Jurisprudentiol – Wednesday's cases Legal Corner Icon — the image was hosted by the publisher and was not captured.

By Vijay Kumar

Central Excise

D-linked – Excise Valuation Case – sandwiching cost of IT peripherals into value of driver software - Pay pre-deposit of Rs One Crore, says Tribunal

THEY say that the best way to reduce your duty liability is to indulge in undervaluation because experience says that on almost on all occasions the law falls short to pin you down & you scrape through!

There was this case of the assessee collecting higher transportation charges from his clients & the department alleging that it is only the “actual transportation” costs that can be allowed as a deduction from the Assessable value. Consequently, the said “ excess charges of transportation ” have to be loaded into the assessable value of the manufactured goods & differential duty paid thereon, is what the authorities alleged.

Plastic shelves used in bathroom for keeping small items like creams & soaps or on table top or in kitchen are 'household articles' & not 'furniture' - classifiable under sub-heading 3924.90, says Larger Bench of Tribunal

WHEN the company was young and wanted to make its presence felt in the market, it had a unique marketing strategy. A call would be made to a telephone subscriber randomly selected ( mobiles did not exist – there was no ‘do not registry' either ) & if he/she responded with a “Cello” instead of a “Hello”, he/she stood a chance of winning a prize! On to the case now.

Okay, so you wish to buy a Plastic Shelf so as to keep in it your favourite fluoride toothpaste, shaving cream, tooth brushes, after shave lotion, soap, cream etc, or a shelf which can also hold some essential kitchen items. Of course, use of such shelves are interchangeable & one would normally visit a hardware shop or a Bathroom fittings shop to purchase the compact Plastic shelf but never a furniture shop simply because they do not usually stock it for sale.

Income Tax

Deduction u/s 80 HHF - profits of entire business to be taken into consideration, notwithstanding loss in exports; expenditure on leased building - depreciation allowable & cable subscription is turnover: ITAT

Referring to several decisions of the Courts, the ITAT held, that for claiming deduction u/s. 80HHF , the profits derived from the business as referred to in sub-section (1) would be such profits as are computed in accordance with the provisions of sub-section (3) read with Explanation (f) thereof. For this purpose, the profits of the entire business would be taken into consideration. Consequently, it is held that the Assessing Officer was not justified in denying the claim on the ground that there was loss in the business of export television's software on the basis of segmented Profit & Loss A/c. The order of the learned C IT (A) is, therefore, upheld on this aspect of the issue.

Tomorrow is a holiday

See our columns Wednesday for the judgements