Jurisprudentiol–Tomorrow's cases
Legal Corner Icon — the image was hosted by the publisher and was not captured.Central Excise
SSI Exemption – No exemption to goods bearing the Brand name of another person – Tribunal's fact finding not to be interfered with – Supreme Court
MERELY because the registered trade mark is not entirely reproduced does not take the respondents out of clause 4 and make them eligible to the benefit of the notification; It is settled law that in order to claim benefit of a notification, a party must strictly comply with the terms of the notification. If on wording of the notification the benefit is not available then by stretching the words of the notification or by adding words to the notification benefit cannot be conferred. Even if the goods are different so long as the trade name or brand name of some other Company is used the benefit of the Notification would not be available.
Service Tax
Outward Freight – Eligible for Credit – High Court
IN DDT-599 while reporting the Gujarat Ambuja case () - No credit of Service Tax on outward freight - landmark order from Tribunal, we stated, Not everything is lost. The issue has to be taken to a Larger Bench/High Court/Supreme Court. In DD-601, while reporting that the same issue was before the Bangalore Bench, we suggested, Now what can this Bench do, since there is already a decision by another Bench? It has only two choices – agree with the Delhi Bench or refer the matter to a Larger Bench. That is exactly what the Bangalore Bench did in the India Cement case - 2007-TIOL-1248-CESTAT-BANG.
While the Larger Bench of the CESTAT is yet to decide the issue, the Punjab and Haryana High Court has decided the issue – in favour of the Assessee.
Income Tax
A unit cannot be said to have been set up unless it is ready to discharge the function for which it is being set up. Setting up of business is distinct from commencement of business - expenses incurred after the setting up of the business are deductible as Revenue expenditure - ITAT
IT is well-settled that business is nothing more than a continuous course of activities and for commencement of business all the activities which go to make up the business need to be started simultaneously. As soon as an activity which is the essential activity in the course of carrying on the business is started, the business must be said to have commenced.
Central Excise - AAR
Classification - parts of hulls, cleared over a period of time, for use in the manufacture of hulls, are classifiable under 7308 90 30 and not under 8906 90 00 or 7326 90 80 of the CE Tariff - AAR
THE structure of the Central Excise Tariff is based on the internationally accepted nomenclature in Harmonized System of Nomenclature (HSN). When the tariff entry is patterned on HSN , disputes relating to tariff classification must, as far as possible be resolved with reference to HSN Explanatory Notes. In the instant case the conclusion that parts of ships and boats, other than a complete hull, are excluded from Chapter 89 is reinforced by the Explanatory Notes to HSN. The General notes on Chapter 89 mentions that “Hull of any material” are covered by Chapter 89 and elaborates as follows “Complete vessels presented unassembled or disassembled, and hulls, unfinished or incomplete vessels (whether assembled or not), are classified as vessels of a particular kind, if they have the essential character of that kind of vessel. In other cases, such goods are classified in heading 89.06.
Until Tomorrow with more DDT
Have a nice day.
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