Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Commercial Training and Coaching Service – Demand for period prior to insertion of Explanation in Service Tax Rules, 1994 regarding value of taxable service received prior to providing taxable service – prima facie case in favour but for later period post October 2004 appellant ordered to make pre-deposit : CESTAT.

THE applicant, a provider of “Commercial Training and Coaching Service” subject to tax from 01.07.2003 seeks waiver of pre-deposit and stay of recovery in respect of service tax of Rs.40,87,384/- and equal amount of penalty. The above demand of service tax has been raised partly on fees collected by the assessee from their students prior to 01.07.2003 and partly on the fees collected from them during October, 2004 to March, 2006.

Income Tax

Indo - French DTAA - ONGC awards contract to non-resident - sub-contract to non-resident sister concern - AO holds assessee as agent of employees of subcontractor who render technical services - it is not economic link but a live payment nexus which must be established to hold assessee as agent u/s 163(1)(c): ITAT

CAN a non-resident contractor who subcontracts the services to a non-resident sister concern be treated as an agent of the employees of the subcontractor? Whether economic link is sufficient or a live link is necessary.

Central Excise

When tariff heading clearly provides characteristics of the products and its end use, it was duty of departmental officers to draw samples and get same tested - officers having failed to do this over a period of three years, demand hit by limitation

THE appellants classified the excisable goods manufactured by them under CETH 2710.90 viz. “Others”.

The Revenue authorities did not even bat an eyelid while proposing classification of the goods under CETH 2710.11 and 2710.13 on the ground that the products manufactured by the appellants fulfilled the requirement of the boiling point range prescribed for these headings in the tariff and the products either by themselves or in admixture with any other substance are suitable for use as fuel in spark ignition engine.

See our columns Monday for the judgements