Jurisprudentiol – Tuesday's cases

By Vijay Kumar

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

Finalisation of Provisional Assessment - Bank guarantee encashed even before order of finalisation despatched to importer - Department directed to remit amounts to importer's bank accounts within seven days: High Court

THE Department's urge to collect what they think is revenue by means fair or foul, knows no limits of decency or law, as this case would reveal.

An order finalising provisional assessment was passed on 20.05.2013. A copy of this order was despatched to the importer at 12.53pm on 21.5.2013, while the bank guarantee was invoked at 11.37 am on 21.5.2013. So, once an order is passed, the Revenue immediately rushes to the bank to recover the duty demanded, even before the order is delivered to the importer, thereby preventing the importer from availing the appellate remedies the law has provided him with.

Income Tax

Capital gains - Whether for purpose of computing relief, assessee is required to first take recourse to Sec 70(3) and then only look at Sec 54EC - NO: Madras HC

THE issues before the Bench are - Whether for the purpose of computing relief, the assessee is required to first take recourse to Sec 70(3) and then only look at Sec 54EC and Whether provisions of Sec 54EC specify any particular nature of transfer of long-term capital asset. And the verdict goes against the Revenue.

Service Tax

Tour Operator Service - Appellant entering into agreements with various companies for providing services of transport of company employees from residence to office and back - benefit of notfn. 20/2009-ST not available as the notification excludes from its scope hire services - Pre-deposit ordered: CESTAT

THE appellant entered into agreements with various corporates in Nashik such as Glaxo Smithkline Ltd., Siemens Ltd., VIP Industries Ltd., and VTC Ltd. for transport of the company employees from their residences to their offices and back and collected service charges during the period 10/09/04 to 31/03/2007. The department was of the view that the said service is taxable under the category of 'tour operators ' service and accordingly issued a notice dated 05/10/07 inter alia demanding service tax of Rs. 4,50,425/-.The Asst. Commissioner of Service Tax, Nashik dropped the proceedings.

In revisionary proceedings, the Commissioner set aside this order and confirmed the service tax along with interest thereon and also by imposing equivalent amount of penalty.

See our Columns Tuesday for the judgements