Jurisprudentiol - Monday's cases

By Vijay Kumar

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

Service Tax - No Registration required if no tax liability; rebate - filing of declaration though procedural, has to be complied with: CESTAT

THOUGH the requirement of filing of declarations prior to export of the services and its verification by the jurisdictional Asstt./ Dy. Commissioner is a procedural requirement, the purpose of this procedure is to ensure that there is no evasion of duty by misuse of this facility.

Income Tax

Whether when assessee incurs expenses on purchase of technical knowhow, such expenses are business expenditure or covered under Sec 35 AB - rules in favour of Revenue: Madras HC

THE AO while considering the amounts spent towards purchase of designs and drawings and towards consultancy charge as the amounts spent for the purchase of obtaining technical know-how considered the amounts spent under the provisions of Section 35AB, and accordingly allowed only 1/6 th as deduction. The CIT (A) held that the assessee would be entitled for deduction for the entire amount u/s 37(1). To arrive at such a conclusion, the CIT(A) held that the sum of Rs.1,00,000/- being the expenditure incurred for market survey of raw-materials used in the assessee's business, it should be allowed as a business expenditure u/s 37(1).

Central Excise

Interest on short paid duty - payable even when duty paid is available as credit to recipient unit of same assessee: CESTAT by majority

EVEN where the duty is short paid by an assessee, is available as credit to the recipient unit of the same assessee, interest in terms of provisions of Section 11AB is required to be confirmed and interest is leviable.

See our columns Monday for the judgements