Jurisprudentiol – Friday's cases
Legal Corner Icon — the image was hosted by the publisher and was not captured.Central Excise
Applicants have not produced any legal documents to show that they got right to succeed in respect of trade name owned by companies run by father and grandfather - prima facie benefit of SSI exemption not available in respect of goods manufactured with brand name of others - Pre-deposit ordered: CESTAT
THE applicants are engaged in the manufacture of P & P Ayurvedic medicines namely 'Himtaj Oil', 'Banphool Oil ' and 'Shivganga Oil' and are clearing the goods without payment of duty by availing the benefit of SSI Notification and 8/2003. The benefit of these notifications have been denied by the Revenue on the ground that the goods are being manufactured under the brand name of M/s. Pt. D.P. Sharma & Sons and M/s. Sharma Chemicals, Kolkata; that the applicant firm i.e. M/s. Himtaj Ayurved Pvt. Ltd. is a different and distinct legal entity than the firm M/s. Pt. D.P. Sharma & Sons and M/s. Sharma Chemicals, Kolkata.
Against the order of the lower appellate authority, the appellant is before the CESTAT seeking waiver of pre-deposit of adjudged dues of Rs.48.07 lakhs.
Income Tax
Whether for availing Sec 54EC benefits, assessee earning capital gains on land transfer is required to count six months period from date of receipt of sale consideration or date of transfer of property - sale consideration, rules ITAT
THE issues before the Tribunal are - Whether when assessee forms a JV with a builder for development of a property and enters into an irrevocable agreement, the date of agreement is to be treated as the relevant date for taxing the capital gains or the date of registration of the deed - Whether when it was not possible for the assessee to have invested the amounts in the specified Bonds within a period of 6 months due to non receipt of consideration, the amount can be deposited within 6 months from the date of receipt of amount and the exemption will be allowed. And the verdict partly goes in favour of the assessee.
Service Tax
Turf Club gets Stay of Six crores Service Tax demand - Fees charged from bookies, royalty income received from other racing clubs for live telecast of races and royalty from caterers who have been permitted to use infrastructural facilities and to operate within premises of Turf Club are prima facie not chargeable to Service Tax under ‘Business Support Services', ‘Broadcasting Services' and ‘Intellectual Property Rights Services' - Prima facie case made out in favour - Stay granted of adjudged dues: CESTAT
THE appellant is engaged in the activity of conducting horse races. During the horse race, licensed book makers (bookies in short) accept bets from public in the premises of Turf Club and these bookies have been provided stalls and other infrastructural facilities within the premises of the Turf Club. The Turf Club charges fees from the bookies in two components, one is fixed amount under the Head “Stall fees” and the other is variable amount under the Head “Commission” which is collected as a percentage of the betting amounts collected as a percentage of the betting amounts collected by such bookies. The Turf Club conducts live telecast of races which can be viewed from other racing clubs in India located in Bangalore, Kolkata, Hyderabad, Mysore, Delhi, Madras and Ooty. The technical support for live telecast of horse race events held in Mumbai and Pune is provided by M/s. Essel Shyam Communications Ltd., NOIDA. For such broadcasting, the Turf Club receives royalty income from other racing clubs and the royalty amounts are worked out either on fixed percentage of betting placed at the respective clubs or a fixed lump sum amount depending upon the understanding made with the respective race clubs. The Turf Club also receives royalty from caterers who have been permitted to use the infrastructural facilities and to operate within the premises of Turf Club.
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