Jurisprudentiol-Friday's cases

By Vijay Kumar

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

NASSCOM is not liable to pay service tax under the category of Club & Association service in respect of subscription amount charged from its members: CESTAT

THE appellant NASSCOM is an apex body with various software companies as its Members who together contribute subscription amount for achievement of various objectives of public, industry and national importance including awareness/education/exports/ intellectual capital growth/governance/standard/technology.

Revenue took a view that the subscription amount charged by the appellant from its Members would attract service tax under the category 'Club and Association Service'.

Income Tax

Whether when assessee receives refundable advance as per MoU for joint development of land, such sum is capital receipt, not taxable in hand of assessee - YES: ITAT

THE assessee is a partnership firm and is carrying on the business as builder and developer. It carries on its business activities in Mumbai and Jaipur. The partners are D and P. The revenue carried out search and seizure operations in the hands of GHP Group of cases. A survey operation was also conducted at the business premises of the assessee at Jaipur and certain documents were impounded and statements were taken during the course of search/survey operations.

The issue before the Bench is - Whether when assessee receives refundable advance as per MoU for joint development of land, such sum is capital receipt, not taxable in hand of assessee. YES is the answer.

Customs

Recovery of incineration charges for destruction of goods as per SC order - there is no provision for grant of stay under rule 41 of CESTAT Rules or for that matter under the Customs Act in respect of incineration charges - Tribunal has no jurisdiction whatsoever: CESTAT

A notice dated 21/07/2014 was issued by the Dy. Commissioner of Customs, JNCH, NhavaSheva, pertaining to recovery of incineration charges of the waste oil contained in 39 containers of quantity 6,28,368 kg. The incineration charges for destruction of these goods amounting Rs.92,11,047/- @ Rs.14.80 per kg., is sought to be recovered as per Apex Court's order dated 04/04/2014.

This Tribunal granted stay in respect of dues adjudged namely, duty, interest and penalty. There is no provision for grant of stay under Rule 41 of the CESTAT (Procedure) Rules, 1982. In the present case, the issue relates to recovery of incineration charges and there is no provision under the Custom Act to stay recovery of such charges. Further, the recovery is sought to be made in terms of the Apex Court order.

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