Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

Instructions on Adjudication: Tribunal expects a reasoned speaking and fair order to be passed: CESTAT

THE primary argument of the learned C.A. is that even after remand by the Tribunal in first round of litigation, learned authority has not done justice to the appellant.

The Tribunal has again remanded the matter with the observations that the Tribunal expects a reasoned speaking and fair order to be passed following due process of justice according to the guidelines of the Supreme Court laid down in para 7 of judgment in case of Joint Commissioner of Income Tax, Surat Vs. Saheli Leasing & Industries Ltd. - 2010-TIOL-37-SC-IT-LB.

Income Tax

Whether when central agency is engaged in combating money laundering, Income tax search based on inputs from such an agency would be against national interests - YES: HC

THE issues before the Bench are - Whether in a case of search & seizure, the Revenue can claim privilege for not disclosing the satisfaction note prepared on the basis of inputs received from the FIU; Whether disclosure of sources of such information would jeopardise public interest and Whether when a central agency is engaged in combating money laundering, income tax search based on inputs from such an agency would be against national interests. And the assessee's writ dismissed.

Service Tax

Laying of optical fibre cables for BSNL and other telecom service providers - Not taxable - Prima facie case made out - Pre-deposit waived: CESTAT

THE appellant has claimed that this activity does not amount to rendering of any service. CBEC Circular dated 24/5/2010 clarifies the issue which is in favour of the assessee. On considering the circular, this Tribunal in the case of Nicco Corporation Ltd . and in the case of Sanjeev Kumar Jain have taken a view which is in favour of the assessee. The appellant has made out a strong prima facie case for waiver of the predeposit of the amount involved. Application for waiver of predeposit of the amount involved is allowed and recovery thereof stayed till the disposal of the appeal.

See our Columns Tomorrow for the judgements