Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

Order passed by Tribunal on a miscellaneous application cannot be said to be an order passed under Section 129B - Appeal to High Court against such order not maintainable: Karnataka HC

THE assessee filed an appeal before CESTAT against an Order-in-Original passed by the Commissioner of Customs, Bangalore. The Tribunal allowed the appeal by setting aside the order passed by the Commissioner with consequential relief. However, during the investigation stage, the assessee was coerced by the department to pay Rs. 5.92 crores towards duty. Consequent to the final order of the Tribunal, which the Revenue did not choose to appeal and attained finality, the assessee claimed refund of the entire amount paid by them with interest, amounting to Rs. 7.6 crores cumulatively.

Income Tax

Whether expenses incurred on corporate film-making is revenue in nature - YES, rules ITAT

ASSESSEE is a company engaged in the business of manufacturing and repairs of specialized motors. It claimed the deduction of corporate film making expenses and claimed write-off of certain bad debts. During the course of assessment proceedings the AO observed that the expenses of corporate film-making provided enduring benefits to the assessee and hence the same were capital in nature.

Service Tax

Works Contract - Certain Works for Government - Stay granted on basis of Board Circular and pervious decisions: CESTAT

THE issues raised in this case are highly debatable and that, for the present purpose, the precedent cited by the Counsel can be followed. Stays were granted on similar facts in favour of those parties. Prima facie, the Board's clarification works in favour of the present appellants. In this view of the matter, waiver of pre-deposit and stay of recovery are allowed in respect of the amounts adjudged against the appellants.

See our columns Tomorrow for the judgements