Jurisprudentiol- Monday's cases

By Vijay Kumar

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

Service tax - Registered society exempt from Income Tax does not come under purview of 'commercial coaching or training centre' - 'Commercial' in statutory definition qualifies 'coaching or training centre' and not 'coaching or training' - Service tax not leviable: CESTAT

THE department initiated proceedings against ASCI (Administrative Staff College of India) for non-payment of service tax on certain services rendered by ASCI by categorizing them under 'Commercial coaching or training service' and 'Scientific or Technical consultancy service'. The Commissioner confirmed a service tax demand of Rs. 1,59,86,170/- along with interest and also imposed a penalty of Rs. 150/- per day under s. 76 of Finance Act, 1994 along with a mandatory penalty equivalent to tax under s. 78. Tribunal concluded that ASCI's services cannot be regarded as a 'commercial coaching or training service' and its research projects do not come under the purview of 'scientific or technical consultancy service'.

Income Tax

MODVAT credit not to be included in total turnover for purposes of computing eligible deduction under Sec 80HHC of Income Tax: Delhi High Court

THE High Court held that excise duty is not to be included in computing total turnover for the purposes of Section 80HHC. The modvat credit availed and adjusted against the duty payable by the assessee, is nothing but excise duty in itself through another duty collecting procedure; such modvat credit cannot be included in the total turnover for the purposes of computing the eligible deduction under Section 80HHC of the Act.

Customs

Moulds and dies are not synonymous - Extrusion dies are not Moulds and are correctly classifiable under heading 8477 90 00 - Benefit of notification 85/2004-Cus not available: Tribunal

BEFORE the Tribunal, the appellant submitted that Commissioner(A) has erred in classifying the imported dies under Chapter heading 8477 90 00 by relying upon section 2(b) of Section XVI inasmuch as the goods in question are nothing but moulds as moulds and dies are synonymous.

See our columns Monday for the judgements