Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

Income tax - Whether sum received on surrender of tenancy right is capital receipt and hence, not taxable - Ruled against Revenue: Delhi HC

THE question before the Bench is - Whether the amount received for surrender of tenancy right is a capital receipt and hence not taxable or a casual and non-recurring income chargeable u/s 10(3) of the Act. And the final verdict goes against the Revenue.

Central Excise

Central Excise – Rule 11 bars assessees from availing credit during transition only when they are availing benefit of exemption notification based on quantity or value of goods in a financial year - No infirmity in order of Tribunal allowing transfer of credit - Karnataka HC

IN the instant case, the exemption notification availed by the assessee makes it very clear that the said exemption has no reference to the value or quantity of goods in a financial year. It is an exemption from payment of duty in respect of the goods which are set out in the Table to the said notification. In view of this, sub-rule (1) of Rule 11 has no application to the exemption notification in the instant case. Therefore, it is held that the Tribunal correctly interpreted Rules 10 and 11 and the exemption notification and therefore, there is no justification to interfere with the same.

Service Tax

Seminar fees, exhibition fees, patent application work, international conference fees, octroi service, valuation of property - Whether input service - Adjudicating authority merely taking a 'look' at services and deciding their eligibility without giving any findings is unfortunate - matter remanded: CESTAT

THE issue relates to admissibility of CENVAT credit taken on various services such as seminar fees, exhibition fees, patent application work, international conference fees, octroi service and valuation of property adjacent to the existing factory for setting up another manufacturing unit etc. and the amount of service tax taken is Rs. 47,742/-.

See our columns Tomorrow for the judgements