Jurisprudentiol – Tuesday's cases

By Vijay Kumar

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

Income tax - Whether mere admission of appeal before High Court can save assessee from levy of penalty u/s 158BFA - NO, rules ITAT

THE questions before the Tribunal are - Whether when assessee fails to declare the undisclosed income in block return, and the additions made by the AO based on the seized materials are sustained, penalty is warranted in such a case - Whether mere admission of an appeal before the High Court can save an assessee from the levy of penalty. The verdict goes against the assessee.

Central Excise

Neither any show-cause notice has been issued under section 11A nor any order confirming duty has been passed under section 11A, therefore, there are no dues of duty and hence section 11 of the CEA, 1944 cannot be invoked – attachment of finished excisable goods set aside - Revenue appeal dismissed: CESTAT

IN section 11A, the Government has power to recover the duty and any sums of any kind payable to the Central Government under any of the provisions of Act or of the Rules. In this case the demand of duty is not under any rules or Act except the provisions of Section 11A and as per the section 11A of the Act for recovery of duties, a show-cause notice is to be served on the assessee.

Service Tax

Even prior to 19.04.2006 Service Tax on GTA service cannot be paid through CENVAT credit but has to be paid only through PLA: CESTAT

PROCEEDINGS were initiated on the ground that the respondent wrongly debited service tax to CENVAT credit account amounting to Rs.80,942/- instead of paying through PLA. Subsequently, recovery was ordered and penalties were imposed. Since the appeal filed by the manufacturer was allowed by the Commissioner (Appeals), Revenue is before the CESTAT.

See our columns Tomorrow for the judgements