Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

A quantum of duty already determined by jurisdictional officers of supplier unit cannot be contested or challenged by officers in charge of recipient unit: CESTAT

WHEN the provisional assessments were finalized, the assessing authority found that excess amounts of duty had been paid than what was leviable by those units at the time of clearance of the goods. The excess amount of duty could be claimed as refund by the manufacturer. The manufacturers, however, did not claim any such refund.

The case of the Revenue is that the assessees were not entitled to avail CENVAT credit of any amount of duty in excess of what was liable to be paid on the inputs by the other two units (input-manufacturers) as per the finalized assessments.

Income Tax

Whether when ICAI holds classes for students and provides materials and charges fees, such activities are to be regarded as business activity, and thus assessee loses entitlement to exemption as charitable body - NO, rules: HC

THE assessee is the Institute of Chartered Accountants of India. The issues before the Bench are - Whether the order u/s 263 can be passed without assigning any reasoning as to the object and role of the institute in proper and correct perspective for denying the exemption as charitable institution - Whether activities of the institute approved u/s 10(23C), viz. holding classes for students/article clerks/members and charging fee for classes and for providing literature/material can be regarded as a business activity and hence not entitled to exemption as a charitable institution. NO is the High Court's answer.

Service Tax

Whether services like chipping, cleaning, painting etc. done on marine vessels within port premises are chargeable to Service Tax under head 'Port Services' for period prior to 01.07.2003 - Matter remanded: CESTAT

THE SDR is of the opinion that the present appeal must wait for the outcome of the Central Excise Appeal pending before the High Court, wherein identical question of law has been framed for a decision by the High Court. Tribunal was of the view that the adjudicating authority, rather than the Tribunal, can afford to wait for the High Court's decision in Homa Engineering Works case inasmuch as that authority appears to have taken a view against the assessee merely on the strength of a Circular of the Board without considering the judicial authorities on the point cited by the party.

Customs

Unless Department is able to show that government undertakings are totally different from all angles, it is not possible to accept argument of 'unjust enrichment' on part of State undertakings: CESTAT

THE Bench observed that the High Court had while deciding the issue whether question of unjust enrichment is applicable to State undertakings held that unless the Department is able to show that the government undertakings are totally different from all angles, it is not possible to accept the argument of 'unjust enrichment' on the part of the State undertakings; that State and the State undertakings represent the people of the country.

See our columns Tomorrow for the judgements