Jurisprudentiol- Monday's cases

By Vijay Kumar

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

Central Excise - CENVAT Credit - reversal of credit amounts to non-taking of credit on the inputs - the issue is well settled - High Court

THE claim for exemption of duty on the disputed goods cannot be denied on the plea that the assessee has taken the credit of the duty paid in the inputs used in manufacture of these goods. Since the Tribunal has correctly applied the law laid down by the Supreme Court and the issue is well settled, Departmental appeal dismissed.

Income Tax

Transfer Pricing - if assessee gets dividend from associated enterprise which is taxable in India, can Revenue even then make adjustments under TP provisions? - Will it not amount to double taxation? - Tribunal says no deduction to extent of dividend income admissible under TP laws - no double taxation

TRANSFER Pricing provisions come into play in case of cross-border transactions between a company and its associated enterprises (AEs). The issue which came up before the Tribunal recently was - if the assessee company receives dividend from its AEs which is taxable in India, can Revenue make additions on account of TP provisions? If the Revenue does so, will it not amount to double taxation?

Service Tax

Stay order - Subsequent decision can be basis of modification - pre-deposit order modified - CESTAT

ANY subsequent decisions rendered by the Courts deciding disputed issue should be made basis of modifications as held by the Larger Bench of Tribunal in the case of Hindustan Lever Ltd. vs. CCE (2006-TIOL-1111-CESTAT-MUM-LB). Further, it stands recorded in judgment of Bombay High Court in the case of Sarla Performance Fibers Ltd. vs. UOI (2008-TIOL-516-HC-MUM-CX) that modification of stay order is an inherent power of the Tribunal.

See our columns Monday for the judgements