Jurisprudentiol – Friday's cases
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CENVAT Credit - Capital Goods - parts, accessories/spares of CPP fall within ambit of 'capital goods' - Maruti Suzuki Ltd () distinguished - High Court
The definition of capital goods under Section 57-Q is very wide. Capital goods can be machines, machinery, plant, equipment, apparatus, tools or appliances. parts, accessories/spares of CPP installed in the factory premises would fall within the ambit of "capital goods" as contemplated under Rule 57-Q as user of electricity in the production of sponge iron is an integral part of manufacturing process. Therefore, CENVAT credit on parts, accessories/spares cannot be denied to the assessee on the ground that substantial portion of the electricity generated from CPP has been wheeled out to its sister concern at Raisen through MPEB Grid, and principles of law laid down in the judgment of the Supreme Court in Maruti Suzuki Ltd . () are not applicable in the facts of the present case as assessee is not claiming any CENVAT credit on inputs used for generation of electricity in CPP.
Income Tax
Exemption - Whether provisions of Ss 11(4)(A) and 11(4) are complementary to each other and Sec 11(4) cannot be said to restrict power u/s 11(4) of Act - Revenue's appeal partly allowed: ITAT
THE issue before the Tribunal is - Whether the provisions of section 11(4)(A) and 11(4) of the Act are complementary to each other and section 11(4)(A) cannot be said to restrict the power u/s 11(4) of the Act. Tribunal has partly allowed the Revenue's appeal.
Service Tax
Security service utilized in residential colony situated outside factory premises is not an Input Service: CESTAT
The services provided for the residential colony are welfare of the residence of the colony. Accordingly, the input service credit is denied.
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