Jurisprudentiol – Friday's cases

By Vijay Kumar

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

Photography – Value includes cost of goods and material used and consumed in course of rendering such service – CESTAT LB

FOR the purpose of Section 67 of the Finance Act, 1994, the value of service in relation to photography would be the gross amount charged including cost of goods and material used and consumed in the course of rendering such service. The value of other goods and material, if sold separately would be excluded under exemption Notification No.12/2003 and the term 'sold' has to be interpreted using the definition of 'sale' in the Central Excise Act, 1944 and not as per the meaning of deemed sale under Article 366 (29A) (b) of the Constitution.

Income Tax

Whether when importer avails bank credit limits of others to make payments to foreign parties, reimbursement of interest paid on such credit is liable to tax deduction at source - YES, rules Calcutta HC

APPELLANT was engaged in the business of importing and dealing in pulses and edible oil. Assessment was made u/s 143(3). Later on, a notice was received from the revenue alleging that it appeared that the appellant had not deducted tax at source on payment of interest on loan taken from three companies.

Customs

Anti Dumping Duty - Different Tariff Heading numbers mentioned in initial notification and final notification after sun set review - Latter one correct - No stay: CESTAT

THIS is yet another case where an avoidable instance of mis-classification by the D.A. It is high time that the D.A. takes on board a trained Customs specialist so that such classification faux pas do not recur.

Central Excise

MRP based assessment - Different retail prices for different regions on same package - Duty liability to be discharged on highest of MRPs - Revenue appeal allowed: CESTAT

IT is absolutely clear than when on a given package, more than one retail sale price is declared, then the maximum of such retail sale price shall be deemed to be retail sale price for purposes of charging Central Excise levy under section 4A.

Delay defeats equity is a well-known principle of jurisprudence. - Supreme Court in the Bablani case

See our columns Tomorrow for the judgements