Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

Construction falling under Works Contract Service - Taxable prior to 1.6.2007 – Prima facie case in favour of Revenue - Pre-deposit ordered - CESTAT

THERE is nothing in any provision of the Finance Act, 1994 from which it can be inferred that the taxable services, as defined in various clauses of Section 65 (105), have to be pure services not involving the use or supply of any goods or that such services would not be taxable if the same involve use or supply of any goods or materials. Prima facie there is merit in the department's contention that the services provided by the appellant were taxable even during the period prior to 1.6.2007.

Income Tax

Sec 80IB - Whether Central Excise refund and interest subsidies received from State Govt's new Industrial Policy are to be treated as revenue receipts - NO, rules HC

THE finding of the Tribunal on the first issue that the Excise Duty Refund, Interest Subsidy and Insurance Subsidy were Production Incentives, hence Revenue Receipt, cannot be sustained, being against the law laid down by Hon'ble Supreme Court of India in Sahney Steel and Ponni Sugars cases

Customs

Imported Goods - Burden of proof - Respondents discharged initial burden by producing invoices which Customs did not find to be not genuine -HC

RESPONDENT has discharged the burden of proving that the goods seized are not smuggled goods and that they purchased those from their seller who lawfully acquired ownership of those goods. In this case the test reports of the seized goods substantially tally with the descriptions of those indicated in the invoices produced before the Customs authority and thus, even though the High Court did not agree with the view of the Tribunal regarding the question of burden of proof, High Court was of the view that such burden has been discharged by the Respondent as the Customs authority did not find that the invoices were not genuine.

See our columns Tomorrow for the judgements