Jurisprudentiol - Tuesday's cases

By Vijay Kumar

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

Notfn. 23/2003-CE - Goods cleared by EOU to their own units in DTA - it is not disputed that such goods when sold in DTA had not been exempted from sales tax by State Govt. by any Notification - no requirement to go into analysis that there is no sales tax on stock transfer: CESTAT

THE appellants claimed exemption (in respect of clearances of finished goods to their own units in DTA on stock transfer) from payment of duty of excise leviable as is equivalent to Special Additional Duty under Section 3(5) of the CTA in terms of sr. no. 1 of notification 23/2003-CE read with condition no. 1 of Annexure to notification. The condition no. 1 stipulates that exemption is available if the goods being cleared into Domestic Tariff Area are not exempted by the State Government from payment of sales tax.

Income Tax

Rule 9B - Whether exhibition rights, broadcasting rights and satellite rights are to be construed as distribution rights - YES: HC

THE assessee is an individual. She had declared income at Rs.44,65,471. During assessment, the AO noticed that the assessee had claimed depreciation of Rs.1.20Crores on cinematographic films @ 100%. But the AO observed that the assessee did not purchase any cinematographic films for consumption but what was purchased were broadcasting/exhibition rights, satellite rights, therefore held that depreciation should be allowed @ 25% instead of 100% depreciation.

THE issues before the Bench are - Whether exhibition rights, television rights or satellite rights can be treated as ‘distribution rights'. And the verdict goes against the Revenue.

Service Tax

Bus service provided by appellant to transport employees - appellant are neither having tourist permit nor operating in tourist vehicle, therefore, they are not liable to pay service tax under category of tourist operator prior to 10/09/2004: CESTAT

THE company is engaged in the service of providing bus service to various companies for transporting their employees from the designated spots to the Company and back on a contract basis. The spot(s) from which the employees were to be picked up/dropped and timing at which they are to be picked up/dropped was determined by the Companies who hired the buses and the appellant was transporting the employees as per the schedule given by the companies. This activity was considered as taxable service as defined under the category of ‘Tour Operators' which was in vogue with effect from 01/04/2000.

See our Columns Tomorrow for the judgements