Jurispruden tiol – Tomorrow 's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Customs

Department could not, by issuing a circular subsequent to the notification, add a new condition to notification thereby either restricting the scope of exemption notification or whittle it down: SC

In relation to entry at Sr.No.29 no condition is prescribed. Similarly no condition is prescribed in relation to entry at Sr.No.34 or even in entry No.28 . If the Notification No.17 has not provided for any condition, in our opinion, subsequent circular cannot impose such a condition as the same would tantamount to rewriting Notification No.17 or in other words legislating by circular, which is not permissible in law. As can be seen from the relevant provisions with special reference to Section 25 read with Section 159 of the Act, a notification under Section 25 of the Act requires publication in the official gazette as well as requires tabling before both the Houses of Parliament and if that exercise has been carried out without any condition being imposed in the Notification No.17 it would not be permissible to permit revenue to impose such condition by way of circular. If the revenue is allowed to undertake such an exercise, the requirement of publication in official gazette and laying a notification before each House of the Parliament would become nugatory and such a course of action is not envisaged by the Act. It would give licence to the executive to bypass/override the legislature and cannot be countenanced

Income Tax

Does Sec 127 of Income Tax Act, related to transfer of a case from one AO to another, apply to block assessment as well? Supreme Court says Yes , it does; Sec 158BH leaves no room for doubt

THE question before the Apex Court was the applicability of Sec 127 of the Income Tax Act to the block assessment case? Sec 127 is related to the transfer of a case from one jurisdiction to another by the Revenue for more effective and coordinated investigation. And the Apex Court has held that the provisions of Sec 158BH categorically states that all other provisions of the Act shall apply to assessment made under this Chapter, and Section 127, which falls under Chapter XIII would therefore mutatis mutandis apply to Chapter XIV-B particularly when the jurisdiction of the Income Tax Authorities relates to passing an order of assessment.

Service Tax

Consignment stockist for GAIL – CF Agent? – Matter remanded by Supreme Court

What is necessary for determining the question is as to whether the purported job of the appellant as a clearing and forwarding agent was incidental to its main activity, namely, getting orders from the clients and selling the products to various customers of the company or not.

See our columns tomorrow for the judgements