Jurisprudentiol -Wednesday's cases

By Vijay Kumar

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

Excess sales tax collected not includible in assessable value - No mala fide intention to evade by PSU - CESTAT by majority

THE nature of excess freight has been held as profit on transportation and not as additional consideration, the ratio followed, will be applicable in the case here as the nature of the amount collected by the assessee was in respect of sales tax which is paid to the supplier of the goods.

The appellant being a Public Sector Undertaking, there cannot be mala fide for non-discharge of excise duty, if any, and there cannot be allegation of intention to evade duty.

Income Tax

Whether when delay in filing return is condoned by CCIT, assessee cannot be denied interest on refund admissible u/s 244A - YES, rules HC

THE petitioner, an income tax assessee, filed a writ petition that excess TDS (Tax Deducted at Source) by LIC on maturity of policies paid to him, in his case amounting to Rs.19,083/- for the assessment year 1994-95 was initially not refunded as per return of income filed by him as there was delay of four days only in filing such return income, which was due to be filed on or before 31.03.1996, under Section 139 (4) of the Act, but the same was filed on 04.04.1996.

The CCIT, Udaipur condoned the said delay of four days, and directed the Assessing Authority to admit the claim of refund of Rs.19,083/- after due verification of TDS certificates and evidence of other tax payments, if any. However, the said authority, Chief Commissioner of Income Tax, added the impugned part in the said order that “no interest will be paid on the belated refund”.

Service Tax

When sales tax is paid on gross value of motor vehicles including accessories, no liability to pay service tax: CESTAT

THE appellant, an authorized dealer of Maruti Udyog Ltd is also an authorized service station. In the course of their business, they also purchase and sell various accessories of motor vehicles sold by them. The bills for these accessories are raised showing gross total value received from their customers and they discharge sales tax on such gross value. Revenue contended that since they are fixing accessories in the motor vehicles, such fixing has to be treated as providing services under the category of ‘authorized service station'.

See our columns Tomorrow for the judgements