Jurisprudentiol–Tomorrow's cases

By Vijay Kumar

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

The freight, telecom charges or insurance attributable to the delivery of articles or things or computer software outside India or the expenses, incurred in foreign exchange in providing the technical services outside India are to be excluded both from the export turnover and from the total turnover – ITAT Sp. Bench

IT may be an easy task to exclude the freight, telecom charges or insurance attributable to the delivery of computer software outside India or expenses, if any, incurred in foreign exchange in providing the technical services outside India from the export turnover and the total turnover if they are separately mentioned in the invoice raised by the assessee. In the course of the arguments, a question arose as to what would happen if these items are not separately shown in the invoice and are included in the total amount raised by the invoice. It was conceded on behalf of the assessee by its representative that in such a case, the Assessing Officer will have the power to go behind the invoice and find out how much of the invoice mount pertains to the recovery of the aforesaid items.

Central Excise

Manufacture and clearance of iron ore concentrate – Department initially alleged activity undertaken by appellants as not manufacture but charges dropped subsequently – Stoppage of duty payment and reversal of CENVAT credit for two months in the interim as a result of confusion created by department – Iron ore concentrate used in manufacture of finished goods cleared on payment of duty in appellants other unit – Pre-deposit of Rs. 37 crores waived and stay granted

THE appellants were engaged in manufacture of iron ore concentrate and cleared the same on payment of duty w.e.f. October 2005 to August 2007. The Department alleged that the process undertaken by the appellant does not amount to manufacture and hence they were not entitled for CENVAT credit on inputs. A show cause notice was issued in January 2007 which was adjudicated in November 2007 wherein the proceedings were dropped by the original authority. In the interim period, the appellants for a strange reason did not discharge duty liability in September 2007 and October 2007. They also reversed the CENVAT credit availed on the inputs including the credit attributable to the stocks lying with them.

Customs

Refund Claim sought to be rejected because assessment not challenged – copy of assessment order not given to assessee –Revenue directed to give a copy - CESTAT

IN this strange case, the Revenue has not given a copy of the assessment order to the assessee, but wants refund to be rejected because the assessment order was not challenged. Commissioner (Appeals) order containing directions to serve copy of assessed Bills of Entry to the appellant upheld. If the same has not been done by the Revenue, awaiting decision in the present appeal, the same by be served now on receipt of the order and shall be challenged by the appellant before appropriate forum. Thereafter, refund claims in dispute, shall be decided.

See our columns tomorrow for the judgements