Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

Exempted and dutiable final products - when 8% is paid on exempted goods, credit on inputs used in exempted final products cannot be denied: High Court

The following question of law was before the High Court-

"WHETHER credit of duty is admissible to the inputs in the present case in terms of erstwhile Rule 57C & 57CC , used in exempted goods when the inputs (IC engine below 1800 cc) are not common with those used in the dutiable products, when on amount of 8% of the price of exempted product has been paid and when no separate account has been maintained in respect of the exempted goods?"

Income Tax

Lease rental earned by letting property along with furniture and fixtures to be treated as 'income from house property' and not 'income from other sources': ITAT

INCOME from 'developed' property has necessary properties for long-drawn disputes. The issue in this case is -Whether income which is earned by providing amenities like DG sets transformers and furniture and fixtures, which are integral part of the building, is to be taxed under the head “income from house property'' or such lease rental is to be treated as 'income from other sources' and depreciation is to be allowed. And the answer is - it is 'income from house property'.

Service Tax

Del Credere Agent not liable to tax as C&F Agent prior to 2005: High Court

COMBINED reading of the definition of C & F agent under the Finance Act under section 65(25) and the meaning of Del Credere Agent and the amendment brought into in the year 2005, whereunder Del Credere Agent is also included would clearly establish that prior to the amendment, the service rendered by a Del Credere Agent had been excluded from service tax.

See our columns Tomorrow for the judgements