Jurispruden tiol – Tomorrow's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Central Excise

Good reason for revenue to smile – Lager Bench resolves an important Central Excise valuation issue in Department's favour .

Central Excise – valuation – goods cleared by the job worker to the principal manufacturer on payment of duty under Rule 8 of the C entral Excise Valuation Rules –while arriving at the cost of manufacture of goods by the job worker whether 10% addition made to the intermediate goods supplied by the principal manufacturer has to be included – question answered in favour of the revenue.

Income Tax

Assessee deals in sale and purchase of land - plants trees on land to be developed in future - Since expenditure incurred was for developing new asset, it is capital expenditure- High Court

CAN expenditure incurred towards the plantation of eucalyptus trees be treated as revenue expenditure, and the same can be treated to be expenditure on agricultural operation? This was the question before the High Court which applied the simple test suggested by the Apex C ourt that whether an expenditure is incurred to preserve and maintain an already existing asset or is to bring a new asset into existence or to obtain a fresh advantage. Let's go to the facts of the case before an answer is found to this question.

Central Excise

Inputs burnt in fire - No appeal filed against order of Insurance authorities rejecting claim on ground that fire insurance not taken by company - No cause for reversal of CENVAT credit: Tribunal

The Tribunal observed that Revenue had accepted the fact that the Insurance company had rejected the claim of the respondent on the ground that loss due to fire was not covered under the insurance policy. As for whether the company had preferred an appeal against this order of the insurance company, since the assessees representative had positively stated that no such appeal had been filed, the matter ends there, more so since the order of the lower appellate authority was challenged on this sole ground.

See our columns Tomorrow for the judgements