Jurisprudentiol – Friday's cases

By Vijay Kumar

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

Tribunal has inherent power to dismiss an appeal for non-prosecution, but it cannot be merely on account of absence of an appellant on a solitary occasion; Tribunal has only four – five branches in India and it is expensive and difficult for all appellants to attend at all times, especially when there are several adjournments; High Court

THE Tribunal presently has its benches only at four or five places in India. An appellant who on account of his place or residence or business being far away from the place of sitting for the Tribunal may not except at a high cost be able to attend the hearing especially when as we know that the matters are adjourned for several times. In such an event, if the appellant files on record his submissions in writing, the Tribunal must decide the appeal on merits on the basis of the said submissions. In that case, the Tribunal would not have a power to dismiss the appeal.

Income Tax

conversion of marble blocks by sawing into slabs and tiles and polishing amounts to "manufacture or production of article or thing" - entitled to benefit of Section 80IA – If it is held to be not manufacture, it may affect Central Excise Duty - Supreme Court

IN numerous judgments of the Court, it has been consistently held that the word "production" is wider in its scope as compared to the word "manufacture". Further, Parliament itself has taken note of the ground reality and has amended the provisions of the Income Tax Act, 1961 by inserting Section 2(29BA) vide Finance Act, 2009. The word "production", when used in juxtaposition with the word "manufacture", takes in bringing into existence new goods by a process which may or may not amount to manufacture. The word "production" takes in all the by-products, intermediate products and residual products which emerge in the course of manufacture of goods. The original block does not remain the marble block, it becomes a slab or tile. In the circumstances, not only there is manufacture but also an activity which is something beyond manufacture and which brings a new product into existence.

Service Tax

“Bird scaring service at airport” – not security agency service - CESTAT

FROM the definition, it is clear that the activity of bird scaring does not fall under the purview of the activities of the security agency. If an activity or a service is not covered under a particular service it cannot be taxed. Other operations provided by the Security agency cannot be considered as the services rendered by the Security agencies.

See our columns Tomorrow for the judgements