Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Supplementary Invoices - Interest - On date of clearance, no escalation – no interest payable - SC decision in SKF - 2009 TIOL-82-SC-CX distinguished: High Court

THE supplementary invoices were issued to facilitate the recovery of the expenditure of cost escalation and the enhanced duty thereon was paid. Therefore, as on the date the goods were cleared initially, if such a price escalation had not taken place, then the assessee could not foresee, the subsequent escalation in price. However, In the instant case the assessee paid duty on the differential price also. Therefore, we cannot apply the said decision to the present case.

Income Tax

Income tax - Sec 80IA - Merely on basis of licence agreement with State Govt to establish the undertaking it cannot be said that assessee's cellular mobile service business commenced in relevant fiscal: ITAT

SECTION 80IA is one of the most controversial Sections of the I-T Act. The greater are the efforts of the policy makers to sort it out, more complicated it tends to get. The issue before the Tribunal is - Whether on the basis of licence agreement, approved by the state of Gujarat for establishing undertaking, alone, can it be said that the assessee has commenced its telecom services in AY 1996-97 in terms of section 80-IA (4) (ii), ignoring the other evidences such as list of cellular mobile services license holders, published by Telecom Department and assessment order of the AO 1996-97, mentioning that the assessee’s business has actually commenced on 21.01.1997. And the answer is NO.

Service Tax

Laying pipe in wall/roof/floor for crossing of wires, fixing junction box, MS box, etc. would not amount to commissioning, installation of plant, machinery and equipment.: High Court

THE activities like laying the pipe in wall/roof/floor for crossing of wires, fixing the junction box, MS box, Wooden Box, fixing the cables trays to lay the cables, digging the earth to lay the cables and digging the earth pits for earthing of equipments would not amount to commissioning, installation of plant, machinery and equipment.

See our columns Monday for the judgements