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By Vijay Kumar

Income Tax

Firm engaged in processing of rough stones is an 'industrial undertaking' and eligible for exemption u/s 5(1) of Wealth Tax Act : Rajasthan HC

Central Excise

Import of explosive material in Heavy Melting Scrap - Confiscation of HMS and imposition of penalty on importer not justified : Tribunal

It is also to be noted that in the absence of specific charges against the appellants in terms of specific subsections of Section 112, and also by imposing penalties under the relevant sub-section, authorities have rendered it difficult to understand the charge against each of the appellants. The Hon'ble Supreme Court has strongly disapproved of such generalized proceedings in the case of Amrit Foods.

Service Tax

Service tax on international in-bound roamers - whether exempted or hit by provisions of Rule 6(3)(c) of Credit Rules - Tribunal directs Hutch to pre-deposit Rs 40 lakh in cash for obtaining stay

A demand of Rs 2.60 crores was confirmed by the Commissioner of Customs & Central Excise, Meerut-I on 31^st January 2007 against the Service provider. It is alleged that the assessee had incorrectly availed Cenvat Credit of Rs.81.89 lakhs on Capital goods and Input Services that were received prior to 10^th September 2004. There is also another demand of Rs.1.78crores on the ground that the Service provider had provided exempted Services to International in-bound roamers and hence provisions of rule 6(3)(c) of the Cenvat Credit Rules, 2004 stood attracted resulting in the assessee being entitled to only 20% of the credit taken. Nonetheless, penalty of Rs.50.10 lakhs has also been imposed.

See our columns tomorrow for the judgements