sugar Mills Ltd. Vs State Of U.P.& Ors. (Supreme Court of India)

Problem of judgements without giving reasons continues :- Though the SC has criticised some high courts for writing judgements without giving reasons, the problem seems to continue. In the case of Tikaula Sugar Mills vs State of Uttar Pradesh, the Allahabad high court was asked to pass a reasoned judgement in the dispute. The high court h...

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Clarifications can not be treated as Validating Act

Sangam Spinners Ltd. Vs Union Of India & Ors. (Supreme Court of India)

SC rejects claim of firms using HSD in captive units- The Supreme Court (SC) has dismissed a batch of appeals by various companies claiming credit of duty paid on high speed diesel oil used in their captive electricity generating plants. The Rajasthan high court had earlier rejected their contention in the case, Sangam Spinners Ltd vs Uni...

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