Jurisprudentiol – Tuesday's cases

By Vijay Kumar

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

Appeal - Pre-deposit - Mere fact that appellant is a PSU is not sufficient for waiver of pre-deposit - Tribunal not justified in launching upon a detailed investigation at Stay stage: HC

THE law is not that a Government Company within the meaning of Section 617 is entitled to an order dispensing with the requirement of pre-deposit merely for the reason that it is a Government Company. The requirement of undue hardship within the meaning of proviso to Section 35F has to be evaluated by the Tribunal by following the well settled principles. Undoubtedly, where the Appellant is a Government Company, which is in sound financial position that would be a material consideration, which has a bearing on the safeguarding of the interests of the Revenue.

Income Tax

Whether growing of plant in lab by applying scientific method of tissue culture can be claimed as agricultural activity, exempt under I-T Act - NO, rules ITAT

ASSESSEE is a company engaged in the business of growing and exporting of ornamental plants. It filed its return of income for the assessment year 2005-06 claiming the entire income as agricultural income and also exempt from Income-tax. The AO after visiting the premises of the assessee company and discussing the matter with Director of the company came to the conclusion that the assessee was carrying on tissue culture methodology and by this process, some of the activities carried on by the assessee are non-agriculture and, therefore, the entire income from the sale of plants cannot be termed as agricultural income. He, therefore, bifurcated the income into agricultural income and business income in the ratio of 70:30.

Service Tax

Adjudicating authority could not have conducted de novo proceedings as Commissioner (Appeals) has lost power of remand from 11.05.2001 – remand order passed by CESTAT nullifies subordinate proceedings that had arisen out of O-in-A - Matter to be decided expeditiously by Commissioner (A): CESTAT

MULTIPLICITY of proceedings leads to strange situations.

In this interesting case, the issue is whether the appellant-company, successor to Maharashtra State Electricity Board (MSEB), was rendering taxable service in the nature of "Consulting Engineers service" to the consumers of electrical energy during the period of dispute (April 2000 to March 2005).

See our columns Tomorrow for the judgements