From our Legal Corner – tomorrow's casesLegal Corner Icon — the image was hosted by the publisher and was not captured.

By Vijay Kumar

Income Tax

Learned Advocate at receiving end of Revenue's ire - Interest on deposits held by solicitor on behalf of clients, not taxable - mere voluntary payment of tax even when not payable does not restrict assessee's right to challenge tax : ITAT

IF you thought only ordinary taxpayers are harassed and you can get over with a little help from advocates, here is the case of an advocate who paid the tax which was not payable - to buy peace with the Department. And they struck him with a penalty and interest.

Central Excise

Adjudication based on monetary limits - CBEC allocating different works to various classes of officers cannot cut down jurisdiction vested in them by statute and may be followed by them at best as matter of propriety : Tribunal

THE Revenue is in appeal against the order passed by the Commissioner of Central Excise(Appeals), Indore, the reason being that the appellate authority without going into the merits of the case passed an order holding that the adjudicating officer could decide the cases involving an amount up to Rs.50,000/- (fifty thousand) only but not more than that. The appellate authority also referred to the Board Circular no. 66/88 and observed that the same was also not taken note of by the adjudicating authority.

Service Tax

Delay in payment of service tax - imposition of penalty u/s 76 justified - Tribunal should not have interfered : Karnataka HC

THE appeal by Revenue before the High Court is against the CESTAT order reducing the penalty, for non-payment of Service Tax. The Adjudicating authority imposed a penalty of Rs.3,03,300/ @Rs.100 per day, which was confirmed by the Appellate Authority. CESTAT reduced the penalty to Rs. 50,000/- and the aggrieved Revenue is before the High Court.

See our columns tomorrow for the judgments