Jurisprudentiol - Monday's cases

By Vijay Kumar

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

Excise duty paid on Inputs and Service Tax paid on Input services used in the construction of immovable property can be taken and utilized for discharging ST liability on the renting of such immovable property -prima facie case in favour -Stay granted from recovery of CENVAT Credit of Rs.6.48 Crores: CESTAT

THE appellant are engaged in rendering the taxable service of ‘renting of immovable property' and they discharge service tax liability. They availed CENVAT credit of various services used for construction of the said mall and utilized the credit for payment of service tax on renting of immovable property services. The CBEC vide Circular No.96/7/2007-ST dated 23/08/2007 as amended by Circular No 98/1/2007-S.T., dated 04/01/2008 inter alia clarified that Input credit of service tax can be taken only if the output is a 'service' liable to service tax or a 'goods' liable to excise duty; that since immovable property is neither 'service' or 'goods' input credit cannot be taken. Accordingly, a show cause notice was issued to the appellants proposing to deny CENVAT credit.

Income Tax

Whether registration u/s 12A can be denied to an educational institute merely because it has not filled EWS quota seats with adequate numbers - NO: ITAT

ASSESSEE is a society running school under the name and style of “The Sanskirit”, it has been granted registration of 12A long back and assessee was enjoying the same. However in the impugned year the assessee has been denied the registration of 12A, on the ground that the assessee has not fulfilled the EWS seats reserved for economic weaker section- Assessee challenged the order of the DIT before Tribunal and argued that there is no evidence on record which could prove that the assessee has denied admission to any EWS student and the fact of the matter is that because of the situation of the school the number of students from EWS are not coming for admission in school- The AR of the assessee also pointed out that monitoring authority that is Directorate of Education has also given clean chit to the assessee in this regard.

Customs

Evidence is weighed and not numbered is the cardinal principle of rule of evidence - Revenue has not produced any evidence that the foreign currency is sale proceeds of the smuggled goods through illicit means - confiscation of the foreign currency is not sustainable: CESTAT

HOLDING that the appellant has been able to prove that the foreign currency is obtained by them against an export order and the goods have exported against that export order, confiscation of the foreign currency under Section 111(d) of the Customs Act was held as not sustainable.

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