Jurisprudentiol – Friday's cases

By Vijay Kumar

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CHALR- Those who passed examination under 1984 Regulations have no vested right for a licence under 2004 Regulations: HC

THE mere passing of an examination under the 1984 regulations did not confer a vested right to the grant of a licence. Upon the enforcement of the regulations of 2004 every applicant for the grant of a new licence must comply with the regulations which were made in the exercise of the statutory power conferred by Section 146(2). The requirement of passing an examination in additional subjects is based on an intelligible consideration which is to upgrade the skills and competencies of persons who seek to apply for a licence as CHAs. A person who seeks a licence after the enforcement of the Regulation of 2004 must therefore comply with the requirements of the new regulations.

Income Tax

Whether when State Electricity Board pays for transmission of electricity from point of generation to end-users, such payment constitutes rent as per provisions of Sec 194I - NO, rules ITAT

ASSESSEE, a Public Sector undertaking, is engaged in the distribution of electricity. It entered into purchase agreement with NTPC for buying electricity; the important aspect of this agreement was that the assessee owed the obligation to carry electricity from the point of generation to the point of consumption. In order to carry the electricity the assessee in association with other electricity distributors entered into an agreement with Power Grid Corporation India Ltd (PGCIL) - Assessee paid charges to the PGCIL for transmitting electricity from the transmission lines, the ownership of these lines were with PGCIL - AO was of the view that the assessee was under obligation to deduct tax at source on the payments made to PGCIL and hence liable for interest and penalty as per the provisions of section 201 and 201(A), and accordingly he declared the assessee in default

Service Tax

If service tax paid on services obtained from foreign commission agents is admissible as credit, then service tax paid on commission agent's services within country would also be admissible as credit: CESTAT

THE appellant cleared finished goods on payment of excise duty on transaction value. Revenue was of the view that the appellant was not eligible to avail credit of service tax paid on commission agent's service, as the said service had no nexus with manufacturing activity and clearance of final products from place of removal. Service tax credit amounting to Rs. 4.14 lakhs was demanded with interest and penalty imposed.

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