Jurisprudentiol – Tuesday's cases

By Vijay Kumar

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

Appellant paying Service Tax on outward freight and availing credit - Audit contending that such payment was not warranted as cost of each trip was less than Rs 1500 - CENVAT credit reversed with interest and refund claim filed - Matter remanded: CESTAT

THE proper course on the part of the part of lower authorities would have been to give opportunity to the appellant to produce the aforesaid documents. Therefore, the matter requires to be reconsidered and re-examined in accordance with the provisions of section 11B of Central Excise Act, 1944 which provides for refund of duty collected/paid, and whether incidence of such duty has not been passed on to any other person, within a period of one year.

Income Tax

Income tax - Sec 80HHC - Whether calcined petroleum coke manufactured by assessee is 'mineral oil' within meaning of Sec 80HHC? – Yes, says Bombay HC

THE assessee is a company involved in the manufacture of calcined petroleum coke (CPC) which is used for making pre-baked anodes or carbon paste by the aluminum smelters for production of basic aluminum metal and various other industries. A major portion of the CPC manufactured by the assessee is also exported. The issue before the HC is - Whether calcined petroleum coke manufactured by the assessee is the 'Mineral Oil' within the meaning of Section 80HHC. Yes, says the HC.

Central Excise

Limitation under Section 11 A of Central Excise Act, 1944 - The Tribunal has not stated whether or not there were any circumstances which would not allow revenue to invoke extended period of limitation – Matter remanded to CESTAT to examine whether revenue is justified in invoking extended period of limitation - Supreme Court.

THE issue in this appeal relates to the valuation of aluminum castings manufactured by the respondent from the aluminum ingots supplied by M/s. Bajaj Auto Ltd., Waluk, Aurangabad , who in turn buys the finished product viz., aluminium castings manufactured by the respondent. The aluminium ingots were supplied by M/s Bajaj Auto under the cover of invoices issued under Rule 57F(2) and Rule 57(3) of the Central Excise Rules, 1994, after reversing the MODVAT credit availed on the said input.

See our columns Tomorrow for the judgements