Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Import of coal from Indonesia - whether simultaneous benefit of Notification No.46/2011-Cus dated 1 June 2011 and No.12/2012-Cus dated 17 March 2012 is available - the petitioner to avail of benefits subject to giving a bank guarantee for 20% of the differential duty and bond for the balance amount: HC

IN their WP filed before the Bombay High Court, the petitioner states that the coal imported by them from Indonesia is entitled to the benefit of two customs duty exemption Notifications viz. No.46/2011-Cus dated 1 June 2011 and No.12/2012-Cus dated 17 March 2012 as these notifications are not mutually exclusive. Inasmuch as there is nothing in either of the notifications mentioning that benefits under any other notification cannot be availed of.

The department is denying the benefit of simultaneous exemption under both the notifications and restricting the benefit to only one of them. The petitioner vide a communication dated 4 July 2013 has been informed that in the Chief Commissioner's Conference held at Vizag on 5 June 2013, it was decided not to extend simultaneous benefit of two notifications.

Income Tax

Whether payments made towards reservation of school seats for children of frequently - transferred officers amount to perquisite, and the same is taxable - NO: ITAT

THE assessee, State Bank of India, a nationalized bank has raised the following grounds of appeal before the Tribunal against the order of the CIT(A). The assessee has paid to various schools towards reservation of seats for the children of the officers of the Bank. It was submitted that such amounts paid towards reservation of seats for the children of the officers of the Bank is in the nature of staff welfare expenses to mitigate the hardship faced by the officers of the Bank for children's education during transfer/re-location. However, the AO disallowed the same and observed that the assessee has committed irregularity by not including those payments in the perquisite of the employees.

Tribunal allowed the appeal.

Service Tax

ST - Appellant booking cargo space in shipping lines and, thereafter, allotting the space to their customers - Cargo space is not goods; therefore, booking of cargo space and trading in cargo space cannot be considered as supply/sale of goods and has to be considered as supply of services - Any activity other than supply of goods amounts to supply of service -Pre-deposit ordered: CESTAT

THE appellants are a freight forwarding agency and they are also registered as a multi-modal transport operator. They book cargo space in shipping lines and thereafter, they provide/allot the space to their customers. The department was of the view that the activity undertaken by the appellant comes within the category of "Business Auxiliary Services" and the appellant was promoting the service rendered by the shipping lines.

See our Columns Monday for the judgements