Jurisprudentiol– Tomorrow's cases

By Vijay Kumar

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

Fee received from Indian pharmaceutical companies for undertaking clinical and bio-analytical studies is not subject to tax in India in accordance with Double Taxation Avoidance Agreement between India and Canada - AAR

KNOW HOW represents what a manufacturer cannot know from mere examination of the product and mere progress of the technique. The Commentary further states that a know-how contract differs from contracts for the provision of services, in which one party undertakes to use the customary skills of his calling to execute the work himself for the other party. Payment made under the latter contract generally come in the category of business income.

As such, the fees received by the applicant are to be treated as business income and not royalty income.

Central Excise

Molasses used in manufacture of exempted Cattle feed and other dutiable goods – since separate accounts not maintained of common inputs viz. phosphoric acid, caustic soda, water treatment chemicals, 8% amount to be paid under rule 6 of CCR , 2002 – Tribunal

IS there anything left in Central Excise other than Rule 6 of CCR , 2004 is the omnipresent question. Sadly, the answer is a hesitant no.

The appellants are engaged in manufacture of sugar, molasses and ethyl alcohol etc. which are dutiable goods and cattle feed falling under Chapter No. 23 which is exempted.

Service Tax

CENVAT credit of Service Tax paid on Outdoor Catering Services – Stay granted as matter referred to Larger Bench: Credit of Service Tax on Garden Maintenance Services – No prima facie case – Pre-deposit ordered: Tribunal

AS regards credit availed on garden maintenance no prima facie, case has been made out and, therefore, direct pre-deposit of Rs. 14,712/- within a period of four weeks.

See our columns Tomorrow for the judgements