Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Manpower supply service vis-à-vis Information Technology Services - services rendered by appellants in relation to Data Management and Biostatistics and Reporting are in nature of Information Technology Service and hence not taxable during impugned period – demand under Manpower Supply service set aside: CESTAT

CLASSIFICATION is an important factor, which determines the tax liability of the service providers. Since different services have different effective dates, in many cases, revenue is often tempted to “extend” the liability of the assessee by classifying the service under the “oldest” service category or just to deny the benefit of an exemption notification, alleges a different classification. If you are supplying a few technicians for maintenance or repair of an equipment and charge the client on the basis of number of man-hours spent, are you providing manpower supply service or repair or maintenance service? Well, it depends on which service the tax was levied first.

Income Tax

Capital gain or business income - Whether assessee whose substantial income from capital gain comprises long term capital gain and who has shown substantial dividend income, can be said to be a trader of shares and doing share trading business: ITAT

THE issue before the Tribunal is that whether the assessee whose substantial income from capital gain comprises long term capital gain and who has shown substantial dividend income, can be said to be a trader of shares and doing share trading business.

Customs

CHA Licensing Regulations – Allegations against CHA for preparation of fake rubber stamps of Customs officials and fabricating documents for claiming higher DEPB benefits by exporters being serious, immediate suspension of CHA licence justified – Correctness of allegations against CHA cannot be adjudicated by High Court exercising its extraordinary jurisdiction under Article 226 of Constitution - Authorities directed to expedite proceedings by following principles of natural justice: High Court

A Writ Petition was filed against the Customs Commissioner's order suspending the licence of CHA issued in terms of Regulation 20(2) of CHA Licensing Regulations, 2004. The suspension was in pursuance of an investigation by DRI wherein it was alleged that exporters in connivance of the representatives of the CHA were preparing duplicate set of export documents, one for submission of Indian Customs and another for Bangladesh Customs for claiming higher DEPB benefits by exporters.

See our columns Monday for the judgements