Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Valuation of Batteries - Enhancement of value based on NIDB data - Demand Upheld: CESTAT by majority

IN respect of batteries the country of origin was declared by the importer as 'Made in China' whereas on examination the batteries were found to be made in Japan and as such there was a mis-declaration in respect of country of origin of the batteries. It is submission of the appellant that the batteries were purchased in stock lot. No evidence has been submitted by the importer in support of his contention that the transaction in respect of the batteries was a stock lot transaction. On the basis of NIDB data available with the department in respect of batteries of Japan origin, the department loaded its value to Rs.4 per piece. The lower authorities have applied the NIDB data after taking the lowest value of identical or similar goods found during the relevant period - There is no infirmity in respect of applying NIDB data to the batteries imported by the appellant - The appeal in respect of batteries needs to be rejected.

Income Tax

Whether when assessee is engaged in business of Tissue Culture, 'Green House' can be treated as machinery for purpose of depreciation - YES: ITAT

ASSESSEE is a company engaged in the business of Tissue Culture Activities. Assessee had incurred expenditure of Rs.10,71,565/- for preliminary survey and other related technical matters of Aqua & Agro Project. The Assessee was asked to justify its claim. The Assessee inter alia submitted that Management had taken a decision to defer the implementation of this project and was exploring the possibility of undertaking the same under separately constituted company. The issue before the Bench is - Whether expenditure incurred by the assessee for preliminary survey and other related technical matters of a Project which was not implemented is capital expenditure and Whether the "green houses” can be classified as "building" or "machinery” for the purpose of allowing depreciation. And the verdict partly goes in favour of the assessee.

Service Tax

No tax payable on services provided to SEZ Unit: CESTAT

THE issue involved in this case is whether service of man-power supply provided by the appellant to M/s. Reliance Petroleum Ltd., Jamnagar, a unit situated in SEZ, was exempted from payment service tax for the period from 03/03/2009 to 20/05/2009, as a result of amendment carried on in the Notification No.15/2009-ST dated 20/05/2009 to Notification No.9/2009-ST dated 03/03/2009. It is the case of Revenue that during the period from 03/03/2009 to 20/05/2009, the appellant was required to discharge service tax liability and follow refund procedure prescribed under Notification No.09/2009-ST.

See our Columns Monday for the judgements