Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

Value of diesel and explosives supplied free of cost to service provider prima facie includible in taxable value for payment of service tax –Pre-deposit of Rs. 10 crores ordered: CESTAT

GROSS amount' referred to in Notification 1/2006-ST has to be the same as referred to in section 67 of Finance Act since a notification cannot grant exemption from tax on a value higher than the taxable value on which tax is otherwise due – Benefit of Notification No. 12/2003-ST also not available as there is no ingredient of sale of goods by service provider to service recipient.

Income Tax

Whether, if assessee ends up making excess TDS deposit in previous year, it is entitled to make suo moto adjustment of same against liability arising in next FY - NO, rules ITAT

THE issues before the Tribunal are - Whether, if assessee ends up making excess deposit of TDS in the previous year, it is entitled to make suo moto adjustment of the same against liability arising in next financial year and whether such excess payment of tax vests any right in assessee for refund or adjustment of the same. ‘NO', is the answer of the Tribunal.

Customs

Exemption to goods required for petroleum operations by ONGC - DGH cannot cancel essentiality certificate: HC

THE obligation cast upon the DGH is to ascertain as to whether the goods sought to be imported are actually required for petroleum operations or not. The Exemption under Notification No.21/02 is available only if the goods sought to be imported are required for petroleum operations and not otherwise. Whether, benefit of the Notification is available to the importer or not, is a question to be considered by the Customs Authorities and not by the DGH. Therefore, the DGH could not have cancelled the Certificate on the ground that the benefit of the Notification is not available to the importer.

See our columns Tomorrow for the judgements