Jurisprudentiol – Friday's cases

By Vijay Kumar

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

Gold plating of imitation jewellery does not constitute an exigible process of manufacture – ROM application to correct word 'appellant' by 'respondent' allowed: CESTAT

M/s Midas Techniques Pvt. Ltd. is doing the job work of gold plating on imitation jewellery supplied by the manufacturers of jewellery. Revenue took a view that this activity is manufacture u/s 2(f) of the Central Excise Act, 1944 and chargeable to Central Excise duty. Fortunately for the company the Appellate authority agreed with their contention that jewellery remains jewellery and no new product comes into existence by the process of gold plating which is for ornamentation of jewellery.

Deeply aggrieved, Revenue took the matter to the CESTAT and argued vociferously under the mistaken impression that they were the legendary King Midas and everything that they touched would turn to gold!

Income Tax

TDS - Does rejection of application u/s 197 amount to an 'Order' maintainable u/s 264? - YES, rejection does not lie in absolute discretion of AO - reasons must be indicated: Bombay HC

THE issue before the High Court is that whether rejection of an application u/s 197 for lower TDS rate or no TDS certificate amounts to an 'order'. Whether such an 'order' as per Sec 264 is maintainable. And the answer to the first question is that the rejection of an application u/s 197 does amount to an 'Order' u/s 264, and the same is maintainable for revisionary proceedings.

Service Tax

Respondent providing 'Auctioneering Service' but made to register by Revenue under 'BAS' and pay Service Tax during F.Y 2004-2006 – Auctioneering service notified only w.e.f 01.05.2006 – it cannot be treated as part of any pre-existing service – since amount collected without authority of law and there being no unjust enrichment refund claim allowed: CESTAT

THE respondent has filed the refund claim for the amount, which they paid the Service Tax to the department, but they have not received the same from their clients. Moreover, this fact has been corroborated by their balance sheet showing that the amount is receivable from the Central Excise and Chartered Accountant has also given a certificate to that effect. In this situation, the respondent has qualified the bar of unjust enrichment and the same is not applicable in this case.

See our columns Tomorrow for the judgements