Jurisprudentiol – Friday's cases

By Vijay Kumar

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

SSI Exemption - Value of clearances under Deemed Export - Clubbing of - "Deemed Exports" cannot be equated as "exports" for each and every purpose. Benefits available for "deemed exports" shall be only those specifically provided under the EXIM Policy. Value of "Deemed Exports" is to be included in the calculation of aggregate value of clearances for extending the benefit of exemption in terms of Notification No.1/93-CE.: CESTAT

THE respondent assessee, who is an SSI unit and availing the benefit of Notification No 1/93 CE, supplied goods under Notification No 49/94 CE(NT) dated 22.09.1994 for ultimate export by the buyer (MRF Ltd). However, since the assessee had not followed the Chapter X procedure under Central Excise, duty was demanded on the said goods and the same was paid by the assessee without protest. Consequently, for computation of value of goods cleared for home consumption in the preceding financial year, which at the material period was Rs 3 crores, department sought to include the value of the said deemed exports also for extending the benefit of exemption under Notification No 1/93 CE.

Income Tax

Income tax - Whether when AO by mistake fails to examine a particular entry in the return or overlooks the same, it can be said that there was no application of mind and it is a fit case for re-assessment - Matter referred to Larger Bench: Delhi HC

THE issues before the Bench is - Whether when AO by mistake fails to examine a particular entry in the return or overlooks the same, it can be said that there was no application of mind and it is a fit case for re-assessment and Whether change of opinion necessarily postulates and requires application of mind and formation of opinion at the first instance in the original proceedings. And the matter is referred to the Larger Bench.

Service Tax

Tour Operator - Providing buses for transportation of ONGC officers - Not rent a cab service - CESTAT by Majority

THE assessee had an agreement with ONGC for the purpose of giving vehicles to transport the employees of ONGC to various places. The said agreement is between ONGC and the assessee and is for transportation of personnel and their delegates under the instructions and direction from the officials of ONGC. The appellant is in possession of vehicles and is only hiring out the vehicles to ONGC for a stipulated period or as per the agreement. Whether the hiring out of vehicle is for a day or a month does not mean anything, as the said vehicle is still in the possession of the appellant assessee or his driver during the entire period.

See our columns Tomorrow for the judgements