Jurisprudentiol– Tomorrow's cases

By Vijay Kumar

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

Marker ink is also writing ink, rules Supreme Court

Reliance on HSN: it is settled law that when the entries in the HSN and the said Tariff are not aligned, reliance cannot be placed upon HSN for the purpose of classification of goods under the said Tariff..

Service Tax

Del- credre agency service is not taxable under clearing and forwarding agent service: CESTAT

THE issue involved in this case is as to whether services of Del- credre agency are covered under the category of Clearing and Forwarding (C&F) agency service and leviable to service tax. The appellants entered into two agreements with their clients, one is a consignment stockist agreement under which the company, i.e , M/s Haldia Petrochemicals Ltd shall make available to the Consignment Stockist their Product, from its factory/warehouse for distribution/sale by him on the terms and conditions contained in the agreement and the procedure/policy already prescribed or to be prescribed by the company from time to time for stocking and selling the said product. Apparently there is no dispute on this agreement and the demand of service tax is on the second agreement, i.e. Del- credre agency agreement.

Income Tax

Indo-UK Treaty - freight income earned on transportation of cargo in international traffic by ships operated by other enterprises under slot chartering arrangement would be taxable only in state of residence and not under Indian laws: ITAT

Interpretation of tax treaties: rule of interpretation for interpreting a statute are not applicable for interpreting the covenants of tax treaties between the contracting states; the words or expression used in the treaties, if not defined in the treaties itself, should be understood in the sense in which the contracting states understood at the time the treaty was executed i.e. contemporaneous thinking; and contemporaneous thinking can be gathered from the provisions of domestic laws of the contracting states and in the absence thereof from the various commentaries available at the time of such contract.

See our columns Tomorrow for the judgements