Jurisprudentiol - Monday's cases

By Vijay Kumar

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

Your customer's customer is not your customer - When a service is rendered to a third party at behest of your customer, service recipient is your customer and not third party - CESTAT

WHAT better way to examine and explain the issue involved to the Revenue than by giving the following example. “When a florist delivers a bouquet on your request to your friend for which you make the payment, as far as the florist is concerned, you are the customer and not your friend.”

The appellant, M/s Vodafone Cellular Essar Ltd., Pune, provided telecom services in India to international in-bound roamers registered with foreign telecom network operators but located in India at the time of providing of the said services and claimed rebate on the ground that the payment was received in convertible foreign exchange from the foreign telecom network operators and the services rendered should be treated as export of service under the Export of Service Rules, 2005. Their claims were rejected by the adjudicating authority against which they filed appeals.

Income Tax

Whether when assessee had not filed any objections to valuation report at proceedings stage or in remand proceedings before assessing authority, objection to same can be filed before Tribunal for first time - NO: ITAT

THE issues before the Bench are - Whether when the assessee had not filed any objections to the valuation report at the proceedings stage or in the remand proceedings before the assessing authority, the objection on the same can be filed before the Tribunal and Whether when the assessee has not produced any evidence for payment of brokerage, the deduction for the same can be allowed while computing sales consideration. And the verdict goes against the assessee.

Central Excise

If an assessee has to transfer inputs corresponding to transfer of entire CENVAT credit assessee can at any time clear the inputs on payment of duty and avail credit of same at different location - in such a situation provision of Rule 10 would be rendered redundant - Unutilized balance credit transferred without transfer of stock of inputs/capital goods is proper - Appeal allowed: CESTAT

THE appellant is having unit at Dolvi and is engaged in the manufacture of excisable goods viz. H.R.Coils & sponge iron. The appellants have one of their units located at Kamothe which was engaged in the activity of cutting/slitting of H.R. Coils into sheets/plates/strips. The CBEC vide circular No.811/08/2005-CX dated 02.03.05 withdrew its earlier circular dated 7.9.01 wherein it was clarified that the process of cutting or slitting of H.R. coils into sheets/plates/strips would amount to manufacture.

Consequently, Kamothe unit of the appellants surrendered their Central Excise Registration and transferred the unutilized balance credit of Rs. 2,01,49,097/- to their unit situated at Dolvi and the unit at Dolvi availed the aforesaid credit.

See our Columns Monday for the judgements