Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

SCN for recovery of duty can be issued even without revising assessment: CESTAT

IN Jain Shudh Vanaspati Ltd , case the Supreme Court had held that even subsequent to clearance of goods under Section 47 of the Customs Act, a show-cause notice could be issued under Section 28(1) within the prescribed period of time reckoned from the relevant date for the purpose of recovery of customs duty not-levied, short-levied, not-paid, short-paid etc, even without revising the assessment of the goods .

Income Tax

Whether, for levy of FBT, meaning of word 'construction' in Sec 115WC is restrictive and includes only civil construction within its realm - NO, rules ITAT

ASSESSEE Company is engaged in the business of manufacturing of specialized equipment of solid and waste and a liquid waste treatment for industries and communities and these equipments were known as Twin Wire Belt Filter Press for Sludge Management - Major portion of the assessee's activities included construction of civil structures - AO while framing the assessment rejected the submission of the assessee for levyng FBT @ 5% and levied 20% rate. CIT(A) affirmed the order of the AO.

Service Tax

Mobilising deposits, debentures and procuring land - BAS and Real Estate services - Pre-deposit of Rs. 34.2 Crores ordered out of a demand of Rs. 180.73 Crores: CESTAT

THE applicants are providing the services of mobilising deposits for their principal and the said depositor is having an option either to withdraw the maturity value after specified period of time or the depositor can purchase immovable property or can purchase goods or avail the services provided by the SICCL or by the other group companies. The applicants have received a commission on the total deposits mobilised by them irrespective of the fact whether at the time of maturity the depositors purchased immovable property or utilised their deposits otherwise. The whole demand has been confirmed on the basis of an agreement between the applicants and the SICCL.

See our columns Tomorrow for the judgements