Jurisprudentiol- Wednesday's cases

By Vijay Kumar

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

Manufacture – Intermediate Products even if not sold, excisable - marketability of a product is essentially a question of fact : Supreme Court

THE term "manufacture" is of wide import and may include various activities and processes which may not be termed as `manufacture' in the common parlance. But manufacture of goods alone is not enough. In order to attract the levy of excise duty, the goods should not only be manufactured, i.e., come into existence, but also should be articles or products that are known to the market and must be capable of being brought and sold. Some emphasis has to be laid on the use of the word capable as actual sale of the product or article is not essential and required.

Wealth Tax

Whether ownership of property for wealth tax purpose can be decided solely on basis of facts that assessee offered capital gains on sale of such property under Income Tax? - NO, says ITAT

THE issue before the Tribunal is - Whether the ownership of the property for the wealth tax purpose can be decided solely on the facts that the assessee has offered capital gains on sale of such property under Income Tax. NO, says the Tribunal.

CENVAT CREDIT

Cevvat Credit on goods received from 100% EOUs – CVD referred in the formula restricting the credit under Rule 3(7) of the CENVAT Credit Rules 2004 includes 4% Additional duty : CESTAT

CENVAT Credit on the goods received from a 100% EOU is restricted in terms of Rule 3(7) of the CENVAT Credit Rules 2004. For a long time, the amount of credit admissible was to be determined based on the formula given under the rule. This formula has always been in the news for not being updated in tune with the other changes made to the provisions of the EOUs. It is only with effect from 7.9.2009 all the anomalies were removed and suitable amendments were made to this sub-rule.

See our columns Tomorrow for the judgements