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By Vijay Kumar

Customs

Customs not liable to pay demurrage, even if detention was wrong : Delhi HC

When an adjudicatory authority exercises its powers, unless the aggrieved party can establish collateral motive or purpose, or show bad faith and ill motive, the mere fact that the order was wrong and later reversed in appeal, cannot lead to a conclusion that such order ought to be cast aside, and the government saddled with vicarious or other liability.

Central Excise

Penalty when duty is paid before SCN - On remand by HC in view of Machino Montell case, Tribunal holds no penalty imposable as no mens rea was proved - Revenue again in appeal before HC - Tribunal is last fact-finding body - Revenue's appeal dismissed with costs : HC

The Tribunal has been clothed with the power, nay, duty of confirming , modifying or annulling the decision or order appealed against passed under Section 35A of the Act by the Commissioner ( Appeals) whereas the High Court under Section 35 G of the Act could exercise power in cases involving substantial question of law. Findings recorded by the Tribunal are based on evidence. The principle applies to the facts of the instant case is that suspicion cannot replace the requirement of proof by presuming that there was intention to evade duty.

Income Tax

Assessee not liable to pay advance tax and so did not file return - no interest u/s 217 for income assessed : Delhi HC

It would appear that the object of sending the statement is to make known to the Income-tax Officer, the computation upon which the figure of advance tax has been arrived at. Where no advance tax payment is to be made, there is no purpose in sending to the Income-tax Officer the statement of its computation.

Sevice Tax

Unitisation, strapping, packeting or packing customers' goods at their premises or sites - taxable under 'cargo handling service : Tribunal

THE Appellants are engaged in the business of material handling equipment and parts thereof and they also carry out activities like unitisation, strapping, packeting or packing, the customers' goods at their premises or sites. For the activities carried on by the Appellants in the premises of M/s. Tata Refractories Ltd., Belpahar they have been asked to take Service Tax Registration and under the impugned orders, demand of Service Tax has been confirmed against them and penalty has been imposed holding that the Appellants have provided "Cargo Handling Service".

See our columns tomorrow for the judgements