Jurisprudentiol – Friday's cases

By Vijay Kumar

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

India USA – DTAA - consideration received towards technology transfer /technical know-how and services connected clearly liable to be taxed as royalty – AAR

The applicant is a company incorporated in USA having its registered office at San Antonio, USA. The applicant is, inter alia, engaged in the business of supplying advance technology for the manufacture of radial tyres. Being approached by an Indian Company, namely, CEAT Limited, the applicant agreed to grant to the said company a perpetual irrevocable right to use the know-how as well as to transfer the ownership in tread and side-wall designs and patterns required for the manufacture of radial tyres for a lump sum consideration of USA 7 ,10,220 .

Service Tax

Appellant collecting Service Tax from customers and asking department head under which same is to be deposited – After a long hiatus, department proffers advise - appellants bona fides proved – no reason to impose penalty u/s 76 of Finance Act, 1994 – CESTAT .

The appellant had collected the service tax provisionally from their Customers under protest and asked the department several times as to under which head this Service Tax is to be deposited . Finally, the appellant was asked to deposit the said amount collected under the head of Services of Consulting Engineers & Erection and accordingly, the appellant deposited the service tax with the department.

Customs

Variation in ash contents would depend upon method used and sample-drawing –Benefit of Notification 11/97- Cus extended: CESTAT

The issue involved is whether the importer is eligible for the benefit of concessional rate of duty in terms of Notification 11/97- Cus dated 01.03.1997 in respect of ‘Weak Coking Coal' inasmuch as whether the Ash content in the coal imported is less than 12%.

See our columns Tomorrow for the judgements