Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

Job worker paying Service Tax although entitled for exemption under notification 8/2005-ST – No infirmity in supplier manufacturer taking CENVAT credit of ‘Input Service' and clearing final products on payment of duty: CESTAT

THE issue is whether an assessee is entitled to take CENVAT credit of the Service Tax paid by the job worker although the job worker was exempted from paying any Service Tax.

Income Tax

Sec 273B - TDS deducted and deposited in Govt account but assessee fails to file return in time - it is only a technical or venial breach of law and penalty not to be levied automatically: ITAT

IT is well settled that ordinarily an assessee is duty bound to know the provisions of statute but in the event of making a claim of ignorance of law it is for the Revenue to examine the plea judiciously keeping in mind the fact that assessee who has deducted tax and deposited the same within the stipulated time could have normally been said to be a law abiding citizen/assessee and the delay, under such circumstances, cannot ordinarily be attributable to wanton negligence, particularly when the penalty leviable can be equivalent to the tax deducted or deductible.

Customs

Import without licence and without fulfilling conditions of policy – Customs entitled to collect entire duty : High Court

IN the present case, the Bank Guarantee was executed before issuance of the licence and goods were released for home consumption, subject to the conditions that the entire Bank Guarantee would be paid if no import licence is issued. But, unfortunately, the petitioner has not complied with the conditions. Therefore, the 3rd respondent refused to issue the import certificate as the petitioner company was not found eligible for the certificate. Therefore, the Customs authorities are entitled to collect the entire duty liability involved in import of capital goods.

See our columns Tomorrow for the judgements