Jurisprudentiol – Tuesday's cases

By Vijay Kumar

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

Central Excise - Spot Realisation suffers another jolt - Bouncing of cheque collected during investigation - not an offence under NI Act: High Court

TO attract the penal consequences under Section 138 of the Act, three ingredients i.e. (i) that there is a legally enforceable debt; (ii) that the cheque was drawn from the account of bank for discharge in whole or in part of any debt or other liability which presupposes a legally enforceable debt and (iii) that the cheque so issued had been returned due to insufficiency of funds, have to be essentially met.: the cheque in question had not been issued by the petitioner in discharge of the part liability towards the excise duty as has been claimed by the respondent. Since one of the essential ingredients of Section 138 of the Act is not attracted in this case, no hesitation to conclude that the prosecution of petitioner is bad in law and cannot be sustained. Accordingly, petition is allowed and criminal complaint under Section 138/142 of the Act is quashed.

Income Tax

Whether when AO initiates proceedings against assessee not only on cash requisitioned but also other documents seized by Enforcement Directorate, proceedings u/s 158BC are sustainable in eye of law - YES, rules Delhi High Court

THE issues before the Bench are - Whether when AO initiates proceedings against assessee not only on the cash which is requisitioned but also other documents seized by the ED, the proceedings u/s 158BC are sustainable in eyes of law and whether where the director of the assessee company who was also a partner in a firm and a chartered accountant and claimed the documents found were related to his clients, the proceedings in respect of such partnership firm and the director in his individual capacity are rightly initiated u/s 158BD. YES is the High Court's answers.

Service Tax

The service availed by appellant for construction of factory buildings and office buildings of factory are, covered by definition of 'input service' - Prima facie case in favour of appellant - pre-deposit waived: CESTAT

FROM the definition of 'input service', it is clear that the services used in or in relation to the setting up, modernization, renovation or repairs of a factory or premises of output service provider or an office relating to such factory or premises, are covered by the definition of 'input service'. The service availed by the appellant for construction of the factory buildings and office buildings of the factory are, therefore, covered by the definition of 'input service'.

See our columns Tomorrow for the judgements