Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

Seizure of cash and drafts from assessee – Interest when money is returned by Department - Writ Petition not maintainable - High Court

NORMALLY petitions solely praying for the refund of money against the State by a writ of mandamus are not to be entertained. The aggrieved party has the right of going to the civil court for claiming the amount and it is open to the State to raise all possible defenses to the claim, defences which cannot, in most cases, be appropriately raised and considered in the exercise of writ jurisdiction.

Income Tax

FBT - Sec 115WB - Assessee airlines is liable to Fringe Benefits Tax for free tickets given to employees even if cost was zero to employer: ITAT

THE issues before the Tribunal are - Whether AO is under an obligation to accept what the tax auditor certifies that if a particular item falls within a given head mentioned in section 115WB(2), then it will fall within that head and will attract FBT, otherwise, it will not attract FBT. Whether assessee is liable to FBT in respect of free tickets to the employees even if the cost thereof was zero to the employer. Whether the amounts paid as per diem allowances to the pilots can be termed to be the expenses in the nature of hotel expenses covered u/s 115WB(G)(2) of the Act. And the verdict has gone against the assessee.

Service Tax

Transport of Goods through pipeline - not taxable prior to 16.06.2005 - Tax cannot be confirmed on basis of 'ifs and buts' - CESTAT

TRIBUNAL, in number of matters, has held that when a new service is introduced, for the purpose of levy of service tax from a specified date, it has to be held that the said service was not liable to tax prior to the date of introduction.

See our columns Tomorrow for the judgements