Daily Archives: October 5, 2015

No excise duty due to price escalation if it is not known at or before time of removal

By | October 5, 2015

Facts of the case are :- Periods 1996-1997 to 2000-2001 Assessee cleared non-woven carpets to Maruti paying duty based on invoice price .On inquiry from Maruti, department found that assessee had received additional amount on account of price escalation and therefore, raised demand of duty thereon .Tribunal held that duty is payable at ‘price’ at… Read More »

Customized printing on packing material doesnot make it a product of printing industry

By | October 5, 2015

Brief facts of the Case are :- Assessee was manufacturing plastics laminated flexible packing material, viz., shrink sleeves’ and printing was done thereon as per requirement of customer . Assessee Claim :- Assessee claimed that since it was used for shatter resistance, puncture resistance and tamper proof packing, it was classifiable as ‘Plastics and articles… Read More »

Construction of flats under a development agreement which are allotted to landowners are liable to service tax

By | October 5, 2015

Flats allotted to landowner under a development agreement are prima facie liable to service tax based on price charged by assessee builder on flats sold to other flat owners HIGH COURT OF MADRAS Southern Properties & Promoters v. Commissioner of Central Excise R. SUDHAKAR AND R. KARUPPIAH, JJ. CIVIL MISC. APPEAL NO. 3470 OF 2014… Read More »

Book entry of lease equalization fund made to comply with ICAIs guidance note is not includible in taxable income

By | October 5, 2015

Where lease equalisation fund was a mere book entry made to comply with Guidance Note issued by ICAI so as to meet Accounting Standards, assessee was justified in reducing amount credited in profit & loss account for purposes of determining income chargeable to tax HIGH COURT OF BOMBAY Commissioner of Income-tax -3 v. Reliance Industrial… Read More »

Interest received before commencement of business is capital receipt has to be set-off against pre operative expenses

By | October 5, 2015

Interest before commencement of business Where assessee, engaged in business of developing, operating and maintenance of power projects, received certain interest on surplus funds, that were deposited in Government securities, prior to implementation of its projects, amount so received was to be treated as capital receipt IN THE ITAT AHMEDABAD BENCH ‘B’ Adani Power Ltd.… Read More »

Embroidery work on Sari is manufacturing; machinery used for it eligible for additional depreciation

By | October 5, 2015

Embroidery work performed on grey synthetic cloth i.e. sari amounted to manufacturing activity and, thus, machinary used in said activity was entitled to receive additional depreciation IN THE ITAT AHMEDABAD BENCH ‘C’ Income-tax Officer, Ward – 6 (4), Surat v. Yash Creation RAJPAL YADAV, JUDICIAL MEMBER AND ANIL CHATURVEDI, ACCOUNTANT MEMBER IT APPEAL NO. 1107… Read More »

Sale proceeds of auctioned Airplane to be deposited in Court for recovery of service tax dues of Kingfisher

By | October 5, 2015

With a view to recover service tax dues pertaining to Kingfisher, Bombay High Court allowed auction of aircraft taken on ‘finance lease’ by Kingfisher but, in view of lessor’s contention that aircraft is lessor’s property, sale proceeds were directed to be deposited into Court HIGH COURT OF BOMBAY Mumbai International Airport (P.) Ltd. v. Commissioner… Read More »

Haryana Govt amends composition scheme for developers

By | October 5, 2015

HARYANA VALUE ADDED TAX (THIRD AMENDMENT) RULES, 2015 – SUBSTITUTION OF RULE 49A & INSERTION OF FORM VAT-CD1 AND FORM VAT-R13 NOTIFICATION NO.23/H.A.6/2003/S.60/2015, DATED 24-9-2015 Whereas the State Government is satisfied that circumstances exist which render it necessary to take immediate action in public interest; Now, therefore, in exercise of the powers conferred by sub-section… Read More »

Tax authorities can not take a stand different from Govt so as to deny benefit to assessee

By | October 5, 2015

Once Cabinet took a policy decision to extend its 2004 Industrial policy in matter of central sales tax concession to eligible units beyond 31-3-2009 upto 31-3-2013 and notification dated 29-5-2009, accordingly, having been issued by Department of Industries, thereafter Excise and Taxation department could not take a different stand subject  ;Section 8 of the Central… Read More »

IMPLEMENTATION OF PROVISIONS OF CIGARETTES BY CBEC

By | October 5, 2015

IMPLEMENTATION OF PROVISIONS OF CIGARETTES AND OTHER TOBACCO PRODUCTS (PROHIBITION OF ADVERTISEMENT AND REGULATION OF TRADE AND COMMERCE, PRODUCTION, SUPPLY AND DISTRIBUTION) ACT, 2003 (COTPA) AND CIGARETTES AND OTHER TOBACCO PRODUCTS (PACKAGING AND LABELLING) RULES, 2008   LETTER F.NO.221/09/2015-CX.6, DATED 1-9-2015 Kind attention is invited to rule 3(l)(a) of the Cigarettes and Other Tobacco Products… Read More »

Customization of motor vehicle as per requirement of customer is not manufacture

By | October 5, 2015

Section 2(f) of the Central Excise Act, 1944 Facts of the Case Assessee was engaged in customization of motor vehicle as per requirement of customer .Department argued that as per chapter Note 3 of Chapter 87 body building/fabrication etc. on chassis amounts to manufacture; therefore, customization is also manufacture . Assessee argued that it was… Read More »

Cenvat Credit on Tower erection and installation

By | October 5, 2015

Prima facie, telecom service providers : (a) cannot take input or capital goods credit of credit of tower parts and shelters; however (b) may take credit of ‘Erection, Installation and Commissioning’ and ‘Commercial or Industrial Construction’ services used for erection and installation of towers and shelters HIGH COURT OF MADRAS Aircel Ltd. v. Commissioner of… Read More »