Jurisprudentiol - Wednesday's cases

By Vijay Kumar

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

Appellant paying VAT to the State Government on sale of SIM cards and under bona fide belief Service Tax was also paid under the same challans - later, amount transferred to Central Government account - matter remanded for verification: CESTAT

THE facts of the case are that the appellant are engaged in the activity of selling of SIM cards and registered with the service tax department. They are paying service tax regularly but not on proper challans of the Central Government, but they are depositing the same to the State Government and not filing their regular returns. Therefore, a show cause notice was issued for demand of service tax which was adjudicated ex-parte as the appellant did not respond to the show-cause notice as well as to the notice of hearing.

Income Tax

Income tax - Whether assessment orders passed on wrong assumption of facts, on incorrect application of law and without due application of mind are not beyond scope of Section 263 - YES, rules HC Larger Bench

ASSESSEE is assessed for the assessment year 2002-03 by the Assessing Officer (AO) giving benefit of exemption under Section 54F of the Income Tax Act, 1961 for long term capital gains from sale of shares. The shares were purchased on 21.4.2000 for Rs.19,536/- and sold on 2.5.2001 for Rs.6,36,640/- i.e. on the increased price of more than 30 times in one year. The Commissioner of Income Tax (CIT) held the order to be erroneous and prejudicial to the interest of revenue and exercised suo motu revisionary jurisdiction under Section 263 of the Act.

Central Excise

Merely because the Ready Mix Concrete has been transported by using dumpers from the Batching Plant installed at the site to various places in the site, it does not mean that the goods are not produced at the construction site - Notfn. 4/97-CE does not prescribe any spatial dimensions/restrictions for the site - prima facie benefit of notification available - Pre-deposit waived and recovery stayed: CESTAT

THE appellant availed benefit of Notification No. 4/97-CE dated 1.3.1997 which granted exemption to concrete mix manufactured at the site and used in the site. Since the site area is large, Batching Plant was set up in one part of the site and the concrete mix manufactured is transported to the other parts of the site for construction of civil structures. The department was of the view that the exemption is not available and accordingly issued and confirmed a demand notice of Rs.10.72 lakhs and imposed penalties and interest.

See our columns Tomorrow for the judgements