Jurisprudentiol - Friday's cases

By Vijay Kumar

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

CHA Licence Examination - Those who passed Examination under 1984 Regulations need not again write examination under 2004 Regulations: HC

SUPREME Court, in Sunil Kohli and Ors. Vs. Union of India and Ors (2012-TIOL-45-SC-CUS) held, "The language of that section and other provisions of the Customs Act do not indicate that the Board is empowered to make Regulations with retrospective effect. Therefore, the 2004 Regulations would operate prospectively and would not in any manner effect the eligibility and entitlement of those who had qualified the examination held under the 1984 Regulations for rant of licences to act as Custom House Agents". In view of the submissions made by the learned counsels appearing for the parties concerned and in view of the decision of the Supreme Court cited supra, the writ petition is allowed.

Income Tax

Whether when society is once granted registration u/s 12A, same cannot be withdrawn with retrospective effect even if there is tangible evidence to establish that society has entered into commercial agreement with profit motive - YES: ITAT

ASSESSEE, Mumbai Cricket Association (MCA), is a Society registered under Societies Registration Act. It has been enjoying registration of section 12A since 1975. For the year under consideration, the DIT (Exemption) denied the registration of section 12A on the ground that assessee was no more charitable as it had entered into commercial activities, with some other concern namely (SI), such as running of Banquet Halls, recreation clubs Etc. Aggrieved with the order of the DIT, assessee filed appeal before the Tribunal and raised a plea that provision of section 12AA(3) was prospective and could not be applied for those years when the same was not in the statute book. The DR pointed out that though the assessee has delegated the commercial activities to some other entity however, the assessee was fully controlling the commercial activities as was evident from the clauses of the agreement. It was also pointed out that the MMRDA had allotted land only for carrying out charitable activities.

Service Tax

Since 'cargo handling services' were being provided by appellants as an extension to services of beneficiation of coal, there could be a doubt on part of appellants that ST is not payable - penalty waived in terms of s.80 of FA, 1994: CESTAT

THE appellant entered into an agreement with Gujarat State Electricity Corporation Ltd., Maharashtra Electricity Generating Company and Reliance Energy Ltd., Mumbai for executing the work of beneficiation/washing of raw coal at its coal washery. After washing of raw coal, the cleaned coal and rejects are returned to the said parties for their captive consumption. The department felt that this "washing" activity is a taxable service classifiable in the category of "Business Auxiliary Services".

Central Excise

Commissioner (A) passing an order in favour of assessee on three counts - Revenue while filing appeal before CESTAT challenging the order only on one count - deciding the only issue raised in grounds of appeal is merely academic - Appeal dismissed: CESTAT

FROM the grounds of appeal, the Revenue challenged the order only on one count i.e. the input-output norms are fixed and as per the norms waste and scrap @ 24% of the inputs in respect of the 100% EOU and is authorized to clear the goods to DTA. However, in this case the generation of the scrap is 24.46%. The Revenue has not challenged the impugned order in respect of the other two findings. Therefore, deciding the only issue raised in the ground of appeal is merely academic. No merit in the appeal. The appeal is therefore dismissed.

See our columns Tomorrow for the judgements