Jurisprudentiol - Thursday's cases
Legal Corner Icon — the image was hosted by the publisher and was not captured.Central Excise
As per the provisions of sub-section 9D (2) of Central Excise Act, 1944, cross examination of witness, whose statement has been relied upon by adjudicating authority is must - Demand set aside and matter remanded: CESTAT
THE department on receipt of an information that the appellant (M/s PMS) without receiving any inputs are only receiving the invoices from the suppliers and no goods have been sent to any of the job workers as claimed and were actually procuring the cheap diesel engine parts from market for export, while showing their manufactural clearance from their factory on payment of duty by utilizing the fraudulently taken CENVAT credit initiated inquiries. The inquiries were conducted with all the 24 job workers including the 9 job workers and all of them, in their respective statements recorded under Section 14 of the Central Excise Act, 1944 admitted that they have not received any raw materials from the appellant for processing and as such, have not sent any processed or finished goods to them and their transactions with the appellant regarding job work are mere paper transactions. In adjudication, the demand of duty was confirmed and penalties imposed.
Income Tax
Whether donation would become part of corpus where Resolution of Donor Company stated that shares would be transferred to trust and gift would be towards its corpus - YES: High Court
ASSESSEE Foundation was founded with the object to establish, develop, maintain and operate hospitals, medical schools, medical colleges, nursing institutions, dispensaries, maternity homes and child welfare centres etc. It was granted registration under Section 12AA and approval under Section 80G was also accorded. Assessee filed return declaring nil income for the assessment year 2006-07. Later assessee filed a revised return declaring income. During the course of the assessment proceedings the assessee claimed that the revised return be ignored and the first return should be treated as the correct and true return. Revised computation was filed. The Assessing Officer did not agree and held that in terms of the decision of the Supreme Court in Goetze (India) Limited vs. CIT , the assessee could not have filed the revised computation and said claim could have been only made by way of a re-revised return.
The issue before the Bench is - Whether donation would become a part of the corpus where the resolution of the donor company stated that the shares would be transferred to the assessee trust and the gift would be towards corpus of the trust. And the verdict favours the assessee.
VAT
Supply and Installation of Lifts / Elevators - Whether assessable as Works Contracts or Sale Contracts - Assessing Authority held as Sale contract - Revision allowed in view of the order in case of Kone Elevator India Pvt. Ltd. Vs. State of Tamil Nadu : High Court
M/S Otis Elevators Company Ltd. is a Public Ltd. Company registered under the U.P. Vat Act, 2008 and is engaged in the business of manufacturing of parts and components of lifts and elevators in offices, residential buildings, government buildings etc. Assessment proceedings were initiated in respect of the Company for the year 2010-11. For purposes of carrying out the orders for supplying of lifts, elevators, the Head Office of the Company situate in Mumbai executes works contract for supply of parts and components of lifts/elevators and to provide services for erection, commissioning and installation of the same. The standard works followed by the Revisionist Company is that it is only after entering into an agreement with the customer, that the activity of manufacturing of parts/components of lifts/elevators is carried out by the Company at its factory situate in Karnataka.
The short point which, arises in the present revision for consideration of the Court is whether the works contract entered into between the revisionist company and a customer is a sale contract or a works contract.
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