Jurisprudentiol–Thursday's cases

By Vijay Kumar

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

Constitutional validity of Service Tax on hire purchase and leasing upheld: Madras High Court

Article 268-A of the Constitution of India empowers the Union to levy tax on service. Entry 92 (c) was also introduced in the Union list for the levy of service tax.

All fine, but the Constitution 88th Amendment Act which inserted the Article 268A and Entry 92(c) has a provision

It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

Though the Amendment was enacted on 15.1.2004, the Government is yet to notify the date from which it is effective.

So.... the litigation continues.

Income Tax

Income Tax Appeal – High Court has no power to condone delay: Bombay High Court

Once the Apex Court has held that the High Court has no power to condone delay in filing Appeal under Section 35 G of the Excise Act, we have no option but to hold that this Court has no power to condone delay under Section 260 A of the I.T. Act because Section 260 A of the I.T. Act is pari materia with Section 35 G of the Excise Act.

Central Excise

Signages erected at the IOCL petrol pumps are not immovable goods – demand of duty upheld - CESTAT

Signages are not immovable goods as contended by the appellants – Signages are capable of being assembled at the premises of the appellants and do not emerge as an immovable property on assembly or erection - An item which is fixed in the earth can continue to be movable and excisable if the same is capable of being shifted from one place to another without having to dismantle the same into the constituent components. Undisputedly signages are capable of being assembled at the premises of the appellants and then transferred to the site of its erection after dismantling the same. Demand of duty and invoking larger period upheld penalty on the Managing Director upheld but quantum reduced

See our columns Tomorrow for the judgements