Jurisprudentiol - Wednesday's cases

By Vijay Kumar

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

Applicant collecting rent and paying service tax under category of ‘Renting of Immovable Property Service' - however, electricity charges collected from tenants not included in value of taxable service - as electricity is ‘goods', said charges may not form part of taxable value in terms of notfn. 12/2003-ST - Prima facie case made for waiver of pre-deposit of adjudged dues of over Rs.5.70 Crores - Stay granted: CESTAT

THE applicant is the owner of premises, which have several units and were given on rent to various persons. On this rent collected, the applicant is paying Service Tax under the category of ‘Renting of Immovable Property Service'. They are also involved in the activity of maintaining and repairing of the building and the applicant are paying Service Tax on this activity also. The department is more than happy to receive these Service Tax payments on time. However, the CCE, Pune-III has an objection to another activity which the applicant does, objection to the fact that the applicant is not diligent in including the following charges collected from their tenants while paying Service Tax on the activity of ‘Renting of Immovable Property'. Inasmuch as the applicant is under an obligation to supply electricity to their tenants and for that a common electricity connection has been taken by the applicant from MSEB and separate meters have been installed in each of the premises and on the basis of reading in the meter the applicant is charging electricity charges from the tenants. Further, when electricity is not being supplied by MSEB, the same is supplied through DG set to the tenants and on that also they are charging electricity charges from the tenants.

Income Tax

Whether when assessee submits revised return after making self-assessment u/s 140A, he is liable to pay interest u/s 220(6) from date of his filing revised returns - NO, from date of determination of his final tax liability: HC

THE issues before the Bench are - Whether when the assessee submits revised return after making self-assessment u/s 140A, he is liable to pay interest u/s 220(6) from the date of his filing revised returns or from the date of determination of his final tax liability and Whether a notice u/s 156 is obligatory if any interest liability is determined to be due from the assessee. And the verdict goes in favour of the assessee.

Central Excise

Writ Petition - Entertaining of - It is unfortunate that learned Tribunal should have converted itself to departmental Tribunal giving total go by to principles of fair play in action: HC

THE Petitioner has challenged the order dated 21st March, 2012, passed by the Tribunal by holding as-

"…..the Department itself is questioning the legality and propriety of the impugned order. Therefore, it is expedient to set aside the impugned order and remand the matter to the Original Authority for a fresh decision".

The High Court observed, "With the greatest of respect to the Tribunal, it is absolutely shocking that an appeal should be remitted on the sole ground that the Department had questioned the legality and the propriety of the order impugned".

See our columns Tomorrow for the judgements