Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

Section 269UC – Lease for nine years renewable for a further period of nine years – deemed to be a lease for more than twelve years – Prosecution to be continued: Supreme Court

ON a plain reading of the explanation it is evident that a lease which provides for the extension of the term thereof by a further term it shall be deemed to be a lease for a term of not less than twelve years, if the aggregate of the period for which the lease is granted and period of extension counted together makes it more than twelve years; magistrate directed to conclude the trial within six months.

Central Excise/Service Tax

Inputs removed as such - No need to reverse credit of input services - P&H High Court

INPUTS removed as such - No requirement to reverse the Credit on input services under Rule 3(5) of the CENVAT Credit Rules when inputs are removed as such -Rule 3(5) only talks about the CENVAT credit taken on inputs or capital goods. It does not refer to the CENVAT on input service - No substantial question of law arises.

Central Excise

Non-maintenance of separate accounts under rule 6 of CENVAT Credit Rules, 2004 – appellant reversing credit on pro-rata basis whereas department holding appellant liable to pay 10% of price of exempted goods- matter requires reconsideration by adjudicating authority – remanded: CESTAT

THE appellants are availing credit in respect of the common inputs used in the manufacture of goods cleared on payment of duty as well as exempted goods. The appellants are reversing the credit on pro-rata basis or in some cases have not availed the credit.

It is the case of the Revenue that since the appellants are not maintaining separate accounts in respect of inputs used in the manufacture of exempted goods, as per the provisions of Rule 6(3)(b) of the CENVAT Credit Rules, the appellants are liable to pay 10% of the price of the exempted goods.

See our columns Tomorrow for the judgements