Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Club or Association Services - Common Effluent Treatment Plant set up and charges collected from members in relation to common facilities set up for treatment and recycling effluent and solid waste - in view of retrospective exemption granted by Finance Act, 2012, pre-deposit of Rs.2.76 Crores demand waived and stay granted: CESTAT

A Service Tax demand of more than Rs.2.76 Crores (the CESTAT order mentions it as Rs.2,76,74,8767/- - now how much is that? ) was confirmed against the appellant "Common Effluent Treatment Plant" [CETP] by the Commissioner of Service Tax, Mumbai-II along with the usual penalty and interest. The demand was confirmed on the ground that the appellant provided Club or Association services to their members and which is a taxable service.

Income Tax

Whether when assessee has applied for lower TDS rate u/s 197, it can be held to be in default for deducting TDS at lower rate from advance rental payment made before issue of TDS Certificate - NO: ITAT

THE issues before the Bench are - Whether when the assessee has applied for lower TDS rate u/s 197, it can be held to be in default for deducting TDS at lower rate from advance rental payment made before issue of the TDS Certificate and whether when the certificate issued u/s 197 is valid for the entire year, deduction of TDS at lower rate cannot be construed as default on behalf of the assessee. And the verdict goes against the Revenue.

Central Excise

No decision given on Interest liability in final order - ROM application filed by appellant allowed and benefit granted: CESTAT

THIS is a ROM application filed by the appellant against the final order passed by the CESTAT.

It is the submission of the appellant that there is an inherent error in the final order of the Tribunal inasmuch as the Bench had held that the amount paid before issuance of Show Cause Notice being eligible to be availed as a CENVAT Credit by their sister unit, there is no revenue loss and being a revenue neutral situation, no penalty is imposable, but had not given any decision on the interest liability, which had been confirmed by the adjudicating authority and upheld by first appellate authority.

See our columns Monday for the judgements