Jurisprudentiol – Tuesday's cases

By Vijay Kumar

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

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

Income Tax

Sec 55 - Whether sum paid for transfer of on-going business can be treated as payment for technical knowhow or consideration for goodwill, taxable as LTCG - It is a case of transfer of goodwill: Madras High Court

THE issue before the High Court is -Whether the sum paid for transfer of an on-going concern can be treated as payment of technical knowhow or consideration for goodwill, taxable as long term capital gains. Whether when the claim of the assessee is held to be the payment for goodwill by the Tribunal, it is a case of tax evasion. And the verdict goes against the assessee.

Central Excise

Central Excise - Removal of Capital Goods as such - Payment of duty on depreciated value, correct - no reversal of credit taken - question of law correctly decided by Tribunal; No question of Law: High Court

THE Commissioner of Central Excise is the appellant. The questions of law, read as under:

1. Whether the expression "as such" appearing in Rule 3(4)(C) of the Cenvat Credit Rules, 2002 would cover used as well as unused capital goods or not?

2. Whether the assessee is required to reverse credit equivalent to credit taken when used capital goods are removed from the factory or not?

See our columns Tomorrow for the judgements