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Conversion of Free Shipping Bills to Drawback Shipping bills - whether Single Member Bench can hear matter - Issue referred to Larger Bench: CESTAT
THE issue involved is whether free shipping bills can be allowed to be converted into drawback shipping bills.
Against the order of the lower authorities the appellant Air India is before the CESTAT.
The AR raised a preliminary objection that since the issue involved in this case is of conversion of free shipping bills to drawback shipping bills the matter should be heard by a Division Bench of the Tribunal in view of the decision in Midex Global Pvt. Ltd. Vs. Commissioner of Customs, Pune [].
The Single Member Bench was of the view that “From the provisions of Section 129C(4) and also view taken by the various coordinate single member benches, I am of the view that the present case which involves only conversion of free shipping bill to drawback shipping bills can be heard by Single Member Bench."
But as the Single Member Bench has taken different view that this nature of cases should be heard by Division Bench and not by Single Member Bench, the issue is referred to a Larger Bench.
Income Tax
Whether proviso to Sec 2(15) automatically gets attracted merely because assessee cricket association charges fees for matches - NO: ITAT
THE assessee was incorporated u/s 25 of the Companies Act, 1956 with an aim to promote the game of Cricket in and around Delhi. It is affiliated to the Board of Control of Cricket in India (BCCI). Registration u/s 12A of the Act was granted keeping in view its role in promoting the game of Cricket in the country. The DIT(E) vide Notice issued a show cause notice to the assessee proposing withdrawal of registration granted u/s 12A of the Act.
In reply, the assessee submitted that the main object of the Association was to develop and promote the game of Cricket and thus it was submitted that it is a Charitable Association. The assessee filed submissions before the DIT(E) giving details of coaching and training expenses, physical training camp, pitch curator and various other activities for promotion of cricket including development of medical aid to players etc.
The issue is - Whether mere charging of fees does not mean that the assessee is carrying out its activity in the nature of trade, commerce and business and thus the Proviso to Section 2(15) is not automatically attracted. NO is the answer.
Service Tax
Submission that since penalty u/s 78 has been waived u/s 80 of FA, 1994, extended period is not invokable is not sustainable - both sections are to be independently examined - Appellant preferred to sit quiet with his eyes closed - no confusion regarding non-payment of ST - appeal dismissed: CESTAT
DURING the course of audit of M/s. Gujarat Borosil Limited, Bharuch, it was noticed that appellant has provided Rent-a-Cab service to M/s. Gujarat Borosil Limited during the period 01.4.2000 to 31.1.2004.
Based on the said information a SCN came to be issued demanding service tax of Rs.1,17,045/- and which was confirmed by the adjudicating authority with interest and penalties. In appeal the matter was remanded and the adjudicating authority reduced the demand to Rs.67,996/- along with interest and an equivalent amount of penalty u/s 78 of the FA, 1994 was also imposed.
In appeal, the Commissioner (A) set aside the penalties u/s 80 of FA, 1994 but upheld the order of the Adjudicating authority with respect to tax demand and interest.
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