Jurisprudentiol - Tuesday's cases
Legal Corner Icon — the image was hosted by the publisher and was not captured.Central Excise:
Manufacture u/s 2(f)(iii) - there is no evidence to show that applicants undertook any activity which amounts to manufacture after clearance from Customs - Demand of CE duty of Rs.58 crores stayed by Bench - Revenue seeking modification of order - since retail price affixed before clearance from Customs and appropriate CVD paid, no ground to modify Stay order: CESTAT
THE Revenue filed this application for modification of the Stay order dated 14.06.2012 (). The contention of the Revenue is that the importer-appellant affixed the sale price on the goods imported and affixing of retail sale price amounts to manufacture as per Chapter Note 33 of the Central Excise Tariff.
Income Tax:
Whether Katha business carried on by assessee can be said to be incidental to attainment of objects of trust for purpose of exemption u/s 11 when object of trust is to advance education, patriotism, Indian culture and dispensaries - NO: HC
THE assessee is a Charitable Trust. The trust deed set out the objects of the trust which included the establishing and maintaining of schools, colleges and study circles, etc. Clause 19 of the trust deed provided that the trust may “carry on any business for and on behalf or in the name of the trust for the sole object of applying the income and profits thereof for the purposes of objects of the trust”. The trustees were partner of firms which were themselves engaged in the business of the manufacture and sale of Katha. After the formation of the trust, a business was commenced in the name of the trust for the manufacture of Katha.
Service Tax:
ST - Renting of Immovable property - In relation to immovable property difference between "renting" and "leasing" is blurred - The ordinary meaning of "renting" will not cover long term leasing - Developing a township according to plan which will be conducive to society at large and maintaining municipal functions in such township has to be prima facie considered as sovereign functions and not commercial activity of government - GNIDA Prima facie not liable for payment of Service Tax - Pre-deposit waived and Stay granted: CESTAT
THE appellant, Greater Noida Industrial Development Authority (GNIDA) is a body established under the Uttar Pradesh Industrial Development Act, 1976 by notification issued under section 3 of the said Act to develop certain notified areas as a planned industrial township. It functions as an arm of the State Government through its officers. Under section 6 of the said Act, one of the functions of GNIDA is to allocate and transfer whether by way of sale or lease or otherwise plots of land for industrial, commercial or residential purposes.They charge both one time lease charges at the time of initial handing over of the land and also charge annual lease charges at different rates for land given for different purposes. On such lease charges received, either one time or annual, the appellant has not been paying any service tax.
Until Tuesday with more DDT
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