Jurisprudentiol Wednesday's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Race Course Licence

Race Course Licence Fee is a fee and not a tax: An institution of size of Race Course should not cloak their objection to an increase in rate of licence fee and present them as a challenge to constitutionality of charging section: Supreme Court

IT is manifest that the true test to determine the character of a levy, delineating ‘tax' from ‘fee' is the primary object of the levy and the essential purpose intended to be achieved. In the instant case, it is plain from the scheme of the Act that its sole aim is regulation, control and management of horse-racing. Such a regulation is necessary in public interest to control the act of betting and wagering as well as to promote the sport in the Indian context. To achieve this purpose, licences are issued subject to compliance with the conditions laid down therein, which inter alia include maintenance of accounts and furnishing of periodical returns; amount of stakes which may be allotted for different kinds of horses; the measures to be taken for the training of the persons to become jockeys, to encourage Indian bred horses and Indian jockeys; the inclusion and association of such persons as the government may nominate as stewards or members in the conduct and management of the horse-racing. Therefore, it is clear that the said levy is a ‘fee' and not ‘tax'.

Income Tax

Income tax - Whether reassessment can be initiated based on materials obtained during assessment proceedings for a different assessment year and not materials already on record - NO: Bombay HC

THE assessee is a public financial institution and carries on the business of providing finance in the form of long or medium term loans, equity participation, sponsoring and underwriting new issue of shares and securities, providing hire purchase, lending etc. Its income from business of providing long term finance i.e. loans in excess of five years is referred to as fund based income while income arising from its business other than providing of long term loans is referred to as non-fund based income.

Central Excise

Manufacture s. 4A Valuation - Imported switchgear marketed by appellant after putting their labels - prima facie view is that putting of labels on the product would amount to manufacture, as labels not only have the name of appellant but also ir logo and Section 2(f)(iii) does not say that labels affixed in process of labelling or re-labelling must also have MRP mentioned on them Pre-deposit ordered of Rs.3 Crores: CESTAT

THE appellants are engaged in the manufacture of switchgear products and part and accessories thereof. Besides this, they also import switchgears, which were cleared by them on payment of duties of customs and thereafter were being sold by them after putting their labels indicating their name and logo.

See our columns Wednesday for the judgements