Jurisprudentiol – Thursday's cases
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Gold mountings and findings being items as jewellery are outside purview of Notification No. 62/2004-Cus; Board Circulars are binding only when they are in accordance with Law - CESTAT
WHILE the Board under Section 151 (a) of the Customs Act, can issue clarifications with regard to classification of a product or scope of an exemption notification, by such clarifications, the Board cannot expand the scope of an exemption notification issued by the Central Government under Section 25 (1) of the Customs Act, 1962 as the Board is after all an office, subordinate to the Government of India. Constitutional Bench of the Supreme Court in the case of CCE, Bolpur vs. Ratan Melting & Wire Industries reported in () has held that Circulars of the Board are binding only when the same are in accordance with the law.
Income Tax
Whether, for full and true disclosure of information, onus is on assessee to ensure that vital information for AO are not hidden in documents furnished with return - YES, rules Bombay HC
THE mere production of account books or other evidence from which material evidence could with due diligence have been discovered by the AO does not necessarily amount to a disclosure within the meaning of the first proviso to Section 147. The nature of the material produced and the circumstances in which it was produced assumes some significance.
Service Tax
There is nothing in law which requires that input services ought to have been used in factory where credit is taken - Stay granted: CESTAT
INPUT Service – Stay/Waiver of Pre-deposit - Denial of CENVAT credit on the ground that the appellant had received ISD invoices from Head Office pertaining to input services not used in or in relation to manufacture of goods at Borivali plant is not warranted in law - till the time rule 7 is amended only two conditions have to be satisfied for distribution of credit - first is that the credit should not exceed the amount of service tax paid and second restriction is that the credit should not be attributable to services used in the manufacture of exempted goods or exempted services - Pre-deposit waived and recovery stayed.
Until Tomorrow with more DDT
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