Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Central Excise – Appeals - Judicial propriety requires that Tribunal refer matter to Larger Bench when it has disagreement with view holding field on similar issue - Tribunal order quashed and matter remitted for fresh consideration - Mumbai: High Court

THE petitioner, a manufacturer of motor vehicles, arranges for transportation/transit insurance of behalf of the dealers and undertakes to deliver the goods at the doorstep/ premises of the dealer. They recover this as Road Delivery Charges (‘RDC') from the dealers by mentioning it separately in the sales invoices and also pay MVAT (Maharashtra Value Added Tax) as applicable on the RDC for sales within the State of Maharashtra . Not to lag behind, Excise authorities proposed to include this RDC in assessable value and issued show cause notices for different periods demanding excise duty.

Income Tax

Transfer Pricing - Assessee applies cost plus method - Revenue for TNMM - Adjustment can be made only by working out average net profit - matter remanded: Tribunal

THE assessee is engaged in the business of sale of finished jewellery to its AEs and non-AEs. It is located in a SEZ and enjoys 100% tax holiday u/s 10A. It applies Cost Plus Method and claims GP margin of 19.37% with AEs. Revenue issues notice u/s 92CA(2). The TPO observes the assessee has not provided adequate data for proper calculation of the margin and applies TNMM method to compute arm's length price.

Customs

Customs - cess under Textile Committees Act payable even if CVD is exempted: High Court

IS the Cess levied under section 5 of Textile Committees Act, 1963 is includable as a component of CVD? This was the question of law before the High Court.

See our columns Monday for the judgements