Jurisprudentiol - Friday's cases

By Vijay Kumar

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

Classification - ORBIT Sugar Free Chewing Gum is rightly classifiable under Chapter sub-heading No.2106 90 99 of CETA, 1985: CESTAT

THE appellants are manufacturers of ‘Orbit' Chewing Gum. The appellants classified the Sugar free Chewing Gum under Sub-heading 2106 90 99 of the CETA, 1985; the department sought it as diabetic food under Subheading 2106 90 91. Accordingly, Show Cause Notices have been issued by the department re-classifying the products and demanding differential duty. The SCN was confirmed by the adjudicating authority demanding differential duty, with interest thereon, and imposing a penalty on the appellant.

Income Tax

Whether when assessee-trust spends grants received from Government on participation at trade fair outside India, it can be construed as application of trust money for charitable purposes in India - NO: ITAT

THE issues before the Bench are - Whether when the assessee-trust spends the grants received from the Government on participation at trade fair outside India, it can be construed as application of the trust money for charitable purposes in India; Whether words used in sections can be given a grammatical interpretation which renders any other section otiose; Whether the words “in India” appearing in section 11(1)(a) qualifies only the verb “applied"; Whether income of a trust can be applied outside India, as long as its charitable purposes are limited within India and Whether a trust set up after 1-4-1952 can apply its income outside India without obtaining exemption from CBDT. And the verdict goes in favour of Revenue.

Service Tax

Notfn. 32/2004-ST & 1/2006-ST - In absence of any particular format prescribed under respective notifications, department insisting for declaration on each consignment note for allowing abatement under said Notifications is un-sustainable in law - Demand of Rs.10.88 crores set aside and appeals allowed: CESTAT

THE appellant is registered as a GTA and availed the benefit of Notification No.32/2004-ST dated 03.12.2004 and Notification No.1/2006-ST dated 01.03.2006 during the material period. Show cause notices were issued to them denying the benefit of the said exemption Notification on the ground that the appellant had failed to fulfil the conditions of the said Notification in as much as they could not produce the relevant consignment note indicating necessary declaration from transport agency that neither credit on input or on capital goods and benefit of Notification No.12/2003-ST dated 20.06.2003 had been availed for providing such services by the said transport agencies.

See our columns Tomorrow for the judgements