Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

Determination of applicability of Notfn 13/03-ST dated 20.06.2003 has a direct impact on rate of service tax payable by appellant – matter has to go to Division Bench: CESTAT

THIS has a direct impact on the rate of service tax payable by the appellants. Therefore, as per the provisions of section 35D(3)(a), the matter has to go before the Division Bench for consideration and disposal. In view of the mistake apparent on records of the case, the said order is to be recalled and it is ordered accordingly. Consequently, the appeal is restored and the registry is directed to place the matter before the Division Bench for consideration and disposal.

Income Tax

Sec 40A(2)(b) - Whether when assessee imports raw materials from non-resident promoter, it can be presumed that assessee pays an exclusive price, and hence, disallowance is warranted - NO, rules Delhi HC

THE issues before the High Court are - Whether when assessee imports raw materials from its non-resident promoter, it can be presumed that the assessee pays exclusive price for the same; whether AO is right in doubting the ALP and making 2% disallowance without any evidence on record; Whether when Customs assessment order is produced to establish the ALP of imported goods, it can be said that the assessee has discharged its liability in this connection and whether onus to disprove it is cast on the AO in such a situation. And the verdict goes against the Revenue.

Central Excise

Manufacture - vitamin mix or intermixture of vitamin emerges out of process of mixing of vitamins and it results in manufacture: CESTAT

IT is immaterial whether the product which are to be treated for rendering them marketable were having any attribute of marketability or not prior to adoption of any such treatment. The expression retail pack which does not relate to retail consumer. It refers to the circumstances in which the retail pack is made available to a consumer who may procure such goods even in bulk.

See our columns Tomorrow for the judgements