Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Providing Advisory services is Management Consultancy Service -Demand upheld & appeal dismissed: CESTAT

THE dispute in the case is regarding leviability of Service Tax under "Management Consultancy Service" in respect of transactions carried out by the appellant during the period July 2000 to June 2001. In all the transactions the particulars of services given in the Bill/Invoice or mandate/agreement letter refer to "corporate advisory services" viz. assistance in due diligence process to clients, assistance in proposed divestment and corporate advisory services in connection therewith, advisory services to substantial acquisition of share of listed companies, etc.

Income Tax

Whether when assessee makes payments to builder for purchase of flat but builder fails to give delivery as per scheduled time, Sec 54F benefits are available even in such case - YES: ITAT

THE assessee had shown income from house property, business and other sources. The assessee sold house on which LTCG was shown at Rs.31,00,369/-. Deduction u/s 54 was claimed for entire capital gain on account of investment in house at Bangalore. Assessee also sold a plot through two sale deeds for a total sale consideration of Rs.24,81,000/-. LTCG was shown at Rs.19,89,914/-. Deduction u/s 54F was claimed for this entire amount on account of investment in the same house at Banglore.

The issue before the Bench is - Whether when the assessee makes payments to a builder for purchase of flat but the builder fails to give delivery as per scheduled time, Sec 54F benefits are not available in such a case. And the verdict favours the assessee.

Central Excise

Even if appellant has paid duty wrongly or illegally, once same has not been refunded, they cannot be denied CENVAT credit -Pre-deposit waived and Stay granted: CESTAT

UNDISPUTEDLY the applicants have paid duty on the intermediate product used in the manufacture of final product and they have paid duty while clearing these new products to their other units. Even if they paid duty wrongly or illegally, as per the Hon'ble High Court decision in the case of Mahindra & Mahindra wherein it was held that if the duty illegally paid and once the same has not been refunded they cannot be denied the CENVAT credit. In these circumstances the applicants are able to make out a prima facie case for waiver of pre-deposit of dues adjudged against them.

See our Columns Monday for the judgements