Jurisprudentiol - Tuesday's cases

By Vijay Kumar

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

EOU - Once Commissioner(A) has held that if CE duty u/s 3(1) of CEA, 1944 r/w CETA, 1985 on Fresh Mushroom is Nil and resultantly excise duty payable on DTA clearances by the 100% EOU is also Nil and this order has been accepted, it is not open to Department to issue notice u/s 11A of CEA, 1944 and confirm duty contrary to this decision - Appeal of assessee allowed: HC

THE question for consideration before the High Court was -

"Once the Commissioner of Central Excise (A) holds that if the excise duty payable on fresh mushrooms under Section 3(1) of the Central Excise Act, 1944 read with the Schedule to the Central Excise Tariff Act, 1985 is Nil, then, the excise duty payable on DTA clearances of fresh mushrooms by a 100% EOU covered under the proviso to Section 3(1) of the Central Excise Act, 1944 shall also be Nil, then, is it open to the Assessing Officer to issue notice under Section 11A of the Central Excise Act, 1944 and confirm the demand of duty contrary to the decision of the Commissioner of Central Excise (A) ?

Service Tax

ST - BAS - Processes of denting and painting are essential for completion of manufacture of bus bodies and therefore these processes are to be considered as manufacturing activities within the meaning of section 2(f) of CEA, 1944 - going by note 6 of section XVII of CETA, 1985, these processes per se also are defined to be process of manufacture because these processes are essential for transforming the semi-finished bus body into a complete and finished article - Demand of ST made under BAS fails - Orders set aside and appeals allowed: CESTAT

THE appellant was undertaking certain jobs within the factory of JCBL Ltd which was manufacturing bus bodies falling under chapter 8707 of the Central Excise Tariff. The work done was - Inspection & Rectification of Buses (including denting & painting work), Shifting of bus structure from inter plant (loading and unloading), Material & Scrap Shifting and supply to Lines & Misc. Work.

See our Columns Tomorrow for the judgements