Jurisprudentiol–Tomorrow's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Central Excise

DTA clearance from EOU – Exemption to terry towels made out of duty paid fabrics – As EOU obtained inputs under CT-3 without duty, not eligible for exemption: CESTAT

NOTIFICATION NO. 8/97-CE dt.1.3.97 issued under Section 5A of Central Excise Act, 1944 prescribed a concessional rate of excise duty on the DTA clearances of 100% EOU, if the goods had been produced wholly from raw-materials produced or manufactured in India and the clearances have been made as per the provisions of Exim Policy. The concessional rate prescribed under this notification is the duty of exercise leviable under Section 3 of Central Excise Act, 1944 on the like goods produced or manufactured in India, other than in a 100% EOU or a free trade zone. In other words when the 100% EOU manufactures its finished products wholly out of indigenous raw-materials, the DTA clearance of such goods, if made as per the Exim Policy, would attract duty at the same rate at which such goods produced by a unit in DTA would suffer the Central Excise Duty.

Income Tax

Agent of a non-resident can be independently taxed as a representative assessee; The option is with the Income-tax authorities and not with the non-resident or his agent to claim that he be assessed under a particular clause of section 163; The word "including" or "includes" enlarges the meaning of the expression and effect is to import and add things or person which would not otherwise be regarded as 'included' in that sense. – ITAT Special Bench

IT would have looked absurd to provide such an opportunity of being heard to a person who has accepted and never disputed his liability to be assessed as an agent.

The Question before the Special Bench was, "Whether on the facts and in the circumstances of the case the time limit provided u/s 149(3) would apply to the assessee who has voluntarily filed the return of his principal non-resident, and in whose case no order u/s 163 has been passed treating him as the agent of the non-resident?”

Service Tax

Study Centres of University collecting fees directly from students – liable to pay tax under 'commercial coaching and training': CESTAT

MOREOVER, even if regular colleges are wrongly allowed the exemption that cannot be a ground to grant the exemption to the centres unless they satisfy the conditions of the notification. There is no dispute that the appellants do not satisfy one of the two conditions of the notification. The only-ground taken in support of the claim by the centres is that the authorities do not tax similar other providers of service. Centres cannot validly take this ground to claim the benefit.

See our columns Tomorrow for the judgements