Jurisprudentiol - Friday's cases

By Vijay Kumar

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

Maintenance and repair of public roads and Government buildings - in view of retrospective amendment made by Finance Act, 2012 by way of insertion of sections 97 & 98 in FA, 1994, strong prima facie case for waiver of ST demand of Rs.73 lakhs - CESTAT

THE major portion of the demand is in respect of maintenance and repair of public roads and Government buildings, which are exempted from Service Tax with retrospective effect under the Finance Act, 2012. Therefore, the applicant has made out a strong prima facie case for waiver of Service Tax approximately Rs.73 lakhs. In respect of the demand of commercial construction, the construction is of administrative block of Municipal Corporation of Chandrapur and out of which certain area is used for commercial purpose and in respect of other demands such as Survey and Map Making services, site formation and clearance, excavation and earth moving and demolition services, the applicant had not made out case for complete waiver of pre-deposit.

Income Tax

Whether when assessee deals in real estate and undertakes transactions of sale and purchase of agricultural land for profits, such profits are to be assessed as business profits or are exempted as capital gains - taxable as business profits: ITAT

THE issues before the Bench are - Whether when the assessee deals in real estate and undertakes transactions of sale and purchase of agricultural land for profits, such profits are to be assessed as business profits or are exempted as capital gains - Whether when agricultural land is not a capital asset within the meaning of Sec 2(14)(iii), the profit from sale of such land cannot be claimed as capital gains.And the verdict goes against the assessee.

Central Excise

CENVAT denied on ground that duty was paid by consignor under cover of Supplementary invoices after detection of evasion by department suppression invoked in SCN - against similarly placed consignees located in and around Delhi, CCE, Delhi-III has dropped proceedings - pre-deposit waived and stay granted: CESTAT

AN amount in excess of Rs.29 lakhs has been confirmed by the adjudicating authority and upheld by the first appellate authority on the ground that the appellant is not eligible to avail the CENVAT Credit of duty paid by M/s Hero Honda Motors Ltd, Gurgaon on supplementary Invoices Dt. 11.6.2008 on the ground that the duty is paid by M/s Hero Honda Motors Ltd after the said violation was detected by the department and extended period of limitation has been invoked by alleging suppression, misstatement etc.

See our columns Tomorrow for the judgements