Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

SSI Exemption - Goods manufactured on job work basis by loan licence - clearances to be clubbed - Pre-deposit ordered: CESTAT by majority.

THE appellants are having one manufacturing unit at Allahabad but they are also getting the goods manufactured through other manufacturers against loan licence agreement or on job work basis. The goods manufactured by other units for the appellants are being cleared by respective manufacturers on payment of duty. The appellants are availing the small scale exemption under Notification No. 8/2003. The dispute is whether value of the clearances made by other manufacturers on payment of duty are to be clubbed with the value clearances of the appellant for the purpose of availment of exemption under Notification 8/2003.

Income Tax

Whether term 'assessee' used in Sections 54B and 54F can also be extended to major married daughters - NO: ITAT

THE issues before the Bench are - Whether the term 'assessee' used in Ss54B and 54F can also be extended to major married daughters; Whether the assessee, the mother, can claim deduction under Ss54B and 54F in case investments are made in the name of assessee's married daughters; Whether transfer of title can be completed only by executing a valid transfer deed and Whether for the purpose of allowing deduction u/s 54B, assessee includes legal representatives also. And the verdict goes against the assessee.

Service Tax

Commissioner (Appeals) dismisses Stay application and Appeal without hearing - Appeal restored on pre-deposit of tax and interest: CESTAT

THE appellate authority had scheduled hearing of the stay petition on 28.12.2011, as requested by the assessee. On 28.12.2011, the stay application was disposed of ex-parte, granting waiver of pre-deposit only to the extent of the penalty component, on the condition of deposit of the assessed service tax and the applicable interest, by 13.1.2012. By the order dated 17.1.2012, the appeal was dismissed for failure of pre-deposit as ordered on 28.12.2011. On behalf of the appellant, it is contended that he did not receive notice (of the rescheduled hearing of the stay application on 28.12.2011), before that date. No infirmity either in the order of the Commissioner (Appeals) dated 28.12.2011 (directing pre-deposit of tax and interest) as a condition for waiver of pre-deposit of the penalty, nor with the order dated 17.1.2012 dismissing the appeal for failure of pre-deposit. Appeals restored on pre-deposit of tax and interest.

Tomorrow is Gandhi Jayanti

This is the First Gandhi Stamp issued by the Indian Postal Department on 15.08.1948

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