Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Appeals – Commissioner (Appeals) ordered pre-deposit of 10% and 50% of demand on two appellants sans a hearing - No infirmity: HC

THE Commissioner (Appeals) considered the grounds of appeal and waived the condition for entertaining the appeals by restricting the pre-deposit amount to 10% and 50% respectively. No infirmity is discernable with the impugned order passed by the first respondent”.

Income Tax

Whether wheeling charges paid for transmission of electricity can be construed as rental income within provisions of Sec 194I - NO, rules ITAT

ASSESSEE is a Public Limited Company, doing trading of electricity - it purchased power from the generators of electricity and sold the same to the distribution companies which in turn distributed the powers to consumers. The assessee for the purpose of carrying power from the generation point to the end of distribution companies utilized the transmission lines of some company and paid them - During the course of assessment proceedings the AO was of the view that payments made by the assessee were in the nature of rent and hence attracted the provisions of section 194I and hence the assessee ought to have deducted TDS on these payments.

Service Tax

Appellants claim before original authority that in terms of Rule 5 of CENVAT Credit Rules, credit was eligible to them irrespective of whether services exported by them were taxable or not, not dealt with by original authority or lower appellate authority - Matter remanded: CESTAT

THE appellant's submission that payments were made to the input service providers electronically and the bank statements submitted to prove the payments along with hard copies of invoices from the said input service providers corroborating payments for service charges and service tax also deserves to be considered afresh by lower authority.

See our columns Monday for the judgements