Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

Exemption for Kerosene used for lamps, not applicable for industrial use - Oil Company's appeal dismissed with costs - Supreme Court

IT is manifest that the object of providing concessional rate of duty on kerosene used for illuminating burning oil lamps was to provide some relief to those economically backward sections of society who use kerosene for illumination and other domestic purposes, and therefore, the benefit of concessional rate of duty was available only on the kerosene cleared by the assessee to the PDS. Appeals, being devoid of any merit, are dismissed with costs, quantified at Rs. 20,000/-.

Income Tax

Whether contract entered into by software company with transporter for ferrying employees from home to office is covered under Ss 194C or 194I? - It is Sec 194C- ITAT

THE i ssue before the Tribunal is - Whether the contract entered into by the assessee with the transport service provider for transportation of its employees should be covered by the provision of section 194-C or 194-I of the Act. And the Tribunal's answer is Sec 194C.

Customs

Valuation - price paid by an importer to seller in ordinary course of commerce is to be taken as transaction value for purpose of valuation of goods. – Supreme Court

THE value, as per Section 14(1), as it stood prior to its amendment with effect from 10th October 2007, shall be deemed to be the price at which such or like goods are ordinarily sold, or offered for sale, for delivery at the time and place of importation - in the course of international trade. The word "ordinarily" is clarified in the Section itself, which describes an "ordinary" sale as one "where the seller and the buyer have no interest in the business of each other and the price is the sole consideration for the sale...

See our columns tomorrow for the judgements