Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

CASE reluctantly pursued – Strictures against DRI investigation – Commissioner equated production of shipping bills to taking bath in Ganga which is supposed to wash away all sins – Misdeclaration in obtaining advance licence – Export Obligation not fulfilled – Duty and Penalty upheld : CESTAT

RIGHT from the investigation of the case till adjudication order was passed, one gets a feeling that this case was reluctantly pursued.

The Commissioner has accepted the export made by the appellant by sourcing the goods from suppliers who were never provided any of the imported inputs and he has not bothered to check the exports were logged in the DGCE book and whether DGFT had accepted the claim of appellant. Fulfillment of the export obligations, by production of shipping bills, has been equated to taking bath in Ganga which is supposed to wash away all sins, by the Commissioner.

Income Tax

SEC 234C - Can Revenue charge interest on mistakenly overstated income in ITR due to arithmetical error - NO, interest cannot be levied on non-chargeable tax: ITAT

THE issue before the Tribunal is - whether mistakenly overstated income in the ITR attributable to an arithmetical error is to be excluded for charging interest u/s 234C - Whether the assessee is eligible for interest prior to 6.1.2004 on the refund granted or the delay up to 6.1.2004 which is attributable to the assessee as per the provisions of sub-section 2 of section 244A. And the answer is NO.

Service Tax

HANDLING Charges or Administrative expenses - not a ‘Business Auxiliary Service': CESTAT

RESPONDENTS have entered into a tripartite agreement with the Bank and the farmers under a statutory obligation on them and the amount which they have received is only handling charges or administrative expenses – Activity not covered under the category of ‘Business Auxiliary Services' – Revenue appeal dismissed:

See our columns Tomorrow for the judgements