Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

Departmental appeal to Tribunal - Review by Committee of Chief Commissioners - Tribunal has power to condone delay in filing appeal – CESTAT LB

THE Tribunal has ample power to condone the delay in filing the appeal including the one filed under section 35 E (4) of the said Act. The period which can be condoned in relation to filing of the appeal under section 35 E (4) of the said Act would include the period availed by the review committee in terms of section 35 E (1) or 35 E (2) of the said Act.

Income Tax

Depreciation u/s 32 - Routers and switches are 'computers', entitled to 60% depreciation rate: ITAT

THE I-T Act does not contain any definition of 'computer'. In this background, the onus lies on the courts to lend it a concrete definition. In this case the issue is - Whether routers and switches can be classified as computers, entitled to depreciation at 60% or to be classified as general plant and machine entitled to depreciation only at 25%. And the verdict has gone against the Revenue.

Service Tax

Construction of Driveway in Petrol Pump – The value of construction of road is to be included in value of service only when there is no segregation between construction of commercial complex and construction of the road - If contract recognizes two activities as separate activities, even though construction of road is in connection with the commercial complex, benefit has to be allowed.

THE respondents filed an application for refund for service tax paid before the JAC on the grounds that they had paid it wrongly for the construction of road which is excluded from the category of "Commercial and Industrial Construction" as defined under clause (25b) of the Section 65 of the Finance Act, 1994. The Assistant Commissioner adjudicated the said show cause notice and rejected the claim for refund. The Commissioner (Appeals) however, allowed the refund of Service Tax by relying on the Board's Circular No.B1/6/2005-TRU dated 27.07.2005.

See our columns Tomorrow for the judgements