Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Invoice raised for engineering and development charges including Central Excise duty and VAT - Credit admissible as said charges are includible in Assessable value of forgings manufactured by job worker – non-receipt of dies from job worker no cause for denial: CESTAT

THE appellants placed a purchase order for processing/manufacture and supply of forgings of valve seat & male/female nuts on job work basis, out of the raw material supplied by the appellants under Rule 4(5)(a) of CCR, 2004. Accordingly, the job worker processed and manufactured the required goods on job work basis and supplied to the appellants. The job worker also issued invoice for engineering and development charges including Central Excise duty and VAT. The said invoice was raised as cost of the goods manufactured on job work basis.

Income Tax

Sec 40b(v) - Whether it is necessary that remuneration of partners should not only be authorised by partnership deed but should also be as per clauses of deed and limit prescribed by I-T Act? - Yes, says ITAT

THE issue before the Tribunal is - Whether, in view of the provisions of Sec 40b(v), remuneration of partners should not only be authorised by the partnership deed but should also be as per the clauses of partnership deed and the prescibed limit under the I-T Act. YES, says the Tribunal

See our columns Monday for the judgements