Jurisprudentiol - Wednesday's cases

By Vijay Kumar

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

Addition of cost of re-usable containers in AV of 'Bisleri' water assessed under sec 4A - remand order passed by Bench was not to be understood as a green signal for blindly accepting CA's certificates - it was incumbent upon Commissioner to have audit of accounts u/s 14A - Matter remanded: CESTAT

IN the earlier round of appeal, the CESTAT had remanded the case to the adjudicating authority for fresh decision on the valuation issue. The issue in the previous round was whether the refundable deposit collected by the assessee (respondent) through their dealers from the ultimate consumers of "Bisleri" water packed in 5 litres and 20 litres containers were liable to be included in the MRP under section 4A of the Central Excise Act, 1944 for the purpose of levy of Central Excise duty during the period from January, 2000 to April, 2001.

Income Tax

Whether when a profit-making company advances huge amount of money as subsidy to loss-making subsidiary, it falls within four walls of Sec 37, and thus, allowable business expenditure - NO, rules High Court

THE issue before the High Court is - Whether when a profit-making company advances a huge amount of money as subsidy to its loss-making subsidiary, it falls within the four walls of Sec 37, and hence, is allowable as business expenditure. NO is the answer.

Service Tax

Laying pipelines for Gujarat Water Resources Development Corporation; not taxable; However appellant paid tax and took CENVAT Credit - No penalty for wrong credit: CESTAT

YOU are doomed if you dont pay Service Tax. What happens if you pay it? You are still doomed.

The appellants were awarded a contract by Gujarat Water Resources Development Corporation Limited, Gandhi Nagar under the Sujalam Sufalam Spreading Canal Pipe Line Project for laying pipe lines from Adundra to Kherwa. The appellants by considering the said service as falling under the category "Commercial or Industrial Construction Services" paid the service tax on the same after availing the benefit of CENVAT credit and filed due service tax returns with the department.

See our columns Tomorrow for the judgements