Jurisprudentiol - Tuesday's cases

By Vijay Kumar

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

CENVAT - rule 2(l) of CCR, 2004 - whether ST paid by authorized dealer for sales and servicing of vehicles is an Input Service for manufacture of vehicle - terms and conditions of agreement entered into between applicant and dealer shows that sale and service is at cost of dealer - taxable service provided by dealer after sale of motor vehicles manufactured by applicant prima facie, therefore cannot be considered as input service - Pre-deposit ordered: CESTAT

THE appellant is engaged in the manufacture of motor vehicles which are sold to various dealers. The dealers are undertaking the service of vehicles during the warranty period and are liable to pay service tax in respect of taxable service provided by them.

Income Tax

I-T - Whether when assessee agrees to pay service tax separately, over and above technical or professional fees, service tax paid to service provider is not to be included in total sum for purpose of TDS u/s 194J - YES: HC

THE issue before the Bench is - Whether when the assessee agrees to pay service tax separately over and above the technical or professional fees, the service tax paid to the service provider is not to be included in the total sum for the purpose of TDS u/s 194J. And the answer goes against the Revenue.

Service Tax

Service Tax - Declaration of assessee as sick company by BIFR is sufficient cause under section 80 for wavier of penalties. Tribunal Order upheld: High Court

THE Questions before the High Court:

"1. Whether the declaration of the first respondent as a sick industry with effect from 31.12.2000 by the BIFR could be construed as "reasonable cause" for the purposes of invoking Section 80 of the Finance Act, 1994?

2. Whether the Tribunal was right in setting aside the penalty in full solely on the ground that the first respondent was declared as a sick industry with effect from 31.12.2000?"

See our Columns Tomorrow for the judgements