Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Prime condition for benefit of Notification 12/2003-ST is that value of such goods/materials used in the course of job-work to service recipient should be separately disclosed in relevant invoice: CESTAT

THE assessee was undertaking job-work of rebuilding of old worn-out rollers, liners, tyres and old worn-out components of cement plants, steel plants etc. during the material period. Up to 31.03.2005, they were paying the State VAT on approximately 70% of the total value of the contract and service tax on the rest of the value. From 1.4.2005, the assessee paid VAT on 80% of the contract value and service tax on 20% of the contract value. During the entire period, they remained registered with the department as providers of ‘maintenance and repair services' .

Even though a service tax category of ‘Works-Contract' was introduced w.e.f 01.06.2007, the assessee did not opt for registration under the said category.

Income Tax

Sec 23 - Calculation of ALV - Should notional interest on interest-free security deposits be considered for taxation only if actual rent is less than fair rent? - Delhi HC refers issue to Larger Bench

TAX treatment of income from house property is a tricky business. The issue in this case is -Whether, for calculating ALV, only if the actual rent is less than the fair rent, the notional interest should be added to the interest-free security deposits.

Customs

‘Zinc Dross Shelf' imported is non-toxic and non-hazardous, import could be permitted without certificate from CPCB - Confiscation, prima facie unsustainable - CESTAT

IN this case the Commissioner of Customs (Import), Mumbai confiscated the goods imported by the assessee, enhanced its value for the purpose of assessment, imposed a penalty of Rs. 2 lakhs and a redemption fine of Rs. 6 lakhs u/s 125 of the Customs Act, 1962.

The importer is aggrieved by this order and is before the CESTAT, the challenge is against enhancement of value of the goods and imposition of fine and penalty. The Revenue is also aggrieved against the Commissioner's order to the extent of granting of option to the importer to redeem the goods inasmuch it is their contention that the goods are of a “hazardous nature” .

See our columns Monday for the judgements