Jurispruden tiol – Tomorrow's cases
Central Excise
Legal Corner Icon — the image was hosted by the publisher and was not captured.Aluminium structural glazing system emerges as a distinct product from Aluminium frames and glass sheets – Assembly of glazing system at site amounts to manufacture – emergent product is also marketable, hence leviable to duty: Tribunal
THE assessee is engaged in the manufacture of aluminium frames and also undertakes contracts for erection of aluminium curtain wall structural glazing system. The lower authority issued a show cause notice stating that the activity of erection of aluminium curtain walls at the customer's site amounts to manufacture of excisable goods and hence they are liable to pay excise duty. The demand notice was confirmed by this lower authority ritualistically. The assessee approached the Commissioner (Appeals) who set aside the order of lower authority and provided relief.
Service Tax
Production of goods containing alcohol and discharging State Excise duty – Prima facie attracts Service Tax under head 'Business Auxiliary Services' – Tribunal orders pre-deposit of Rs 25 lakh
CAN you travel in an airplane by buying a Shatabdi ticket or vice versa & when caught argue that since both almost cost the same there is no offence? – this was the question we were confronted with while reporting the Tribunal decision in Savera Pharmaceuticals []. Call it a prudent decision or otherwise, but we did not answer the poser and good we didn’t!
In the present case, the private limited company is manufacturing, nay producing, products containing alcohol and on which the State Excise duty was being discharged.
One fine day, but not a “dry day”, the Central Excise authorities visited this unit and contended that the activity undertaken by them is liable to Service Tax under the category “Business Auxiliary Service” inasmuch as they are engaged in the production or processing of goods which activity is “not manufacture” within the meaning of Section 2(f) of the Central Excise Act, 1944.
Income Tax
Interest on exports proceeds deposited in bank – no exemption u/s 10A: Madras High Court
THE appellant is a Company operating an Undertaking for development and export of software in the Madras Export Processing Zone. In respect of assessment year 2003-2004, the appellant filed a return of income, claiming exemption under Section 10A of the Income-Tax Act to an extent of Rs.3,09,65,597/-. The return was processed under Section 143(1) of the Income-Tax Act, wherein and whereby the Assessing Authority disallowed the claim of relief in respect of interest income received by the appellant to an extent of Rs.45,83,024/-. It is contended that the interest income represented the interest received by the appellant in respect of the deposit of the export sale proceeds in the foreign currency account. The amounts were kept in deposit to meet exigencies of export by the undertaking. The deposit was made as part of the business activities of the appellant and not with a view to earn interest from other sources. The claim of the appellant as above has been rejected by the Assessing Officer, which finding has been confirmed by the Commissioner of Income-tax (Appeals). When the matter was taken on appeal, the Income-tax Appellate Tribunal confirmed the order of the Assessing Authority.
The correctness of the same is now put in issue in this case.
General:
Zafrani Zarda being a 'manufactured tobacco' would not answer description of processed tobacco: Supreme Court
LEVY of market fee on Zafrani Zarda in terms of the provisions of the U.P. Krishi Utpadan Mandi Adhiniyam , 1964 is in question in these appeals which arise out of a common judgment and order dated 21st July, 2003.
The Act was enacted to provide for the regulation of sale and purchase of agricultural produce and for the establishment, superintendence and control of markets therefor in Uttar Pradesh.
Until Tomorrow with more DDT
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