Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Manufacture - testing equipments captively used - excisable and dutiable - Supreme Court

FROM the own admission of the appellant and from the facts brought out from the records it is clearly proved and established that the appellant had manufactured machines in the nature of testing equipments worth Rs. 31.26 lacs to test the final products manufactured by them; Even if such equipments were used for captive consumption and within the factory premises, considering the fact that they are saleable and marketable, duty was payable on the said goods.

Income Tax

Are interests earned on FDs with banks and other interests from advances received from foreign tourists eligible for Sec 80HHD benefits? - No, says Delhi High Court

THE issue before the Bench is - Whether interests earned on fixed deposits in banks and other interests on advances received from foreign tourists are eligible for deduction under Section 80 HHD. And the High Court's answer is NO.

Service Tax

Air Travel Service and Tour Operator Service are input services entitled to CENVAT Credit: CESTAT

THE assessee is engaged in the manufacture of excisable goods falling under chapter 73 & 76 of CETA, 1985 and they are availing CENVAT credit on inputs, capital goods and service tax paid on various input services. The department initiated proceedings against them on the ground that they are not eligible for CENVAT credit on Air travel services and Tour operator services. The lower adjudicating authority confirmed the demand of Rs.33,895/- and imposed equal amount of penalty against the assessee.

Happy Sankranti

See our columns Monday for the Judgements