Jurisprudentiol – Friday's cases

By Vijay Kumar

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

Refund amount adjusted against duty demand is to be considered as pre-deposit and is to be returned with interest till date of payment: CESTAT

THE question is whether the amount of Rs.4,71,447/- which was adjusted against the refunds due to the appellant after the confirmation of the demand can be treated as pre-deposit or it should be treated as duty paid.

Income Tax

Whether, for availing Sec 10A benefits, it is necessary for exports to be made on physical information storage device - Whether export of data through internet does not qualify to be export of computer software - assessee eligible for benefits: ITAT

THE issues before the Tribunal are - Whether, for availing Sec 10A benefits, it is necessary for exports to be made on a physical information storage device and whether export of data by uploading the same on the internet-based server of the importer does not qualify to be export of computer software or ITES. And the final verdict has gone against the Revenue.

Service Tax

Expenses reimbursed cannot be excluded from gross value of taxable service: CESTAT

THE gross value takes into its fold entire cost of service enabling that to be performable. Therefore, by no stretch of imagination neither the arrangements of the parties nor their mutuality or nomenclature or format of their agreement and mode of discharge of consideration shall prevail on the law relating to service tax. Legislature accordingly intend that the gross value of the service shall be the measure of value for taxation whether paid as consideration directly or by reimbursement of expenses relating to providing of taxable service.

See our columns Tomorrow for the Judgements