Jurisprudentiol – Tuesday's cases

By Vijay Kumar

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

AS soon as registration certificate has been surrendered by appellant, duty is cast on department to verify whether appellant has rightly gone out of ambit of service tax or not: CESTAT

ONUS is on revenue to find out the cause of surrendering registration; if action is not taken at the same time, the same cannot be questioned subsequently. Therefore, extended period is not invocable.

Income Tax

Whether when assessee is compensated for discontinuing relationship with multilateral audit firm and remains an independent player, penalty is warranted for declaring such payments directly credited in accounts of partners and not firm as capital receipt - YES, rules ITAT

ASSESSEE is a firm of Chartered Accountants and carrying on the auditing profession. Assessee had shown a sum of Rs.1,15,70,000/- in the capital account of the partners as received from an international consultancy firm Deloitte International. The amount was not reflected by the assessee in its P&L a/c but directly credited to partners' accounts.

Customs

Used computers are not Hazardous Waste: CESTAT

THIS is a case booked by DRI. The appellants had imported used computers and the same were confiscated on the ground that the goods imported are nothing but Hazardous Waste and their import is prohibited. Confiscation has also been ordered on the ground of mis-declaration holding that the impugned goods have been declared as computer system whereas they are e-waste.

See our columns Tomorrow for the judgements