Jurispruden tiol – Tomorrow's cases

By Vijay Kumar

Income Tax

Only if income is arising directly or indirectly through or from any business connection in India , it can be taxed in India - If it is found that income accruing in India is consumed by payment made to agents in India, no income is left to be taxed in India : ITAT

THE appellant, a tax resident of Spain, has developed a fully automatic computer reservation and distribution system, with the ability to perform comprehensive information, communications, reservations, ticketing, distribution and related functions on a worldwide basis for the travel industry, particularly participating airlines, hotels etc. (hereinafter referred to as ' CRS ').

Various Airlines all over the world have entered into 'Participating Carriers Agreements' ('the PCA ') with the appellant for display of their information/products, etc. through the CRS . The appellant receives payment from the Airlines in the form of 'booking fee', which is computed on the basis of the 'net booking' made through use of CRS .

Customs

No exemption under EPCG Scheme if goods imported are installed outside factory – To examine availability of Customs notification is job of Customs officer and condition annexed to notification cannot be diluted even by DGFT : CESTAT

IN a significant judgement the CESTAT held that the importer is not entitled for exemption under Notification No 110/95 Cus if the goods imported are installed outside the factory of the importer.

The appellant imported "High Performance Liquid Chromatography Machine” under EPCG scheme and installed in his laboratory. The machines is used for determining the process time of each chemical reaction which reduces the total batch time and thus improves efficiency and ensure in-time delivery of the export goods. The said laboratory is not part of the appellant's factory premises.

Central Excise

One cannot look for dung where cow has not browsed - Presumption contained in Section 12B of CEA '44 - mere fact that incidence of levy is being passed on to person who is not recognized under law as manufacturer confers no rights on appellant under the law : Tribunal

WORDS ‘person aggrieved' do not really mean a man who is disappointed of a benefit which he might have received if some other order had been made. A ‘person aggrieved' must be a man who has suffered a legal grievance, a man against whom a decision has been pronounced which has wrongfully deprived him of something, or wrongfully affected his title to something.

See our columns Tomorrow for the judgements