Jurisprudentiol – Tuesday's cases

By Vijay Kumar

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

Service Tax - Penalty - Section 80 does not provide for reducing penalty under Section 76 below prescribed minimum - CESTAT to pass Speaking Orders: High Court

THE question of law before the High Court is:

"Whether the penalty under Section 76 of the Finance Act, 1994 can be reduced below the limit prescribed by the section?"

The protracted litigation in this case involved an amount of less than one lakh rupees.

Income Tax

Income tax - Sec 10A - Whether foreign exchange gain on account of fluctuation in exchange rate is includible in export turnover even if same is not actually realised by assessee - NO, says ITAT

THE issue before the Tribunal is - Whether foreign exchange fluctuation on account of restatement of the amount due on 31st March is to be included in the export turnover while computing the deduction u/s 10A though it was not actually realized. And its answer by the Tribunal is NO. Another question before the Tribunal is - Whether the expenses incurred by the assessee relating to the employees sent abroad for the purpose of training were correctly considered as expenses incurred for providing technical services outside India and to be excluded from the export turnover while computing the deduction u/s 10A. And its answer goes in favour of the assessee.

Customs

Customs - DEPB - Transferee not entitled to benefit of DEPB scrips fraudulently obtained by transferor - However Penalty set aside: CESTAT

The issue involved in this case is whether the transferee respondents were entitled to the benefit of DEPB scrips fraudulently obtained by the transferor thereof and whether redemption fine and penalty was imposable when goods were not available for confiscation.

See our columns Tomorrow for the Judgements