Jurisprudentiol – Tuesday's cases

By Vijay Kumar

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

Repairs, renovation, widening of roads etc. is not a ‘Commercial or Industrial Construction Service' - In view of clarification given by CBEC in Circular dated 23.02.2009, appellant has established a prima facie case in their favour - Pre-deposit waived and stay granted: CESTAT

THE appellant is engaged in the services of repair, renovation, widening of roads and construction of toll sheds, providing electrification of high mast poles at toll sheds etc. to various Government organizations. The department was of the view that the said services come under the category of 'Commercial or Industrial Construction Service' and, accordingly, a demand of service tax of Rs.67,79,026/- was raised and confirmed for the period 10.09.2004 to 31.03.2009. Penalties were also imposed u/s 76, 77 and 78 of the Finance Act, 1994.

Income Tax

Income tax - Whether trading undertaken by SEZ Unit for re-export of imported goods is to be construed as service, eligible for Sec 10AA benefits - YES, rules ITAT

THE issues before the Tribunal are - whether when the word 'services' is not defined either in Sec 10AA or in Sec 2 of I-T Act, it is to be understood as in the common parlance for allowing benefits; Whether trading is a service as per the SEZ Act, and since Sec 51 of the SEZ Act has non-obstante clause, it prevails over the I-T Act to allow Sec 10AA benefits and whether trading undertaken for re-export of imported goods is to be construed as service eligible for Sec 10AA benefits. And the verdict goes in favour of the assessee.

Customs

Detention of imported goods - Demurrage Charges - Since petitioner had failed to take delivery of consignment even after order of High Court ordering release of goods on PD Bond, Custom authorities cannot be directed to pay demurrage or container charges: HC

THE Writ Petition filed by the petitioner was disposed by the High Court with the direction that the samples should be drawn afresh and goods be released on furnishing P.D. Bonds and by also granting Detention certificate to the petitioner. The petitioner claimed that they had executed provisional duty bonds but the goods were not released for want of detention charges. The stand of the customs authorities was that they accepted the provisional duty bonds and the goods were cleared for home consumption. Detention certificates were issued by the Commissioner of Customs for the period 22nd March, 1991 to 29th May, 1991.

See our columns Tomorrow for the judgements