Jurisprudentiol - Monday's cases

By Vijay Kumar

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

Security service at pump house for pumping water from Kundalika river, which is required as coolant in manufacturing operations is an Input service - CENVAT credit allowed: CESTAT

THE short issue in the present case is whether the appellant is eligible for CENVAT credit on the security service availed by them at their pump house for pumping water from the Kundalika river, which is required as a coolant in their manufacturing operations or not. It is the stand of the Revenue that since ‘security service' has been consumed outside the factory premises they are not eligible for CENVAT credit.

Income Tax

Whether when insurance, banking and electricity generation and distribution companies are treated as special class as per Sec 211 of Companies Act, they can be treated like any other assessees for purpose of Sec 115JB - NO: ITAT

THE issues before the Bench are - Whether at the time of computing the taxable income of the company engaged in the business of general insurance, once the profit on sale of investment is included in the P&L account prepared as per the Insurance Act, then no adjustment is required to be made as per the provisions of sec. 44 r.w. First Schedule of Income Tax Act and Whether when insurance, banking and electricity generation and distribution companies are treated as a special class as per Sec 211 of Companies Act, they can be treated like any other assessees for the purpose of Sec 115JB. And the verdict goes in favour of the assessee.

Central Excise

Excisability - Samples in the form of un-packed tablets drawn from bulk prior to packing stage for analytical analysis and cleared outside factory are excisable goods liable to Central Excise duty - Appeal dismissed: CESTAT

THE appellants are engaged in the manufacture of medicaments falling under Chapter 30 of the Central Excise Tariff. During the period February 2000 to December 2002, they cleared certain samples without payment of duty. Before the CESTAT, in the grounds of appeal, the appellant submitted that the analytical samples, which were cleared from the factory, are not excisable as the same were cleared without any package. Inasmuch as since the goods are not marketable, the demand is not sustainable, contended the appellant.

See our columns Monday for the judgements