Jurisprudentiol – Monday's cases

By Vijay Kumar

Central Excise

Since assessee is clearing the goods at their factory gate transportation cost shown separately is not includable: CESTAT

AS per new Valuation Rules, which came into force w.e.f. 1.7.2000, if the assessees are clearing the goods at their factory gate the transportation cost is not to be includable. In this case, it is not disputed that the respondents have cleared the goods at their factory gate and charged transportation cost separately.

Income Tax

Whether merely because assessee was once 100% EoU entitled to Sec 10B benefits, it cannot avail benefit otherwise available on block of assets on expiry of tax holiday for working out capital gains u/s 50 - NO, it can avail: Madras HC

THE assessee is an individual engaged in the business of rig operation, transportation of LPG gas, marbles etc. The assessee had an export oriented unit run under the name and style of 'GTP Granites'. The questions before the Bench are - Whether merely because assessee was once 100% EoU entitled to Sec 10B benefits, it cannot avail benefit otherwise available on block of assets on expiry of tax holiday for working out capital gains u/s 50(2). And the verdict goes in favour of the assessee.

Service Tax

Tax liability cannot be determined by two persons by a contract - It is determinable exclusively under taxing statute: CESTAT

THE tax liability cannot be determined by two persons by a contract. It is determinable exclusively under the taxing statute, which, in the instant case, is the Finance Act, 1994. It is not in dispute that, prior to 1.1.2005, the taxing statute did not recognize Indian recipient of service provided by a non-resident from abroad (the latter having no office in India), as a “person liable to pay service tax”. It was only w.e.f 1.1.2005 by notification no. 36/2004-ST that the statute recognized such recipient of service to be a person liable to pay service tax. But, even prior to that date, the Service Tax Rules had recognized such a person as the person liable to pay service tax.

See our columns Monday for the judgements