Corporate Taxation

Corporate Taxation
National Law School of India University

Dec 2012
1 Strictly Confidential Internal Purposes Only
Websites
http:// www.incometaxindia.gov.in/
http:// www.cbec.gov.in/
http://www.aar.gov.in/
http://www.aces.gov.in
http://www.ltu.gov.in

Strictly Confidential Internal Purposes Only 2

Taxes are the lifeblood of any government, but it
cannot be over-emphasized that the blood is
taken from the arteries of the taxpayers and,
therefore, the transfusion has to be accomplished
in accordance with the principles of justice and fair
play. Every government has a right to levy taxes.
But no government has the right, in the process of
extracting tax, to cause misery and harassment
to the taxpayer and the gnawing feeling that he is
made the victim of palpable injustice.
- N.A. Palkhiwala.

AGENDA
Introduction
Snapshot: Tax Law Legacy Globally & India
Overview Module
Aspects: Indian Constitution
Sources
Taxable Event
Direct Taxes
Indirect Taxes
International Taxation
Case Laws
Websites
Source: http://www.doingbusiness.org/~/media/GIAWB/Doing%20Business/Documents/Miscellaneous/PayingTaxes-2013-infograph-print.pdf
India Completed Twenty years of
Liberalisation
Tax Reforms
Direct Taxes Code & Central and State GST Act
(Goods and Services Tax Act) will mark
watershed resulting in
Moderation of Rates
Simplification of Laws and
Better Compliance

Strictly Confidential Only for Internal Purposes
Indian Constitution
Article 265

No Tax shall be levied or
collected except by
authority of law.
1) There must be a law;
2) The law must authorise the tax; and
3) The tax must be levied and collected
according to the law.
TAX
DIRECT
INDIRECT
INCOME TAX
CORPORATION INCOME TAX
WEALTH TAX
CENTRAL EXCISE
CUSTOMS
SERVICE TAX
CENTRAL SALES TAX (CTD)
VAT (States)
CBDT CBECS
Indian Constitution
Central Board of Revenue Act, 1963 (1924)
Fiscal Responsibility and Budget Management Act, 2003 (FRBMA); eliminate revenue deficit

Apex Body

QUASI JUDICIAL AUTHORITIES
Direct & Indirect Taxes

APPELLATE TRIBUNAL
President/Vice President (Zones)
(Second Court of Appeal)
Income Tax Appellate Tribunal
Central Excise, Customs & Service Tax
Tribunal
SETTLEMENT COMMISSION
Principal and Additional Bench - Chairman
* Alternate Disputes Resolution (ADR)
mechanism
www.itscindia.gov
RULING OF ADVANCE AUTHORITY
FOR CENTRAL TAXES
Chairman
OMBUDSMAN
IT Guidelines, 2006
Indirect Tax Guidelines 2011

NNATIONAL TAX TRIBUNAL
HIGH COURTS
Benches
Writ & Appeal

SUPREME COURT OF INDIA
Writ & Appeal, SLP, Review
DISPUTE RESOLUTION PANEL (DRP)
COMMITTEE OF DISPUTES (COD)
TAX RETURN PREPARERS
LARGE TAX PAYERS UNIT
ANNUAL INFORMATION RETURNS
CENTRAL PROCESSING CENTERS
STRICTLY CONFIDENTIAL
CBI, CVC, Lokayukta, DRI, IB, ED, JPC, CAG ,
SFO, ACB, etc.,
Tax
Characteristics & nature
Canons

Strictly Confidential & for Purpose of
Internal Use
Sources of Tax Law
Primary
Secondary

Refer NLSIU Study Material (Module 1)
Internal Use
Indian Constitution
Preamble
Article 265
Directive Principles of State Policy
Fundamental Rights & Fundamental Duties
Writs
Constitutional Entities
Freedom of Trade & Commerce
Schedule 7
List:
Union
State
Concurrent
Internal Use
Tax Landscape
Central Board of Revenue Act
Direct
Income Tax
Wealth Tax
Indirect
Customs (Customs Act)
Central Excise (CE Act)
Service (Finance Act, 1994 and respective annual Finance Acts amendments)
Value Added (State VAT Acts)
Sales (CST Act)
International Taxation
Current Government bills
Direct Tax Code
Goods and Services Tax Act
Note
- There are respective tax legislations on which State, Municipality imposes like Property, Motor
Vehicles, etc.,

Internal Use
Concepts
Capital
Revenue/Income
Input/output
Taxable event
Internal Use
Tax Elements
Money: Threshold & market share
Sources of Investments & Payouts
Business Sector
Overlap & interaction with other sectors/market
Business Transactions
Business Income/ Business Expenditure
Business Profit/Loss
Business Arrangements/Contracts
Transfer pricing
Business Accountancy
IFRS; Ministry of Corporate Affairs, after wide consultations with all
stakeholders and regulators, has drawn up a clear roadmap for
implementation of Indian Accounting Standards converged with IFRS.
Converged Standards will have to be followed by PhaseI companies w.e.f.
01.04.2011. The Phase I group excludes banks, insurance companies and
smaller companies & the ministry of corporate affairs, or MCA, in 2011 has
notified 35 accounting standards, also known as Ind-AS.
Schedule VI of Companies Act revised as per IFRS

Internal Use
Whitney V. Commissioners Of Inland Revenue
(1926) 10 Tax Cas 88
Lord Dunedin stated Now, there are three
stages in the imposition of a tax :
there is the declaration of liability, that is the part of
the statute which determines what persons in respect
of what property are liable.
Next, there is the assessment. Liability does not,
depend on assessment. That, 'ex hypothesi' has
already been fixed. But assessment particularises the
exact sum which a person liable has to pay.
Lastly, come the methods of recovery, if the person
taxed does not voluntarily pay.
Internal Use
Cape Brandy Syndicate v. IR
[1921] 1 KB 64,
The dictum of Rowlett J. as quoted with
approval by Viscont Simon which has
become locus classics can be aptly applied to
the facts of the case. Following the
illuminating words were used by the learned
Judge: In a taxing act one has to look merely
at what is clearly said. There is no room for
any intendment. There is no equity about a
tax. There is no presumption as to a tax.
Nothing is to be read in, nothing is to be
implied.
Internal Use
Govind Saran Ganga Saran vs Commr Of Sales Tax And Ors
AIR 1985 SC 1041
The components which enter into the concept of a tax.
The components which enter into the concept of a tax are well
known.
The first is the character of the imposition known by its nature
which prescribes the taxable event attracting the levy,
the second is a clear indication of the person on whom the levy is
imposed and who is obliged to pay the tax,
the third is the rate at which the tax is imposed, and
the fourth is the measure or value to which the rate will be applied
for computing the tax liability.
If these components are not clearly and definitely
ascertainable it is difficult to say that the levy exists in point of
law. Any uncertainty or vagueness in the legislative scheme
defining any of those components of the levy will be fatal to its
validity.

Internal Use
Act
Rules
Regulations
Policy
Notifications
Manuals
Circulars/Instructions
Forms
Press Release/Press Note
Trade Circular
Central Excise Act, 1944
Central Excise Tariff Act, 1985

Authority for Advance Rulings (Customs, Central Excise and Service Tax) Procedure Regulations, 2005
Central Excise (Advance Rulings) Rules, 2002
Central Excise (Appeals) Rules, 2001
Central Excise (Compounding of Offences) Rules, 2005
Central Excise (Determination of Retail Sale Price of Excisable Goods) Rules, 2008
Customs and Central Excise Duties and Service Tax Drawback Rules, 1995
Central Excise (Removal of Difficulties) Rules, 2005
Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001
Central Excise (Settlement of Cases) Rules, 2007
Central Excise Rules, 2002
Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000
Cenvat Credit Rules, 2004
Consumer Welfare Fund Rules, 1992
The Central Excise Laws (amendment and validation) Ordinance, 2005, dated 25/01/2005
Customs, Excise & Service Tax Appellate Tribunal (Procedure) Rules, 1982
Pan Masala Packing Machines (Capacity Determination And Collection of Duty) Rules, 2008
Chewing Tobacco and Unmanufactured Tobacco Packing Machines (Capacity Determination and Collection of Duty) Rules, 2010

Schedule 1
Schedule 2
AD Valorem Duty
Specific Duty
Taxable Event: Manufacture
LANDSCAPE
Refer Govt Website: www.cbec.gov
12th Report of Law Commission of India (LCI) on Income Tax, 1922 (Sep
1958) - M C Setalvad, Shri P Satyanarayana Rao, G N Joshi, N A Palkhiwala,
P M Bakshi, etc.,

There is hardly any Act on the Indian Statute Book which is so
complicated, so illogical in its arrangement, and in some respects so
obscure as the Indian Income Tax Act, 1922

Lord Wrenbury said "No reliance can be placed upon an assumption of
accuracy in the use of language in these Acts" - with reference to
corresponding Act of UK
Rex v Kensington Income-tax Commissioner, 6 TC 613, 623 (HL)

The LCI suggested two categories of changes
- changes of substance and
- changes of form

1
st
Report of FCI, 1952 Dec - K C Neogy, V P Menon, R kaushalendra Rao, B K Madan and M V Rangachari
(Survey of 30 years)
Finance Commission ; current 12th co-inside with Golden Jubilee of FCI (05-12) -
http://lawcommissionofindia.nic.in/1-50/Report12.pdf
13
th
Finance Commission report tabled

Matthews Vs The Chicory Marketing Board (Victoria)
(1938) 60 CLR 263 (9 August 1938)
High Court of Australia referred in Commissioner HR & CE
Vs Lakshmendra (1954) SCI
Marketing of Primary Products Act
It is a compulsory exaction of money by a public authority for
public purposes, enforceable by law, and is not a payment for
services rendered (Lower Mainland Dairy Products Sales
Adjustment Committee v. Crystal Dairy Ltd ) (1933) A.C. 168, at
p. 175
Customs and excise duties are essentially indirect taxes. They
are regarded as additions of definite amounts to the prices at
which the goods upon which they are imposed are, in the ordinary
course of business, sold by persons who have paid the duties. The
distinction between such taxes and other taxes may be
illustrated in the following way: a customs duty or an excise duty
is paid in respect of a particular article: the amount of the tax
necessarily bears a relation to the quantity or value of the article
in question: it is either a specific duty (per article or per quantity
of commodity) or an ad valorem duty: to each article in respect of
which such a duty has been paid it would be possible to attach a
label stating "Duty paid, 5s."or whatever the amount might be
reasons for studying tax law in general and
income tax law in particular
Taxes finance government expenditure
First function of the taxing system
Promoting stability and growth
Tax equity
Horizontal equity; similar burdens on people in
like circumstances
Vertical equity; differential burdens for people
in unlike circumstances
Redistribution of income or wealth
Providing incentives to achieve higher production
Administrative feasibility.
Prof Andrews, Harvard Law School
Inter-disciplinary and Multi-disciplinary Approach to Tax Law
INCOME TAX
1. Persuasive influence and its administration is fair index of
socio-political morality
2. Statutory, detail, quality of reasoning; rich in study
3. Draftsman view point and techniques
4. Many related subjects; superb vantage point; survey of
relations
Prof KC Gopalakrishna, Harvard Law School, NLSIU
Constitutional Aspects
Legislation for giving effect to International Agreements: Parliament has power to
make any law for the whole or any part of the territory of India for implementing
any treaty, agreement, or Convention with any other country or countries or any
decision made at any international Conference, association or other body.
Article 253
Promotion of International Peace and Security foster respect for International law
and treaty obligations of organised people with one another.
Article 51(C)
Union List (List I) in the Seventh Schedule
Participation in International conferences, associations and other bodies and implementing of
decisions made thereat
Item 13
Entering into treaties and agreements with foreign countries and implementing of treaties,
agreements and conventions with foreign countries
Item 14
By virtue of items 13, 14 in Union list, Article 253 empowers the Parliament to pass
laws to implement the treaties (including tax treaties)
Directing both the Government and the people to respect international treaties
Article 51(1)
Refer Section 90 of the Income Tax Act

Introduction
More than one country involved, each country would like to tax on the
economic activity in their respective countries.
No International Law is applicable to fiscal laws of each country.
Developing countries, after achieving independence, assumed larger role
in socio-economic development resulting in increasing Government
expenditure.
Most of the countries accepting globalisation, any person can have access
to raw material, labour and technology in any part of the world as a result
International Investment and Trade is increasing everyday and has become
a global feature.
International aspects of taxation assumes importance.
Countries differ in defining jurisdiction in taxing the people.
There is a linkage between Sovereign (Taxing Authority), Subject (Tax
Payer) and Object (income generating activity)
Further See Prof. R.L Dorenberg, International Taxation, West Publishing Co.,
St.Paul M.N., USA, 1993, p.3.
Submit Tax Residency Certificate - TRC (FA 2012)

Principles of Taxation

Tax Neutrality
Taxes should be neutral and should not influence business decision.
Tax Harmonisation
Tax system should be made neutral fro the point of view of
competition and thus to bring the tax systems into line with the
competitive system of the community.
World wide Principles (Income Tax)
Origin (Source) Principle (Sales Tax or Vat)
Destination Principle (Income Tax, Sales or Vat)
Tinbergen Committee (1953) recognises only Origin and Destination
Priciples.
Fair Tax Play (Introduced by Vedel)
Articles 92, 95-98 of the Rome Treaty seeks to prevent the competitive
distortions which would arise from the re-establishment through tax
measures of the tariffs quotas and subsidies otherwise eliminated by
the agreement
International Tax Law Principles
Treaty tie breaker
Force of attraction
(PE)
Non Discrimination
Thin Capitalisation
Limitation of Benefits - LOB
Mutual Agreement Procedure -MAP
Exchange of Information - EOI
GAAR
SAAR
Advance
Pricing
Agreements
- APA
- Controller foreign companies (CFCs)
- collective investment vehicles (CVCs)
- foreign tax credit
- double residency issues
Important Judicial Decisions
- Customs Act, 1957
- Central Excise Act, 1944
- Prasad
- Master of Business Laws
National Law School of India University
Bangalore
Strictly Confidential
Customs Act, 1962
Asst CC, Karwar v State v State
[1997] 94 ELT 66 (Kar)
Prosecution of non payment of vehicles tax as per Karnataka
Motor Vehicles Act seized and confiscated by the Government
under the Customs Act.
Facts: The RTO, the Karwar, launched criminal case against Asst
CC, Kawrar, for non payment of MV tax u/KMV Act, 1957.
the vehicles were seized and confiscated under Customs
Act, 1962.
Issue: The scope of Article 285(1) of the Constitution - Whether
the Asst. CC is exempt to pay taxes on the confiscated
property by the Government.
Judgement: Article 285(1) of the Constitution gives immunity of
the property of Government from taxation by another. The
expression Property in this Article would include Land,
Building, Chattels Shares, debts and in fact everything
that has a money value in the market and comes within
the purview of any taxing statute. Therefore the
respondent could not have demanded tax from the
petitioner and hence the question of the prosecution
does not arise.
Whether Customs Authorities are bound by the
options of other departments?
The Dept of Mines has stated that goods produced by the Aluminium refinery
should be given port facilities at Vishakapatnam Port. The import license
granted by the licensing authority covers equipment for setting up Alumina
refinery and equipments required for port facility.
The Minister of Mines and Coals recommended grant of port facility for
importing against import license.
The Asst. CC rejected the applications for availing port facility for their
imports on the ground that Vishakapatnam port facilities Aluminia
Conveying System of the applicant does not fall under any of serial numbers
84, 66 and it does not fall in the category of industrial plant since the port
facility project is designed at Vishakapatnam far away from the site refinery
for convenient handling and transport of bulk raw materials and no
manufacturing or extraction or mining operations take place at
Vishakapatnam and hence the port facility cannot be considered to a
project for industrial plant.
As there was difference of opinion in the decision of the two-members Bench
of the Tribunal (in Punjab State Electricity Board v CCE Bombay [1987]
27 ELT 432 the mater was referred to a larger bench of the Tribunal.
Decision: Five member Bench of the Appellate Tribunal
1. Customs Authorities not bound by view of another Dept view of
Dept of Mines that goods for port facility importable as project
import not having any binding effect on Customs Authority acting
under Customs Act, 1962. (Para 13)
2. Opinion of Licensing Authority as reflected in license or any
endorsement, although to be considered, customs authorities to
arrive at conclusion on merits on proper consideration of all
aspects. Thus even assuming that the import licenses in these
cases referred to as Project Import; it is not mandatory for the
proper officers to register the contract unless he is so satisfied on
consideration of all relevant aspects. (para 16)
3. Held that equipment necessary for port facility conveying systems
do not fall under Tariff Heading 84, 66 and therefore the appellant
would not be entitled to seek import of these goods under this tariff
item (para 18) (National Aluminium Co. Ltd v CC, Madras [1997]
94 ELT 409(Tri-Larger Bench).
Facts: SAP Co. (Ayurvedic Pharmacy) imported Poppy Seeds
(Khas Khas) and claimed exemption of Customs duty
that it is diabetic food within the meaning of itm 55A
Import and Export Policy for 1992-97 of the
Gobvernment of India and it is freely importable
under OGL.

Judgment: The Interpretation of the expression Diabetic Food
and further question as to whether Poppy Seed is a Diabetic
Food is a question of law and the following question of law
was referred to the High Court. Whether Poppy Seed is a
Diabetic Food within the meaning of the expession in item
55 of the list of freely impotable consumer goods in 1992-97
Import-Export Policy.
(Ram Kerpal v CC, Ahmedabad [1997]94 ELT 405 Tri)

Issue & Classification of goods whether Section Notes and
Chapter Notes have precedence over functional test or
understanding in Trade and Commercial parlance.
Facts: Chapter 98.03 refers to pens and pencils of all sorts but
Note 4 of Chapter 84 clearly states that polished steel balls of
maximum and minimum diameters of which do not differ
form the normal diameters by more than 1% or more by
0.5mm whichever is less would fall under Heading No.84.62
and steel balls are to be classified under Heading No.73/40.
in the light of the above, what is correct classification of the
goods stainless steel balls of 1.00mm.
Judgment: Note 4 of Chapter 84 has overriding effect for the
purpose of classification of the items under Heading No
77.33/4.0 of the Customs Tariff Act, 1975. The Section Notes
and Chapter Notes have precedence in the matter of
classification of goods and not trade and commercial
parlance.
(CC, Bombay v Sanghvi Swiss Refills Pvt Ltd
[1997 (94) ELT 644 Tri])
Issue: Imported components for manufacturing sewing machines
are for Domestic Sewing machines or for industrial sewing
machines. The rate of customs suty for domestic sewing
machines is 100% 84.4(1) for others (not elsewhere
specified is 40 [Item 84.41(2)].

Facts: Appellate firm has a factory manufacturing sewing machines
and accessories of Faridabad. The Firm imported components for
manufacturing of sewing machines.
The appellant claimed that the imports were for industrial sewing
machinery and dutiable at 40% duty.
The Asst.CC rejected it and charged 100% duty duly on the ground
that the imports were domestic sewing machines.
The Appellate Collector (now commissioner) upheld that appellants
contention.
This was reversed by the Government of India (Revisional Authority).
On final appeal Supreme Court held:

(a) The mater is covered by the circular issued by the CBEC Board and
the facts in this case is in accordance with the guidelines issues by
the Board and the circular is binding on the subordinate officers.

(b) The Government of India have wrongly exercised Revisional powers
by interfering with the decision of the Appellate Collector.

(c) The appeal is allowed and the order of the Appellate Controller giving
relief to the appellant is restored.

British Machinery Supplies Co V Union of India
[1996] 86 ELT 449 (SC)
Issue: The scope of Exemption Notification to be read plainly as
an ordinary man would read it.

Facts: Imports of Cups and Cones of roller bearings are entitled to a
concessional rate as per Serial No 6(a) Notification Number 70/89 Cus.
The appellants imported cups and cones of roller bearing separately
and claimed concessional rate. The Department rejected it stating to
claim concessional rate both cups and cones of roller bearings should be
imported together in view of the word and used in the Notification. This
was upheld by the Appellate Tribunal. The matter was taken up to
Supreme Court.

Judgment: Reversing the Tribunal Order, the Supreme Court held that
There is no question of reading the word and disjunctively here. The
exemption notification must be read plainly as an ordinary man would
have read it and so read Sl No 6(a) says that cups roller bearings are
liable to the duty. Applicable to the bearings of which they are part and
cones of roller bearings are liable to the rate of duty applicable to tax
bearings of which they are part. There is no justification for reading the
entry conjunctively in the sense that the rate of duty applicable to the
bearings of which they are part will apply only when the cups and cones
of roller bearings are imported together but not is they are imported
separately.
CC V Shiboni Engineering Systems
[1996] 86 ELT 453 (SC)
Whether Statement of the Co-accused can be used as a substantive
evidence connecting the petitioner with contravention of illegal
export of foreign exchange. Section 10 of the Evidence Act and
Code of Criminal Procedure, 1973.
Facts: The Customs Officials at Sahar International Airport, Bombay,
apprehended one Solanki, when he was attempting to export foreign
exchange out of India valuing 13.27 Lakhs. Mr Solanki has stated that
one Mr Subhash Dudani had given him the currency to hand over to Mr
Kenur in Hong Kong. On interrogation Mr. Dudani had filed statement
under Section 108 that this foreign exchange was received from
Sukhwani. The Customs Officials confiscated the foreign exchange and
used the statement of Mr Dudani against the petition (on Sukhwani).
Judgment: On special leave petition filed by Sukhawani, the Supreme
Court held The Statement made before the Customs Official is not a
statement recorded under Section 161 of Code of Criminal procedure,
1973. Therefore it is a material piece of evidence collected by Customs
Officials under section 108 of the Customs Act. That material can
certainly be used to connect the petition in the contravention
Therefore, there is no illegality in the order of confiscation of foreign
currency and imposition of penalty. There is no ground warranting
reduction of fine.
Naresh J Sukhwani v Union of India
[1996] 83 ELT 258 SC
Central Excise Act, 1944
Facts: Admissibility of turnover discount given in
addition to the trade discount as an incentive in
arriving at the value of the manufacturing product
Section 4 of the CE Act, 1944.

Judgment: Turnover discount given in addition to
the trade discount as an incentive to increase the
sale of goods. Therefore turnover discount to be
allowed.

- Addison Co Ltd v CCE , Madras
[1997] 91 ELT 532 (SC)
Facts: The appellant manufacturers audio equipment at a factory in
Pune. The CCE sent a notice alleging that the assessable value of
goods manufactured by it during the period 1983 to 1986 has not
been correctly determined. The appellant had claimed inadmissible
deductions from the price realised from its dealers on account of
amongst others, normal trade discount although a substantial part
thereof represented advertisement expenses and expenses on after
sales services which were includable in the assessable value.
Judgment: Advertisement and free after sales service during
guarantee period provided by dealers to the product of Phillips
under an agreement whether allowable.
The Supreme Court observed thus legitimate business
considerations to be kept in mind by the Excise Authorities while
determining the assessable value on the basis of the agreement
between the manufacturer and the buyer and on facts reduction of
trade discount by 2% representing adjustment for advertising
adjustment for advertisement expenses and free after sale service by
Excise Authorities are uncalled for.
Phillips India Ltd v CCE, Pune
[1997] 91 ELT 540 SC
Facts: A notification has issued by the Central Govt under Rule 8(1) of
the CE Rules granting concession in Excise Duty to soaps made
from indigenous rice bran oil in proposition to its use as against
edible oils. The appellant assessee is engaged in manufacturing of
soaps from rice bran falty acid in its Gaziabad factory. One rice bran
falty acid was extracted by the process of hydrolysis from rice bran
oil in assessees another factory and is supplied to its Gaziabad
factory. The other factory is also licensed under CE Act for the
manufacture of rice bran falty acid. The appellant claimed benefit of
the concession which was denied on the ground that rice bran oil as
such was not used at the Gaziabad factory in the manufacture of
soap.
Issue: Did the assessee manufacture soap partly or wholly out of
indigenous rice bran oil. A question of interpretation of the
exemption notification came into being.
Judgment: The Supreme Court observed Plain words of the exemption
not to be given narrower meaning that to which these plainly lend
themselves (section 5A of CE Act)
Whether plant includes transformers also CEGAT held
Facts The appellants are manufacturers of abrasive materials. For
this purpose, they installed a plant and for running of the plant they
obtained a transformer after payment of duty and claimed MODVAT
credit on 2 transformers under Rule 57A of CE Rules, 1944 for
Rs.44,747.
Issues: Whether MODVAT credit could be permissible on transformers
under Rule 57Q on transformers of 75KVA which the present
transformers are. Whether plant includes transformers also.
Judgment: The expression plant has not been defined while
mentioning the expression of Expl 1, clause (a) and (b). Therefore it
has to be taken in which the trade generally understands it. Plant
is understood in the context of manufacture of goods, as a place
where aggreggate of machineries, machinery, equipment, etc., which
produces or process the goods are installed. There is no specific
reason to restrict the meaning of the word Plant in the context of
the beneficial provision that Rule 57Q is keeping in view of the
general meaning of the word Plant Clauses (a) and (b) on their plant
would also include the transformer and therefore the benefit of
MODVAT credit to the transformers to Rule 57Q should be allowed.
Vally Abrasives Ltd v CCE
[1997] 91 ELT 700 (Tri)
Facts: The Appellants have been clearing the goods on payment of duty
from the factory but actual sales takes place only from the godowns.

Issue: Whether there is any excise duty leviable out of these
transactions since at the time and place of removal appropriate duty
has already been paid.

Judgment: Goods earlier declared from factory at prevailing sale price
and sold at a later point of time at a higher price from Depots Held
Duty element not to be read into such upward revision price as
declared at the time of clearance of goods being not a manipulated
one.
CCE v Ashok Leyland Ltd
[1997] 90 ELT 519 (Tri)
Facts: The Scope of Writ Jurisdiction referred of CE and Customs
Duties undue enrichment regarding.
Issue: The nine members bench of the Supreme Court has laid down
the following principles.
Judgment: By virtue of 11B(3) of the CE Act and 27(3) amendment
Act 1991 all claims of refund (excepting those which arise as a
result of declaration of unconstitutionality of a provision where-
under levy was created) have to be preferred and adjudicated only
under the provisions of the respective enactment. No suit for refund
of duty is maintainable in that behalf. Therefore the Courts while
exercising jurisdiction under Article 32 and 226, have due regard to
the legislature intent manifested by the provisions of the Act. The
writ petition would be considered and disposed of in the light of and
in accordance with the provisions of Section 11B. This is for the
reason that power under Article 226 has to be exercised to effectuate
the regime of law and not for abrogating it. Even while acting in
exercise of the said constitutional power, the High Court cannot
ignore the law nor can it override it. The favour under Article 226 is
conceived to serve the ends of law and not to transgress them.
(paras 68, 96, 99)
Facts: Claim for refund was made by the appellant as the duty has been
charged in excess - Judgment.
Issue: It is not permissible to claim refund of any duty by in violating
Section 72 of the Contract Act as a separate and independent remedy
when such a course is expressly barred by the provisions in the Act viz.
Rule 11 and 11B. For this reason, suit for refund would not be, taking
any other view would amount to nullifying the provisions in Rule 11 and
11B which it needs no emphasis cannot be done. Therefore every claim
for refund of excise duty can may be in the forums provided by the Act.
No suit can be filed for refund of duty invoking Section 72 of the
Contract Act
Judgment: Even otherwise, the very basic requirement for a claim of
restitution under section 72 of the Contract Act is that the person
claiming restitution should plead and prove a loss of injury to him. In
cases where the assesses or the person claiming refund has passed on
the incidence of tax to a third person he has not suffered any loss or
injury. It is not permissible to say that he has ownership or tile to the
amount claimed which he has already recovered from the third party
(paras 118 and 119) where such person does not come forward to where
it is not possible to refund the amount to him for one or the other
reason, it is just and appropriate that the amount is retained by the
State i.e by the people. There is no immorality or improriety involved in
such a proposition. 1995 SCR 1350 overruled. (papa 99)
Mafatlal Industries Ltd v Union of India
[1997] 89 ELT 246 SC

Facts: The Product which is Industrial Plastic Laminates was charged
to duty under Entry 15A(2) of the Central Excise Tariff up to
31.12.1980. thereafter , the classification underwent a change and
the duty was charged under Entry 68 with effect from 1.1.1981.
duty has to be paid under that Entry up to 28.12.1981. A Tariff
Advise No 123/81, dated 16.11.1981 came to be communicated on
28.12.1981 stating that the product was classifiable under Entry
15A(2). A show cause notice was issued on 5.2.1982 and the
differential amount was demanded from 16.11.1981 to 31.12.1982
the department raised the demand from the date of the Tariff Advise
i.e. 16.11.1981. the assessee contended that it should be from the
date of communication i.e. 28.12.1981.
Issue: whether the demand from 16.11.1981 is justified.
Judgment: Demand raised on the basis of Tariff Advise to be effective
from the date of Tariff Advise and not from the date of
communication of the Tariff Advice communicated dated 28.12.1981

CCE v Wood Polymer Ltd
[1997] 89 ELT 446 SC

Facts: Appellant company has been manufacturing tyres and tubes of
varying sizes which are excisable under Item No 16 of the CE tariff.
The Appellant adopted the stand that tyres of size 1800 and above
do not fall within the category of tyres for motor vehicles and hence
the proper classification of such tyres should be under the residuary
sub-items 3 all other tyres. Excise duty was collected from the
appellant for such tyres treating them as tyres for motor vehicles.
Issue: Whether Tyre 1800 fall under category of tyres for motor
vehicles?
What is use upon done connotes Tariff item 34 of Central Excise
Tariff.
Judgment: English Words derive colour from those which surround
them and sentences are not mere collection of words to be taken out
of the sentence defined separately by reference to the dictionary or
decided cases.

Good Year India Ltd v Union of India
[1997] 92 ELT 14 SC

Facts: Equalised freight was charged by appellant from everyone.
Freight actually paid less than the amount collected by way of
equalised freight. The excise authorities charged duty on the
differential amount.

Issue: The differential amount is not includable in the assessable
value?
Equalised freight charges from everyone freight actually paid less
than the amount collected by way of equalized freight .

Judgment: Differential amount not includable in the assessable value
since the duty of excise is on manufacture and not on profit made
by dealer on transportation.

Baroda Electrical Meters Ltd v CCE
[1997] 94 ELT 13 SC

Facts: The respondents were availing of the exemption under notification
225/86 CE dated 3.4.86 and 258/86-CE dated 24.4.86. these 2
notifications exempted the goods manufactured by the respondents to
the extent of the duty paid on the inputs used in the goods cleared on
payment of duty. The original authority held that the provisions of Rule
57H(3) did not envisage the transfer of the duty credit which was shown
outstanding in the register as above on 1.3.1987.
Issue: Whether the wording of the notification lend itself to the
interpretation that the respondent could accumulate the credit of the
duty paid on inputs.
Exemption & Scope: Scope of Section 5A of CE Act- It is true that in fiscal
statute exemption there from is to be construed strictly but the
strictness of the construction of exemption notification does not mean
that the full effect to be exemption notification should not be given by
any circuitous process of interpretation. After all exemption notifications
are meant to be interpreted. The scheme evolved as such may be tax
law has to be looked into in an overall perspective and by subjecting the
procedure or tax format of a particular account to technical nicities
manufacturers cannot be denied the transfer of credit from RG23 to RG
23A account as and when the subject goods are brought under the
MODVAT Scheme. Procedural law is only a handmaid of justice and
cannot be made the mistress.
CCE, Hyderabad v Sirpur Paper Mills Ltd
82 ELT 212 (Tri)
The Tribunal while deciding this case relied upon the case decided by
the Supreme Court in Swadeshi Polytex Ltd v CCE [1989] 44 ELT 794
SC

Facts: The appellant used the metal screw caps on the bottles that contained
their product Horlicks.
Issue: Whether the component parts to the Horlicks shall be seemed to quality
for exemption by notification No 201/79 CE.
Manufacturing Process Marketability
Judgment: The SC while reversing the CEGAT upheld the order of Commissioner
(Appeals) that screw cap used for the container of Horlicks was very much an
input and a component part, because without the crew cap the prepared and
pressured good like Horlicks cannot be packed into unit container for the
purposes of sale and the direction to the lower authorities to allow the credit
on account of duty paid on the screw cap in terms of Notification No
201/79CE.
In deciding this case Supreme Court referred to its earlier decision CCE v Jar
Engineering Works Ltd [1989] 39 ELT 169. In this case the Court had to
consider as to whether the name plate affixed on fans was input and essential
ingredient entitled to set off duty under Notification No 201/79 CE. The SC
upheld that the tribunal was right in arriving at the conclusion that the name
plate was not a piece of decoration. Without the name plate the electric fan as
such could not be marketed and the dealer was entitled to the benefit under
the notification for obtaining proforma credit (obviously as a manufacturer). ..
Electric fans do not become marketable products without affixation of name-
plates. Thus the test of marketability as laid down in UOI v Delhi Cloth Mills
Case [1977] 1 ELT 199 applied.
HMM Ltd v CCE
[1994] 74 ELT 19 SC

Facts: The appellants were engaged in the manufacture of computer systems,
falling under Heading No 8471.00 Schedule to the CETA, 1985. They used to
enter into contracts with their customers for supply of hardware, software
and support requirements of their customers. For excise purposes they did
not include the value of software to arrive at the assessable value of the
computer system and paid CE Duty only on that part of the value which they
ascribed to the hardware.
Issue: Whether the value of software would be includable in assessable value of
computer system
Judgment: It was held that even if system software is not included in computer
hardware for classification purposes, this does not affect matter regarding
determining assessable value of computer, which has to be done only as per
Section 4 only.
In this case, it was held that value of systems software has to be added in
value of computer for valuation purposes, though for classification purposes,
they were classified separately.
Tata Unisys Ltd v CCE, Bombay
[1994] 73 ELT 96 Tri
Principles of classification irrelevant for valuation. They are two separate
class of parts of the matter
- COL Tubes (P) Ltd v CCE, Indore
[1994] 72 ELT 342 Tri

Order in respect of some of the expenses was prima facie found to be inconsistent with
the law laid in Bombay Tyre International. In this view, the MRF case was recalled by SC
for fresh consideration in 1989.
Asst CCE v MRF Ltd [1987] 27 ELT 553 SC
Agrees with Bombay Tyre Internatinal and confirms that Depot expenses cannot be
allowed as deduction from Assessable value.
Purpose of packing is not relevant.
Replacement of goods given (warranty discount) is not allowable as deduction from
Assessable Value.
Turnover discount given to dealers lately by way of credit not , but known at the time of
removal of goods is allowed as deduct
If the Price is cum-duty price, the allowable deductions should be deducted from the
cum-duty price and then Assessable value should be calculated by backward
calculations.
GOI v MRF Ltd [1995] 77 ELT 433 SC (3 Bench)
The appellants who supplied the metal were not the manufacturers (all the 4 units has
their individual Licenses and workmen) of the Containers in which biscuits packed and
the definition of manufacture would not apply there by get the benefit to get the value
adjusted against the amounts required to be paid.
Britannia Biscuit Co V CCE [1997] 68 ECR 527 SC
Scope of Section 3(2) gives full liberty to Central Govt to determine the value where the
first Schedule and prescribe ad valorem levy Section 4 does not control or limit this
power to fix rates. Hence the tariff value fixed for Sulphuris acid and liquid chlorine is
Govt discretion and cannot be challenged.
UOI V Century Manufacturing Co [1992] 60 ELT 3 SC

IT Act
Summary authorities
THE ELEMENTS / SOURCES OF INCOME TAX LAW
1. The Income Tax Act, 1961
(a) Income tax in India is governed by the Income Tax Act,1961
(b) It came into force w.e.f.1.4.1962
(c) The Act contains 298 sections and XIV Schedules
(d) The Finance Act shall bring amendment to this Act.
(e) The Law provides for determination of taxable income, tax liability and procedure for assessment, appeal,
penalties and prosecutions.
2. Finance Act
(a) Finance Minister presents this as Finance Bill in both the Houses of Parliament.
(b) Part A of the Budget contains proposed policies of the Government in fiscal areas.
(c) Part B contains the detailed tax proposals.
(d) Once the Finance Bill is approved by the Parliament and gets the assent of the President, it becomes the
Finance Act.
(e) The rate of tax at which income shall be charged is prescribed in the Schedule I of Finance Act.
(f) The Finance Act brings amendments to both the Direct Tax Laws (i.e. Income Tax, Wealth Tax etc.) and
Indirect Tax Laws (i.e. law relating to Central Excise, Customs Duty, Service Tax etc.)
3. The Income Tax Rules, 1962
(a) The administration of Direct Taxes is vested with Central Board of Direct Taxes (CBDT).
(b) Under Section 295 of IT Act, CBDT is empowered to frame rules from time to time to carry out the
purpose and proper administration of the Act.
(c) All forms, procedures and principles of valuation of perquisites prescribed under the Act are provided in
the Rules framed by CBDT.
4. Circulars / Notifications from CBDT
(a) In exercise of the powers u/s 119, CBDT issues circulars and notifications from time to time.
(b) These circulars clarify doubts regarding the scope and meaning of the various provisions of the Act.
(c) These circulars act as guidance for officers and assesses.
(d) These circulars are binding on Assessing Officers but not on assesses and Courts.
(e) The circulars issued by the CBDT shall not be in contrary to the provisions of the Act.
Subordinate Legislation
The Government enacts the law in the Parliament, there e.g.
Income Tax Act, Central Excise Act, etc. where is
a need for detailed rules and regulations, the enactment is to
be done by either CBDT or CBEC. The rules and
regulations enacted by CBDT or CBEC i.e. Income Tax Rules,
Cenvat Credit Rules, the Notifications and Circulars
issued by CBDT, CBEC is called Subordinate Legislation.
5. Supreme Court and High Court Decisions
(a) The Supreme Court and the High Court can give judgment
only on the question of law.
(b) The Law laid down by the Supreme Court is the law of the
land.
(c) The decision of High Court will apply in the respective
States, within its jurisdiction.
Application of Income
An obligation to apply income, which has accrued or has arisen or has been received
amounts to merely the
apportionment of income. Therefore the essentials of the concept of application of
income under the provisions
of the Income Tax Act are :
1. Income accrues to the assessee
2. Income reaches the assessee
3. Income is applied to discharge an obligation, whether self-imposed or gratuitous.
Diversion of Income
An obligation to apply the income in a particular way before it is received by the
assessee or before it has arisen
or accrued to the assessee results in diversion of income. The source is charged with
an overriding title, which
diverts the income. Therefore the essentials are the following :
1. Income is diverted at source,
2. There is an overriding charge or title for such diversion, and
3. The charge / obligation is on the source of income and not on thereceiver.
Examples of diversion by overriding title are -
(a) Right of maintenance of dependants or of coparceners on partition
(b) Right under a statutory provision
(c) A charge created by a decree of a Court of law.
Differences
Capital Expenditure Revenue Expenditure
incurred in acquiring, extending or
improving a fixed asset
incurred in the normal course of business
as a routine expenditure.

incurred for enduring benefits is consumed within a Previous Year

makes improvement with earning
capacity of a business
maintains the profit making capacity of a
business.

is a nonrecurring expenditure normally a recurring one.

CENTRAL BOARD OF DIRECT TAXES
The Central Board of Direct Taxes (CBDT) has been constituted under the Central Board of Revenue Act, 1963. It
functions under the Ministry of Finance. The important powers of CBDT are:
(i) To make rules for carrying out purposes of the Act [Sec. 295].
(ii) To decide jurisdiction of the Income-tax Authorities [Sec. 120].
(iii) To issue instructions, orders and directions to other Income-tax authorities for proper administration of this
Act and all other persons employed in the execution of this Act. However, it cannot issue instructions to the
Commissioner of Income-tax (Appeals). It cannot issue a direction to any Income-tax authority to dispose of a
case in a particular manner. [Sec. 119],
(iv) To declare an organization as company [Sec. 2(17) (iv)].
(v) To entertain objections in respect of search and seizure under the Act. [Sec.132].
(vi) To relax the provisions of Sections 139, 143, 144, 147, 148, 154, 155, 158BFA, 201(1A), 210, 211, 234A, 234B,
234C, 271 and 273 or otherwise [Section 119(2)(a)].
(vii) Power of relaxing any requirement contained in Chapter IV (provisions for computation of income under
various heads) or Chapter VI-A (provisions for deductions from gross total income) [Section 119(2)(c)].
(viii) Issue such general or special orders for relaxation of the provisions of sections relating to FBT viz; 115WD,
115WE, 115WF, 115WG, 115WH, 115WJ and 115WK [Section 119(2)(a)].
(ix) Prescribe categories of transactions and documents pertaining to business or profession, where quoting of
PAN is necessary [Sec, 139A].
(x) Frame a scheme in respect of Tax Return Preparers [Sec. 139B].
(xi) Prescribe class of persons by whom return of income [Sec. 139D] and TDS statements [Sec. 200] should be filed
electronically.
(xii) Prescribing qualifications for Authorized Representatives [Sec. 288].
(xiii) Condone delay for seeking CBDTs approval, where it is required [Sec. 293B] and authorize any income tax
authority not being Commissioner of Income-tax (Appeals), to admit belatedly ant claim for exemption,
deduction, refund or relief [Section 119(2)(b)].
(xiv) To prescribe method for computation of arms length price [Section 92C].and to prescribe record to be kept
and the time for which it is to be preserved [Section 92D].
DIRECTOR GENERAL/DIRECTOR
The Central Government has power to appoint Director General and Director [Sec.
117]. The CBDT authorize them to perform such functions as may be assigned to
them by [Sec. 120]. The powers enjoyed by them include:
(i) To appoint an Income-tax authority below the rank of Assistant
Commissioner/Deputy Commissioner, if authorised by the Board [Sec. 117].
(ii) To direct the Joint Commissioner to function and assume the powers of assessing
officer, if so authorised by the Board [Sec. 120].
(iii) To transfer cases from one or more assessing officers to any other assessing officer
who is subordinate to him [Sec. 127].
(iv) To enquire or investigate concealed income of any person within his jurisdiction
[Sec. 131(1A)].
(v) Authorise any Joint Director / Joint Commissioner, Deputy Director / Deputy
Commissioner, Assistant Director / Assistant Commissioner or Assessing Officer to
enter, search and seize valuables [Sec. 132(1)].
(vi) To requisition books of accounts, etc.[Sec. 132A].
(vii) To survey [Sec. 133A].
(viii) To make an enquiry [Sec. 135].
(ix) To collect certain information [Sec. 133B]
COMMISSIONERS OF INCOME TAX / CHIEF COMMISSIONERS OF INCOME TAX
The Central Government has power to appoint Director General and Director [Sec. 117]. The CBDT authorize
them to perform such functions as may be assigned to them by [Sec. 120]. The powers enjoyed by them
include:
(i) To appoint an Incometax authority below the rank of Assistant Commissioner/Deputy Commissioner, if
authorised by the Board [Sec. 117].
(ii) To direct the Joint Commissioner to function and assume the powers of assessing officer, if so authorised by
the Board [Sec. 120].
(iii) To transfer cases from one or more assessing officers to any other assessing officer who is subordinate to
him [Sec. 127].
(iv) To enquire or investigate conceal income of any person within his jurisdiction [Sec. 131(1A)].
(v) To authorise any Joint Director/Joint Commissioner, Deputy Director/Deputy Commissioner, Assistant
Director/Assistant Commissioner or Assessing Officer to enter, search and seize valuables [Sec. 132(1)].
(vi) To requisition books of accounts, etc. [Sec. 132A].
(vii) To survey [Sec. 133A].
(viii) To make an enquiry [Sec. 135].
(ix) To collect certain information [Sec. 133B]
Additional Powers
(i) Power regarding discovery, production of evidence, etc. [Sec. 131].
(ii) To sanction reopening of assessments after the expiry of four years. [Sec.151(1)].
(iii) To direct the Assessing Officer to prefer appeal to the Tribunal against the order of First Appellate Authority.
[Sec. 253(2)]
(iv) Request the Tribunal to file Reference to High Court. [Sec. 256].
(v) To revise any order passed by the Assessing Officer that is prejudicial to revenue. [Sec. 263].
(vi) To revise any order passed by a subordinate authority on an application by the assessee or suo moto when
the revision is in favour of the assessee. [Sec.264]
COMMISSIONER OF INCOME-TAX (APPEALS)
Appointment is made by the Central Government. The following are important powers:
Power regarding discovery, production of evidence etc. [Sec. 131]
(ii) To condone delay in filing of appeal.
(iii) Power to call for information. [Sec. 133]
(iv) Power to inspect register of companies. [Sec. 134]
(v) To dispose of an appeal and to confirm, reduce, enhance or annul the assessment [Sec. 251]
(vi) Power to impose a penalty. [Sec. 271]
(vii) Power to set off any refund against arrears of tax. [Sec. 245].
(The Commissioner (Appeals) has inherent powers to stay recovery proceedings Paulsons Litho
Works v. ITO 208 ITR 676 (Mad.).
JOINT COMMISSIONER OF INCOME TAX
They are appointed by the Central Government. They enjoy the following powers :-
(i) Power regarding discovery, production of evidence, etc. [Sec. 131]
(ii) Power of search and seizure, if authorised. [Sec. 132]
(iii) Power to call for information. [Sec. 133]
(iv) Power to survey- [Sec. 133A]
(v) Power to make an enquiry- [Sec. 135]
(vi) Power to collect certain information- [Sec. 133B]
(vii) Power to inspect register of companies. [Sec. 134]
(viii) To sanction reopening of assessment after the expiry of 4 years, if the assessment is made
under any section other than sections 143(3) and 147.
ASSESSING OFFICER
Assessing Officer means the Assistant Commissioner or Deputy Commissioner or Assistant Director or Deputy Director or the
Income-tax Officer who is vested with the relevant jurisdiction by virtue of directions or orders issued under Section 120 or any
other provision of this Act, and the Additional Commissioner or Additional Director or Joint Commissioner or Joint Director who
is directed under the said section 120 to exercise or perform all or any of the powers and functions conferred on, or assigned to,
an Assessing Officer under this Act [Sec. 2(7A)]
The following are some of the powers of Income-tax Officers
(i) Power regarding discovery, production of evidence, etc. [Sec. 131]
(ii) Power of search and seizure, if authorised. [Sec. 132]
(iii) Power to requisition books of accounts. [Sec. 132A]
(iv) To apply the assets seized and retained u/s. 132 in satisfaction of the existing liabilities of the assessee under Direct Taxes Act.
[Sec. 132B]
(v) Power to call for information. [Sec. 133]
(vi) Power to collect certain information- [Sec. 133B]
(vii) Power to inspect register of companies. [Sec. 134]
(viii) Power to allot permanent account number. [Sec. 139A]
(ix) Power to direct an assessee to get his accounts audited. [Sec. 142]
(x) Power to make assessment. [Sec. 143, 144]
(xi) Power to reassess income which has escaped assessment.[ sec. 147]
(xii) Power to rectify mistakes apparent from the records, either on his own or on an application made by the assessee. [Sec. 154]
(xiii) Power to grant a certificate to an assessee to receive a payment without deduction of tax at source or deduction of tax at source
at a lower rate than prescribed [Secs. 194, 195, 197]
(xiv) Power to impose penalty for default in payment of a tax. [Sec. 221]
(xv) Power to grant refund. [Sec. 237, 240]
(xvi) Power to withhold refund in certain cases [Sec. 241]
(xvii) Power to adjust the refund against any demand of tax etc. outstanding against the assessee. [Sec. 245].
(xviii) Power to impose penalty for the prescribed defaults under the Act [Chapter XXI]
(xix) Power to initiate prosecution for the prescribed offences under the Act [Chapter XXII]
(xx) Power to determine arms length price of international transactions *Sec. 92C]
INSPECTORS OF INCOME TAX
Inspectors are appointed by the Commissioner of Income Tax.
They have to perform such functions as are assigned to them by the
Commissioner or any other Income-tax authority under which they
are appointed to perform their functions. In case of survey,
inspectors have power to inspect books of account and other
documents, place marks of identification, to take statements at any
function, ceremony or event [Sec. 133A].
Change of incumbent of an office [Sec. 129]
Whenever in respect of any proceeding under this Act an income-
tax authority ceases to exercise jurisdiction and is succeeded by
another who has and exercises jurisdiction, the income-tax
authority so succeeding may continue the proceeding from the
stage at which the proceeding was left by his predecessor :
Provided that the assessee concerned may demand that before the
proceeding is so continued the previous proceeding or any part
thereof be reopened or that before any order of assessment is
passed against him, he be reheard.
Thank you
Types of Taxes
Personal Income Tax
Corporate Income Tax
Dividend Distribution Tax
Salary Income, Rent,
Short/Long Term Capital Gain
BCCT (abolished)
FBT (abolished)
Minimum Alternative Tax
Withholding Tax (lotteries, etc., 197J)
Security Transaction Tax
Commodity Transaction Tax (Abolished)
Section 44AB tax (business)
Presumptive Tax (174 , etc.,)
Fees for Technical Services (FTS)
Royalties
Interest Income
Advantages
Allowance
Exclusion
Exemption
Relief
Rebate
Amnesty Schemes
Subsidy
Deduction
Depreciation
Amortization
Credit
Carry forward & Set-off of losses
Holiday
Shelter, Shopping
Neutrality
Planning & management
Avoidance & Evasion
Haven & DTAA

New DTC Proposed Changes
Earlier IT Act & WT Act (Covering Income
Tax, TDS, DDT, FBT and Wealth taxes) are
abolished & single code of Tax in place.
Concept of AY & PY abolished. Only the
Financial Year terminology exists.
Only status of Non Resident and Resident
of India exits. The other status of resident
but not ordinarily resident goes away.
.

VAT Demystified
What are the `sales' not liable to tax under the
VAT Act?
Since the VAT Act applies only to sales within a
State, the following sales shall not be governed by
the VAT Act:
a) sale in the course of inter-State trade or commerce
which shall continue to be liable to tax under the Central
Sales Tax Act, 1956;
b) sale which takes place outside the State; and
c) sales in the course of export or import.
Cenvat Credit: What is
Modvat to Cenvat
Powers conferred on Government
Section 37 of the Central Excise Act, 1944 (1 of 1944)
Section 94 of the Finance Act, 1994 (32 of 1994)
Beneficiaries
Manufacturer of final Products*
Output service providers*

* subject to the conditions mentioned in the Cenvat Credit Rules
Law
Cenvat Credit Rules , 2004
Source : http://www.cbec.gov.in/excise/new-cenvat-rules.htm
Tax purposes
Not 12/12 Service
tax _Neg list
ITAT_brief
SC_PIB 2001
Direct Taxes

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