Jurisprudentiol –Thursday's cases

By Vijay Kumar

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

Lord Balajee's Lodge liable to Service Tax - HC

LORD Balajee is the most popular God in India and millions of pilgrims visit the sacred temple to have a darshan of the Lord for a few seconds. Tirumala Tirupati Devasthanam (TTD) administers the temple and provides various amenities to the pilgrims including accommodation. Now, the question is whether this accommodation is liable to Service Tax under zzzzw – accommodation service.

Income Tax

Whether when assessee outsources manufacturing of pharma product for which raw materials are supplied by non-resident having interest in assessee company, conversion charges paid to jobworker attract provisions of Sec 194C - YES: HC

ASSESSEE, an Indian Company, marketed pharmaceutical products. It had outsourced one of its products to M/s.Torrent Pharmaceuticals Limited. The raw materials were supplied for the jobwork by a foreign company NOVA Nordisk, Denmark. It also transpired that the assessee company was a subsidiary of M/s NOVA Nordisk Singapore but had no direct contract or relationship with the Indian manufacturer.

Customs

Tribunal has no powers to go into vires of a notification and whether a notification issuing authority had power to issue such notification – A challenge to vires of notification could be made only before a High Court or Supreme Court - CESTAT

NO decision of any judicial forum or the orders of Government of India have been shown to show that an Additional Secretary to Govt. of India cannot issue a Notification in the name of Central Government. In any case, the challenge to this Notification on this ground has to be made only before High Court or the Supreme Court and not before a Tribunal.

See our columns Tomorrow for the judgements