Jurisprudentiol– Tomorrow's cases
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Welding electrodes entitled for CENVAT Credit – High Court
THE issue is back! This time the High Court has not agreed with the Larger Bench of the Tribunal in Jaypee Rewa
We had recently reported the case where a Single Member had held that the Larger Bench decision is not applicable.
the expression “in the manufacture of goods” should normally encompass entire process carried on by the dealer, of converting raw materials into finished goods, where any particular process, or activity, is so integrally connected with the ultimate production of the goods, but for that process, manufacturing, or processing of the goods would be commercially inexpedient, goods required in that process would, fall within expression “in the manufacturing of goods”.
Also see our story - Welding Electrodes – Cenvat Credit available, trumpets Tribunal
No extended period of limitation when facts are known to the Department; Burden is on Revenue to prove that interest-free advance has influenced the price: Supreme Court
Since the fact regarding advances received was already in the knowledge of the Department and the earlier similar proceedings initiated by the Department were dropped by the Assistant Commissioner, the Revenue was not justified in invoking the extended period of limitation.
Service Tax
Lease of table space to financial institutions and receiving remuneration for the same cannot be categorized as Business Auxiliary service - Not liable to service tax: Tribunal
APPELLANTS are engaged in selling sales and services of two wheelers. They also arrange loan from various financial institutions/banks for Hire Purchase and are therefore promotion/marketing of the products/services of the financial institutions/banks for which they are getting a consideration called pay-out/incentive/commission from the financial institution/banks. Service tax authorities tried to fasten service tax liability on the appellant for the consideration received in this regard by categorizing the activity under ‘Business Auxiliary service'.
Income Tax
Indian PSU acting as agent of foreign company – dispute with Income Tax – no need for COD clearance: for purposes of levying Customs duty on design and engineering received in a packed condition are treated as machinery, but for that reason alone it cannot be called a plant: ITAT
THE Tribunal held that the mere fact that the drawings and designs were sent to SAIL by the assessee from Germany in a packed condition on free delivery basis at Calcutta airport does not make it a plant. The plant is what the assessee supplied to SAIL under contract no.1 . The design and engineering and other services described in contract no.3 are technical services rendered by the assessee, though from Germany , to SAIL.
Until Tomorrow with more DDT
Have a nice Day.
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