Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

Limitation under Section 11B of Central Excise Act, 1944, will not apply to rebate claim made under Central Excise Notification No. 19 of 2004: HC

WHAT is not prescribed in the notification cannot be imported into the said notification. No time limit has been prescribed in the relevant notification No.19 of 2004 dated 6.9.2004. When the statutory notification issued under Rule 18 does not prescribe any time limit, section 11 B is not applicable, and based on which the benefit cannot be denied to the petitioner.

Income Tax

Whether when a sum is awarded to assessee through a process of arbitration, interest received on such award is to be treated as income from other sources - NO, business income: HC

ASSESSEE is a Civil Contractor. In respect of a contract executed during 1986 to 1989, there was a dispute between the assessee and Lucknow Development Authority. Finally, the dispute was referred to an Arbitrator by the Court. On 22.12.1999, the sole Arbitrator made an award of Rs.12.65 lakhs along with interest at the rate of 6%, which was also upheld by this Court. During the assessment year under consideration in reassessment proceedings, the A.O. opined that the interest received on the award is an "income from other sources", and not an "income from business" as claimed by the assessee in the original return. The view taken by the A.O. was upheld not only by the First Appellate Authority but also by the Tribunal. Still being not satisfied the assessee has filed the present appeal.

Service Tax

Since Facilitation charges and additional handling charges are included in assessable value, they are not liable for Service Tax - Prima facie case in favour – Pre-deposit waived and Stay granted: CESTAT

THERE is an agreement for sale of the goods imported by the applicant on High Seas Sale basis. It has included facilitation charges and additional handling charges in the assessable value as per the agreement. Prima facie, these charges, are included in the assessable value, therefore, they are not liable for service tax.

See our columns Tomorrow for the judgements