From our Legal Corner - Monday's cases

By Vijay Kumar

Income Tax

Notice issued without application of mind - AO was not aware that amendment to Act was not retrospective - Profits from EoUs eligible for deduction - SCN quashed : Bombay High Court

Central Excise

Clearances as such - Excess cenvat passed on - Sec 11D is not applicable- CESTAT

AN assessee has unutilized cenvat credit because it has lot of exports. What to do with the excess credit? May be claim refund. But the assessee adopted a better method. It cleared the inputs "as such" at higher prices and paid higher excise duty - of course from the credit. The department smelled a rat, but then did not know how to catch it.

Service Tax

ST - Courier Service - No requirement of payment in FC before June 16, 2005 - No tax leviable for export of services - Penalty of Rs 4.5 Cr is a savage one - Adjudicating authorities cannot go only by Board clarification, which is contrary to law : Tribunal

THE appellants are providing taxable services under the category of "Courier Agency Services". Revenue proceeded against them on the ground that they did not pay Service Tax for the period from 15.3.2005 to 15.06.2005 on international consignments. According to the appellants, the international consignments during the relevant period were exempted under rule 4 of Export of Services Rules, 2005.

See our columns Monday for the judgements