Jurisprudentiol – Wednesday's cases

By Vijay Kumar

Central Excise

Appeal pending with Commissioner (Appeals) for 33 years - BG Encashed by Department - Refund ordered with Interest: HC

A lengthy argument nor elaborate reasoning is required to condemn the attitude of any quasi judicial appellate authority sitting over in a statutory appeal for thirty years and take a plea that the appellant could have pursued the matter in right earnest. The power conferred to decide appeals casts a duty on the designated authority to dispose of appeals expeditiously.

Income Tax

Whether an employer maintaining account on basis of mercantile system is entitled to deduction on actuarial basis for discharging any liability arising from unapproved pension scheme - NO, rules Calcutta HC

THE assessee claimed deduction of Rs.1,43,35,000/- on account of unfunded actuarial liability for pension in respect of certain categories of employees. The assessee maintained its account on mercantile basis. Out of the aforesaid amount claimed as actuarial liability of pension under the aforesaid Head, the amount actually paid was to the extent of Rs.23,04,228/- only and the same was included under the Head as Staff Welfare Expenses. The AO disallowed the aforesaid claim of deduction by holding that the amount of death pension is not admissible. On appeal, the CIT(Appeal) also denied the relief.

Service Tax

In respect of services rendered by C&F Agents, only commission or remuneration paid to C&F Agent is taxable before introduction of Service Tax (Determination of Value) Rules, 2006: CESTAT

THE appellant is registered as a service tax assessee under the category of 'Clearing & Forwarding Agent' and discharged their liability for the consideration received for the said services. However, the appellant was also getting reimbursement from service recipient of handling charges, establishment charges, computer stationery charges and go-down rent but the appellant was not paying any Service Tax on the said charges. The period involved is October, 2002 to March, 2006.

See our columns Tomorrow for the judgements