Jurisprudentiol - Monday's cases
Legal Corner Icon — the image was hosted by the publisher and was not captured.Service Tax
Where applicants are collecting taxes or license fee in respect of permission granted for putting up advertisement boards on private properties, applicants have a strong prima facie case against demand of Service Tax under head ‘sale of advertising space' - CESTAT
IN the present case, where the applicants are collecting taxes or license fee in respect of the permission granted for putting up advertisement boards on the private properties, we find that the applicants have prima facie a strong case. In respect of advertising boards, which were on the street light poles, and in respect of the rent, which is given to the advertising agency to set up advertising board, we find that the applicants have not made out a case for total waiver of service tax.
Income Tax
Whether producing plants through tissue culture amounts to a 'lively object' not falling within definition of 'manufacture' given in section 2(29BA) - NO, rules ITAT
THE issues before the Bench are - Whether producing plants through tissue culture amounts to a "lively object" not falling within the definition of "manufacture" given in section 2(29BA); Whether the activity of producing plants through tissue culture is same as the activity of exporting shrimps from the perspective of definition of "manufacture"; Whether the definition of "manufacture" given in section 2(29BA) introduced w.e.f 1.4.2009 can be applied retrospectively to AY 2007-08 for interpreting an activity within the scope of section 10B and Whether the definition of "manufacture" given in section 10AA can be extended to section 10A and 10B, when these sections does not define the term "manufacture". And the verdict goes against the Revenue.
Central Excise
While opting for SSI exemption assessee is not required to reverse CENVAT credit - strong prima facie case in favour in view of P&H decision in CNC Commercial Ltd. - pre-deposit waived and stay granted: CESTAT
THE issue involved is whether the applicant is required to reverse the CENVAT credit in respect of inputs lying in stock on 31.03.2008 when they opted for the SSI exemption. CENVAT credit involved on inputs contained in finished goods as well as in the material in progress also was required to be reversed by the department. Show-cause notice was issued to the applicant and the same was confirmed by the lower authorities.
The applicant is before the CESTAT with an application for waiver of pre-deposit of Rs. 1,73,674/- as duty and penalty of Rs. 25,000/-.
It was submitted that the issue has been settled by the Tribunal in the case of CCE, Nashik vs. Tirupathi Pipes & Allied Inds. Pvt. Ltd. - () and the Revenue appeal in a similar matter was dismissed by the High Court of Punjab & Haryana in the case of CCE, Chandigarh vs. CNC Commercial Ltd. - ().
Until Monday with more DDT
Have a Nice Weekend.
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