Jurisprudentiol – Tuesday's cases

By Vijay Kumar

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

No standard formula for Redemption Fine, but nothing wrong for a Tribunal to follow precedent - Supreme Court

A standard formula cannot be laid down for imposition of redemption fine and penalty and each case has to be examined on its own facts but when a final fact finding body returns a finding that the facts obtaining in each of the cases before it are similar, and such finding is not questioned, levy of redemption fine or penalty uniformly in all such cases cannot be construed as laying down an absolute formula, which is the case here.

Income Tax

Sec 54 - Is exemption u/s 54 available even on payments made for reservation of a flat, not booking of a flat? - NO, rules ITAT

THE issue before the Tribunal is - Whether exemption u/s 54 is available even on payments made for reservation of a flat and not booking a flat. NO, says the Tribunal.

Service Tax

Transactions between Associated Enterprises - Due date for payment of service tax – Amendments to Section 67 of Finance Act, 1994 and Rule 6 of Service Tax Rules have no retrospective application - CESTAT

THE Legislative intention behind the amendments was explained by the Board as for plugging avoidance of tax on the ground of non-realization of money from associated enterprises and the intention of the Legislature in bringing the amendments is to introduce a new provision and not to remove any doubts in the existing provision - It is not, nor can it be, anybody's case, that Explanation shall always take effect retrospectively - The appellants are entitled for refund of excess interest paid for the service tax pertaining to the period prior to the amendment.

See our columns Tomorrow for the Judgements