Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

BAS - Promoting real estate business in air - Jetlite directed to pre-deposit Rs. 100 Crores - Law is well settled that levy and collection of tax is regulated by law and not by contract - CESTAT

REAL Estate business promotion in the air, but tax down on Earth. The former Sahara Airlines were to give extensive publicity to the Housing projects of Sahara Housing and got paid. The Service Tax Department has demanded about 129 Crores with an equal penalty. And CESTAT has ordered pre deposit of Rs. 100 Crores!

Income Tax

Expenses incurred in relation to manufacturing of goods sold to third parties on clearing and forwarding basis, for eventually exporting same are allowable deduction: High Court

THE issue before the High Court is - Whether the expenses incurred by the assessee in relation to manufacturing of goods sold to other firms on clearing and forwarding basis are allowable though the goods are actually exported by other firms. And the answer is YES.

Central Excise

Whether imported Customs Duty paid Goods would come within ambit of expression 'excisable goods' - matter referred to Larger Bench: CESTAT

THE Bench directed the Registry to place the records before the President to constitute a Larger Bench to consider and decide on the following issue:- “Whether imported, customs duty-paid goods falling in any of the Schedules to the CETA would come within the ambit of the expression “excisable goods” used in the text of sub-section (1) of Section 11D of the Central Excise Act.”

See our columns Tomorrow for the judgements