Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

Sub-contractor liable to pay Service Tax - Cum Duty Benefit and CENVAT Credit if entitled, to be allowed - CESTAT

NO provision in the Finance Act, 1994 to grant immunity to the sub-contractor from levy of service tax when undisputedly taxable services were provided by them. No evidence was before it to notice whether the service provided by the sub-contractor to the contractor was ever been taxed.

Income Tax

Sec 10A(3) - Whether Sec 10A benefits are available to profits of foreign branch - YES; Whether, to qualify as on-site developer, it should be only LO as intermediary between foreign co and assessee and not independent overseas branch - YES, rules Delhi HC

THE issues before the High Court is - Whether Sec 10A benefits are available to profits of overseas branch and whether, to qualify as on-site developer, it should be only a LO acting as intermediary between the foreign company and the assessee and not an independent branch carrying on full-fledged marketing operations. YES is the answer to both the questions.

Central Excise

Capital Goods used in Manufacture of Exempted and Dutiable Goods - CENVAT Credit Entitled - High Court

IN view of finding of the Tribunal that the assessee availed benefit of notification under which 4% duty was payable, it cannot be held that assessee used the capital goods in manufacture of exempted goods in which case the assessee could not claim the benefit of CENVAT credit under rule 6(4). No substantial question of law arises.

See our columns Tomorrow for the Judgements