Jurisprudentiol – Tuesday's cases

By Vijay Kumar

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

Refund of unutilized credit is only permissible in case of export of goods and for no other reason whatsoever - equity, justice and good conscience are guiding factors for Civil Courts, no fiscal Courts are governed by these concepts: CESTAT LB

CONSIDERATIONS of hardship, injustice or anomalies do not play any useful role in construing taxing statutes unless there be some real ambiguity. It has also been said that if taxing provision is "so wanting in clarity that no meaning is reasonably clear, the court will be unable to regard it as of any effect. It has also been held that in interpreting taxing statute, equitable considerations are entirely out of place nor can taxing statutes be interpreted on any presumptions or assumptions.

Income Tax

Whether, even without doubting payment of guarantee fee to third parties within a reasonable range, AO can make disallowance u/s 40A(2) on ground that third parties are shareholders in assessee-company and they could have provided services free of cost: ITAT

THE issue before the Tribunal is - Whether, even without doubting the payment of guarantee fee to third parties within a reasonable range, AO can make disallowance u/s 40A(2) on the ground that the third parties are shareholders in the assessee-company and they would have provided such services free of cost. And the verdict goes against the Revenue.

Service Tax

Job of cutting and transportation of sugar cane by arranging for tools and labourers - No case made out against demand of Service Tax under head ‘Manpower Supply' – Pre-deposit ordered: CESTAT

THE appellant-trust undertook the job of cutting and transportation of sugar cane grown by members and non-members of the factory for the sugar seasons 2005-06 to 2009-10. The full responsibility of cutting and transportation of the cane upto the factory gate was on the trust. The equipments, tools and labourers required for the job were to be arranged by the trust with the help of the factory. The trust was liable to follow the instructions of the factory in regard to the harvesting and transportation of the sugar cane. No evidence whatsoever, has been adduced by the assessee to show that their activity did not constitute ‘manpower supply' service.

See our columns Tomorrow for the judgements