Jurisprudentiol - Thursday's cases

By Vijay Kumar

Central Excise

CENVAT - Consequent upon demand confirmed, R&D unit paying duty and Tractor unit taking credit on supplementary invoices - Credit denied by citing rule 7(1)(b) - Whether credit is admissible or not is to be decided at time of final hearing - Stay granted: CESTAT

THE applicants have two units, one is R&D unit and the other is tractor unit. Some parts are being manufactured in R&D unit, which are being transferred to tractor unit. When the goods were cleared by R&D unit to tractor unit, certain expenses were not included in the assessable value as per CAS-4.

Income Tax

Whether remedial amendments are normally not retrospective in nature and thus amendment to Sec 40(a)(ia) is not retrospective - YES: Delhi HC

IN the case of assessee there was late deposit of TDS. In the assessment proceedings AO observed that tax deducted at source prior to February, 2008 was required to be deposited by March, 2008 and TDS deducted in the month of March, 2008 had to be deposited before filing of the return. In such case assessee would not be entitled to expenditure actually incurred and would be disallowed and added back in the profit and loss account. CIT (A) confirmed the order of CIT (A). ITAT allowed the appeal of the assessee as the amount was paid much before the date on which return of income u/s 139(1) had to be filed. The issues before the Bench are - Whether the amendments made to Section 40(a)(ia) by Finance Act, 2010 is retrospective in effect as it is only a procedural change in the Act and Whether remedial amendments are normally not retrospective in nature. And the verdict goes against the Revenue.

Service Tax

Marriage as social institution existed much before religions came into being and, therefore, it is futile to argue that marriage is religious function - explanation inserted by Finance Act, 2007 is only by way of abundant caution and, therefore, insertion of same does not affect the levy of Service Tax on Mandap Keeper Service rendered in connection with marriages - ST payable: CESTAT

THE law itself recognizes registered marriage as a legally valid form of marriage and there is no religious sanctity attached to such registered marriages. Therefore, the mode of conducting the marriages either by following religious rituals or otherwise does not make marriage a ‘religious function'. Therefore, following the decision of the Tribunal in the case of Shri Gujarati Samaj Bhavan, it is held that the marriage is a social function and not a religious function.

See our Columns Tomorrow for the judgements