Jurisprudentiol – Tuesday's cases

By Vijay Kumar

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

Maintenance and Repair of Software - taxable only from 16.05.2008, when IT Software Service was introduced - settled law that a new taxable service will not attract levy of Service Tax under any pre-existing entry - CESTAT

THE services rendered by the appellant to their customers are in the nature of information technology software service, which was made taxable w.e.f. 16.05.2008 only. Such service is not to be subjected to levy of Service Tax under any other entry. Therefore, the demand of Service Tax and the connected penalties are only liable to be set aside.

Income Tax

TDS - Whether assessee becomes eligible for tax credit as soon as TDS is deducted on payment made by deductor even if same is not deposited in Government treasury? - NO, says ITAT

THE issues before the Tribunal are - Whether assessee becomes eligible for tax credit as soon as TDS is deducted on its payment by the deductor even if the same is not deposited in the Government account and Whether tax credit can be allowed only after sufficient evidence is furnished in Form 16A with respect to deposit of the tax in the Government Treasury. And the verdict goes against the assessee.

Central Excise

Small-scale exemption - Brand name of another person - Merely because there is some arrangement between parties giving consent for use of such brand name or trade name cannot result in nullifying mandatory condition imposed in the notification – CESTAT.

THE appellants are engaged in the manufacture of Bathroom and Sanitary fittings and the goods manufactured by them were affixed with brand name of "GURU". The appellants were availing benefit of SSI exemption in terms of Notification No.8/2001 dated 1.3.2001 and were accordingly clearing the goods at Nil rate of duty up to the exemption limit of Rs.one crore available under the said Notification.

See our columns Tomorrow for the judgements