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By Vijay Kumar

Service Tax

Collection of blood samples on behalf of principal lab, not Business Auxiliary Service - it is technical testing and analysis and is excluded from Service Tax by definition which excludes testing or analysis in relation to human beings or animals - High Court

The High Court did not entertain any doubt that merely because any incidental service is rendered by the assessee-respondent like putting across or dropping of the name of the principal company, it would become part of the definition of 'Business Auxiliary Service' within the meaning of Section 65 (19) (ii) of the Act.

Income Tax

Can double benefits u/s 10B and Sec 80HHC be allowed on exports of same goods? - Can Revenue deny Sec 80HHC benefits if exports are made from third country? - Tribunal says YES in first case and NO in second

CAN double benefits under Sec 10B and also under Section 80HHC be availed on export of the same goods? Should Income Tax allow Sec 80HHC benefits if an exporter procures orders and closes the transaction by procuring goods from a third country and shipping the same straight to the buyer country, without physically bringing the goods to India? These two remarkable questions came up before the Jaipur Bench of Tribunal recently. And the ITAT has held that the double benefits can be allowed as the benefit u/s 10B for the Eous are on the income whereas the Sec 80HHC benefits to the merchant exporter were for the act of exports and bringing the exports proceeds in the required foreign exchange.

Need for notice u/s 143(2) cannot be dispensed with in a case where AO proceeds to make inquiry for assessment, and determination of taxes payable after issuing notice u/s 143(1) as well : ITAT

Limitation is one of the most inflexible rule in any scheme of assessment. Therefore, Sec.143(2) cannot be brushed-aside as a procedural section. It is a procedural section coupled with rule of limitation. A notice barred by limitation is no notice at all.

Central Excise

Supplies by EoU to DTA - Taking credit of education cess is not hit by rule 3(7)(a) of Cenvat Credit Rules - Prima facie case made out for waiver of duty demand : Tribunal

In the present case, the short issue is whether the Education Cess paid by the 100% EOU can be allowed as credit.

See our columns tomorrow for the judgements