Jurisprudentiol –Tuesday's cases

By Vijay Kumar

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

Whether if no satisfaction is recorded by AO of person searched, notice u/s 158BD is to be held as bad in law - YES, rules HC

THE issue before the High Court is - Whether, if no satisfaction is recorded by the AO of the person searched, notice issued u/s 158BD, is to be held as bad in law. And the verdict goes against the Revenue.

Service Tax

Recipient of GTA service who is not engaged in providing any taxable output service or manufacture of dutiable final product not entitled to utilize CENVAT Credit A/c for discharging service tax on GTA services - CESTAT

RECIPIENT of GTA service who is not engaged in providing any taxable output service or manufacture of dutiable final product not entitled to utilize CENVAT Credit A/c for discharging service tax on GTA services. Legal fiction created under explanation to Rule 2(p) is applicable only to persons who do not provide any output service or manufacture any dutiable final products and not to persons who provide some taxable service / services and /or manufacture some dutiable final products . Such persons are liable to pay service tax only through cash and not entitled to utilize CENVAT Credit A/c for which another legal fiction is required to be provided which is not available in CENVAT Credit Rules, 2004

Customs

Confiscation of Gold - Initial burden of proving defence has not been discharged - Tribunal order upheld: HC

BY mere production of one receipt without anything more when the appellant himself did not purchase, the initial burden of proving the defence has not been discharged. The Tribunal below, in such circumstances, did not commit any illegality in disbelieving the version of the appellant regarding lawful entry of the biscuits in India and thus, no question of law is involved in this appeal.

See our columns Tomorrow for the judgements