Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

Scrap generated in workshop during manufacture of excisable goods exempted under Notfn. 65/95-CE is chargeable to duty : CESTAT

THE relevant fats of the case are that the appellants are manufacturer of sugar, molasses, etc. They are having a workshop, where they manufacture excisable goods for the maintenance of machines installed in their factory. These goods are exempted under Notification no. 65/95-CE dated 16.3.1995, provided that the goods are used within the factory for repairs or maintenance of machinery installed therein. While manufacturing these excisable goods scrap was generated.

Income Tax

Indo-Canada DTAA - Assessee makes payments to non-resident for acquiring Sponsorship Title of a sports tournament - AO treats it as royalty - Since assessee does not acquire any copyrights or right to use, it does not amount to royalty payment under Article 13(3)(c) of DTAA: Delhi HC

THE revenue is aggrieved by the finding of the Tribunal that the payment of USD 9,24,500 /- by the assessee, as per the agreement dated 10.07.1996, to IMG Canada through IMC India, did not amount to a royalty payment under Article 13(3)(c) of the Double Taxation Avoidance Agreement entered into between India and Canada (hereinafter referred to as 'the said DTAA').

Customs

Pre-shipment condition of the vehicle is now a matter of history and nothing can be done by respondent today to ensure that the motorcycle in its pre-shipment condition, conformed to ‘homologation certificate' issued by manufacturer or to specifications stipulated under Motor Vehicles Act/Rules – Respondent liable to re-export vehicle : CESTAT

HAVING found that the importer had not fulfilled many of the above conditions in respect of the motorcycle, the Additional Commissioner of Customs ordered confiscation of the vehicle under section 111(d) of the Customs Act. However, an option to re-export the vehicle on payment of redemption fine of Rs.30,000/- within a period of one month was also given to the importer. A penalty of Rs.5000/- was also imposed on him under section 112(a) of the Act.

See our columns Tomorrow for the judgements