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No error in order of Tribunal disallowing CENVAT Credit on services relating to trading activity prior to 01.04.2011: HC
INPUT service means service used by the appellant - manufacturer directly or indirectly in or in relation to the manufacture of final products and clearance of final products from the place of removal. In the present case, the pre-heater valued at Rs.5.41crores is the final product, which was manufactured and cleared from the place of removal, i.e., from the appellant's factory. The remaining goods valued at Rs.36.04 crores were not manufactured as final product and cleared from the place of the appellant. In such a case, it would not qualify for the benefit of cenvat credit under Rule 2(l) of the Cenvat Credit Rules, as rightly upheld by the Commissioner (Appeals) and the Tribunal. The service tax paid on sales commission in respect of procuring orders by M/s. Adhunik Corporation cannot be utilised by the appellant for taking credit for the goods not manufactured as a final product and cleared from the appellant's manufacturing unit.
Income Tax
Whether when assessee revises return after being confronted by AO but before issue of notice for filing accurate particulars, penalty is warranted in such case - YES: HC
THE assessee company had gone into liquidation and the Official Liquidator had been appointed. Assessee had filed e-return declaring loss of Rs.1,89,44,380/-. It had also claimed business loss amounting to Rs.2,33,07,349/- on account of sale of fixed assets. During assessment, assessee filed a revised return declaring total income of Rs.33,62,974/. In the revised return, the loss of Rs. 2,33,07,349 on account of sale of fixed assets was not treated as "business loss", rather shown as capital loss. The AO made some additions and assessed the total income of assessee at Rs.40,19,974/- and taxable income at "NIL" after giving benefit of brought forward losses. Pursuant to the satisfaction recorded in the assessment order, penalty proceedings for concealment u/s 271(1)(c) were initiated and penalty equal to 100% of the tax payable of Rs. 80,66,400/- on the concealed income was imposed.
The issue before the Bench is - Whether when assessee revises return after being confronted by AO but before issue of notice for filing accurate particulars, penalty is warranted in such a case. YES is the answer of the High Court.
Service Tax
Whether introduction of new, comprehensive definition of "credit card, debit card, charge card or other payment card service" by FA, 2006 by excluding from ‘Banking & Other financial services' is substantive and prospective or is in continuation of levy under Section 65 (10)/(12) of FA, 1994 & retrospective - Matter referred to LB: CESTAT
THE issue before the Bench is - Whether the commission/discount earned by the acquiring bank from the Merchant Establishment is liable to service tax under the category of banking and financial services for the period prior to 01.05.2006?
Matter is referred to Larger Bench
Until Tomorrow with more DDT
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