Jurisprudentiol – Tuesday's cases

By Vijay Kumar

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

Customs - Classification - Crude Palm Stearin falls under Sub- heading No. 3823.11.12 of Customs Tariff - Supreme Court

‘PALM Stearin', the subject matter of classification in question, was imported through Kakinada port during the period from 26.08.2003 to 28.12.2004. Whereas the Respondent-assessee sought to classify the goods in question under Tariff Item No. 15 11 90 90 of the Customs Tariff Act, 1975 as "Non-edible Industrial Grade Crude Palm Stearin", the appellant classified the goods in question as "RBD Palm Stearin" falling under Tariff Item No. 38 23 11 12 of the Act

Income Tax

Income tax - Sec 57(iii) - Whether, for expenses to be allowed against 'income from other sources' a nexus between expenditure and income is mandatory? - YES, says ITAT

IN the present case, the assessee was not able to establish any nexus between the various disallowances confirmed by the CIT(A) and the income earned by the assessee company by way of lease rentals. The assessee could not produce evidence to prove the nexus of the travelling expenses of the directors, entertainment expenses and the commission expenses with the income from other sources that whether these have resulted into any increase in lease rentals. Hence, addition is confirmed.

Service Tax

Export - Service Tax – BAS - Export of Services - Marketing and Sales promotion for foreign company in India is export - No tax- pre-deposit waived; 2009-TIOL-2441-CESTAT-BANG followed; Maintenance or Repair done in India for foreign Company, not export predeposit ordered - CESTAT

THE Tribunal observed, “As regards the marketing and sales services rendered in India in respect of products manufactured and exported by a foreign client, the CBEC had clarified that such services had to be treated as export since the beneficiary of such services was based abroad”.

See our columns Tomorrow for the judgements