Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

Whether revisionary powers can be invoked on issue which was subject matter of proceedings u/s 154 - YES, rules ITAT

THE issues before the Tribunal are - Whether revisionary powers can be invoked on an issue which was subject matter of proceedings u/s 154 and whether assessment order allowing income being offered to tax in the subsequent year and not in the year of lump sum receipt can be said to be prejudicial to interest of revenue, inviting invocation of powers u/s 263. And the verdict goes against the assessee.

Service Tax

Advertising - Claim that main contractor paid the Service Tax - Matter remanded to verify whether the main contractor paid the tax: CESTAT

THIS matter needs examination at the end of the original authority to verify whether the main contractor has discharged the service tax liability or not. The appellant shall provide the copies of invoice to the adjudicating authority to verify whether the main contractor has discharged the service tax liability or not. With these directions, after setting aside the impugned order, the matter remanded to the original authority to verify whether the main contractor has discharged their service tax liability and to pass appropriate order after giving a reasonable opportunity to the appellants to present their case.

Customs

Import of car kits - Charges for technology transfer on which Service Tax paid - whether includible in value – Tribunal' s order for pre-deposit of 30 Crores upheld: High Court

THE petitioner during the course of investigation has deposited about Rs.42 crores. After taking into consideration the amount of Rs.11.54 crores paid as service tax, the balance amount recoverable comes to Rs.43.63 crores. When service tax is collected on the amount of USD 45 million, whether the Commissioner was justified in treating the said amount of USD 45 million as part of the value of car kits imported by the petitioner is a question to be decided at the final hearing of the appeal. In the present case, it is the case of the Revenue that the amount of US$ 45 million paid to Skoda under the Technology Transfer Agreement was in fact part of the value of 45,000 car kits supplied by Skoda to the petitioner from time-to-time and that amount has been recovered from the customers by adopting different accounting methods.

See our columns Tomorrow for the judgements