Jurisprudentiol– Tomorrow's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Income Tax

Deductions under s. 10B – Expenses incurred in foreign currency towards payments to the assessee's personnel deputed outside India – Not to be excluded from the export turnover when they form a part of the total turnover – Telecommunication expenses to be excluded from total turnover when the same is excluded from export turnover – Consistency to be adopted in application of standards for computation of deductions from export turnover and total turnover - ITAT

Absence of definition of total turnover in 10A – Total turnover includes export turnover - If the ‘export turnover' is arrived at after excluding certain expenses, the same should also be excluded in computing the ‘total turnover' - Consistency to be adopted in application of standards for computation of deductions from export turnover and total turnover – Telecommunication expenses to be excluded from total turnover when the same is excluded from export turnover

Service, JV – consumer?

Land owner entering into an agreement with a builder, for construction of an Apartment Building and for sharing of the constructed area, is a ‘consumer' and the builder as a service-provider under the Consumer Protection Act – Supreme Court

What is the meaning of the word 'service'? Does it extend to deficiency in the building of a house or flat? Can a complaint be filed under the Act against the statutory authority or a builder or contractor for any deficiency in respect of given property? The answer to all this shall depend on the understanding of the word 'service'. The term has variety of meanings. It may mean any benefit or any act resulting in promoting interest or happiness. It may be contractual, professional, public, domestic, legal, statutory etc. The concept of service thus is very wide. How it should be understood and what it means depends in the context in which it has been used in an enactment.

Implications in Service Tax and VAT?

Service Tax

Service Tax - Each and every case has own peculiarity and governing facts as well as attendant circumstances of each case submit themselves to meet tests of law for arriving at conclusion – Pre-deposit of Rs 1 Cr ordered – Early hearing granted: CESTAT

IN an interesting development, a multinational consulting firm which is engaged in providing tax and various other consultancy services to various multinational clients and Indian corporates found itself at the receiving end with the Service tax authorities at Delhi proposing to levy service tax on certain services provided by this firm. The ritual of demand of service tax with interest was confirmed and this was followed by levy of equivalent penalty. The firm agitated the issue by preferring an appeal before the Tribunal. As of now the issue before the Tribunal was only with regard to the prayer for stay of the demand of tax and penalties.

Central Excise

Cenvat Credit - Capital Goods - Laboratory Homogenizes, Lab Scientific and Hospital Equipments, Gas Detection Systems – eligible for Credit: High Court

In view of the definition of ‘Capital goods' as it existed prior to 23.07.1996, and accepted by the Apex court in Commissioner of Central Excise, Coimbatore Vs. Jawahar Mills Ltd., we are of the view that the CESTAT has committed no error of law by allowing the Modvat credit to the assessee in respect of (i) Laboratory Homogenizes, Lab Scientific/Hospital Equipments (ii) Module of Chapter Heading No. 85.38 (iii) Gas Detection Systems of Chapter Heading No. 85.31 (iv) Lube/Sealant of Chapter heading No. 32.14 and (v) Tower Packing of Chapter Heading no. 84.19, for the year 1994-95 (upto Feb 1995), used for manufacture of glycol and other industrial chemicals in their factory.

See our columns Tomorrow for the judgements