Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Whether profits earned by an assessee from its parent company in USA for providing recruitment and training services to software professionals qualifies for deduction u/s 10A of Act or not - ITAT by majority held that it is eligible for deduction u/s 10A .

THE departmental representative assailed the order of CIT( A) on various grounds. Inter alia , it was argued that the assessee is only engaged in recruitment and training of personnel for its parent company in USA and this activity does not come under the purview of eligible items for deduction u/s 10A of the Act.

Central Excise

Settlement Commission has no jurisdiction to decide questions of law and facts- Dough cleared to institutional buyers for free supply, not covered under MRP valuation: High Court.

THE Division Bench observed that the assessee may approach the Settlement Commission, before adjudication to settle the case, disclosing his duty liability which has not been disclosed by him before the Central Excise Officer. But, it nowhere provides that the assessee could approach the Settlement Commission, regarding a disputed question, particularly regarding a disputed question of fact and law as to the applicability of a provision of law, like the one in hand wherein the issue centres around the applicability of whether Section 4 or Section 4-A of the Central Excise Act.

Central Excise

Spent Palladium Catalyst is not excisable - Prima facie case in favour of appellant – Pre-deposit waived and stay granted in respect of duty and penalty: CESTAT

THE lower authority has demanded duty of over Rs.65 lakhs from the appellant for the period November 2003 to January 2007 in respect of “Spent Palladium Catalyst” cleared by them. According to the Revenue, this item is classifiable under heading 26.20 of the CETA , 1985. The natural consequence followed - the demand was confirmed by CCE , Mumbai III with loads of penalty.

See our columns Monday for the judgements