Jurisprudentiol - Tuesday's cases

By Vijay Kumar

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

ST - Appellant undertaking the activity of harvesting Sugarcane and transporting the same to sugar factory – commission received is exempted in terms of notfn. 13/2003-ST as amended since this service is in relation to agricultural produce – Pre-deposit waived and Stay granted: CESTAT

THE CCE & C, Aurangabad decided to start the New Year 2012 by adjudicating a “sweet” Service Tax case and he did it in style – by confirming it !Against this sour order-in-original confirming a Service tax liability of Rs.1.43 crores, the applicant is before the CESTAT with a Stay application.

Income Tax

Whether Duty Drawback can be said to be refund of taxes paid, and is thus eligible for deduction u/s 80IB - YES: ITAT

THE issues before the Bench are - Whether interest income cannot be said to be an income derived from an industrial undertaking and, therefore, Section 80-IB deduction is not allowable in respect of interest income; Whether Duty Drawback is refund of taxes paid and is thus eligible for deduction u/s 80IB and Whether sales commission paid by the assessee on its total sales is allowable u/s 37 of the Act. And the verdict partly goes in favour of the assessee.

Central Excise

Notification No.32/99-CE is meant for encouraging industrial growth as well as expansion of existing industrial units in north-eastern sector hence deserves to be interpreted liberally so as to give effect to its objective and purpose -: CESTAT

APPELLANT purchasing caps from outside and after fitting the caps on the Lamitubes in an integrated manufacturing process cleared such tubes on payment of duty - Revenue seeking denial of refund on the ground that caps are not integral part of tubes, that there is no manufacturing involved and value should not have been included for payment of duty is illogical.

See our columns Tomorrow for the judgements