Jurisprudentiol – Tuesday's cases

By Vijay Kumar

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

Exemption to Education Cesses on goods cleared from Jammu and Kashmir under Notification No 56/2002 CE - Whether matter needs to be referred to Larger bench - NO - CESTAT by majority.

GOODS manufactured in Jammu and Kashmir are exempted under Notification No 56/2002 CE dated 14.11.2002. The exemption is provided by way of refunding the duty paid other than from CENVAT credit account. The dispute is whether Education Cess and Secondary Education Cess are also to be treated as exempted.

When a matter is to be referred to Larger Bench, matter is required to be put up before President for decision - When a Bench presided over by the President has taken a decision on one issue not to refer it to a Larger Bench, same issue in other appellant's cases is not required to be referred to Larger Bench.

Income Tax

Whether an employer is competent to determine the allowances, which are exempt from tax - NO: Allahabad HC

ASSESSEES, Development Officers, are employees of LIC of India. They were informed by their employer that TDS was to be deducted on conveyance or additional conveyance allowance to be paid to them. Protesting the same the assessees went in writ. The issues before the Bench are - Whether perquisites are excluded from purview of Sec 10(14); Whether conveyance or additional conveyance allowance is covered by the expression 'perquisite' and the same is taxable and Whether an employer is competent to determine the allowances, which are exempt from tax. And the verdict goes against the assessees.

Service Tax

Commercial Training or Coaching Services - Assessee who had already deposited Rs. 29 Crores for earlier period directed to deposit another Rs. 25 Crores: HC

AS per the first proviso to Section 35F of the Central Excise Act, pre-deposit of the duty demanded or penalty levied can be waived where the Appellate Tribunal is of the opinion that such deposit would cause undue hardship to the applicant. The condition of pre-deposit of Rs.25 Crores was imposed on proper exercise of the discretion vested in the Appellate Tribunal and on proper appreciation of the facts and circumstances of the case. Therefore, the impugned order which cannot be treated either arbitrary or irrational, warrants no interference on any ground whatsoever. Petitioner to remit the pre-deposit amount of Rs.25 Crores in two instalments

See our Columns Tomorrow for the judgements