Jurisprudentiol – Monday's cases

By Vijay Kumar

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

BINGO!!! - High Court upholds the levy of service tax on sale of lottery tickets from 16/05/2008 to 30/06/2010.

THE issue has implication only for the period from 16.5.2008 to 30.6.2010. With effect from 1.7.2010, a separate entry, zzzzn has been inserted in the Finance Act, 1994 to bring the promotion, marketing etc of lottery etc into tax net. Prior to this, an attempt was made to levy service tax on sale of lottery tickets by inserting an explanation in Section 65(19)(ii) of the Finance Act, 1994, in the definition of Business Auxiliary Service.

Income Tax

Whether a capital receipt which is not chargeable as income u/s 2(24) is also not chargeable under Sec 115JB as book profits - YES, rules ITAT

ASSESSEE Company, engaged in the manufacturing of cement, installed a new unit in remote area of Rajasthan and got exemption from paying sales tax. For the year under consideration, it got substantial sales tax incentives. It did not offer these incentives either under the normal provisions or under the book profits to tax. The AO was of the view that the same are revenue receipts or in any case includable in book profits u/s 115JB.

Central Excise

Copolymer beads cleared to sister unit for further processing, marketable; No extended period - Rule 57E Certificate valid - CESTAT

IT was not necessary that identical product should be marketable. Even if similar product is proved to be marketable, the test of marketability is satisfied.

See our columns Monday for the judgements