Jurisprudentiol–Tomorrow's cases

By Vijay Kumar

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

Restriction in utilisation of CENVAT Credit – Rule 12CC of CER and 12AA of CCR challenged – Interim stay of CBEC's order granted – High Court

RESTRAINING a manufacturer from utilising the CENVAT credit has serious civil consequences, because where a manufacturer purchases duty paid inputs and utilises the same in the manufacture of final product, then the said manufacturer under the Central Excise law is entitled to take credit of duty paid on the inputs and utilise the same in payment of excise duty payable on the final product.

Income Tax

Mayawati loses writ – Delayed service of notice – petitioner declined to accept the notice at three places - Wherever service of a notice is essential or critical, experience shows that it is a most difficult task to achieve - if a letter is properly addressed, it must be deemed to have been served- High Court

SECTION 27 of the General Clauses Act creates a statutory presumption to the effect that if a letter is properly addressed, it must be deemed to have been served - It would, therefore, be reasonable to hold that when service is effected by refusal of a postal communication the addressee must be imputed with the knowledge of the contents thereof.

Service Tax

Taxable event is rendering of taxable service., not raising of invoice or payment – High Court

CAN you imagine Revenue raising a demand of service tax for the period when there was no tax was payable, simply for the reason that payment was received when it was taxable? It not only happened, but they went in appeal to the High Court after they lost it CESTAT.

Neither the Section nor the Rule even suggests that the taxable event is the raising of an invoice for making of payment.

See our columns tomorrow for the judgements