Jurisprudentiol– Tommorow's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Income Tax

Octroi, sales Tax and Excise Duty not includable in total turnover for computation of amount deductible under Section 80HHC ; expenses incurred in relation to issue of debentures to be allowable as Revenue expenditure

JUST as commission received by an assessee is relatable to exports, and yet it cannot form part of “turnover”, excise duty and sales tax also cannot form part of the “turnover”, and were not includable in the “total turnover”. It was held, that otherwise, the formula becomes unworkable. Moreover, excise duty and sales tax are indirect taxes, and they are recovered by the assessee on behalf of the Government. Therefore, if they are made relatable to exports, the formula under Section 80- HHC would become unworkable.

Service Tax

Services provided in a port in relation to handling of export cargo excluded from levy of service tax – Statute bars levy of service tax on handling of cargo for exports - Revenue appeal devoid of merits, dismissed in limine : High Court

THE appellant is engaged in handling of export cargo at Mangalore Port and paid service tax on such activity. Later realizing that this activity does not attract levy of service tax, they filed for refund of the tax paid. Initially the original authority rejected the claim but on appeal the Commissioner (Appeals) directed the lower authority to determine if the service rendered by the appellant was ‘port service' or not.

Customs- AAR

‘Agilent PSA Series spectrum' are rightly classifiable as other instruments and apparatus, specially designed for telecommunications covered by 9030 40 00 of the Customs Tariff: Advance Ruling

THE applicant has sought advance ruling under Section 28H of the Customs Act 1962 on the following issues regarding the classification of such imports:-

a) What is the Customs Classification of Agilent Technologies Product No. E 4443 A, Spectrum Analyzer when imported into India?

b) What is the Customs Classification of Agilent Technologies Product No. E 4447 A, Spectrum Analyzers when imported into India?

See our columns tomorrow for the judgements