Jurisprudentiol – Friday's cases
Legal Corner Icon — the image was hosted by the publisher and was not captured.Central Excise
Taking credit of CVD paid on chassis and paying duty on vehicle by treating same as ‘manufacturing activity' objected to by Dept – No cause for denial of CENVAT Credit - Stay granted: CESTAT
THE Revenue wants to deny the credit of Central Excise duty in respect of chassis imported by the applicants on the ground that the process undertaken by the applicants does not amount to manufacture. As the applicants have paid the duty by reversal of the credit at the time of clearance of motor vehicles, prima facie, the applicants have strong case in their favour…
Income Tax
Whether when charitable body pledges FDRs to enable two other registered Societies to obtain loan from bank, such activity results in violation of Sec 13(1)(c) - NO, rules Delhi HC
THE respondent is a society, which is registered u/s 12A and Section 80G. It undertakes activities relating to research, development and dissemination of (i) Technologies for fulfillment of basic needs of rural households (ii) Solutions for regeneration of natural resources and the environment and (iii) Community based institution strengthening methods to improve access to for the poor. These activities include projects on development of alternatives like low cost building material, smoke free cook stoves, water supply and purification, sanitation, organic farming, adaptation to climate change and issue based awareness creation programmes. The assessee had FDRs of Rs.12,00,000/-, which were placed as collateral security for allowing credit facility to two societies. These two societies were also carrying on charitable work. As per the findings recorded by the tribunal, some members of the management committee of the respondent society and these two societies were common.
Service Tax
If there were divergent views necessitating need for an issue of 37B Circular, prima facie , appellant have made out case to show that they were under bona fide belief that services rendered by them were not taxable – Stay granted: CESTAT
THE very purpose of issue of Circular under section 37B is to ensure that there is uniformity in the classification of excisable goods in this case service tax. If there was divergent views and, therefore, there was a need for an issue of Circular, prima facie, the appellant have made out a case to show that the appellants had a bona fide belief that the services rendered by them were not taxable prior to 16.07.2001. Since this would also require a detailed consideration of law and facts to examine whether this prima facie view is correct or not, in the interest of justice, pre-deposit is required to be waived and stay against recovery of the dues during the pendency has to be granted.
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