Jurisprudentiol – Tuesday's cases

By Vijay Kumar

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

Appeal - Classification and Valuation matters - Appeal from Tribunal lies with Supreme Court - Appeal dismissed for want of jurisdiction: HC

THIS is a landmark case. It seems hundreds of appeals filed by the Revenue against Classification and Valuation matters before the Karnataka High Court are bound to be dismissed based on this order.

The High Court explained the concepts of assessment, determination, goods, ‘rate of duty', and why these matters had to go the Supreme Court.

Income Tax

Sec 48 - Whether, for computing capital gains under Portfolio Management Service, fee paid to AMC as certain percentage of NAV of portfolio for sale and purchase of securities is allowable deduction - YES, says ITAT

THE assessee debited a sum of Rs 69,22,396/- paid to ENAM, the AMC, on account of termination fee (TF) of Rs 59,15,574/- and annual maintenance fee (MF) of Rs 10,06,823/-. The AO found that TF has to be disallowed. The issue before the Tribunal is - Whether, for the purpose of computing capital gains under Portfolio Management Service, the fee paid to the Asset Management Company at certain percentage of the NAV of the portfolio for purchase and sale of the securities is an allowable deduction. And the verdict goes in favour the assessee.

Service Tax

Cargo Handling Service - Audit by department on previous occasions did not point out this issue - No extended period - CESTAT

CONSIDERING the status of the Appellant as a Public Sector Undertaking and their conduct after the matter has been pointed out to them and the fact that the audit by the department on previous occasions did not point out this issue though they were collecting charges during such period also, this Appellant did not have any intention to evade the impugned tax. Therefore the demand will be sustainable only to the extent of demand covered by the normal period of time of one year.

See our columns Tomorrow for the judgements