Jurisprudentiol – Friday's cases

By Vijay Kumar

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

Notification 1/2006-ST - Condition of not taking "credit of duty paid on inputs or capital goods used for providing such taxable service" necessarily should relate to the services actually rendered: CESTAT

NOTIFICATION 1/2006-ST allowed abatement of 75% of the taxable value for the purpose of discharge of service tax under the category of GTA service on the condition that the service provider had not availed credit on inputs and capital goods and input services used for providing the service. Exemption is also subject to the condition that the service provider has not availed the benefit of Notification no. 12/03-ST dated 20.6.2003.

Income Tax

Sec 132 - Whether when assessee makes prima facie case against validity of search, Income Tax Department is obliged to share information relating to 'reasons to believe' for authorising search except source of information - YES, says High Court

THE two issues are - Whether when assessee makes a prima facie case against validity of search, Revenue is obliged to share information relating to 'reasons to believe' for authorising search except the source of information and Whether Income tax can conduct search in SEZ area without taking prior approval of Development Commissioner. And the answers to the first goes in favour of the assessee and the other in favour of Revenue.

Sales Tax

It is indeed difficult to see on what principle can a Government, committed to the rule of law, claim immunity from the doctrine of promissory estoppel, but it must yield when the equity so requires: Supreme Court

THE issue that falls for consideration in this appeal is whether the Respondent is entitled to the benefit of Sales Tax exemption on the entire investment made by them in setting up the industrial unit i.e. Solvent Extraction Plant, or on the investments made up till 16.12.1996, the date on which the exemption granted under Rule 28A of the Haryana Sales Tax Rules ("HSTR" for short) was withdrawn by the State by putting the Solvent extraction plant in the negative list.

See our columns Tomorrow for the Judgements