Jurisprudentiol – Friday's cases

By Vijay Kumar

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

Merely because there was a special drive to clear a backlog of matters that would afford no justification for department not to comply with fundamental principles of natural justice: HC

EFFICIENCY in the disposal of quasi judicial proceedings is important but, that cannot be at the cost of overriding fundamental principles known to the law of the land.

Income Tax

Whether, to avail benefit of tonnage tax scheme, it is necessary for ship to undertake voyage between international ports - NO, transportation of goods between two domestic ports is entitled to benefits: ITAT Third Member

THE assessee company is engaged in the business of shipping/port services. The company filed its return of income for the AY 2006-07 on a tonnage income of Rs. 76,85,246/-. The assessee opted for tonnage tax scheme and worked out the shipping income on tonnage basis as provided in section 115VG. The assessing authority denied the benefit of tonnage tax scheme to the assessee in respect of its operating ship “M.V.Gem of Ennore” by holding that the ship was not a qualifying ship u/s 115VD.

Central Excise

Transportation and clearance of waste is an activity connected with manufacturing business - appellants are entitled to avail CENVAT credit of service tax paid on transportation: CESTAT

THE appellants are engaged in the manufacture of bulk drug. The waste chemicals generated during the course of manufacturing of finished product in their factory were transported to their waste treatment plant. For clearing the waste to the treatment plant the appellant were availing transportation facility for which they were paying service tax. The service tax paid on the transportation and removal of such waste was taken by the appellant's as CENVAT credit but the same was denied by both the lower authorities.

See our columns Tomorrow for the judgements