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Income Tax
Sales from one STP to another is not deemed export for Income Tax deductions : ITAT
Sale of software by one STP to another STP within the country would be treated as deemed export only for the purpose of duty draw back and exempt from terminal excise duty. sec. 10A, with relevant proviso, stood during the relevant time itself provides that when domestic sales of STP unit do not exceed 25%, such sale should be deemed to be the profits and gains derived from the export of such articles or things or computer software. Thus the provisions of sec. 10A as it stood specifically provide how much benefit to be given to the assessee if sales to another STP when not exceeded 25% of the total products.
Service Tax
Free After Sales Service – Service Tax not payable by dealers as it is 'Free' and the same has already been subjected to Sales Tax : CESTAT
ALL said and done, it was after all a bad idea to give the administrative controls of Service Tax to the Central Excise department, complained a netizen . When enquired the reason for such a contemptuous comment, he said – whenever the Central Excise officers are compelled (legally) to let go of an issue under Central Excise, they scamper and try their luck to get it covered under Service Tax.
A dejected Board had vide Circular No. 681/72/2002-CX., dated 12-12-2002 communicated that PDI (Pre-Delivery Inspection) and free after sales service provided by the dealer of vehicle, during the warranty period will not be included in the assessable value of the motor vehicle. However, at the same time it had the gumption to mention that these instructions will apply to past cases only as the provisions of the new section 4 introduced w.e.f. 1-7-2000 were not the subject matter of dispute before the Apex Court & that as regards the current status, the same have been amply clarified in Board's Circular 643/34/2002-CX dated 01.07.2002 viz. that they are includible.
So, what's new?
Just that the Department now wants the Authorized dealer to pay Service Tax on this “ free after sales service” provided by them to the customers.
Customs
Commissioner of Central Excise has no jurisdiction to demand customs duty payable on goods imported under Not No 25/99-Cus : Tribunal
IN terms of Section 35E of the CE Act, the power to review the order passed by the Executive Commissioner of Central Excise is vested with the Central Board of Customs & Excise and not with the Commissioner of Customs. We are surprised about the conduct of the Commissioner of Customs who has transgressed the powers vested in the Central Board of Excise & Customs. The action of the Commissioner of Customs shows total non-application of mind and utter disregard of the law laid down by the Statute on the subject. It also shows that the Commissioner of customs does not appear to know even the rudimentary knowledge of Central Excise & Customs Law.
There were the remarks of the CESTAT in the decision reported in 2004-TIOL-109-CESTAT-MAD
But why the Tribunal thought so?