Jurisprudentiol-Thursday's cases
Customs
Assessment on shore tank quantity or Transaction value - Board Circular 12.01.2006 is to be considered retrospective as the same is not contradictory to earlier circular - Provisions of unjust enrichment will apply even in respect of provisional assessments: CESTAT
THE issues were:
(1) In the context of an ad valorem tax regime, whether duty liability has to be determined on the basis of transaction value paid or payable for the supply of goods or the duty liability should be determined on the basis of the shore tank receipt quantity?
(2) Whether ship demurrage charges are includible in the assessable value of the goods imported?
(3) In the case of provisional assessment of duty which is finalised subsequently, whether short payment of duty made in respect of some bills of entry can be adjusted against excess payments made in respect of some other bills of entry and whether separate refund claims should be filed for refund of excess payments?
(4) Whether the principles of unjust enrichment would apply when refund arises on account of finalisation of provisional assessments under section 18 of the Customs Act?
(5) Whether any interest liability accrues prior to July, 2006 in case of finalisation of provisional assessments?
Income Tax
Whether for purpose of computing depreciation, only written down value of transferred assets of demerged company as per books maintained shall constitute WDV of block of assets of resulting company - YES: ITAT
ASSESSEE claimed depreciation aggregating to Rs.65,90,99,922/-. In the Annexure 3 of tax audit report, it was disclosed by the assessee that the assets transferred from the demerged company viz. Godrej appliances Ltd. pursuant to the scheme of arrangement u/s 291 and 394 of the companies Act 1956, have been taken over at the written down value of the block of assets as appearing in the books of accounts of the demerged company immediately before the demerger, as per explanation 2B to section 43 (6) of the Act. It was further stated that the written down value of the block of assets as appearing in the books of accounts of the demerged company was reduced by Rs.14,35,87,519/-, to incorporate the effect of interest capitalised by the assessee in the books of accounts and claimed as revenue expenses under the income tax in the earlier previous year's.
The issue before the Bench is - Whether for the purpose of computing depreciation, only the written down value of the transferred assets of the demerged company as per the accounts maintained under the Act shall constitute the written down value of the block of assets of the resulting company. And the verdict favours the Revenue.
Service Tax
'Commercial Training and Coaching' - Mandatory Training of Insurance Agents - not liable to pay Service Tax - CESTAT
THE appellant is providing training to candidates who intent to become Insurance Agent. The candidates are sponsored by the insurance company, who pays the appellant instead of candidates themselves paying the appellants. To become the insurance agent, it is mandatory in the law for him to undergo a training programme which is imparted by the appellant and thereafter to clear an exam conducted by Insurance Regulatory and Development Authority (IRDA).
Following the decisions in Indian Institute of Aircraft Engineering Vs. Union of India - 2013-TIOL-430-HC-DEL-ST... and Pasha Educational Training Institute Vs. CCE, Hyderabad - , held: the training imparted by the appellants does not fall under the ambit of Section 65(27) of the Finance Act, 1994 as the training imparted by the appellant is having the recognition of law and covered under exclusion clause of Section 65(27) of the Finance Act, 1994, therefore the appellant is not liable to pay service tax at all.
Until Tomorrow with more DDT
Have a nice day.
Mail your comments to vijaywrite@tiol.in