Jurisprudentiol – Friday's cases

By Vijay Kumar

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

Transportation of empty container to factory and after stuffing sent to port of export - CENVAT Credit of Goods transport services admissible: CESTAT

THE appellant is engaged in the manufacture of excisable goods namely Viscose Filament Yarn and chemicals and has availed the CENVAT Credit in respect of goods transport services for transportation of empty container to the appellant's factory at Shahad for stuffing of export final products and re-transportation of stuffed container to the port of the export. The department was of the view that CENVAT credit in respect of GTA services in bringing empty container to the factory and after stuffing, being sent to the port of export was not admissible to the assessee.

Income Tax

Whether when land is held by assessee as stock-in-trade, provisions of Sec 50C will not apply to profits arising on sale of plots - YES, rules HC

THE assessee, a private limited company, is engaged in the business of real estate and construction. It filed its return of the income declaring the total income at Rs.38,79,703/-. In the assessment proceedings u/s 143(2) of the Act, the Assessee sold plots for a total sum of Rs.79,84,200/-. The AO by his order dated 12th of December, 2008 treated the above sale transaction as sale of capital assets and accordingly determined the deemed capital gain from sale of plots as per the provisions of section 50C of the Act.

Central Excise

Rebate - Claim has to be filed within one year: HC

SECTION 11B stipulates that any person claiming refund of any duty of excise and interest may make an application for refund to the Assistant Commissioner of Central Excise, or as the case may be, to the Deputy Commissioner of Central Excise before the expiry of one year from the relevant date in such form and manner as may be prescribed and that application shall be accompanied by such documentary or other evidence establishing, inter alia, the duty paid character of the goods. Since the statutory provision for refund in Section 11B brings within its purview, a rebate of excise duty on goods exported out of India or materials used in the manufacture of such goods, Rule 18 cannot be read independent of the requirement of limitation prescribed in Section 11B.

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