Jurisprudentiol - Thursday's cases

By Vijay Kumar

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

CENVAT Credit - Suomotu credit of wrongly debited amount - No refund Claim required - Credit by assessee upheld: High Court

THE objection of the Revenue herein is that even for a reversal of an entry, the assessee should have followed Section 11B of the Central Excise Act, 1944 lest there would be unjust enrichment. Consequently, there could be no such thing as suomotu reversal, except through a petition made under Section 11B of the Central Excise Act, 1944. The contention of the Revenue that even in reversal of the entry there is bound to be an unjust enrichment has no substance or based on any legal principle, since, what is availed off by the assessee is only a credit on the duty paid on the services rendered. No good ground to hold that it was a case of refund of duty falling under Section 11B of the Central Excise Act, 1944 and that the assessee was to comply with the provisions of Section 11B of the Act.

Income Tax

Whether, for the purpose of assessment of undisclosed income, loose papers seized during the Search have any evidentiary value - YES, rules High Court

THE Assessee filed his returns wherein he had declared undisclosed total income of Rs. 8,85,000/- representing undisclosed investment made in acquiring relief bonds with the aforesaid sum. It had further submitted his explanation whereupon notices u/s 158BFA(2) were issued asking him to show reasonable cause as to why he failed to furnish return of the undisclosed income. AO found the undisclosed salary income of Rs. 3,39,900/-; unexplained payment on account of purchase of property totalling Rs. 3,00,000/-; unexplained investment in shares and bonds to the tune of Rs. 8,85,000/-. Consequently, on the basis of appreciation of seized documents, assessment have been made on total income of Rs. 15,24,000/- out of which, undisclosed income of Rs. 8,85,000/- have been given deduction, thereby assessment have been made on the total income of Rs. 6,39,900/-.

The issue before the Bench is - Whether, for the purpose of assessment of undisclosed income, loose papers seized during the Search have any evidentiary value. And the answer goes against the assessee.

Service Tax

Chemical analysis and furnishing test results for pesticides - whether covered within the ambit of Service Tax - Tribunal order without application of mind and without considering the facts - Matter Remanded: High Court

TRIBUNAL has allowed the appeal of the respondent relying upon the judgment in Central Power Research Institute without discussing the facts of the present case and no finding has been given whether the respondent is a service provider or not in order to give benefit of the judgment in Central Power Research Institute. Therefore, when the Tribunal without application of mind and without considering the facts involved thereunder, has rendered judgment, the same has to be set aside and requires to be reconsidered by the Tribunal afresh.

See our Columns Tomorrow for the judgements