Jurisprudentiol– Tomorrow's cases

By Vijay Kumar

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

For any period prior to 15.9.98, benefit of exemption under Notification 1/95-CE was admissible to Furnace Oil procured indigenously by 100% EoU and used for generation of steam in boilers – Holding so, Tribunal dismisses Revenue appeal

THE respondents, a 100% Export Oriented Unit, are engaged in the manufacture and export of Terry Towels. Furnace Oil procured by them indigenously under exemption notification 1/95-CE was used in boilers, for the generation of steam which in turn was used for drying up of finished goods.

The Directorate of Anti Evasion, after conducting investigations, issued show-cause notice to the respondents demanding Central Excise Duty of over Rs.13 lakhs on the ground that the benefit of the Notification No.1/95-CE dated 4.1.95 was not available to Furnace Oil procured by them during the period 01.04.1996 to 14.09.1998.

Income Tax

Swamiji in jail - His income cannot be treated as income of TRUST - amounts which have ‘come in' are income – examining all donors is as practical as examining all Puri Temple pilgrims - burden of proving source is on assessee – we will not lightly or easily disturb concurrent factual findings: Madras HC

THE petitioner is a swamiji and his address is Cuddalore Central Prison. The story starts from the time the assessee came to India from Sri Lanka. He attracted some devotees. Definitely from 1984, there appears to have been an Ashram. According to the assessee, he was advised to found a Trust. There are bald statements or recitals that the individuals had no right and that the properties belonged to the Trust. The trust deed is dated 08-07-1994 and registered on 20-07-1994. The author of the Trust is the assessee. He had given a sum of Rs.501 /- for the creation of the Trust. He has named about eight persons including himself as the trustees of the Trust. In 1994 when the Trust came into existence it owned no property. On 23-11-1994 and 29-11-1994, the assessee's premises called ‘ Premananda Ashram' were subjected to search. The documents showing substantial investment in bank deposits and immovable properties were seized in the search u/ s.132 and they revealed that the assessee is liable to tax.

Customs

Delayed Refund – Revenue asked to pay 10% interest: High Court

The case had many turns and twists. It all started when the appellant imported a variable induction furnace equipment vide bill of entry dated 22.1.1979. Following the judgment of the Supreme Court in the case of Sandvik Asia Ltd , the High Court accepted the prayer of the appellant to the extent that simple interest be awarded @ 10% per annum from the date of order i.e. 6.2.1996 to the actual date of refund i.e. 23.11.1998.

Service Tax

Unloading of coal from rail wagons and discharging them to conveyor belt through track Hopper – Liable to Service Tax under 'Cargo Handling Service' - As it is a question of interpretation, extended period of limitation not applicable and no penalty: CESTAT

THE appellants had entered into a contract with Sanjay Gandhi Thermal Power Station, Birsinghpur for handling work relating to unloading of coal from rail wagons and discharging them to the conveyor belt through the track Hopper. The work also includes breaking and pushing of coal lumps of bigger size into track Hopper. This work was being handled within the premises of the power house. The contract envisages that the appellants engage sufficient labourers for timely completion of the work of unloading.

The Commissioner has held that the work handled by them falls under the category of "Cargo Handling Services" and demanded service tax amounting to Rs. 63,77,374/-.

See our columns tomorrow for the judgements