Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Stainless steel wire is not covered within entry (ix) of clause (iv) of Section 14 of Central Sales Tax Act: It is a settled principle of law that the words used in section, rule or notification should not be rendered redundant and should be given effect to: SC

IT is also one of the cardinal principles of interpretation of any statue that some meaning must be given to the words used in the section. Besides, in a taxing Act one has to look merely at what is clearly said and there is no room for any intendment. In a taxing statute nothing is to be read in, nothing is to be implied, one can only look fairly at the language used.

Income Tax

Whether deduction available u/s 32AB is admissible only on business income and not income from other sources - YES, rules HC

THE issues before the Bench are - Whether assessee is entitled to deduction u/s 32AB on the amount of dividend income which is not the business income and the same is not applied for any business purposes and whether deduction available u/s 32AB is allowable only on the profit from “business or profession” and not from the income from other sources. And the verdict goes in favour of the Revenue.

Central Excise

When undervaluation is alleged by the department, it is their responsibility to prove the case - CESTAT

THE assessee was clearing semi-finished goods to their Akurdi plant on which further manufacturing operations such as surface treatment, etc. were to be completed. As such, the clearances of these goods were considered as captive consumption and the assessable value was determined on the basis of cost construction method as provided under Rule 6(b)(i) of the Valuation Rules, 1975 (the period involved is 01.04.95 to 30.04.97). The department alleged that the assessee had cleared identical/comparable goods to various distributors and dealers which were higher than the price declared in respect of the supplies made for captive consumption. Accordingly, by adopting this price, a differential duty demand notice of Rs.25,88,795.53 was issued.

See our columns Monday for the judgements