Jurispruden tiol-Monday's cases

By Vijay Kumar

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

Central Excise – In a chemical process, quantity of different products emerging not within the control of human beings – If legislative intent is to restrict use of naphtha only for manufacture of fertilizers then the phraseology in notifications viz., ‘intended for use' would not have been used – Duty demand set aside – CESTAT

REVENUE proceeded to demand customs and excise duty along with interest from the appellants on the ground that exemption is available only to the extent of naphtha used in the manufacture of fertilizers and the quantity of naphtha used for production of carbon dioxide, which was further used in the manufacture of ammonium bicarbonate would not be entitled to any exemption. The duty demands were confirmed and penalties were imposed on the appellants.

Gift Tax

Gift Tax – Inadequate consideration – If the consideration itself is incapable of being determined, there is no question of ascertaining whether it is adequate or inadequate – ITAT by majority

AS rightly pointed out on behalf of the assessee, when capital gains has been charged on the footing that the re-valued figure of Rs.80,54,997/-represents the full value of consideration as per section 45(3) of the IT Act, the gift tax authorities cannot possibly say that the assessee has transferred his assets for inadequate consideration.

Service Tax

Service Tax – Construction of godowns at Railway yard for Central Warehousing Corporation which in turn lets out the same for commercial purpose is taxable under Commercial & Industrial Building Construction services – CESTAT

THE appellants, a Private Limited company, constructed godowns with ancillaries, roads, electrical installation at the Railway yard for Central Warehousing Corporation. A Service Tax audit was conducted by the departmental officers and it was pointed out to the company that construction of warehouse at Railway yard falls under the category of Commercial and Industrial construction services as defined under Section 65(25b) of the Finance Act, 1994.

See our columns Monday for the judgements