Jurisprudentiol – Friday's cases

By Vijay Kumar

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

Whether adjustment made by Revenue u/s 245 can be treated as 'recovery' - YES, rules HC

THE issues before the Bench are - Whether the provisions of section 220(6) are applicable when an appeal is preferred before the ITAT; Whether adjustment u/s 245 can be regarded as “recovery”; Whether pendency of appellate proceedings by itself alone cannot be a ground not to refund the amount due and payable, and is not sufficient to pass an order of the adjustment for demand on issues which have been decided against the Revenue and whether the conduct and action of the Revenue in recovering the disputed tax in respect of additions on issues which are already covered in favour of the assessee by earlier orders of ITAT and CIT(A) is justified. And the verdict goes against the Revenue.

Customs

CHALR - New Regulations not applicable to those who passed examination earlier: HC

THE petitioner was declared as "qualified" in the written and oral examination under Regulation 9 of 1984 of the Customs House Agents Licensing Regulations, on 31.12.1997 and 01.02.1999. When the petitioner was waiting for the Application for agents, the procedure for appointment was revised with effect from 23.02.2004. Therefore, the respondents are denying the right of the petitioner to have the licence stating that the petitioner is required to undergo exam again.

Service Tax

Purpose of providing input service tax distribution is in context of "common" services availed by various units of a single corporate entity - It is not a mechanism for transfer of credit from one unit to another: CESTAT

THE input service distributor can distribute the Service Tax paid on input services amongst its various units only if such services are used among the units where the credit is taken. First of all the service has to qualify as an input service and thereafter, the tax can be distributed. The purpose of providing input service tax distribution is in the context of common services availed by various units of a single corporate entity. It is not mechanism for transfer of credit from one unit to another. If the appellant wanted such facility, then they should registered themselves as a Large Tax Payer unit and only when they register as a Large Tax Payer unit, they could transfer credit from one unit to another.

See our columns Tomorrow for the judgements