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Central Excise
What constitutes manufacture would depend upon the facts of each case. Neither the condensing unit nor the cooling unit by itself is a complete air conditioner. It is only when these two units are put together the complete unit of air conditioner came into existence. Air conditioner is a commercially new article than either the condensing unit or the cooling unit. - Supreme Court
The appellant, Fedders Lloyd Corporation Ltd., cleared condensing units from their unit at Kalkaji, New Delhi to Mumbai, where the appellant purchased cooling units from local manufacturers fabricated on order with motors, etc., supplied by the appellant. After carrying out certain tests for quality by filling gas, affixing the brand name `Fedders Lloyd', the complete unit was cleared along with pipe kits, electrical cord, remote control, etc., to various customers from their warehouse/godown at Mumbai. The invoices were raised by the appellant's Mumbai office for supply of split air- conditioners.
Income Tax
Setback for banks; Assessee makes provision for standard assets as per RBI norms - Deduction can be allowed only if specific liabilities are incurred : ITAT
THE question before the Tribunal was : Is deduction available u/s 36(1)(viia) or u/s 37(1) against the provision for standard assets made by a bank? And, ruling against the assessee the Tribunal has held that a provision which is a charge on the profits can be allowed only if the assessee establishes that it has already incurred a liability. If that is not the case, creation of a provision to merely comply with some guidelines cannot be allowed as deduction.
Service Tax
Outdoor Catering Services provided in company canteen - does it indirectly assist manufacturing activities? - Cenvat Credit eligibility - Tribunal orders pre-deposit
In the present case, the manufacturer had availed Cenvat credit of Service Tax paid on 'Outdoor Catering services' that were provided in the canteen of the applicant's factory premises. The lower authorities denied the Cenvat Credit of Rs.33,956/- and imposed a penalty of Rs.5000/-.
Anti-dumping
Anti-dumping duty during 'interregnum period' - Matter referred to Larger Bench of Tribunal
IN the case of Nitco Tiles Ltd. vs. Designated Authority [], the Larger Bench of the Tribunal while dismissing the petition of Nitco Tiles against the anti-dumping notification on import of vitrified/porcelain tiles observed that the petition was mis-conceived and ruled that rule 20(2)(a) is intra vires the provisions of the said Act and that the anti- dumping duty had been validly imposed with effect from the date of imposition of the provisional anti-dumping duty and would continue to operate even during the "interregnum" period. Said decision was also followed in the case of Bansilal Leisure Parks Ltd. vs. CC, Kolkata, [] by opining that the decision of the three Member Anti-Dumping Bench, which is in favour of Revenue, is binding on the other Benches of the Tribunal.
Until tomorrow with more DDT
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