Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

The consumption of service in India is not taxable event. Situs of tax would be where taxable event occurs and not where effect or consequence thereof is felt.: – CESTAT

THE taxable event has not occurred in India, inasmuch as the activity of development of technology, technical information & know-how, transfer of design, drawing etc has taken place in USA. The consumption of such services in India, when admittedly no such service stands provided by the appellant in India, cannot be held to be a taxable event.

Income Tax

Whether exemption u/s 54F can be denied merely because construction of residential house could not be completed before expiry of three year period - NO, says ITAT

THE issue before the Bench is - Whether exemption under section 54F can be denied merely because the construction of residential house was incomplete and could not be completed before expiry of three year period. NO is the Tribunal's answer.

Customs

Actual confiscation u/s 113 of Customs Act, 1962 is not imperative for holding a person liable to be penalized under Section 114 of Act - Liability of goods to confiscation is enough - denying DFIA benefit is clearly beyond the jurisdiction of Commissioner of Customs (Export). : CESTAT

WHEN the matter was taken up, it was noticed that the Bench had sought information from the Revenue as to whether the subject goods were cleared for export under bond. On asking the Revenue representative as to whether the said information was available, it was submitted that the all the queries in this regard made to the Commissioner of Customs (Export), JNCH , Nhava Sheva had gone unheeded. Noting that the Commissioner concerned had not cared to answer the queries, it was held that adverse inference would be raised against the department inasmuch as the Bench proceeded on the premise that the appellant was not required by the proper officer of Customs to execute any bond or undertaking before the goods were cleared for export.

See our columns Tomorrow for the judgements