Jurisprudentiol - Wednesday's cases

By Vijay Kumar

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

Appellant providing premises, infrastructure, electricity, water and manpower supply to conduct business - consideration received not chargeable to ST under BAS - Prima facie activity undertaken by appellant is one of renting of immovable property - matter remanded: CESTAT

THE appellant entered into an agreement with M/s Amalgamated Bean Coffee Trading Co. Ltd., which envisages providing premises, infrastructure, electricity, water and manpower supply for the labour to conduct their business. As consideration for the services rendered, they were liable to get minimum guaranteed amount of Rs.47,000/- or 12% of the total monthly turnover, whichever is higher. The department was of the view that the services provided by the appellant is classifiable under ‘Business Auxiliary Services' and accordingly confirmed a demand of Rs.61,800/-.

Income Tax

Whether when unremitted export sales is excluded from export turnover, same should also be excluded from total turnover for purpose of Sec 10A benefits - NO: Madras HC

THE issues before the Bench are - Whether when unremitted export sales was excluded from the export turnover, the same should also have been excluded from the total turnover while computing deduction u/s 10A; Whether parity must be maintained between the numerator and denominator for computing deduction u/s 10A, although the assessee has sought an extension from RBI for receiving the exports proceeds; Whether unrealized export sales can be considered as business loss merely on the score of the amount not having been realized in the particular year and Whether further such unrealized sales from export can be claimed as business loss and considered for computing deduction u/s 10A, although it was written off only against share premium account through a shareholders resolution passed after the completion of the assessment order. And the verdict favours the Revenue.

Central Excise

Assembly of duty paid parts of furniture, whether amounts to manufacture of furniture - no manufacture involved - order of Commissioner(A) upheld & Revenue appeal dismissed: CESTAT

THIS is a Revenue appeal filed in the year 2004 against an order passed by the Commissioner(Appeals), but obviously, in favour of the assessee. The facts of the case are that a SCN was issued to the assessee respondent on the ground that they are engaged in the manufacture of office furniture system falling under Chapter Heading 9403 of the Tariff. Inasmuch as the respondents were receiving parts of the furniture and assembling the same at site, which according to Revenue amounts to manufacture.The adjudicating authority confirmed the demand and imposed penalty.

See our Columns Tomorrow for the judgements