Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

Paper - Exemption for clearances up to 3500 MTs - Notification No. 6/2001-CE dated 1.3.2001 - Whether weight of wrapping paper included in total weight. In ordinary course of selling finished products nobody bills separately for packing. - CESTAT by majority

IN these cases, the two appellants were manufacturing both items paper for sale like Duplex Board and also wrapper paper for wrapping such paper products for sale. The wrapper paper manufactured by them were used in the factory of the manufacturer, without payment of duty, for packing the paper products for sale manufactured by them and cleared outside the factory. The appellants were availing exemption under Notification 6/2001-CE (S. No. 86) dated 01-03-2001 and Notification 06/2002-CE (S. No.86) dated 01-03-2002 for different periods involved. This exemption was available only for the first clearances of paper up to a quantity of 3500 MT, in a financial year. The case made out by Revenue is that for reckoning the quantity of first clearances the appellant had taken into account only paper products for sale cleared outside the factory and not the wrapping paper used for wrapping such products sold.

Income Tax

Whether income earned from betting placed on live telecast of horse race falls within purview of royalty, and hence, is liable to TDS - NO: ITAT

WHETHER income earned from betting placed on live telecast of horse race falls within the purview of royalty, and thus, is liable to TDS provisions and Whether live telecast of such events amounts to creation of any 'work' as defined u/s 2(y) of the Act. And the verdict goes against the Revenue.

Service Tax

BAS - since appellants are providing various services to IBP Company/IOCL and are covered under Clause (i), (iii) & (iv) of definition of Business Auxiliary Service apart from being Commission Agent, benefit of Notification 13/2003-ST has rightly been denied to them: CESTAT

I.B.P Company and IOC have set up retail outlets at different places and have installed at those premises apparatus for storage and delivery of petroleum products and machines for air, cold water and other facilities. For running these outlets for retail sale of petroleum products and to render other services at the said premises I.B.P/IOC engaged the appellants as contractors.

The Department was of the view that these services fell under the category of Business Auxiliary Service (BAS).

See our Columns Thursday for the judgements