Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Service in relation to agriculture - Prima facie case for waiver of pre-deposit - CESTAT

THE appellant states that the work undertaken by the appellants was as per a contract with the Ahmedabad Municipal Corporation and the said work falls under the category specified under section 65(97a) of the Finance Act, 1994 but is eligible for exemption under the exclusion clause as it is in relation to irrigation, watershed development and drilling, digging, repairing, renovating or restoring of water sources or water bodies, namely, Sabarmati river.

Income Tax

Sec 17 - Whether when agreement between doctors and hospital provides for 'fees for services' it cannot be said that there exists employer-employee relationship - YES, says ITAT

THE issues before the Tribunal are - Whether when the agreement between the doctors and the hospital provides for 'fees for services' it goes to disprove the employer-employee relationship between the two and whether when fees are paid in addition to the salary, it takes the colour of salary. And the verdict goes against the Revenue.

Customs

Assessable value has to be determined by applying rule 7 of Customs Valuation Rules and not in an arbitrary manner by drawing analogy from section 4A of the CEA: CESTAT

THE lower adjudicating authority held that there was 500% difference in declared M.R.P. compared to the assessable value declared. He, therefore, rejected the assessable value and determined the assessable value by deductive method under Rule 7 and adopting the analogy of the Central Excise Act allowed the abatement of 60% which was 10% higher than the abatement allowed under Central Excise Act and enhanced the assessable value to 40% approximately.

See our columns Monday for the Judgements