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By Vijay Kumar

Income Tax

Scrap sales would be included in total turnover for purpose of calculating deduction u/s 80HHC : ITAT

Once there was an element of profit, then such scrap sales have to be included in the total turnover. The ITAT held that scrap sales would be included in the total turnover for the purpose of calculating deduction under Section 80HHC

Customs

Exemption to hospital equipment - No change in category after exemption is withdrawn and especially because application is made three years after withdrawal : SC

The representation filed by the appellant in 2003, seeking change of category from para 2 to para 1 of the Table annexed to the Notification, is clearly an after-thought in order to overcome the failure on the part of the appellant to comply with the conditions laid down in para 2 of the Table annexed to the Notification.

Central Excise

A parcel booking clerk of Indian Railways, in order to have some personal gain, colludes with others to book goods without any duty paying documents and goods are seized by authorities at destination point, can Railways be penalised under Excise Rules - NO : CESTAT LB

CAN a Company be penalised under the old Rule 209 A of Central Excise Rules?

It is too much to allege or to presume that the advocates or the legal advisers or auditors of the company to handle much less deal with the excisable goods as contemplated under Section 9(1)(bbb) of the Act or Rule 209 A of the Rules while discharging their professional duties.

Whether deduction of equalised freight has to be average equalised freight based on last year's actual or deduction should be of actual equalised freight incurred during particular year, when assessments are provisional - matter goes to LB of Tribunal

THE issue involved in this case is regarding the demand of differential duty from the respondent on the ground that they have claimed deductions in respect of freight charges without any documentary evidence. Show cause notices were issued proposing to disallow the deduction claimed in respect of freight charges on the ground that the respondents are unable to produce any documentary evidence that they have actually incurred the same. The adjudicating authority after considering the documents and certificate given by the Chartered Accountant came to the conclusion that the respondents are eligible for deductions of actual average freight charges & not average equalized freight charges.

See our columns tomorrow for the judgements