Jurisprudentiol – Tuesday's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Central Excise

Sulphuric acid cleared to fertilizer manufacturers under notf. 4/2006-CE – No cause for payment of any amount under Rule 6 of CCR, 2004 as supply of goods under CT-3 certificate does amount to clearance under exemption: CESTAT

THE Apex Court has held in that case the reversal of CENVAT credit of 10% under Rule 6 is applicable only and the cases where a manufacturer is engaged in the manufacture of any final product which is chargeable to duty as well as any other final product which is exempted from payment of duty or chargeable to nil rate of duty but in the instant case is not so as the final product is the sulphuric acid only and the same is dutiable product it is not a exempted product and the same was cleared to the manufacture of fertilizers under CT-3 Certificate/bond hence the facts of the Ballarpur Industries case are not applicable to this case.

Income Tax

I-T - Sec 194A - Assessee fails to deduct tax at source on interest payments as payees had filed applications in Form No 13 for no TDS certificate - mere filing of applications by payees does not cast away TDS burden from assessee: Tribunal

THE issue here is - whether it is obligatory for assessee to deduct tax at source on interest payments even if payees have filed an application in Form No 13 to their jurisdictional AOs for issuing a no TDS certificate and whether information obtained under the RTI Act can be a subject matter of adjudication under the I-T Act? And the Tribunal's answers to both these queries are NO.

Service Tax

There is no provision to reverse credit of service tax availed in relation to such inputs or capital goods removed as such from the factory - Stay Application filed by Revenue rejected : CESTAT

“… 3(5) of CENVAT Credit Rules, 2004 provides for recovery of equal amount of credit on inputs and capital goods only if they are removed from the factory, there is no such provisions to reverse credit of service tax availed in relation to such inputs or capital goods removed from the factory.”

See our columns Tomorrow for the judgements