Jurisprudentiol – Tuesday's cases

By Vijay Kumar

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

Import of Multifunction printers and copiers - Valuation guidelines and certifying by chartered Engineer - Commissioner's Standing Order and Instruction Note Upheld: HC

THE impugned circular is only an inter-office communication upon which the petitioners have no right to challenge. The courts have always ruled that the administrative orders issued by the Governmental authorities are not open to scrutiny under Article 226 of the Constitution of India. The concern for issuance of the impugned Standing Order is also an innumerable concern and such concern cannot be ignored while discussing the precautionary principle. The Supreme Court held that the statutory authorities must anticipate, prevent and attack the causes of environmental degradation. When there are threats of serious and irreversible damage, lack of scientific certainty should not be used as a reason for postponing measures to prevent environmental degradation.

Income Tax

Whether expression 'full value of consideration' used in marginal notes of Sec 50C means that value adopted by stamp duty authority is sacrosanct, if AO wants to substitute it with FMV of property, positive material is sine qua non - Yes, rules ITAT

THE questions before the Bench are - Whether expression “full value of consideration” used in marginal notes to section 50C, means that value adopted by stamp valuation authority is sacrosanct, and if the AO wants to replace that value with “fair market” value of the property then positive material is sine qua non; Whether without any positive material AO has power to refer the matter to the DVO under section 142A for ascertaining the actual capital gain and whether in case of investment AO has discretion to refer the matter under section 142A to DVO for determination of fair market value of property. And the verdict goes in favour of the assessee.

Central Excise

Ownership of goods has no relevance - Element of freight and transit insurance is not includable in the assessable value - CESTAT

MERELY because the assessee has arranged for the transportation of the goods along with transit insurance, it does not lead to the conclusion that the place of removal has been shifted from the factory gate to the buyer's premises. The ownership of goods has no relevance in so far as transit insurance of goods is concerned and the delivery to the carrier at factory gate is delivery to the buyer and element of freight and transit insurance is not includable in the assessable value.

Service Tax

Rent-a-Cab services - Service Tax can be demanded from proprietary firm that was floated by dissolving partnership firm - Appeal dismissed: CESTAT

THE brief facts of the case are that during the course of Audit of M/s Sahara India Commercial Corporation Ltd. (M/s SICCL) it was found by the department that M/s Fast Track Travels had provided Rent-a-cab Service to M/s SICCL and collected service tax through the invoices. The invoices did not indicate service tax registration number of service provider. It is alleged by the department that M/s Fast Track Travels had suppressed the facts of taxable service provided by them and its value from the department with intent to evade service tax.

See our columns Tomorrow for the judgements