Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

EPCG Licence - DGFT has power to amend licence retrospectively: High Court

THE larger Bench decision of the CESTAT is mutually contradictory, because the larger Bench on the one hand holds that the customs authorities cannot challenge the powers of licensing authorities to amend the licence and on the other hand holds at the instance of the customs authorities that the licensing authorities do not have the power to amend the licence retrospectively. Such an order of the CESTAT which is mutually contradictory cannot be sustained in so far as it holds that the licensing authorities do not have the power to amend the licence retrospectively.

Income Tax

Whether disallowance u/s 40(a)(i) can be made on presumption that assessee was liable to tax deduction at source u/s 194C - NO, unless Revenue brings evidence on record: ITAT

THE issue before the Tribunal is - Whether disallowance u/s 40(a)(ia) can be made on presumption that assessee was liable to TDS u/s 194C. NO is the Tribunal's answer.

Service Tax

Assessee exporting goods through merchant exporter under an agreement that service tax of services engaged by exporter would be borne by manufacturer – Refund claim filed u/N otfn 41/2007-ST by manufacturer - No other person can claim refund of service tax paid on services availed by exporter for exporting goods – Restricted view to be taken: CESTAT

THE assessee is engaged in manufacture of DOC (Soya Extraction Meal) and same were being exported through merchant exporter. During the course of export, the merchant exporter availed certain taxable services. There was an agreement between the assessee and the merchant-exporter which inter alia provided for payment of service tax by the assessee in respect of above services availed by the merchant-exporter for the export of goods manufactured and supplied by the assessee.

See our columns Tomorrow for the judgements