Jurisprudentiol– Friday's cases

By Vijay Kumar

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

Molasses manufacturer paying Central Excise duty and procurer availing Cenvat Credit – No cause for denying credit by taking recourse to Rule 4(2) of the Central Excise Rules, 2002 – CESTAT.

IN the instant case, duty was admittedly ‘paid' on the molasses by its manufacturer and that duty was never refunded. Levy of duty on the same goods from the procurer on the strength of Rule 4(2) of the Central Excise Rules, 2002 would militate against one of the basic tenets of taxation law, which says that there can be no double taxation on the same goods.

Income Tax

‘Non resident' status – computation of sixty days – first day to be excluded; remuneration paid by an employer who is not a resident of USA will be taxable in India if the employee is resident of India. - ITAT

Remuneration paid by an employer who is not a resident of USA will be taxable in India if the employee is resident of India: salary, wages and similar remuneration is taxable in the country on which the assessee is a resident in case the services are rendered in that country. If the employment is exercised in other country, then one has to see Article 16(2). The remuneration paid by an employer who is not a resident of USA will be taxable in India if the employee is resident of India. The DTAA does not provide exclusively that the salary or remuneration will be taxable only in USA ..

Service Tax

Nagpur University entering into a contract with appellant for transportation of written answer books from district centres to Nagpur – whether appellant a ‘Rent-a-Cab' operator - Prima facie case in favour – Stay granted – CESTAT

The issue is debatable and the prima facie the case is in favour of the appellant, who has already deposited a sum of Rs.27,354 /- out of the impugned demand, which is sufficient compliance to the pre-deposit.

See our columns Tomorrow for the judgements