Jurisprudentiol – Tuesday's cases

By Vijay Kumar

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

Composite Contracts - Turnkey contracts can be vivisected – Daelim – (2003-TIOL-110-CESTAT-DEL) overruled – CESTAT LB

IT can irresistibly be concluded that a contract whether composite or Turnkey may involve an activity or cluster of activities in the nature of services and such services may be provided in the course of execution of such contracts while incorporating goods into the contract concerned. Such discernible services may be advice, consultancy or technical assistance and depending upon the nature of the activity, they may be classifiable under appropriate category of taxable service under section 65 A of the Finance Act, 1994. When Article 366(29-A)(b) to the Constitution has made indivisible contracts of the aforesaid nature divisible to find out goods component and value thereof, it can be unambiguously be stated that the remnant part of the contract may be attributable to the scope of service tax under the Provisions of Finance Act, 1994.

Central Excise

The concept of provisional assessment and its finalization is not applicable to MRP-based assessment: CESTAT

THE assessee resorted to provisional assessment during the period of dispute by furnishing the requisite bond along with bank guarantee, in which exercise they paid duty on the assessable value loaded to the extent of 25%. A show-cause notice was issued by the department proposing to finalize provisional assessment on the basis of the assessable value of CTV sets mentioned in the relevant invoices under section 4. This show-cause notice proceeded on the premise that the higher amount mentioned under section 4 in the invoice might have been recovered by the assessees dealer (depot) from the ultimate consumers as is evident from the fact that the assessee was alleged to have failed to declare the depot sale price inclusive of all expenses.

Income Tax

Income tax - Sec 194J - Payments made to hospitals by TPAs are liable to TDS: Bombay HC

THE issue in this case is whether the payments made to hospitals by TPAs are liable to TDS u/s 194J? Whether the Circular of the board directing the assessing authorities to make a particular assessment or to dispose of a particular case in a particular manner is beyond the scope of section 119?

See our columns Tomorrow for the judgements