Jurisprudentiol – Friday's cases

By Vijay Kumar

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

If assessee is providing taxable service, although they are exempt by way of notification, but have been exported, then assessee is entitled to take input service credit - demand of more than One Crore set aside: CESTAT

AS per Rule 5 of the CENVAT Credit Rules, 2004, if the assessee is providing taxable service although they are exempt by way of notification, but have been exported, then the assessee is entitled to take input service credit. Same view was taken by this Tribunal in the case of Dell International Services India Pvt. Ltd. vs. Commissioner of Central Excise, Bangalore - (2009-TIOL-1957-CESTAT-BANG)

Income Tax

Whether assessee who acquires franchise rights for enhancing its business income is entitled to claim depreciation on such rights - YES: ITAT

ASSESSEE Company is engaged in the business of dealing in foreign exchange, money transfer and wind power generation. During the year under consideration, the assessee company had acquired franchise from AFL Pvt Ltd (ALF) - filed its ROI claiming depreciation on franchise rights - During the course of assessment proceedings the AO took a view that depreciation was not available on such things - Aggrieved with the order of the AO assessee contended the issue before the CIT(A) who after analyzing the agreement of franchise allowed the appeal of the assessee.

Customs

Department files Early Hearing Petition six years after appeal was disposed of - Petition Dismissed: CESTAT

ON perusal of the records, the Tribunal found that the appeal had been disposed of in 2004, which shows that the departmental officers are not doing their duty properly before filing this type of application. In view of this, they are advised to check the records before filing any application.

See our columns Tomorrow for the judgements