Jurisprudentiol–Tomorrow's cases

By Vijay Kumar

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

Board Circulars are not binding on Courts – matter remanded to decide the matter keeping in view applicability/relevance of Ratan Melting case – Supreme Court

CIRCULARS and instructions issued by the Board are no doubt binding in law on the authorities under the respective statutes, but when the Supreme Court or the High Court declares the law on the question arising for consideration, it would not be appropriate for the Court to direct that the circular should be given effect to and not the view expressed in a decision of this Court or the High Court. So far as the clarifications/circulars issued by the Central Government and of the State Government are concerned they represent merely their understanding of the statutory provisions. They are not binding upon the court. It is for the Court to declare what the particular provision of statute says and it is not for the Executive. Looked at from another angle, a circular which is contrary to the statutory provisions has really no existence in law.

Income Tax

No TDS on payment for services rendered abroad - when there is no income chargeable to tax the question of deduction at source does not arise. - ITAT

THE services by the non-resident were outside India and as per the provisions of law in this regard, such amounts are not exigible to tax in India. As per the provisions of Income Tax Law in this regard, such amount is not exigible to tax in India. The receipt in the hands of the recipient can also not be treated as income deemed to accrue or arise in India as per provisions of section 9 of the Income Tax Act in this regard. It is also not the case of the Revenue that the payment is not remitted directly abroad. It is also not the case that the payments were received by or on behalf of the agent in India. Hence, the sum which has been paid to the non resident here being for services rendered outside India can by no stretch of imagination be said to be payment of sum chargeable under the Income-tax Act, 1961.

Customs

Customs have to take consequences of witness turning hostile – NDPS conviction confirmed – Better legal aid to be provided - right to defence includes right to effective and meaningful defence at the trial. – Supreme Court

THE right to defence includes right to effective and meaningful defence at the trial. The poor accused cannot defend effectively and adequately. Assigning an experienced defence counsel to an indigent accused is a facet of fair procedure and an inbuilt right to liberty and life envisaged under Articles 14, 19 and 21 of the Constitution. …..

See our columns Tomorrow for the judgements