Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Repair of coffee vending machine is an input service: CESTAT

THE coffee machine has been maintained by the appellant for vending of coffee to its employees. It is the nature of a catering service provided to the employees, which is very essential, especially for the employees working round the clock as in the case of IT companies. Therefore, repair of the coffee vending machine is an input service in or in relation to the output service provided by the appellant and, therefore, they are rightly entitled to the service tax paid on the repair of the coffee vending machine as it is an eligible input service.

Income Tax

Whether Sec 94 is attracted and penalty is justified when assessee sets off loss on sale of mutual fund units against profit on short-term investments but does not claim loss as deduction - YES, rules ITAT

THE issue before the Tribunal is - Whether section 94 is attracted and penalty is justified when assessee sets off the loss on sale of its mutual fund units against profit on short-term investments but does not claim the loss as a deduction. YES is the Tribunal's answer.

Central Excise

In case of provisional assessment no interest is payable on finalization of assessment if differential duty has been paid before finalization of assessment: CESTAT

THE decision in the appellants own case in earlier period, this Tribunal has held that in the case of provisional assessment, no interest is payable on finalization of the assessment if the differential duty has been paid before the finalization of assessment. Further, the same view has been confirmed by the High Court of Bombay in the case of Ispat Inds. Ltd.

See our columns Monday for the judgements