Jurisprudentiol – Friday's cases

By Vijay Kumar

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

Central Excise - Refunds - Bar of unjust enrichment is applicable to units working under Compounded Levy Scheme - CESTAT

THE assessee disputing the volume of total production in a year to justify any further claim based on such volume of production, will have to establish the same with cogent material as to what is the quantity of goods had been produced in a year, and being a question of fact will have to be established by the party who raises the dispute about the total volume of the goods produced from a unit during the particular period. There can be no presumption that the production is not in accordance with the determination of annual capacity.

Income Tax

Income tax - Whether expenses incurred on travelling of foreign technicians for repair of machinery are to be added to loan taken for capital asset and same is to be treated as capital in nature - NO, says ITAT

THE two key issues before the Tribunal are - Whether depreciation relating to trial run period is allowable in absence of even supporting evidence and whether expenses incurred on travelling of foreign technicians hired for repair of machineries are to be added to loan taken for capital asset and same is to be treated as capital in nature. The answer to the first question is NO, and YES for the second one.

Service Tax

Service Tax - Erection & commissioning service - All taxable services rendered in relation to transmission and distribution of electricity covered by Section 11C notification No. 45/2010-ST dated 20.07.2010 – Prima facie case for full waiver of pre-deposit in relation to erection & commissioning service – CESTAT

THE appellant was engaged in providing erection and commissioning service and rent-a-cab service to electricity supply companies like HESCOM and Gulbarga Development Authority. The appellant is before CESTAT seeking stay of service tax demands amounting to Rs. 41.70 lakhs along with mandatory penalty of equivalent amount.

See our columns Tomorrow for the judgements