Jurisprudentiol Tuesday's cases

By Vijay Kumar

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

Appellant collecting consideration for plant operation and maintenance and discharging tax liability - clients supplying electricity free of cost for said service the fact that cost of electricity used in manufacture of oxygen has to be considered in determining excise duty payable on oxygen does not mean that cost of electricity has also to be considered in determining value of taxable services - CESTAT directed to hear appeal on merits without insisting on any pre depos it: HC

THE appellant entered into an agreement with their customers M/s Sunflag Iron & Steel Co. Ltd., Bhandara and M/s Lloyds Steel Industries Ltd., Wardha for plant operation and maintenance and for the services rendered they had received consideration from the clients on which service tax liability was discharged.

Income Tax

Income tax - Whether when taxable income is enhanced either under Ss 147 or 263, assessee is liable to pay interest u/s 234B - YES: HC

THE issues before the Bench are - Whether when assessment is made for the first time u/s 147 it is to be construed as a regular assessment and Whether when taxable income is enhanced either under Ss 147 or 263, assessee is liable to pay interest u/s 234B. And the verdict goes against the assessee.

Central Excise

Petitioners could not point out any legal provision requiring authorities to first adjudicate notice issued regarding confiscation and then only they could have issued show cause notice regarding recovery of dues and penalty contention raised is wholly misconceived Writ Petition dismissed: HC

A textbook case booked against an assessee who manufactures and clandestinely removes goods usually goes thus. The clandestinely removed goods are seized and the investigation agency gathers evidence to prove that the assessee has been doing this surreptitiously for long. So, after recording of statements and gathering other corroborative evidences, a demand notice is issued demanding duty that escaped assessment for the past five years. But before this demand is issued, priority is given to the demand notice that has to be issued in respect of the goods that have been seized, all thanks to the provisions of section 110 of the Customs Act, 1962.

See our columns Tomorrow for the judgements