Jurisprudentiol – Friday's cases

By Vijay Kumar

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

Whether appellant is required to establish integral connection between service and manufacture of final products for availment of CENVAT Credit – CESTAT

ELIGIBILITY of CENVAT Credit on input services – Whether appellant is required to establish integral connection between the service and manufacture of final products for availment of CENVAT Credit or the appellant is required only to show that services relate to their business to avail CENVAT Credit – Matter goes to Third Member.

Income Tax

Whether Sec 80IB benefits are available to job worker on job work and labour charges, and also scrap generated out of such activities - YES, says Delhi HC

ASSESSEE claimed deduction u/s 80IB of the Income tax Act on the gross receipts of Rs. 1,55,26,740/- which included scrap sales of Rs.79,45,411/-, labour charges of Rs.20,82,637/- and job work charges of Rs.11,86,895/- - AO held that as the assessee's industrial undertaking was set up for the purpose of manufacture of steel, forging, transmission gears and parts and accessories of motor vehicles, it could not be permitted deduction on sale of scrap, job work and labour charges as the same were attributable to the business carried on by the assessee, but not derived from the profits of industrial undertaking.

Central Excise

Although order is wrong, it need not be set aside since error only is in mentioning wrong notification - CESTAT

ADJUDICATING authority incorrectly granting the benefit of section 11C notification to intermediate goods viz. gold potassium cyanide arising during manufacture of imitation jewellery – however, after passage of O-in-O another section 11C notification issued covering impugned goods – although order is wrong, it need not be set aside since the error only is in mentioning the wrong notification number and no purpose would be served by remanding the matter for a fresh order.

See our columns Tomorrow for the judgements