Jurisprudentiol - Friday's cases

By Vijay Kumar

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

Mere handling of coal by unloading of coal wagons and movement to site - not cargo handling service - Jurisdictional HC - explained: CESTAT

MERE handling of coal and movement of the said goods from railway wagon to the site of Thermal Power Station with the aid of the wagon tipping system to be fed in the boiler bunkers through motor vehicles or any other means of transportation involved in such handling, would not constitute cargo handling service.

Income Tax

Whether when an assessee follows mercantile system of accounting, it has freedom to follow receipt system merely to account for VAT refunds - NO: ITAT

THE issues before the Bench are - Whether when an assessee follows the mercantile system of accounting, it has the freedom to follow the receipt system merely to account for VAT refunds; Whether any income by way of cash incentive accrues to an assessee at the time of filing of the claim in this respect and Whether method of accounting of refund claims can be changed in case there is a procedural delay in release of refund by the Revenue authorities. And the answers to all the questions go against the assessee.

Central Excise

Whether AED under Textile and Textile Articles Act, 1978 is also required to be paid when duty is paid under Notification No 33/2001 CE based on meter length of the embroidery machine – Tribunal by majority sets aside demand.

The appellant is engaged in manufacture of embroidery fabrics and was working under Compounded Levy Scheme and was making payment of duty in terms of Notification No.33/2001, dt.28.06.01, according to which they were required to pay the duty at Rs.45/- per shift, which was fixed based on the meter length of the machine as required under the notification. The appellants are in appeal against the decision of the lower authority that the appellant is liable to pay 15% of the Excise duty payable towards AED (T&TA).

See our Columns Tomorrow for the judgements