Jurisprudentiol - Wednesday's cases

By Vijay Kumar

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

Recovery proceedings even before expiry of time to appeal (three months) - high-handed - Revenue officers should realise that their job is much more than merely collecting tax: HC

IN case, the Revenue is allowed to adopt coercive measures and/or if the assessee is required to pay tax determined immediately, it would lead to injustice to an assessee, as his opportunity to obtain a stay from the appellate authority would stand foreclosed. Moreover, the inherent right of an appellate authority to stay the order being appealed against would be rendered futile.

The officers of Respondent Revenue would do well to realize that their job is much more than merely collecting the tax. They are officers of the State, administering the Finance Act, 1994 and fairness in approach to the taxpayers and acting in accordance with the Rule of Law is a sine-qua-non in discharge of all its functions.

Income Tax

Whether if assessee-Trust which has listed out many charitable activities as objectives, has been able to organise only Yoga camp, Section 80G benefits continue to be available to it - YES: HC

THE assessee Trust had filed an application against the original rejection of application filed u/s 80G. The appeal before the Tribunal was filed against the order of CIT denying the recognition u/s 80G(5)(vi). Tribunal had remanded the proceeding back to the CIT for fresh consideration. The CIT by his order dated 15 February 2012 declined to grant recognition on the ground that (i) the assessee trust was not carrying out all the charitable activities listed in its objects; (ii) no other activity except for Yoga Camps had been commenced; and (iii) though the dominant object was to establish hospitals and to impart medical treatment, those activities had still not commenced.

The issues before the High Court are - Whether if the assessee-Trust which has listed out many charitable activities as objectives, has been able to organise only yoga camp, Section 80G benefits are not available to it; Whether the statute requires that in order to acquire the status of a trust, assessee should carry out all the activities which are mentioned in the objects clause and Whether the activity of conducting Yoga Camps constitutes a charitable activity. And the answers go in favour of the assessee.

Customs

If the Customs authorities do not want appellant to take vessel out of India, they should pass written order stating reasons therefor and cannot pass any oral instructions - AR to ascertain facts and inform: CESTAT

THE Tribunal had passed a Stay order dated 17.05.2013 wherein stay was granted and pre-deposit of the dues adjudged against the appellant was waived and all further proceedings pursuant to the adjudication order was stayed subject to the appellant keeping the Bond for Rs.96,56,83,838/- and the Bank Guarantee for the duty demand of Rs.9,24,04,082/- alive.

The appellant complied with the said directions but the Customs Authorities were not permitting them to take the vessel out of India for executing certain urgent work.

So, the appellant is before the CESTAT praying that suitable directions be given to the Customs authorities.

See our Columns Tomorrow for the judgements