Jurisprudentiol – Tuesday's cases
Legal Corner Icon — the image was hosted by the publisher and was not captured.Income Tax
Income tax - Sec 195 - it is not mandatory for assessee to deduct tax at source if assessee has bona fide belief that payments made to non-resident are not chargeable to tax under Sec 4 in India: ITAT Special Bench
THE volcano of Sec 195 which used to erupt sporadically, has of late been spitting fire with rare regularity. First, it was the Karnataka High Court decision in the Samsung Electronics case () which kept the cauldron steaming by adding a new dimension to the controversy. Then came the Delhi High Court decision in the case of Van Oord ACZ India (P) Ltd () where the Bench completely differed from the Karnataka High Court. Now, here comes the latest decision from a Special Bench which was constituted to answer the query: Whether it is obligatory for the assessee to deduct tax at source on the entire payment if he has not applied to the Assessing Officer under Sec 195(2) of the I-T Act for deduction of tax at a lower or nil rate of tax.
Central Excise
CESTAT has power to grant stay beyond 180 days - Assistant Commissioner rules that CESTAT has erred and High Court has no jurisdiction - Cost of Rs. One Lakh imposed on officer: High Court
IT appears that since the appeal could not be decided within a period of 180 days, the petitioner moved a miscellaneous application for extension of the stay order. The Tribunal vide order dated 14.8.2008 extended the stay order, already granted, till the disposal of the appeal. The aforesaid order of the Tribunal has neither been challenged by the Revenue before higher Court nor has it been vacated. The aforesaid order of the Tribunal exists till date. Despite the aforesaid order of the Tribunal granting stay till the disposal of appeal, the respondent- Assistant Commissioner, Central Excise Division, Rae Bareli has issued the impugned notice of demand dated 11.1.2010 for recovery of Rupees 652.16 lacs.
Service Tax
Providing facilities of toilet and water are basic requirement to run factory and non-providing these facilities may affect production, hence Housekeeping service is essential and since related to manufacturing activity is an Input Service – Cenvat Credit available: CESTAT
THE assessee was denied Cenvat credit by the lower authorities on the ground that the following services viz. Insurance on company vehicles, Tours & Travels, factory garden maintenance and plant housekeeping services were not Input services. So, the matter is carried to the CESTAT by the appellant.
Until Tomorrow with more DDT
Have a nice day.
Mail your comments to vijaywrite@taxindiaonline.com