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By Vijay Kumar

NDPS

Only because at later stage, a period of limitation was prescribed for initiation of proceedings for forfeiture of properties, the same, by itself would not be sufficient to attract wrath of Article 14 of Constitution of India – Confiscation of Memon's properties upheld: SC

The statute deals with an economic aspect of the matter. The purported object for which such a statute has been enacted must be noticed in interpreting the provisions thereof. The nexus of huge amount of money generated by drug trafficking and the purpose for which they are spent is well known. Harsh laws, not only for punishing the drug traffickers but also for preventive detention, if the conditions therefor are satisfied, were made. Necessity was felt for introduction of strict measures so that money earned from the drug trafficking by the persons concerned may not continue to be invested, inter alia , by purchasing moveable or immoveable properties not only in his own name but also in the names of his near relatives.”

Income Tax

Payments for rentals for hosting of websites on servers are not in nature of interest or royalties or fee for technical services or other sum chargeable to tax in India; loans to employees written off – not business expenditure: ITAT

Payment made to foreign company for website – rent, royalty or fee?

The assessee had paid Rs 3 ,26,386 /- to four non resident companies for launching of different websites on their servers located in USA . No tax was deducted while making the remittance on the ground that the amount was not chargeable to tax in India . The assessee claimed deduction in respect of the said amount as revenue expenditure. The assessing officer disallowed the amount u/s 40(a )( i ) on the ground that the assessee did not deduct any tax at source at the time of remittance to non resident

Central Excise

Refund filed in terms of rule 5 of Cenvat Credit Rules on quarterly basis – Percentage of export clearances not an impediment for claiming refund – Revenue appeal rejected by Tribunal

In the present case, the Revenue was not satisfied with the order of the lower appellate authority allowing the refund of accumulated credit earned on exported goods. They went in appeal before the Tribunal arguing that “ since in the present case, the export clearance were not to the tune of 70% but only to the extent of 50% ”, cash refund could not have been allowed on a monthly basis.

See our columns tomorrow for the judgements