Jurisprudentiol–Monday's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Income Tax

Reopening of assessment - It is not responsibility of assessee to advise AO with regard to inference which he should draw from primary facts – mere change of opinion, no justification - sales tax collected is to be deemed to have been paid once such sales tax deferred is converted into a loan liability: ITAT

SALES tax collected is to be deemed to have been paid once such sales tax deferred is converted into a loan liability- From the Circular of the Board as well as from the provisions of Bombay Sales Tax Act, it is clear that the sales tax collected is to be deemed to have been paid once such sales tax deferred is converted into a loan liability.

Service Tax

Section 80 of Finance Act, 1994 is a unique provision not found in other statutes - If discretion is there not to impose penalty under section 80 ibid, discretion is as well there to impose lesser penalty: CESTAT

ONCE it is found that the CENVAT Credit was irregularly availed by the appellants, by implication, to that extent the Service Tax on the Output service was short paid, and it had to be recovered under Rule 14 of the CENVAT Credit Rules, 2004 - the show cause notice for invoking the provisions of Rule 14 of the CENVAT Credit Rules, 2004 read with section 11A of the Central Excise Act, 1944 and section 73 of the Finance Act, 1994 and read with section 11AB of the Central Excise Act, 1944 and section 75 of the Finance Act, 1994 for recovery of irregularly availed CENVAT credit and demanding interest respectively is perfectly in order and is within the framework of law.

See our columns Monday for the judgements