Jurisprudentiol – Tuesday's cases

By Vijay Kumar

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

Customs authorities have no jurisdiction to decide matter with regard to eligibility of credit under DEPB scheme: CESTAT

IT is for the licensing authority to decide whether any particular export qualifies for the DEPB scheme or not. The Customs authorities, at best, can bring to the notice of the licensing authority the factual position and it is for the licensing authority to decide whether the export would qualify for the DEPB benefits or not. The Customs, on their own cannot decide upon the issue of eligibility to DEPB benefits of exports made by an exporter.

Income Tax

Whether proviso to Sec 201(1) comes into play only to negate imposition of penalty when AO is satisfied with sufficient reason for short deduction of TDS - YES, rules Delhi HC

THE Assessee was held to be an 'assessee in default' on account of short deduction and short payment of the taxes which ought to have been deducted at source in respect of reimbursements made to its employees such as watchmen, gardeners and sweepers. The appeals also pertained to the reimbursement of travel expenses of the employees of the assessee company on account of their travel to and fro their residences and office. It also pertained to the reimbursement of expenses incurred by the employees for journals, newspapers and periodicals.

Service Tax

Service Tax demand on Kings XI Punjab - CESTAT orders pre-deposit of Rs. 28 Lakhs.

IN the case payments made to the company in Sri Lank for signing up the foreign players, the service is classified by the impugned order in "Business Auxiliary service". For such classification, it is necessary to first conclude that players are providing input service to the appellant. This is an arguable matter. For the present, Tribunal is of the view that only about 10% of the payments made to players is for service rendered by them.

See our columns Tomorrow for the judgements