Jurisprudentiol – Friday's cases

By Vijay Kumar

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

Income tax - Sections 80I, 80HH - since expansion of existing plant in multiple stages does not lead to emergence of new industrial undertaking, assessee not entitled to tax sops meant for developing backward areas: ITAT Special Bench

THE question before the Special Bench was - Whether expansion of the existing plant would constitute setting up of Industrial Undertaking eligible for deduction under Sections 80I and 80HH. And its answer has gone in favour of the Revenue.

Service Tax

Adjudicating authority cannot go beyond allegations made in show cause notice – CENVAT credit cannot be denied on grounds not alleged in SCN – Appellants are providing BPO service and in relation to their business, Rent-a-Cab service and Air Travel Service are input services: CESTAT

THE basics of adjudication proceedings are on occasions lost sight of by the lower authorities in their enthusiasm in confirming demands or denying refunds to an assessee.

In the present case, a refund claim of CENVAT credit was filed u/r 5 of the CCR, 2004 by an assessee who are a BPO concern covered under Business Auxiliary Service.

Central Excise

Expression “for any other reason” in rule 16(2) of the CER, 2002 cannot be read ejusdem generis – Duty paid goods returned due to ‘logistic' reasons and received for ‘storage' - CENVAT credit availed of duty paid on original clearance - When goods are being cleared for second time, there is no requirement of paying back amount of CENVAT credit taken – payment on fresh Assessable value proper: CESTAT

SOME provisions in the Central Excise law can put you into a trance. You are so mesmerized by the construction of some rules that every time you read it from top to bottom, a new meaning emerges and you are flummoxed. Ultimately, you prefer to remain a mute spectator and wish that the Courts interpret the rule for the simple reason that any reference to the law making authority would end up in confusion instead of a clarification.

See our columns Tomorrow for the judgements