Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

Service engaged in is receiving the goods, warehousing them, receiving dispatch orders from Ford India Ltd., arranging dispatch of goods, maintaining records of incoming shipments and deliveries - such activity is Clearing and Forwarding Agents Services: CESTAT

THE appellants are engaged in providing services to M/s. Ford India Ltd., in Chennai by entering into an agreement with the said Company. The appellants were issued various SCNs covering their activity under the ‘Clearing and Forwarding Agents" services in terms of the Finance Act, 1994. The said show-cause notices were confirmed by original authority as also first appellate authority.

Income Tax

Whether scheduled bank is entitled to deduction under head provision for fraud in regular operations of bank, irregularities and embezzlements - YES, it is loss: ITAT

THE issues before the Bench are - Whether the assessee, a scheduled bank is entitled to deduction under the head provision for fraud in the regular operations of the bank, irregularities and embezzlements and Whether deduction u/s 36(1)(vii) is allowed to the assessee on provision for bad and doubtful debts not exceeding ten per cent of the aggregate average advances made by the rural branches as well as urban branches. And the verdict partly goes in favour of the assessee.

Central Excise

Construction Service used in construction of canteen building within factory premises is also an Input Service - Appeal allowed: CESTAT

THE appellant constructed a canteen building within their factory premises and availed credit of input service namely Construction service. Revenue objected to the same on the grounds that construction of canteen building is not construction of factory and, therefore, not covered under the definition of input services in terms of Rule 2(l) of the CCR, 2004.

See our Columns Tomorrow for the judgements