Jurisprudentiol - Thursday's cases

By Vijay Kumar

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

Appellant cannot provide output service of ‘training & coaching' without having faculty available for same - Expenses incurred by appellant by way of brokerage for finding accommodation for its faculty is, therefore, an Input service: CESTAT

DURING the course of scrutiny of records, it was observed by the Revenue that the appellant had availed CENVAT Credit in respect of the following services viz. (a) maintenance of pond and garden (b) Extension of Road (c) Brokerage amount on account of purchase/lease of flats for faculty (d) Fabrication, fencing of compound (e) Jogging Track repairs.

Taking a view that these services do not appear to be input services for the output services rendered by the appellant a SCN was issued for recovery of CENVAT credit of Rs.2.01 lakhs & by invoking the extended period of limitation.

Income Tax

Whether when subjective satisfaction was arrived at by AO for initiation of proceedings u/s 158BD on basis of materials found during Search, it can be said that initiation of proceedings was vitiated - NO: HC

WHEN the subjective satisfaction has been arrived at by the Assessing Officer for initiation of the proceedings under section 158BD of the Act on the basis of the material collected during the course of search/inquiry, it cannot be said that satisfaction arrived at by the Assessing Officer while initiating proceedings under section 158 of the Act has been vitiated in any manner;

There is ample material on record, so mentioned in the satisfaction note, against the respective assessees and Goyal Industries Ltd and another. It is required to be noted that even the said Rajendra Goyal is the Director of Goyal Industries Ltd. and the Company i.e. Goyal Industries Ltd. is run through its Director/Manager/employees etc. Considering the material on record and in the facts and circumstances of the case and the satisfaction Note, we are satisfied that no error or illegality has been committed in issuing notice under section 158BD of the Act;

Pursuant to the interim order passed by this Court, the block assessment proceedings were permitted to be concluded, however, are not served and implemented upon the assesses.

Central Excise

CENVAT - Clearances of Cement to 'contractors' of developers of SEZ under cover of ARE-1 without payment of duty are to be treated as an export - amendment to rule 6(6)(i) made on 31.12.2008 is clarificatory - no demand survives u/r 6(3)(i) of CCR, 2004: CESTAT

THE issue is - Whether the supplies of cement manufactured by the appellant to the contractors of developers of SEZ under the cover of ARE-1 without payment of duty and the tax demanded on the same by the adjudicating authority and upheld in the impugned appellate order is legal and valid.

See our Columns Tomorrow for the judgements