Jurisprudentiol - Thursday's cases

By Vijay Kumar

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

Non-payment due to different interpretation - No deliberate violation; no penalty: CESTAT

THIS is a Revenue appeal. And the service tax involved is a princely amount of Rs.86,198/-, an equivalent amount of penalty u/s 78 and another Rs.2000/- of penalty u/s 77 of FA, 1994, all of which were dropped by the Commissioner(Appeals) way back in the year 2008.

Income Tax

Whether when assessee has received only advance payment against sale transaction, Revenue is right in law to bring entire sum to tax in same year - NO: HC

THE issues before the Bench are - Whether when assessee has received only advance payment against a sale transaction, Revenue is right in law to bring entire sum to tax in same year and Whether when there is no evidence that borrowed capital has been used for the purchase, the gain on sale of such asset can be taxed under the head 'Profits and Gains for Business & profession'. And the verdict goes against the Revenue.

Customs

Import of ‘Hydraulic Piling Rig' - To equate MMRDA with a road construction corporation would be an insult, both to common sense and to said organization, especially when one considers vast and varied nature of activities undertaken by said authority - CESTAT.

PRIOR to budget 2012, benefit of customs duty exemption on road construction equipment was not available in cases where the contract for such construction was awarded by a Metropolitan Development Authority. Thus the appellant in the present case is not eligible for the benefit of duty exemption under notification No. 21/2002-Cus

See our Columns Tomorrow for the judgements