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By Vijay Kumar

Central Excise

Education cess is payable even if excise duty is exempted: Shimla HC

THIS shocking judgement came from the Shimla High Court and for some time we had considered not carrying this judgement as it may create a flutter or may be followed by other Authorities or even accepted by the government! But hiding a judgement is not the solution and so we bring you this judgement.

Service Tax

Service Tax - Section 76 is also subject to provisions of Section 80 - Commissioner (A) has discretion in reducing penalty - Revenue appeal dismissed : CESTAT

THE assessee had neither filed any returns nor deposited the Service Tax collected from their clients. Later, they admitted their tax liability and discharged the same. The lower authority imposed penalties & against the said order the assessee went in appeal before the Commissioner(Appeals) who found the penalties to be excessive. In effect, he reduced the same to Rs.15,000/- under all the sections viz. 76, 77 & 78 of the Finance Act, 1994.

Income Tax

Assessee hires non-resident company for geophysical airborne survey for prospecting diamonds - No TDS deductible as no technical knowledge made available to assessee - not covered under 'fees for technical service' under DTAT with Netherlands : ITAT

THE ''fees for technical services'' under Double Taxation Avoidance Agreement (DTAA) has of late emerged as a major bone of contention in Income Tax. Even in this case, the issue is whether certain high quality technology aided service provided by a non-resident company to the assessee would qualify as a technical service or not?

See our columns Monday for the judgements