From our Legal Corner - tomorrow's cases
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By Vijay Kumar

Income Tax

Income Tax - Sub-Sec (2) of Sec 263 - Clock of limitation starts ticking from date of assessment order and not from re-assessment order.

THE larger question before the Apex Court was the computation of period of limitation under Sub-section (2) of Sec 263 of the Income Tax Act.

Central Excise

Capital goods credit vis-a-vis depreciation under I-T Act - Single Member Bench holds that Division Bench order in Suprajit Engineering is inconsistent with provisions of law, refers matter to President for reconsideration by a Full Bench

THE Division Bench of the CESTAT, SZB, Bangalore, in the case of Suprajit Engineering Ltd [2007-TIOL-180-CESTAT-BANG] held that "there is nothing in the rules, which debars the appellant from availing depreciation on the balance 50% of the duty, which is not availed as Cenvat credit."

A netizen had, on our message board, called this a blockbuster judgment that was waiting to happen when we have ingenious assessees and tax consultants to explore all permutations and combinations. He had also remarked that such judgments come as a wake up call for lawmakers to be prudent before drafting stingy clauses in a statute. Unfortunately, although the decision was reported by us on February 8^th 2007, no amendments have been effected till date. Probably, it may not be needed...after all... read further!

A similar issue came before the Single Member of the West Zonal Bench of the Tribunal. As for the caption and the imminent provocative question, the answer has been provided by the Hon'ble Member himself as to why he chooses to deviate from the practice of 'judicial discipline'.

LSHS used in generating electricity captively consumed for manufacture of final goods - eligible for Cenvat Credit - however, no credit on inputs used for electricity used for housing colony and schools : Apex Court

IN this batch of civil appeals, the short question before the Supreme Court is : whether the assessee is entitled to MODVAT credit under Rule 57A on Low Sulphur Heavy Stock (LSHS) and furnace oil used for generating electricity captively consumed for the manufacture of the final products such as caustic soda, cement etc.

Service Tax

Service Tax paid on GTA service during 1997-98 - No refund : Tribunal

See our columns tomorrow for the judgements