Jurisprudentiol - Wednesday's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.CENTRAL EXCISE

DTA Clearances from EOUs – No third time Cess, rules Larger Bench

WHY do the framers of legislation become so insensitive to the commotion around although they know very well that a simple clarification from their end revealing their intention in drafting the legislation would solve the disputes in a flash.

Income Tax

I-T - Whether an assessee can claim depreciation on machinaries installed at dealer's site for purpose of providing after sales service - YES: ITAT

THE questions before the Bench are - Whether an assessee can claim depreciation on the machinaries installed at the dealer's site for the purpose of providing after sales service; Whether security amount collected from customers can be excluded from the cost of assets for the purpose of calculating depreciation; Whether advances given for the purposes of acquisition of capital assets can be claimed as ‘bad debt', when these are written off; Whether losses in the running of business can be said to be of capital nature and Whether when any income is exempt u/s. 10, the same has to be mandatorily excluded from the purview of computation of total income under different sections. And the verdict partly goes in favour of the assessee.

Service Tax

Services rendered by mandap keepers as caterer would also be liable to ST under category of 'Mandap Keeper services' - food charges collected from customers includible in value for discharging ST - Pre-deposit ordered: CESTAT

THE appellant is registered with the department under the category of ‘Mandap Keeper Service'. While rendering ‘Mandap Keeper Services' they were also providing catering services. However, they split the charges for the services rendered into two parts. One was for ‘hall charges' which was towards temporary usage of the banquet hall for conducting the function and the other is for supply of food. Incidentally, they discharged the service tax liability on the ‘hall charges' collected from the customers.

See our Columns Wednesday for the judgements