Jurisprudentiol - Thursday's cases

By Vijay Kumar

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

Assessee engaged in activity of re-packing chemicals since 1980 and chapter note inserted only in 1997-98 - No Suppression: CESTAT

ASSESSEE engaged in activity of re-packing chemicals since 1980 and chapter note notifying this activity as manufacture inserted only in 1997-98 - it cannot be said that they had suppressed this fact with intent to evade duty - Allegation of suppression cannot be sustained - Revenue appeal dismissed.

Income Tax

Whether when assessee engaged in clinical trial incurs expenses on trials conducted outside in-house R&D facility, such expenditure is also eligible for weighted deduction - NO, rules ITAT

ASSESSEE incurred expenses in respect of clinical trials, scientific information, scientific literature, analysis charges, pilot bio study expenses and consultancy charges and claimed weighted deduction u/s 35AB which allows weighted deduction for any expenditure on scientific research on in-house research and development facility as approved by the prescribed authority. The Legislature has used the term on ‘in-house research and development facility' and not ‘an in-house research and development facility' or ‘on in-house research and development' which implies that entire expenses on scientific research conducted by the in-house facility shall be held as eligible.

Service Tax

Settled principle that taxes cannot be exported: CESTAT

LETTER of credit is opened by the bank only on the instructions of the customers - merely because there is no written agreement entered into by the exporter with the buyer of the goods, benefit of refund under notification 41/2007-ST cannot be denied - liberal view has to be taken while interpreting the notification so as to reduce the cost of goods exported - settled principle that taxes cannot be exported.

See our columns Tomorrow for the judgements