Jurisprudentiol - Tuesday's cases

By Vijay Kumar

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

ST - Collection of Passenger Service Fees (PSF) from passengers on behalf of Airports Authority of India and depositing the same with AAI – collection charges obtained thereon from AAI is prima facie chargeable to Service Tax under the category of “Business Support Services” and not BAS – Pre-deposit of ST of Rs.1.05 Crores waived and stay granted: CESTAT

JET Airways is the applicant seeking a Stay of the Service Tax demand of Rs. 1.05 Crores confirmed against them along with interest and penalties by the CCE, Thane-II.

Income Tax

Income tax - Whether when the genuineness of the transaction is not in doubt, even then 20% disallowance is warranted for violation of Sec 40A(3) - YES: ITAT

THE issues before the Bench are - Whether when the genuineness of the transaction is not in doubt, even then 20% disallowance is warranted for violation of Sec 40A(3) and Whether the disallowance made u/s 40a(ia) can be made only on the amounts payable by the assessee. And the answers go against the assessee.

Central Excise

Notfn. 10/2006-CE -Central Railway Printing Press, Mumbai is engaged in printing of registers, accounts books, various forms, order books, receipt books and similar articles – there is no evidence on record to show that the goods in question are capable of being bought and sold in the market - Prima facie strong case in favour – Pre-deposit of C.Ex. duty of Rs.2.18 Crores along with penalty and interest waived and stay granted: CESTAT

HEREIN below is the Table extracting the entries as appearing in the Notification 10/2003-CE dated 01.03.2003.

See our columns Tomorrow for the judgements