From our Legal Corner

By Vijay Kumar

Slitting and cutting of duty paid plastic laminated films into smaller rolls does not amount to manufacture u/s 2(f) of Excise Act : CESTAT Larger Bench

The Larger Bench, relying on a Supreme Court decision, decided the issue in favour of the assessee, but it appears that the Respondent Revenue was not represented before the Larger Bench. If Revenue does not bother to even make an appearance before the Larger Bench, is it not a mockery of the judicial system?

See our columns tomorrow for the judgment

Sales tax - Exemption to certified seeds or truthfully labeled seeds - both conditions need not be fulfilled - Matter remanded by Apex Court

It appears that Tribunal proceeded on the basis that the seeds were required to be certified and truthfully labelled for the purpose of eligibility for exemption. In reality, as clearly stated in the clarificatory memorandum they are alternatives.

The High Court also proceeded on the same basis overlooking the clarificatory memorandum.

What does the Supreme Court do? Obviously remand the case!

See our columns tomorrow for details

Employer providing residential accommodation with furniture, cooking range and TV to employees - If uniform standard rent is charged from all, no perquisite to arise u/s 17(2)(ii) - TDS not applicable : ITAT

The revenue sleuths made a case of default of non-deduction of tax on the value of the perquisites granted to the employees during the financial years 95-96 to 2000-01. The SBI had provided furniture to different categories of employees. The items of furniture included computer table & chair, vacuum cleaner, coir mattresses, cooking range, TV, washing machine, refrigerator, dining table with chairs, air conditioner etc. For these services, the bank charged standard rent. The assessee bank also reimbursed to the employees, the expenditure incurred by them on daily wages for maintenance and proper up-keep of the residential accommodation, furniture and fixtures owned by the assessee bank and allotted to the employees. The reimbursement was at a fixed rate on the basis of internal circulars issued by the bank from time to time.