Jurisprudentiol – Friday's cases

By Vijay Kumar

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

Assessee reimburses their employees coaching fees paid by them from their own pocket to service provider for coaching services received outside India – No Service Tax – CESTAT

IT is clear that if the employer hires and outside coaching for imparting training to its employees and the payment thereof made by the employer to such coaching centre then the service availed by the employer shall be liable to pay service tax. In this case, it is factual position that the coaching has been availed by the employees in their individual capacity and payment thereof made by the employees to the coaching centre directly. The employer has reimbursed the coaching fees to the employees only.

Income Tax

Whether sum paid as compensation for occupation of premises after expiry of lease and for repair and damages can be treated as sum received as payment for transfer of tenancy rights - NO, rules Calcutta High Court

HE issue before the High Court is - Whether sum paid as compensation for occupation of a premises after the expiry of the lease and for repair or damage to the premises by the tenant can be treated as an amount received by way of consideration for transfer of any tenancy right. And the High Court's answer is NO.

Central Excise

Export - Refund of unutilized Credit - services used ‘in relation' to manufacture are entitled for credit - CESTAT

IT is common sense that bank charges, courier and clearing charges and other professional service charges, computer maintenance, clearing charges, insurance charges are incurred by an assessee in or in relation to the manufacturing of the final products; On any input service, which is used in relation to the manufacture of final products, the appellant is eligible to avail the CENVAT credit and if such CENVAT credit cannot be utilized by him for discharge of Central Excise duty or output service, he becomes eligible to claim the refund from the authorities.

See our columns Tomorrow for the Judgements