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By Vijay Kumar

Service Tax

ST on Coaching Classes - when language of amending Not 12/2004-ST does not restrict exemption only to standard text books sold, notification cannot be whittled down by Circular - Prima facie case for total waiver of pre-deposit of Rs 2.8 Cr : Tribunal

''CORRECT guidance, well planned and consistent hard work lead to a bright future!"

- brags an advertisement of a reputed coaching class splattered on hoardings all across aamchi Mumbai.

Yes, even coaching classes have resorted to mindless advertisements in the media - not a single railway compartment or a public transport vehicle or for that matter the costliest and gigantic hoardings have been spared, not to speak of full page colour advertisements in the newspapers.

Everything costs - yes, a bomb & sadly you pay for it!

Gone are the days when you learnt what your school teacher taught or for that matter in the after-school tuitions at the teacher's residence & appeared for exams, both internal and the external. We passed our 10 th and 12 th Board exams just like every one else and were proud when we got a first class - distinction was a rarity those days.

Income Tax

Sec 80HHC - deductions when there is a loss - word 'or' has been used intentionally and it cannot be substituted with 'and' : ITAT

THE main point raised in this appeal is against the reduction in the claim of deduction u/s. 80HHC. The facts are that the return of income was filed claiming deduction u/s. 80HHC at Rs. 7,38,416/-. During the course of assessment proceedings the Assessing Officer noted that there was a net profit of Rs. 14,54,272/- on total export turnover of Rs. 2,48,26,964/-. The net profit included Duty draw back turnover of Rs. 21,10,298/- and DEPB of Rs. 6,63,942/-. The Assessing Officer on verification of export in Form No. 10CCAC observed that the assessee has Loss on export turnover at Rs. 10,19,985/-. He considered Taxation Laws (Amendment) Act 2005, in which amendment has been carried out to section 80HHC. Since the assessee's export turnover was below Rs. 10 Crores and there was loss on the total export turnover, he noted that the assessee was entitled to set off of 90% of any one of the export incentives specified u/s. 28(iiia) to (iiie) as per the 5th proviso to sub-section (3) of Section 80HHC. Accordingly, the amount of deduction u/s. 80HHC was scaled down to Rs. 4,39,641/- as against the assessee's claim of Rs. 7,38,420/-

Customs

Laptops and Desktops are not one and the same - Acer wins in Supreme Court

AS per Section 3(1) of the Customs Tariff Act, any article when imported into India shall be liable to a duty equal to the excise duty on a like article if produced or manufactured in India. Normally this rate is 16%, equal to the domestic excise duty rate.

Whether or not any article is subjected to duty under the above Section, under Section 3(3) of the Customs Tariff Act, additional duty can also be imposed on the articles imported to counter balance the excise duty leviable on any raw materials, components and ingredients of the same nature used in production of such goods.

Central Excise

"Wonderful", "Suspense" manufactured without the aid of power - once it is held that the goods manufactured by the appellants were not liable to duty at all, the question of satisfying the requirement of Section 11D does not arise - Tribunal.

The appellant is engaged in the manufacture of Alcohol based perfumes and other perfumery products and air fresheners. While perfumery products manufactured by them were claimed to have been manufactured without aid of power and hence not dutiable, the air fresheners were dutiable and they applied for Central Excise registration on 29.11.1995 which was granted to them. As the perfumes manufactured by them under the brand 'Wonderful' and 'Suspense' were without aid of power and therefore fully exempted, they intimated the Central excise department vide their letter dated 15.12.1995 about the manufacture of perfumes along with manufacturing process.

See our columns tomorrow for the judgements