Tisco plea in sales tax case dismissed

LEGAL DIGEST

The Supreme Court last week dismissed the appeal of Tisco seeking exemption from central sales tax for both its hot rolled mill (HRM) and cold rolled mill (CRM) in Jamshedpur.

HRM was in existence long ago, while CRM was established later expecting that the Bihar government would encourage new units. The Jharkhand state was carved out later and its industrial policy was announced in 2001.

The company sought benefits from the new government, but was denied. Its petition in the high court also failed. On appeal, the Supreme Court ruled that since one of the units had already received tax benefits, the new one was not entitled to them.

Lift installation not work contract

The Supreme Court has rejected the argument of Kone Elevators India Ltd, a unit of Kone Corporation of Finland, that installation of lifts in a building is a work contract and, therefore, the labour charges should be deducted for assessing sales tax.

The Andhra Pradesh government, which demanded the tax, contended that it was only a sale of lifts as they were assembled at the site and there was no on-the-site work involved. The high court and the sales tax appellate tribunal had ruled in favour of the company. The Supreme Court set aside those judgments.

Excise superintendent can issue notice

The Supreme Court has dismissed the appeal of Pahwa Chemicals Ltd against the Commissioner of Central Excise and held that the superintendent under the excise law had the jurisdiction to issue a show cause notice to an erring firm and the deputy commissioner could decide the dispute.

The company, which produces textile printing adhesives, argued that in a case of alleged suppression of facts, only a collector could issue a show cause notice. In this case, the company had claimed benefit in tariff.

However, the authorities found that it was using the logo of ATR St Moritz, a Swiss company, and therefore accused it of suppression of facts and non-payment of duty. Personal staff as company employee

The personal staff given to executives of a company can claim the status of an employee if his wages are debited on the account of the company and his signatures are obtained by the management.

There is no need for a letter of appointment. The driver of an officer of Bank of Baroda won his claim to be an employee of the bank by showing that his wages were debited from the bank account.

His "termination" from the bank was declared illegal by the industrial tribunal. This view was upheld by the Gujarat high court and the Supreme Court.