Jurisprudentiol - Thursday's cases

By Vijay Kumar

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

Word ‘Automobile' is not defined in the CEA or CETA - Loader, Backhoe loader & Road Rollers are Automobiles - purchase of various parts & repacking these parts with new packing material and affixing Logo, fixing of MRP and selling under own brand name amounts to manufacture - Revenue appeal allowed: CESTAT

THIS is a Revenue appeal against the order of the CCE, Pune-I dropping a total Central Excise demand of Rs.19.22 crores raised against the assessee.And the best part of the proceedings is that the Revenue has WON the case, albeit for the normal period of demand. But a victory is a victory!

The assessee is engaged in activities involving purchase of various parts of Loaders, Backhoe Loaders, Road Rollers from different suppliers in India and abroad, repacking these parts with new packing material and affixing their Logo, fixing of MRP and selling under their own brand name.

Income Tax

Whether when assesse shows certain advance received from non-resident majority shareholder towards exports in books for 10 years, such a sum cannot be construed as taxable receipt u/s 41(1) unless same is written off in books - YES: ITAT

THE assessee is engaged in giving advisory services and trading in shares. It was earlier a trader in Superior kerosene oil (SKO). It imported SKO for sale in the domestic market. Under the head 'current liabilities', the assessee had shown an advance against export, received from M/s Amas Mauritius, in 1997, in order to buy goods for export purpose. M/s Amas Mauritius, was a company registered in Mauritius for the purpose of export of goods and a 40 per cent shareholder in the assessee-company. However, the exports could not be made by the assessee as the required goods could not be identified and the balance was still shown as due and payable as on January 31, 2007.

The issue before the Bench is - Whether when the assesse shows certain advance received from its non-resident majority shareholder towards exports in its books for a record 10 years, such a sum cannot be construed as taxable receipt u/s 41(1) unless the same is written off in the books. And the answer goes in favour of the assessee.

Service Tax

Section 72 - Best Judgement - No order passed; only Show Cause Notice issued - assessee directed to reply to Show Cause Notice: HC

NATIONAL Building Construction Corporation Limited has invoked the writ jurisdiction seeking quashing of demand-cum-show cause notice dated 19.12.2012. The primary contention in the writ petition is that the respondents have passed a best judgment assessment order under Section 72 of the Finance Act, 1994 despite neither circumstance existed for making of best judgment assessment order as there is no allegation that the petitioner failed to file service tax returns or tax paid in the service tax return filed is not in accordance with law.

See our Columns Tomorrow for the judgements