Jurisprudentiol– Tomorrow's cases

By Vijay Kumar

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

Section 80 HHC – income from electricity generated by windmill is business income; AO cannot decide how business has to be done: ITAT

IN a complex manufacturing process it is the assessee who decides as to what to produce in the factory, what to buy and what to outsource. The AO cannot justifiably claim to put himself in the arm-chair of the businessman and assume the role to decide how to do the business having regard to the circumstances of the case. The AO has to put himself in the shoes of the assessee and see how a prudent businessman would act. He should not look at the matter from his own view point but from that of a prudent businessman.

Central Excise

‘Scrabble Junior' and ‘Scrabble Dice' are also classifiable under heading 9504.90 as they are similar to ‘Scrabble original' – ROM application fetches ‘unpleasant' results at hands of Tribunal

IN our researched story carried a year ago we had reported the Tribunal decision in Pleasantime Products [2008-TIOL-552-CESTAT-MUM] holding that 'Scrabble' is a parlour game falling for classification under CET 9504.90 and not an 'Educational Toy or Puzzle' (CTH 95.03). The Tribunal had accordingly upheld the duty demand of about Rs. 23 lakhs and the penalties imposed by the adjudicating authority. The appellant thereafter filed a ROM application pointing out, according to them, certain errors that were apparent on record in the said order

Customs

Serpentine and marble are two distinct products as HSN classification differs – Goods sold by an EOU into DTA must be 'similar' to goods exported – Customs exemption for import of marble blocks not available as products cleared for export not similar to products cleared in DTA : CESTAT

THE assessees, who are licensed as 100% EOU, imported marble blocks free of customs duty and also procured Serpentine stone block, (on which there is no central excise duty) indigenously. They exported serpentine tiles/slabs and a miniscule quantity of granite slabs/tiles and marble slabs/tiles made out of indigenous marble blocks. However, their DTA clearances comprised of marble tiles/slabs made out of imported marble blocks.

See our columns Tomorrow for the judgements