Jurisprudentiol–Tomorrow's cases

By Vijay Kumar

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Appointment of CBDT Member – High Court cannot sit in appeal over selection by the highest Authorities like Cabinet Secretary, other secretaries and approved by ACC:

THE result is that whatever way the matter may be looked at, unfortunately, the petitioner does not make it. In such a system of appointment, there is a pyramidal structure and often persons with good career profile may not make it on account of lack of vacancies. Not only that, the Selection Committee for the post for which the appointment is made is a high-powered one consisting of Cabinet Secretary, Principal Secretary to the Prime Minister, Secretary (Personnel), Secretary (Revenue) and the Home Secretary and this selection is finally approved by the Appointments Committee of the Cabinet. Thus, the scrutiny of the case of the petitioner has been at the highest level and it is not as if this Court would sit as a court of appeal over that decision. We have to only satisfy ourselves that there has been no procedural irregularity and no injustice on account of any glaring infirmity has been caused to the petitioner.

Income Tax

Aishwarya Rai claims deduction without proper certificate - Revenue must not take advantage of ignorance of an assessee as to her rights - matter remanded: ITAT

APPELLANT, Aishwarya Rai is aggrieved by the order of the Commissioner and is before the Tribunal. The assessee had claimed deduction under Section 80RR of the IT Act in Assessment Year 2001-02 totalling Rs. 97,02,491/-

Officers of the Department must not take advantage of ignorance of an assessee as to his rights. It is one of their duties to assist a taxpayer in every reasonable way, particularly in the matter of claiming and securing reliefs and in this regard the Officers should take the initiative in guiding a taxpayer where proceedings or other particulars before them indicate that some refund or relief is due to him. This attitude would, in the long run, benefit the department for it would inspire confidence in him that he may be sure of getting a square deal from the departments. Although, therefore, the responsibility for claiming refunds and reliefs rests with the assessee on whom it is imposed by law, officers should .....

Service Tax

Service provided by one person, tax paid by another – Credit entitled: CESTAT

A is the service provider but not registered with the Department. B is a sister concern registered with the Department. A writes to the Department that B will pay the Service Tax on its behalf. The service recipient takes credit, which is objected to by the Department, even though A was later made to pay the Service Tax with interest.

Central Excise

Gas Turbine Fuel manufactured and used captively for production of electricity which in turn is used for manufacture of exempted goods – Benefit of captive consumption available: CESTAT

IN the course of manufacture of final products on which duty was paid in the manufacture of which electricity generated by using GTF so consumed Sulphur emerged as a by-product and while during the adjudication process Commissioner dropped the demand relating to period beyond one year, upheld the proposal to deny the benefit of exemption to so much of the GTF as was used to generate to that portion of the electricity which went in the manufacture of Sulphur. The dispute also arose as regards liability of exemption under the same Notification in respect of GTF which was used in the generating that portion of the electricity which was used in the manufacture of Naphtha.

Be with us tomorrow for these interesting judgements