Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

India-Singapore DTAA – Reimbursement of costs by assessee to own Group Co for rendering technical services – Although payments made to non-resident are fees for technical services, also 'made available' to assessee but since services were provided offshore not liable to TDS: ITAT

IN the domain of international transactions, reimbursement of costs is a common practice particularly in the dealings among group companies. But reimbursement without profit mark-up is a tricky and unbelievable proposition for the Revenue!

Customs

Order passed in Stay application by CESTAT on previous occasion cannot be considered binding in nature as it does not lay down any law – CESTAT orders pre-deposit of entire duty

As there is an arguable point sought to be canvassed in relation to the expression “in connection with production” under the notification no. 52/2003-Cus dated 31.3.2003, while contending that the capital goods have been understood in the market as ‘plant and machinery for packaging' since the day the Notification no. 123/81 was issued, prima facie, the case has been made out for grant of wavier in relation to the demand pertaining to the penalty.

Central Excise

Even though order states that failure to make pre-deposit within stipulated period shall result in dismissal of appeal without further notice to them, it would not mean that without a formal order , appeal is considered to be dismissed if pre-deposit as per order is not made – CESTAT

Even though the order states that failure to make the pre-deposit within the stipulated period shall result in dismissal of appeal without further notice to them, it would not mean that without a formal order, appeal is considered to be dismissed if pre-deposit as per the order is not made. The matter is listed for noting compliance and if the compliance of the order is not made, a formal order of dismissal for non-compliance with the stay order is issued.

See our columns Tomorrow for the judgements