Jurisprudentiol – Friday's cases

By Vijay Kumar

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

Indo - UK DTAA - Articles 5,13 - Whether income from referral services amount to fees for technical services - whether in absence of a PE, same could be taxed in India

A UK resident company, Real Resourcing Limited sought a ruling from the AAR. In the original application filed, the nature of services to be provided in India was stated to be two-fold; (i) recruitment services where the applicant would place a candidate with an Indian company and receive payment for providing such service (ii) referral services where the applicant would refer potential Indian clients to a third party based in India which was likely to be another Indian-based recruitment agency for which the payment will be received by applicant from the third party in India.

Central Excise

PDI and After Sales Service charges - Where the CBEC has transferred all similar pending cases to "call book" pending decision of Larger bench on issue, there shall be no prejudice to Revenue if we grant waiver of pre-deposit of 21 Crores and stay of recovery in favour of present appellant: CESTAT

IN departmental circles, the "Call Book Register" is a black hole in to whose vortex, over the years, thousands of SCNs are sucked only to be resurrected, if at all, pursuant to an Inspection report of the DGICE. Surprisingly, no concerted effort is made by the concerned officers to "review" the continuation of the cases in this register although Board's Circulars stipulate a time frame in this regard. Sooner of later, the cases and the register (CBR) go missing and every one heaves a sigh of relief!

Customs

ROM application is not maintainable against any miscellaneous order of Tribunal – Application drafted without application of mind dismissed: CESTAT

SOMETHING is seriously wrong with the Review cell of the Revenue department. Every order that is against the Revenue is "meant" to be appealed against is probably the one line thinking being adopted nowadays. A moment is never spared to even see whether the order with which Revenue is dissatisfied is appealable in the first place. If nothing else, the bosses almost always goad the lower authorities to file a ROM application. After all, it does not cost anything for the Revenue.

See our columns tomorrow for the judgements