Jurisprudentiol–Tomorrow's cases
Legal Corner Icon — the image was hosted by the publisher and was not captured.Service Tax and Sales Tax on the same transaction
Providing Broad Band Connectivity amounts to ‘sale of light energy' taxable under Karnataka VAT Act on the entire sale proceeds despite being assessed to Service Tax – Karnataka High Court
CAN there be a liability to pay both VAT and Service Tax on the same activity? While deciding a VAT case, the Karnataka High Court held that the assessee was liable to pay VAT on the whole value in spite of the fact that they were paying Service Tax.
The assessee is Bharti Airtel and the amount involved in this and similar cases would be mind boggling.
Customs
Import of Second hand photocopiers allowed without licence prior to 19.10.2005 – Kerala HC decision quashed – Tribunal LB decision in Atul Commodities restored – Supreme Court.
IN a detailed order by the President, Justice Abhichandani , the Larger Bench of the Tribunal had in the ATUL COMMODITIES (P) LTD - -held that second hand photocopiers are capital goods and are freely importable.
The Government was not prepared to allow this small benefit to the small importer and took the matter in appeal to the Andhra Pradesh High Court. The AP High Court dismissed the appeal with the terse remark that "No question of law, much less any substantial question of law, as such arises for our consideration in this appeal" - (). The government is determined when it comes to attacking the small and weak and finally the relentless battle succeeded in the Kerala High Court.
The Kerala High Court set aside the larger bench order of the Tribunal even after considering the AP High Court judgement - 2006-TIOL-167-HC-KERALA- CUS.
The matter is in appeal before the Supreme Court.
Income Tax
Condonation of Delay - cause for such serious delay is callous, irresponsible style of functioning in Department - principle of public accountability makes officers concerned responsible and liable: Bombay High Court
THE Income Tax Department is before the High Court, seeking condonation of delay of up to four years.
A casual or a negligent litigant, who has acted with utter irresponsible attitude, cannot claim the condonation of delay in law when the right has accrued to the other side. - In performance of their functions, public officers or public servants have the duty to act judiciously, fairly and expeditiously. - Pre-occupation of an officer or officials can be a reasonable excuse, but for a short period and nothing justifies the inaction for a pretty long period running into months. If such an excuse is to be permitted in law, then the Courts would have to completely ignore the law of limitation. - Public interest imposes an obligation upon the Department as a whole to act in a channelized manner and to ensure that every appeal which is sought to be preferred by the Department is not rendered barred by time that too by inordinate and unexplained delays.
Central Excise
Job worker also buying inputs and availing credit and later raising sale invoices for recovery of cost of material from principal manufacturer – Prima facie no cause for denying CENVAT Credit: Tribunal
THE appellant is a manufacturer of bulk drugs on job work basis and is also operating under the Cenvat Credit Rules. Some of the material including the packing material is being supplied free by the principal manufacturer.
However, applicant is also buying some of the inputs from other manufacturers under the cover of central excise invoices and on the basis of which Cenvat credit is taken.
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Until tomorrow with more DDT
Have a nice Day.
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