Jurisprudentiol - Monday's cases

By Vijay Kumar

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

Exim Policy - Sale to foreign tourists - deemed exports - covered under scheme of Advance Licence: HC

THE petitioner has sought the quashing of the order dated 14th May, 1986 passed by Respondent No.2, the Chief Controller of Imports and Exports, New Delhi and a declaration that 'deemed exports' as defined in the Government notifications covers the cases of advance licenses in the same manner as they cover the case of duty replenishment licenses in the facts and circumstances of the petitioner.

The main issue in the present matter is whether or not deemed exports by sale of goods to foreign tourists will be covered under the scheme of Advance License especially in the present facts and circumstances of the petitioners.

Income Tax

Whether when assessee has multiple units eligible for Sec 10A benefits, losses of some units can be set off against profits of others before final deduction is computed - NO: ITAT

THE issues before the Bench are - Whether for the purpose of computation of deduction u/s.10A, each industrial unit should be treated as an independent assessee; Whether for the purpose of computing deduction u/s 10A, loss of an Industrial unit can be set off with that of another profit making unit; Whether for the purpose of section 10A the profit derived did not cover the profit from any sources beyond the profits derived from the eligible business; Whether in case the immediate source of the transaction is not the export of articles or things or computer software but the bank deposits etc, the profits arising out of the same can be considered as profits from eligible business and Whether deduction u/s.10A is allowable in respect of other income. And the verdict partly goes in favour of the assessee.

Service Tax

Refund claim submitted after 07.07.2009 for exports prior to this date rejected on ground that same has not been filed within 6 months as required under notfn. 41/2007-ST- Board has clarified that Notf. 17/2009-ST does not bar its applicability to exports that have taken place prior to its issuance - claim has to be considered under notfn. 17/2009-ST only - matter remanded: CESTAT

THE refund claim filed by the appellant in respect of service tax paid on terminal handling charges has been rejected on the ground that terminal handling charges was not one of the services mentioned in Notification No. 41/2007-ST. Another ground taken for rejecting the claim is that it has been fixed beyond the six months period prescribed under the impugned notification.

Central Excise

Assessee is entitled to avail CENVAT credit in respect of inputs and input services used in manufacture of Tractors exported under Bond/UT-1 - Order confirming demand of Rs.27.38 Crores set aside - CESTAT

THE assessee is engaged in the manufacture of Tractors, IC engines and transmission assembly. The tractors are cleared either for home consumption or for export out of India under Bond/Letter of Undertaking in Form UT-1. The tractors are exempted from payment of duty vide Sr. No. 40 of the Notification No.6/2006-CE dated 1.3.2006. The assessee also clears IC engines and transmission assembly and parts of tractor for captive consumption for manufacture of tractors and also clears the same for home consumption and for export. These are also fully exempted from payment of excise duty when they are captively used in terms of Sr. No. 92 of Notification No.6/2006-CE dated 1.3.2006.

See our columns Monday for the judgements