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By Vijay Kumar

Service Tax

Credit on input service - Outward freight - Gujarat Ambuja disagreed with - referred to Larger Bench

THE Delhi Bench of the Tribunal had in Gujarat Ambuja case held that outward freight is not input service. We had carried many comments and articles on the issue. Now the Bangalore Bench has taken a different view.

The question before the Tribunal was whether Service Tax paid on outward transport of goods can be taken credit as input service. The issue is too well known for any detailed elaboration. Straight to what the Tribunal had to say; In a lucid and analytical dissection matching mathematical precision, the Tribunal observed ......

In DDT 601 - 26.04.2007, we had mentioned, Now what can this Bench do, since there is already a decision by another Bench? It has only two choices - agree with the Delhi Bench or refer the matter to a Larger Bench.

And that is exactly what the Tribunal did. Please have a look at that DDT and No credit of Service Tax on outward freight - landmark order from Tribunal - TIOL-DDT 599 - 24.04.2007.

And Service Tax on Goods Transport - yet another hornet's nest - no credit on outward transport? Will the Board clarify? TIOL-DDT 239 - 11 -11- 2005

Income Tax

Corruption case against Income Tax Commissioner - Departmental proceedings can continue simultaneously with prosecution proceedings - one need not wait for another to conclude : Delhi HC

PETITIONER is facing criminal prosecution for the alleged offense punishable under the Prevention of Corruption Act. At the relevant time, the Petitioner was functioning as Commissioner of Income Tax (Appeals), Ludhiana. Allegations against the Petitioner is that he demanded a bribe of Rs. 5 lakhs, later reduced to Rs.3 lakhs from one Shri Mohinder Singh for favourably deciding his four appeals and with the help of his brother in law Shri Deepak Chugh accepted part payment of Rs.2.5 lakhs through a close friend P.S. Makkar. The Petitioner has been suspended from service. On the basis of investigation, charge sheet under Section 173 of the Cr.P.C. was filed sometime back and charge has already been framed. Matter is at the stage of trial and the prosecution witnesses are being examined.

Reward to informers - information furnished from 1973 to 1981 - no reward given - Revenue says no additional tax generated - Income Tax practitioner's claim for Rs 5 lakh reward rejected : Bombay HC

THE plaintiff is a retired Income Tax practitioner and is a perseverant litigant as the following events would show. Can a practitioner really file information apparently based on facts he came to know because of his profession?

See our columns tomorrow for the judgements