Jurisprudentiol - Tuesday's cases

By Vijay Kumar

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

CENVAT - It is an admitted fact that prior to 10/09/2004 appellant was not registered as an output service provider - Then question of availing or taking any credit in respect of input service received prior to 10/09/2004 would not arise ab initio: CESTAT

PRIOR to 10.09.2004 only output service providers were eligible for taking input service credit. With effect from 10/09/2004, these restrictions were removed and service tax credit was made available to manufacturers to excisable goods also.

Computerized data processing is excluded from scope of BAS: CESTAT

THE activity undertaken by the appellant in the instant case is, processing of the transactions of their client electronically. It is also a fact that the appellant is not interacting with the bank's customers for collection of any data. The data already collected by the bank in their various branches are electronically processed by the appellant. Since computerized data processing is specifically excluded from the scope of BAS as per explanation thereof, the question of confirmation of demand under BAS prima facie does not arise.

Income Tax

Whether legal fiction created u/s 50 can also curb application of Sec 54EC if assessee makes investment in tax-free bonds - NO: HC

THE issues before the Bench are - Whether the legal fiction created u/s 50 can also curb application of Sec 54EC if assessee makes investment in tax-free bonds and whether exemption benefit u/s Sec 54EC available for depreciable assets can also be availed on short-term capital gains. And the verdict goes against the Revenue.

Central Excise

When two exemption Notifications are available to an assessee, he can always opt for Notification, which is most beneficial for him: CESTAT

WHEN two exemption Notifications are available to an assessee, he can always opt for the Notification which is most beneficial for him and in this regard the Department cannot force the assessee to avail a particular exemption Notification. Looked at from this point of view, the Department's stand is incorrect.

See our Columns Tomorrow for the judgements