Jurisprudentiol - Monday's cases

By Vijay Kumar

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

Commercial Training & Coaching Service - Courses are academic in nature and covers broad spectrum of subjects as diverse as Micro Economic, Business Communication, Psychology & Organizational Behaviour, Commercial Laws etc. - benefit of Notification No. 24/04-ST dated 10.9.2004 not available: CESTAT

THE appellants are conducting a two year course in Post Graduate Diploma in Management (PGDM) at their Sadhana Centre for Management & Leadership Development (SCMLD), Pune. Appellants are registered as a provider of service under Commercial Training & Coaching and accordingly paid Service Tax relating to the said course during 2004-05.

Later, they filed a refund claim of Rs.8,56,522/- on the grounds that they were not liable to pay the service tax for period other than 1.7.2004 to 9.9.2004. The said claim was on the grounds that they are entitled to exemption under Notification No. 24/04-ST dated 10.9.2004, their course being Vocational Training.

Income Tax

Whether investment made by bank to comply with SLR requirement would constitute stock in trade and depreciation in value of same is allowable deduction - YES: ITAT

The issues before the Bench are - Whether investment made by the bank to comply with the SLR requirement would constitute their stock in trade and depreciation in value of the same is an allowable deduction; Whether the broken period interest included in the purchase price of Government securities held by the banking company to comply with SLR requirement is entitled to deduction; Whether no disallowance can be made u/s 14A applying rule 8D prior to AY 2008-09; Whether provision made in the accounts of the assessee bank and debited to the provision for bad and doubtful debts account made under that clause 36(1)(viia) is only allowable as expenditure & Whether in view of the specific provisions of sub-clause (f) to Section 43B the claim of the assessee for deduction towards provisions for leave encashment cannot be allowed. And the verdict partly favours the assessee.

Central Excise

Affixing labels and MRPs on packages in Customs area before they were marketed in Domestic Tariff Area (DTA) - as goods have been cleared on payment of CVD on MRP basis and no further activities were undertaken after clearance by customs demand of duty of Rs.42 Crores is unsustainable in law: CESTAT

AN Excise duty demand of Rs.53.47 Crores has been confirmed against the applicant by the Commissioner of Central Excise, Raigad along with imposition of penalties and interest. The demand is for the period February 2009 to September 2011. A penalty of Rs.20 lakhs has also been imposed on the officer-in-charge of legal affairs of the appellant firm.

The applicant is before the CESTAT.

See our Columns Monday for the judgements