Jurisprudentiol – Tuesday's cases

By Vijay Kumar

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

BAS or BSS - Notice should be sure of Classification: Commissioner (Appeals) should not have confirmed order of lower Authority which he termed as Weird: CESTAT

NO demand can be confirmed against any person towards service tax liability unless he/it is put on notice as to its exact liability under the statute; the Commissioner(Appeals) could not have upheld the demand after finding that the demand of the Original Authority followed a "weird conclusion".

Service Tax - Supply of Vessels to ONGC not covered under Mining Service - Bombay High Court' s Quashing of Notice Upheld: SC

THIS appeal is directed against the judgment and order dated 23.3.2009 passed by the Division Bench of the Bombay High Court setting aside and quashing the notices issued by the Service Tax Department to the Members of the respondent Association by holding that the entry contained in Section 65(105)(zzzy) [Service provided in relation to mining of mineral, oil or gas] of the Finance Act, 1994 does not include services provided by the Members of the respondent - Indian National Shipowners Association.

Income Tax

Whether while computing deduction u/s 80I , loss of unit relating to preceding years eligible for Sec 80I deduction, is to be set off first against income from said unit, considering it as only source of income and thus, reassessment initiated to set off losses is valid - YES, says Delhi High Court

THE issue before the High Court is - Whether while computing deduction u/s 80I the loss of the unit, relating to preceding years eligible for deduction u/s 80I , will be set off first against the income from the said unit considering it as the only source of income and therefore, the reassessment proceedings initiated to set off the losses were valid proceedings. YES, rules the High Court.

See our columns Tomorrow for the Judgements