Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

Valuation - Job work - Rule 10 A of Central Excise Valuation (Determination of Price of Excisable Goods) Rules 2000 - Merely indicating vendors of raw materials or by giving advance money for procurement of such materials or installing equipments given by buyer would not render appellant as a job worker - CESTAT

MAY be this dispute is the first of its kind after inserting Rule 10 A in the Central Excise (Determination of price of excisable goods) Rules 2000 with effect from 1.4.2007. The demand of differential duty was raised by treating the appellants as job worker by invoking the provisions of Rule 10 A. According to this rule, in case of goods manufactured on job work, if the goods are sold by the principal manufacturer, the value for payment of duty will be the transaction value of the principal manufacturer.

Income Tax

Sec 37(1) - Can assessee treat professional charges paid for a failed land deal entered into for expansion of business as revenue expenditure? - YES, says ITAT

THE issue before the Tribunal is - Whether AO is right in disallowing professional charges paid by the assessee for a failed land deal entered into for expansion of business. Whether treatment of professional charges under I-T Act is to be the same for a failed deal and a consummated land deal. And the Tribunal has ruled in favour of the assessee.

Service Tax

Denial of CENVAT Credit – principles of natural justice; copies of relied documents to be provided; procedural irregularity to be ignored; Original invoices available – but not verified – matter remanded - CESTAT

THE rules of principles of natural justice require that before any document is relied upon to ascertain the liability of the assessee, the copy thereof should be made available to the assessee except in case where there are statutory prohibition for providing such copies or some other justifiable reason.

See our columns tomorrow for the judgements