Jurisprudentiol - Thursday's cases

By Vijay Kumar

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

Ban on Export of Cotton Yarn - challenge to Notifications - Dismissed: High Court

IT is not possible to hold that the impugned Notification dated 22nd December 2010 is bad in law only because it imposes the ban on export of cotton yarn retrospectively. Even if it is held that the impugned Notification dated 22nd December 2010 is prospective, if in fact the cap of 720 million kgs . is reached on an earlier date, the ban would anyway become operative from that date notwithstanding that an EARC may have been issued thereafter.

Income Tax

Whether provisions of Sec 194C can apply even where there is no contract of service, nor any payment for any work done - NO, says ITAT

THE issues before the Bench are - Whether entries in the books of assessee are only indicative and not conclusive; Whether contract between the assessee and its franchisees is to be given due weightage to understand the true character of the transaction; Whether provisions of section 194C can be invoked even where there is no contract of service nor any payment for any work done and Whether payment of bonus is allowable if the same is given irrespective of shareholding pattern particularly in a case where shareholding is high and bonus is minimal. And the verdict goes in favour of the assessee.

Service Tax

Enabling applicant to retrieve their own processed data: prima facie not taxable under “Online information and data base access and retrieval” service: CESTAT

STAY/Dispensation of pre-deposit – Online information and data base access and retrieval service received from outside India - Prima facie case for waiver of pre-deposit as the service provider is not providing access to any data of their own except receiving the data from the applicant and getting them processed as per the software in place and enabling them to retrieve their own processed data – Contention that no service tax is payable prior to 18.4.2006 is also relevant.

See our columns Tomorrow for the Judgements