Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

There is no provision whatsoever under law to exclude warranty charges from retail sale price - Pre-deposit ordered of nearly Rs.2 crores: CESTAT

MERELY because the inclusive part of the definition describes certain elements to be included in the retail sale price, it does not mean that whatever is not specifically stated therein cannot be included in the retail sale price - there is no provision whatsoever under the law to exclude warranty charges from the retail sale price.

Income Tax

Whether leasehold right in a property is akin to capital asset, and thus consideration received on surrender of such rights attracts provisions of Sec 50C- NO, rules ITAT

THE issues before the Bench are - Whether leasehold right in a property is akin to capital asset, and thus the consideration received on surrender of such rights attracts provisions of Sec 50C; Whether merely because assessee is a party to the tripartite agreement signed on sale of the property, the receipt received by the assessee-tenant is attributable to ownership right and whether cost of acquisition of tenancy rights is to be computed by totalling up the rentals paid and the benefits of cost inflation index for computing capital gains tax. And the answer goes against the Revenue.

Service Tax

Construction of civil structure for MTDC and BSNL is prima facie chargeable to Service Tax – Pre-deposit ordered: CESTAT

SERVICE rendered to MHADA, is a construction of buildings under re-development scheme of the State Government wherein funds were shared by Central and State Government for the welfare of the poor people for their rehabilitation. Therefore, prima facie, this service does not come under ‘construction service' as defined under the Finance Act, 1994. With regard to the construction of civil structure on behalf of MTDC, the said structure has been constructed for development of that area for tourism purposes and tourism itself is an industry. Therefore, prima facie, the said civil construction comes under the category of ‘Construction Service'.

See our columns Tomorrow for the judgements