Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

CENVAT - Service tax paid on charges for transportation of children to school and tuition centres - prima facie not an Input Service - Pre-deposit ordered: CESTAT

THE appellant has taken CENVAT credit of Rs. 65,58,369/- in respect of Service tax paid on hiring of buses for transportation of the employees from home to the factory and back, hiring ambulance for taking injured employees for treatment & hiring of buses for children of the employees for transportation to the schools and tuition centres.

Income Tax

Whether when original and reassessment orders passed by AO are completely silent on levy of interest, same can be claimed later by merely issuing demand notice - NO: High Court

THE issues before the Bench are - Whether when the original and reassessment orders passed by the AO are completely silent on the levy of interest, the same can be claimed later by merely issuing a demand notice; Whether when there is no return filed within time or if advance tax is not paid within time, only then interest payable u/s 234A or 234B is mandatory and Whether when the AO passes a wrong order not to levy the interest, then the same can be claimed only after the said order is set-aside and a fresh order is duly passed directing payment of interest. And the verdict goes against the Revenue.

Central Excise

Common input services used and no separate records are maintained - demand under rule 6(3)(b) of CCR, 2004 - since rule 6 amended retrospectively, proportionate credit ordered to be paid as pre-deposit for obtaining stay: CESTAT

APPLICANTS are engaged in the manufacture of pig iron. For the purpose of manufacture of pig iron, applicants are purchasing iron ore and metallurgical coke as basic inputs and during the process of screening, iron ore fine and coke breezes come into existence. Applicants were clearing iron ore fines and coke breezes without payment of duty. The case of the Revenue is that as the applicants were taking credit in respect of common inputs, therefore applicants are liable to pay 5%/10% of the price of the exempted goods as applicants are not maintaining separate records.

See our columns Wednesday for the judgements