Jurisprudentiol–Tomorrow's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Haryana GST

Withdrawal of Eligibility Certificate for non production of NOC – Valid

NON-PRODUCTION of NOC/CLU certificate' by itself cannot be a ground for withdrawal as it is not one of the grounds/circumstances mentioned in clause (a) of sub-rule (8). What therefore remains to be considered is whether it can be said that the eligibility certificate was obtained by the respondent by fraud, deceit, misrepresentation, misstatement or concealment of facts.

Service Tax

What An Idea Sir jee - exempted and taxable service – restriction on 20% credit not applicable to Capital Goods Credit - CESTAT

EVEN if the provisions of Rule 6 (3) (c) are attracted, the limit of '20% of the service tax payable' on utilization of tax credit for payment of service tax on telephone service is not applicable in respect of capital goods CENVAT credit and service tax credit in respect of 17 input services specified in Rule 6 (5).

Customs & Central Excise

Whether redemption fine can be imposed when goods are not available for confiscation – Larger Bench settles the issue once for all

THIS is the reference –

"Whether the goods can be confiscated and redemption fine imposed even if they are not available for confiscation (excluding the cases where the goods are initially seized and provisionally released) or the same cannot be confiscated and fine in lieu of confiscation cannot be imposed.. “

Please wait till tomorrow to know the decision.

Income Tax

Indo-US DTAA - Liaison Office - LO acts as buying agent for affiliate companies of global Group - Since activities of LO are limited to mere purchase of goods for exports, it fits into Explanation (1)(b) of Sec 9(1)(i) and its commission income is not taxable in India: ITAT

IN this case, the non-resident company has a Liaison Office (LO) in India. Its main activity is to act as a buying agent for the affiliate companies of its Group and ensure that the goods of desired specification are exported by Indian manufacturers to its affiliates. To perform its function efficiently it also undertakes various activities of training etc and Revenue tends to treat the LO as PE and holds that its income is taxable in India.

However, the Tribunal has taken a different view and held that the activities of the LO are confined only to the purchase of quality goods which are directly exported to its affiliates and invoices are also raised in their favour, with the LO acting only as a purchase agents for exports goods. Thus, it fits into the Explanation (1)( b) of Sec 9(1)(i) and the income of the LO which is the commission, is not taxable in India.

See our columns tomorrow for the judgements