Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

Credit of Service Tax paid under supplementary invoices - Prima facie view is that appellant is required to make pre-deposit of CENVAT Credit and interest pursuant to which matter is to be heard on merits by Commissioner(Appeals): CESTAT

THE Commissioner(Appeals) without going into the merits, prima facie found that the appellants are liable to pay CENVAT credit taken by them along with interest. At this stage appellants have to pay the CENVAT credit along with interest. If the appellants make the pre-deposit of service tax along with interest within six weeks from today than the Commissioner(Appeals) will hear the matter on merits after giving an opportunity to the appellants to present their case.

Income Tax

Sec 32 - Is depreciation admissible on factory premises which were not put to use by assessee but by partnership firm to which same was contributed as per partnership deed - NO, says High Court

THE issue before the High Court is - Whether depreciation is admissible in respect of factory building which was not put to use by the assessee but by the partnership firm to which the same was contributed as per the terms of partnership deed. Whether the insurance premium paid for the building is allowable in the hands of the assessee against its interest income from the partnership firm on account of capital contributed. NO is the verdict from the High Court.

Central Excise

Law which prevailed on date of finalisation of provisional assessment should govern refund of duty, whether or not such refund is formally claimed by assessee or suo motu granted by assessing officer - such refund subsequent to 25/06/1999 should be subject to unjust enrichment: CESTAT

ANY refund of excess duty to the respondent is subject to unjust enrichment inasmuch as it arose out of finalisation of provisional assessment made on 16/01/2006 i.e. long after the doctrine of unjust enrichment was incorporated in Rule 9B of the Central Excise Rules, 1944 and Section 11B of the Central Excise Act in relation to refunds arising out of finalisation of provisional assessments.

Eid Mubarak

Tomorrow is a holiday

See our columns Thursday for the judgements