TIOL-DDT 1369 · Monday, 31 May 2010

Jurisprudentiol – Tuesday's cases

Service rendered from abroad – Bombay High Court judgement in Indian National Shipowners - – followed: High Court

BOMBAY High Court, in detail has considered the relevant amendments and notifications, which has been affirmed by the Hon'ble Supreme Court after hearing the counsel for the parties. Following the judgment of the Bombay High Court which has been affirmed by the Hon'ble Supreme Court, the substantial question of law arises in this appeal is required to be answered against the revenue and in favour of the assessee.

Can expenses incurred on software development for running business be equated with expenses incurred for software purchase - NO, says ITAT.

SOFTWARE expenses have for long been a bone of serious contention between the Revenue and the industry. When the Special Bench decision in the case of Amway India Enterprises came, it was expected that most of the issues may get settled down. But here is a new dimension to the issue - Whether expenses incurred in the development of software for the smooth running of business, and as per customer specification, can be equated with incurring of expenses for purchase of software. And the answer is NO.

When Export Obligation Discharge Certificate (EODC) was withdrawn for any reasons whatsoever, importer was reverted to original position in which he was liable to take steps for discharge of export obligation in respect of imported capital goods - condition of Notification was apparently violated – Pre-deposit ordered : CESTAT

THE Commissioner of Customs (EP), Nhava Sheva demanded duty of over Rs 17 lakhs from M/s Hotel Bissau Palace in respect of a Toyota Land Cruiser Prado Car which was imported by the Hotel in May, 2001 under EPCG scheme. The Commissioner also imposed penalties of Rs.1.5 lakhs each on the Hotel, its Managing Partner (Sanjay Singh) and one Shri Dilip Singh Rathore .

See our columns Tomorrow for the judgements

Until Tomorrow with more DDT

Have a nice day.

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