Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

Construction of elevated viaducts for Delhi Metro - classifiable under SH 73084000 and not under SH 8425 - matter remanded to decide eligibility to exemption: CESTAT

THE CCE, Delhi-I took the view that the pre-fabricated segments and launching trusses are classifiable under heading 68109100 and 8425 respectively liable to Central Excise duty of Rs.2.73 Crores and he accordingly confirmed the demand along with interest and imposed an equivalent penalty. A penalty of Rs.50 lakhs was also imposed on the Dy. General Manager. Confiscation of 810 prefabricated segments and 3 launching trusses totally valued at Rs. 16,55,00,000/- with option to be redeem on payment of redemption fine of rupee four crores was also ordered.

Income Tax

Whether when assessee invests capital gains in purchase of a new house and REC bonds, there is no restriction from claiming exemption under Sections 54F as well as 54EC - YES: ITAT

THE issues before the Tribunal are - Whether when assessee invests capital gains in purchase of a new house and REC bonds, there is no restriction from claiming exemption under Sections 54F as well as 54EC and Whether, for the purpose of claiming Sec 54F benefits, adjacent residential unit purchased can be considered as a single unit. And the verdict goes in favour of the assessee.

Service Tax

Club or Association - treatment and recycling of effluents and solid waste - exempted - CESTAT

NOTIFICATION 42/2011-S.T. dated 25.07.2011 was issued which exempted club or association service provided by an association for treatment and recycling of effluents and solid waste. This notification has been given retrospective effect by Section 145 of Finance Act, 2012 from June, 2005. The appellant is registered as company under Section 25 only and the character of the company being an association does not change just because they are registered as a company.

Customs

There has been no loss to exchequer and on contrary excise duty paid is more than amount of differential CVD demanded - Order set aside and appeals allowed with consequential relief: CESTAT

IN this case the demand of differential duty is confirmed to Rs. 1,70,46,113/- and the total duty paid by M.s Phil Corporation Ltd is Rs. 1,81,44,323/-. it is admitted position that the goods were imported by the appellant in bulk and cleared for further process to M/s Phil Corporation Ltd who undertook the process of packing, repacking, labeling and putting stickers of MRP which is process of manufacturing as per Section 2 (f) of the Central Excise Act, 1944 and M/s Phil Corporation Ltd cleared these goods on payment of Central excise duty as per Section 4A of the Central Excise Act, 1944.

See our columns Tomorrow for the judgements