Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

Show-cause notice has to be issued within one year of knowledge obtained: CESTAT

WHEN it was in the knowledge of the department that the activity undertaken by the appellant at site amounts to manufacture on 27/01/1999, the show-cause notice has to be issued within one year from 27/01/1999. As the show-cause notice has been issued on 24/06/2002, held that the extended period of limitation is not invokable in this case.

Income Tax

Whether when assessee fails to prove source of deposits in brothers' NRI accounts, payments received by assessee as gift are liable to be charged to tax - YES, rules ITAT

THE issues before the Third Member are - Whether the interest paid to the income tax department on late payment of tax can be deducted while computing the business income of the assessee and Whether the interest received from and paid to the income tax department can be adjusted or netted against each other. NO is the answer.

Service Tax

Refund of service tax on services provided to SEZ - Appeal to be heard by Division Bench, as SMB is not competent to hear matter: CESTAT

A perusal of the Notification makes it abundantly clear that the issue involved herein relates to determination of the rate of service tax payable on the taxable service rendered. Section 35D(3) of the Central Excise Act, 1944, which has been made applicable to Chapter V of the Finance Act, 1994, excludes from the scope of a Single Member Bench a case where the determination of any question having a relation to the rate of duty of excise or to the value of the goods for the purpose of assessment is an issue or is one of the points in issue. Therefore, this Bench is not competent to hear the aforesaid matter.

See our columns Tomorrow for the judgements