Jurisprudentiol - Wednesday's cases

By Vijay Kumar

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

Prevention of Money Laundering Act, 2002 (PMLA) - PMLA, not only seeks to punish offenders, but also seeks to punish victims of such offences - Provisional Attachment Order and Confirmation Order are set aside as null and void: HC

PMLA, not only seeks to punish the offenders, but also seeks to punish the victims of such offences - Section 8 of PMLA in its entirety is accused-centric and Central Government-centric - It does not take into account the plight of victims of crime - There is an inherent lacuna in the PMLA - The very object of the PMLA is completely different from what the respondents (ED) are now attempting to do - The Statement of Objects and Reasons of the PMLA would show that the primary object for which the Act came into existence was for prevention of laundering of proceeds of drug crimes committed by global criminals/terrorists, involved in illicit trafficking of narcotic drugs and psychotropic substances - The more and more the Act is used for tackling normal offences punishable under the Indian Penal Code, committed within the territories of India, the result would be disastrous to the victims of crime - Therefore, Sections 5, 8 and 9 cannot be used by the respondents to inflict injury upon the victims of the crime - the provisional order of attachment as well as all the order of confirmation are set aside as illegal.

Income Tax

Whether transfer of shares at cost by Indian subsidiary to non-resident parent as part of group restructuring scheme can be construed as bogus transaction: NO: ITAT

THE issues before the Bench are - Whether Service tax paid in pursuance of a show cause notice can be disallowed on the ground that the liability has not crystallized; Whether the cost of acquisition accepted in previous years is to be re-computed on account of high premium paid to associated enterprise and whether transfer of shares at cost by the Indian subsidiary to its non-resident parent as part of a group re-structuring scheme can be construed as a bogus transaction.

Service Tax

Appeal against revision orders passed by Commissioner after 19.8.2009 - Appealable to Tribunal: CESTAT

THE issue to be decided in this batch of cases is whether this Appellate Tribunal has jurisdiction to deal with the appeals, all of which are directed against revisionary orders passed after 19.8.2009 by Commissioners of Central Excise under the erstwhile Section 84 of the Finance Act, 1994.

See our columns Tomorrow for the judgements