Jurisprudentiol - Thursday's cases

By Vijay Kumar

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

Import of old and used digital multifunctional print and copier machines not barred by Para 2.17 of FTP - License not required for imports - CESTAT

THE explanatory notes to HSN under Chapter 84.43 specifically categorized the machines falling under Chapter heading No. 8443 into four different groups viz., printers, copying machines, facsimile machines and combinations of printer, copying machines or facsimile machines. A careful reading of the said explanatory notes under HSN indicates that the photocopiers are specifically arranged under the head of copying machines and the said heading does not include the machines which are capable of performing two or more functions of printing, copying or facsimile etc. Since it is not in dispute that the imported goods are a combination of printers, copying machines and/or facsimile machines, the digital multifunction print & copier machines cannot be termed as photocopiers to attract the bar of Para 2.17 of the FTP.

Income Tax

Whether grant of redevelopment rights on property amounts to transfer of property, and thus, gives rise to capital gains liable to tax - Yes, rules ITAT

THE assessee is a Chartered Accountant. During the course of assessment, the AO noted that the assessee had shown long term capital gains as Nil. This capital gain had arisen to the assessee on account of transfer of its 50% share in a building as per development agreement.

Service Tax

C&F Agents - Expenses on Clerks and telephone charges - Even if these expenses are separately billed to client, they will form part of value of taxable service: CESTAT

THE Appellant could not have provided the service of C&F agents without employing clerks or having a telephone in his office. Even if these expenses are separately billed to the client, the expenses will form part of the value of taxable service.

See our columns Tomorrow for the judgements