Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

Technical professional products not for retail sale but sold only to Salon for their exclusive internal in-salon use - ‘salon' whether Industry - whether affixing MRP and discharging duty u/s 4A of the CEA, 1944 proper – Matter remanded: CESTAT

THE assessee is engaged in the business of manufacture and sale of various cosmetics products such as hair dye, shampoo, colourants, skin care etc. falling under chapter 33 of the Central Excise Tariff Act, 1985. These goods are assessed to duty by the assessee in terms of section 4A of the Central Excise Act, 1944.

Income Tax

Income tax - Whether PAN is mandatory for making investments even if income is below taxable limit - NO, rules Karnataka HC

THE issues before the Bench are - Whether PAN is mandatory even if income is below taxable limit and Whether Sec 206AA, which makes PAN mandatory for investment in savings instruments, overrides Sec 139A, and thus is discriminatory. And the verdict goes against the Revenue.

Service Tax

Whether air freight can be considered as an ‘input service' - An interpretation that merely because as per terms of export contract, goods have to be delivered at customer's premises abroad, place of removal is extended to a place outside India is absurd and will have unintended ramifications: CESTAT

THE appellant, a manufacturer, availed CENVAT Credit of Rs.1,49,184/- towards service tax paid on courier services and outward air freight. The department was of the view that there is no nexus between the services availed and the manufacture of the goods and hence they were not entitled for the CENVAT credit. On pointing out, the appellant reversed a credit of Rs.18,105/- towards courier services and contested the eligibility to credit of service tax paid on air freight.

See our columns Tomorrow for the judgements