Jurisprudentiol- Tomorrow's cases

By Vijay Kumar

Service Tax

Appeal stay - pre-deposit - Commissioner (Appeals) before passing any interim order, shall consider whether the direction for deposit as pre-deposit condition would cause undue hardship - High Court

FOR the purpose of arriving at a finding as to undue hardship, certainly the case as a whole should have been considered by the appellate authority; Section 35F, Proviso-1 makes it very clear that the Commissioner (Appeals) or the Appellate Tribunal before passing any interim order, shall consider whether the direction for deposit as pre-deposit condition would cause undue hardship to the person against whom such direction is issued. Such a finding is not available in the impugned order of the respondent, nor did the respondent decide the prima facie issue.

Income Tax

It is the law which has to prevail and not the treatment given by the assessee to a transaction in its books of account. - Whatever is excluded from the export turnover is to be excluded from the total turnover: ITAT

IT has been held by the Tribunal in a number of cases that if any part of expenses is to be excluded from export turnover, then the same should be excluded from the total turnover. Following the decisions, it is held that whatever is excluded from the export turnover is to be excluded from the total turnover.

Customs

Lack of care and diligence is not sufficient to pin appellants with charge of abetment to illegal export foreign exchange: Tribunal

A penalty of Rs.1,50,000 /- was imposed on the appellants who are a Full Fledged Money Changer (FFMC), on the ground that they indirectly abetted another FFMC in acquiring and attempting to illegally export foreign exchange amounting to US $ 72000, equivalent to Indian Rs.26,34,484 /- in the form of Travellers' Cheques.

See our columns tomorrow for the judgements