Jurisprudentiol - Wednesday's cases

By Vijay Kumar

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

Settlement Commission to Consider evidence filed with application: High Court

THE observation of the Settlement Commission that no evidence or precise data had been produced proving the exact amount of duty paid on the inputs gives an impression as if the petitioner had not filed any information at all. This is not so as some evidence was produced in the said pages 45-54 of the application. So the Settlement Commission is directed to examine this aspect of the matter only and pass an appropriate order.

Income Tax

Can capital loss accrued to assessee as a result of sale of Group Cos' shares be said to be a colourable device merely because sales took place prior to its amalgamation - NO, says Delhi High Court

THE issue before the High Court is whether the capital loss accrued to the assessee as a result of sale of shares of its Group companies can be said to be a colourable device merely on the ground that the sales were executed a few days prior to it's amalgamation. And the High Court's answer is NO.

Service Tax

Tax paid by Indian recipient of Foreign Service 'Credit as input service entitled' Stay granted: CESTAT

THE service recipient in India receiving taxable service from a foreign service provider pays the service tax under the provisions of Section 66 only read with Section 66A and Rule 2 (1) (d) (iv) of the Service Tax Rules, 1994. Since the appellant, a recipient of taxable service from a foreign service provider, had paid the service tax as a deemed service provider under Section 66A of the Finance Act read with Rule 2 (1) (d) (iv) of the Service Tax Rules, 1994 and Section 66 of the Finance Act, 1994 and since the service received has been used as input by the appellant in relation to the manufacturer of the finished products, they would be eligible for CENVAT credit.

See our columns Tomorrow for the judgements