Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

Refund under Notification No 41/2007 ST – The provisions of amending Notification No 33/2008 ST are not applicable for the exports made prior to date of amendment, though claims were filed after amendment – CESTAT.

THE dispute pertains to the refund of service tax paid on the services used for goods exported under Notification No 41/2007 ST dated 6.10.2007. This notification was amended vide Notification No. 33/2008-ST dated 07.12.2008 to delete the condition that the goods should be exported without availing the drawback facility and to increase the upper limit of refund amount in respect of the foreign commission agents to tax payable on 10% of the FOB value of the exports instead of 2% earlier.

Income Tax

Sec 80IB - Whether reimbursement of expenses paid to a captive unit as idle period charges can be treated as receipt from industrial undertaking - NO, says ITAT

THE issue before the Bench is - Whether reimbursement of expenses paid to a captive unit as idle period charges can be treated as receipt from industrial undertaking for the purpose of Sec 80IB benefits. NO is the verdict.

Customs

Adjudicating authority neatly set out his findings in respect of each of SCNs and arrived at distinct conclusions in relation to respondents - department should have raised specific grounds in appeal against each of the respondents - Revenue dismally failed to meet this basic requirement of an appeal - Appeals dismissed: CESTAT

FILING of an appeal for the sake of filing one has become the favourite pastime of the Revenue authorities. And once the same is filed, there is no established mechanism to keep a track of these. Ascertaining whether the same is disposed or is still pending before the CESTAT is an exercise which almost always is given a go by.

A similar story happened in the present case. The Commissioner of Customs (Exports), JNCH happened to pass a common order in the year 2002 concerning 14 different show cause notice issued to different parties but all of them owing their genesis to a common investigation.

See our columns Tomorrow for the judgements