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Service Tax - Hire purchase and hire purchase financing are not synonymous - Hire purchase finance not covered by Finance Act, 1994 - Bajaj Auto Finance wins Rs 26 Cr case in Tribunal
SIX months ago, we broke the story that the Tribunal in the case of Bajaj Auto Finance [] has granted waiver of pre-deposit of Service Tax of Rs 26 Crores opining that prima facie, hire purchase and hire purchase financing are not synonymous.
Tomorrow, we will report the final order of the Tribunal setting aside the order of the Commissioner of Central Excise, Pune-I by holding that "Hire Purchase Finance" in which the appellants are engaged is different from "Hire Purchase" and that Hire Purchase Finance is not covered under the provisions of Section 65(10) of Chapter V of the Finance Act, 1994.
Incidentally, we had in our Budget Round up carried an article "Service Tax - Hire purchase & Hire purchase financing - Change Gears else the department may lose its pound of flesh" bringing to the fore the inconsistency in the definitions employed by the Finance Act, 1994.
No prosecution if accused exonerated in adjudication proceedings on the same set of facts : Delhi HC
It is no doubt true that judgments of the Court have settled the position that exoneration in adjudicatory or assessment proceedings should not automatically result in conclusion that criminal complaints are not maintainable. The court examining the issue should consider the facts of each case. If the exoneration is based on technicalities or in the absence of certain features which are otherwise available in the criminal proceedings, the latter should be allowed to proceed. Additionally, the Court has also to consider other circumstances such as whether an appeal is maintainable before a superior or appellate body and is pending; the standard of proof in either proceedings etc.
But in this case, prosecution was quashed.
Sale of equipment by head office of foreign enterprise directly to NSPT - No income tax on profits in India : ITAT
The Tribunal held that under the provisions of Article 7(1)(b), on the facts of this case, sale of equipment directly by the head office of the foreign enterprise directly to NSPT (Nava Seva Port Trust) does not lead to taxability of profits thereon in India.
Until Tomorrow with more DDT
Have a nice day.
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