Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

Smuggled goods are not imported goods for purpose of exemption notification; Notifications have to be interpreted strictly while beneficial and promotional exemption is to have liberal interpretation: - Supreme Court

SMUGGLED goods will not come within the definition of `imported goods' for the purpose of the exemption notification, for the reason, the Act defines both the expressions looking at the different definitions given to the two classes of goods: imported and smuggled, and if the two were to be treated as the same, then there would be no need to have two different definitions.

The general rule is strict interpretation while special rule in the case of beneficial and promotional exemption is liberal interpretation.

Income Tax

Investment Allowance - Clarificatory Amendment will have retrospective effect even if not specified so - High Court

INVESTMENT allowance for the assessment year 1983-84 was denied to the assessee, a manufacturer of aerated waters under the brand name of 'TORINO', such manufacturing activity having been carried on under a licence, on the ground that the aerated waters manufactured by it contained blended flavouring concentrates. The assessee having appealed to the Commissioner against that view of the assessing officer, the Commissioner accepted the assessee's case that the original entry without the explanation, did not take in its fold synthetic essences which are admittedly used by the assessee and that the explanation that was added subsequently did not have retrospective effect. That view of the Commissioner has been affirmed by the Tribunal.

Service Tax

Purchase and sale of time slots, not advertising service: 'Sale of Space or Time for Advertisements' introduced for first time with effect from 01.5.2006, cannot be taxed earlier - CESTAT

THE appellants were only purchasing and selling the timeslots. They were in no way connected with making, preparation, display or exhibition of advertisements. The sale of time slot to electronic media cannot be termed as advertising services.

There is no dispute that the said service of sale and purchase of time slot for advertising introduced for the first time with effect from 01.5.2006. With such new introduction, it has to be held that the particular services were not covered by the definition of any other service prior to the said date. As observed in the case of BCCI, to hold otherwise, would negate the legislative intent and would make the new entry as otiose.

See our columns Tomorrow for the judgements