Jurisprudentiol – Tuesday's cases

By Vijay Kumar

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

Stock Brokers – If main broker has paid service tax – sub brokers need not pay: CESTAT LB

IT is true that there is no provision under Finance Act, 1994 for double taxation. The scheme of service tax law suggest that it is a single point tax law without being a multiple taxation legislation. In absence of any statutory provision to the contrary, providing of service being event of levy, self same service provided shall not be doubly taxable. If service tax is paid by a sub-broker in respect of same taxable service provided by the stock-broker, the stock broker is entitled to the credit of the tax so paid on such service if entire chain of identity of sub-broker and stock broker is established and transactions are provided to be one and the same.

Income Tax

Sec 263 - CIT must have positive materials in possession to invoke revisionary powers: Delhi HC

THE issue before the High Court is - Whether before invoking powers u/s 263 the CIT must have positive materials in his possession, and merely forming a different opinion is not sufficient to revise an order passed u/s 143(3).

Central Excise

Export - Rebate - When factum of export is not doubted, rebate cannot be denied even if all conditions of the notification are not complied with: High Court

WHEN once the competent authority viz., the Assistant Commissioner was satisfied with the factum of export that the final products made by the appellant, his failure to exercise the discretionary power vested in him in the absence of any other valid reasons cannot be sustained. In the event of factum of export being satisfied with the goods having been exported even if all or any of the conditions laid down in the notifications were not complied with, the claim can be sanctioned.

See our columns Tomorrow for the judgements