Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Sec 68 - Whether procedural compliance of cash deposits in assessee's account under Companies Act is enough to discharge onus cast upon assessee u/s 68 of I-T Act? - NO, says High Court

THE issue before the High Court is - Whether procedural compliance of cash deposits in assessee's account under the Companies Act is enough to discharge the onus cast upon the assessee u/s 68 of the I-T Act. No is the High Court's answer.

Central Excise

No interference at Show Cause Notice Stage by High Court; At Show Cause Notice stage, Court presumes allegations to be true – AP High Court

THE practice of entertaining Writ Petitions questioning the legality of a show- cause notice, stalling the proposed enquiry and retarding the investigative process to ascertain facts with the participation and in the presence of the parties, must be deprecated. A show-cause notice does not give rise to any cause of action as it is not an adverse order which affects the rights of a party. It is quite possible that, after considering the reply to the show-cause notice, the authority concerned may drop the proceedings and/or hold that the allegations are not established.

The jurisdiction of the High Court, under Article 226 of the Constitution, should not be permitted to be invoked in order to challenge a show-cause notice unless, accepting the facts stated therein to be correct, the show-cause notice is, ex facie, without jurisdiction.

Service Tax

Export - Refund - fact that service provider was registered under different category cannot be made a basis for denial of refund to the appellant: CESTAT

NOTIFICATION No.41 /2007-ST provides exemption by way of refund from specified taxable services used for export of goods. Granting refund to exports, on taxable services that he receives and uses for export do not require verification of registration certificate of supplier of service. Therefore refund should be granted in such cases, if otherwise in order. The procedural violations by the service provider need to be dealt separately, independent of the process of refund.

Tomorrow is a Holiday

See our columns Monday for the judgements