Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Appeals – Commissioner(A) passes final order without passing order on pre-deposit - Tribunal remands case to decide on pre-deposit - Tribunal committed error in remanding matter; it should have decided issue on merits - High Court

THE assessee cannot be faulted for not deciding the application filed for waiver of pre-deposit. The assessee duly filed the application setting out the reasons for waiver of pre-deposit. Admittedly, the said application was not contested by the department and that is the reason why the Commissioner of Central Excise (Appeals) decided the matter on merits. Even while deciding the appeal on merits, the department has not chosen to appear and raise any objection. Further, while filing an appeal before the Tribunal on merits, no ground has been taken that the department was not heard and the non-compliance of pre-deposit, which resulted due to the failure of the Commissioner of Central Excise (Appeals) in deciding the said application filed for wavier, would require the appeal deciding on merits as finality.

Income Tax

Whether Commission paid to MD as part of remuneration, authorised by AGM and approved by Company Law Board, falls within ambit of Sec 36(1)(ii)? - NO, says ITAT

THE issue before the Tribunal is - Whether Commission paid to Managing Director as part of remuneration, authorised by the AGM and also approved by Department of Company Affairs, falls within the ambit of Sec 36(1)(ii) and warrants disallowance. NO is the Tribunal's answer.

Service Tax

While providing service, goods sold to customers on payment of VAT – prima facie value of such material is not to be taken into consideration for calculating Service Tax demand

PRIMA facie, goods which are sold to their customers on payment of VAT and this fact is admitted in the present case, the value of such material is not to be taken into consideration while calculating the amount of service tax in respect of completion and finishing services provided by the applicant.

See our columns Monday for the judgements