Jurisprudentiol - Monday's cases

By Vijay Kumar

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

Valuation - Merely because some of partners in partnership firm and some of Directors of public limited company are relatives, it cannot be alleged that partnership firm and public limited company are related u/s 4(3)(b) of the CEA, 1944 - CESTAT

RELATIONSHIP as defined in the Companies Act read with Central Excise Act applies to natural persons and not to impersonal bodies like corporations: MORE often than not when a Revenue formation trumpets about they having unearthed a massive ‘related-person-undervaluation' case or for that matter a ‘clubbing case', after the initial euphoria dies down, the case too dies a slow death at the hands of the Appellate Tribunal or in the higher forum. Simply because the Revenue had half-read the provisions of the Central Excise Act and was more than eager to jump to a conclusion in its favour. You cannot blame them too for the primary reason is that the Valuation sections in the Central Excise Act have never been read and understood in the manner they were meant to be.

Income Tax

Whether when assessee offers 'discount' to distributors of SIM cards and Recharge coupons under pre-paid service against advance received from them, such discount is to be construed as commission, liable to tax deduction at source u/s 194H - YES: ITAT

THE assessee company is engaged in the business of Cellular Mobile Phone Services in India. This Company with its Principal Office situated at Coimbatore, carried on the business of dealing with the branded products of the Company viz. mainly Starter Packs and Rechargeable coupons viz. SIM Cards and Prepaid coupons. The issue before the Tribunal is - Whether when assessee offers 'discount' to its distributors on SIM cards and Recharge coupons under pre-paid telecom service scheme against the advance received from them, it is to be construed as Commission, and thus, liable to TDS u/s 194H. And the verdict goes against the assessee.

Customs

A benefit denied to appellant by Government cannot be granted by Tribunal in equity or otherwise: CESTAT

CONSIGNMENT of raw materials such as polyurethane, SBR rubber granules, adhesives etc. required for processing and producing an athletic track is classifiable under CTH 40.05 and not 9506.00 and is not entitled for exemption under notification 109/94-Cus or 146/94-Cus

See our columns Monday for the judgements