Jurisprudentiol - Wednesday's cases

By Vijay Kumar

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

Appellant had received income on account of transmission of music clippings in between running of programmes but had not included same in taxable value of ‘Broadcasting services' rendered: CESTAT

THE appellants are registered providers of taxable service of "Broadcasting Services". Audit of the records of the appellant for the period from July 2001 to September 2003 and October 2003 to November 2004 revealed that the appellant had received income on account of transmission of music clippings in between running of the programmes but had not included the same in the taxable value of the services rendered.

Income Tax

Whether search assessment can be made even when no incriminating material or evidence is seized at time of search - NO: ITAT

THE issues before the Bench are - Whether assessment can be made u/s 153A even when no incriminating material or evidence was found or seized at the time of search and there is no reference to the same in the AO's order; Whether merely because the payment for investment in property was made through the bank account, it can be presumed that the source is explained and verified and hence no addition on account of unexplained investment can be made and Whether in case of search in the absence of any incriminating material found during search, no addition can be made on the basis of Report of the DVO.

Central Excise

Cement remaining in bulker - consignee purportedly issuing challans evidencing short supply - appellant taking credit of duty paid on such quantity which was received back - since no documents produced by appellant to justify availment, not a case for total waiver - Pre-deposit ordered of Rs.10 lakhs: CESTAT

YOU may have heard of the consignee being denied CENVAT credit on the short supply of inputs received by them. One always wondered as to what happened to the inputs that went missing on the way…pilfered, evaporated or vanished into thin air! On occasions where the variation in weight occurs due to weighment at various weighbridges and also because of evaporation during transportation, the Tribunal has been allowing the credit of the duty paid on the entire quantity more so since there is no proof that the inputs were diverted.

See our Columns Tomorrow for the judgements