Jurisprudentiol - Friday's cases

By Vijay Kumar

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

ST - Appellant, a co-operative bank, taking possession of factories in terms of SARFAESI Act and leasing out same - lease rents received are prima facie liable to Service Tax as transaction falls within the definition of "Renting of Immovable Property" - as amount already paid, though under protest, same is sufficient for hearing appeals - Stay granted: CESTAT.

THE appellant, Maharashtra State Co-operative Bank Ltd. is engaged in rendering of Banking and financial services. The appellant had given a loan to Raje Vijay Singh Dafale Sahakari Sakhar Karkhana Limited and Tasgaon Taluka Sahakari Sakhar Karkhana Ltd. Both of them defaulted in payment of their outstanding dues.

Income Tax

IT - writ - Sections 11, 12A, 12AA, 142(2), 143(2), 147, 148 - reasons to believe - Whether an assessment order can be declared as void in case it does not mention any detail about core issue to be adjudicated - Whether an assessing authority on basis of some other authority's observation, believe that assessee's income has escaped assessment and issue notice of reassessment u/s 147.

ASSESSEE, a trust, has challenged the legality and validity of notice issued u/s 148 as also sought a writ in the nature of certiorari for quashing the order whereby the objection against the aforesaid notice had been dismissed. A further writ of mandamus directing the Addl. CIT to drop the reassessment proceedings against the petitioner for the AY 2006-2007 had been sought for.

Central Excise

CX - Revenue alleging that manufacturers were required to supply goods at Nil rate of duty as per Notfn 44/2001-CE (NT) but since they paid duty, same cannot be availed as CENVAT Credit as it has to be treated as deposit - Notfn. and connected rules do not require appellant to necessarily clear goods duty free - overall there is no loss to Revenue as credit is being taken of duty paid - Appeals allowed: CESTAT

THE facts of the case are the appellants are holder of Advance Licence/Advance Authorization. They are clearing their final products in the domestic market as well as export. Under the Advance License/Advance Authorization Scheme, the appellants either imports the raw material or procures it from local manufacturers under Advance Release Order (ARO) or Invalidation letter issued by DGFT, against the said License/Authorization.

See our Columns Friday for the judgements