Jurispruden tiol – Tomorrow ' s cases
Legal Corner Icon — the image was hosted by the publisher and was not captured.Service Tax
No exemption from service tax on air tickets for Haj pilgrims – Service tax paid before issue of SCN and O-I-O – No penalty as case is fit to be considered under Sec 80: Tribunal
The appellants had paid the major portion of the service tax before the issue of show cause notice and the balance amount even before the Orders-in-Original was issued. In the facts and circumstances of this case, we would deem it proper to take a lenient view in the matter and feel that the provisions of Section 80 of the Finance Act could have been used in this case. In any case, the appellants are liable to pay their interest.
Money Circulation!
Money circulation scheme – Cheating charges – no interference against framing of charges: Supreme Court
HERE is another quick buck scheme. Pay Rs. 625/- and get lottery tickets worth Rs. 350/- and after a few months get back double your investment and may be win a lottery! If you think there are no gullible people to believe the scheme, the organisers collected more than Rs. 500 Crores in a few months and are in the Supreme Court against charges framed by a Magistrate.
The appellants are partners of M/s LIS, Ernakulam, a partnership firm engaged in the business of sale of lotteries and magazines after collecting advance money. They floated a scheme known as "LIS Deepasthambham Scheme".
The scheme was simple in its conception. A person has to pay Rs.625 /- and purchase one unit of lotteries from the promoters. The promoters will make use of Rs.350 /- to purchase 35 lottery tickets of the Kerala State Government each of Rs.10 /- for the unit holder for the next 35 weeks. If the unit holder wins any prize up to Rs.5 ,000 /- in the 35 draws, the promoters shall collect the amount and pay the same to the unit holder. If the unit holder wins any prize above Rs.5 ,000 /-, the ticket shall be handed over to the unit holder for collection of the amount. The balance of Rs.275 /- ( Rs.625 - Rs.350 ) will be used to make the unit holder a subscriber of a magazine by name ` Thrikalam ' for one year. The said magazine would reproduce relevant and important materials from other magazines. It would also furnish necessary information about the lottery tickets which have won prizes.
NDPS
Search, seizure and arrest under NDPS – Authorised officer can himself make the search or authorise his subordinate to do so: Supreme Court
Under Section 41(2) only a Gazetted Officer can be empowered by the Central Government or the State Government. Such empowered officer can either himself make an arrest or conduct a search or authorize an officer subordinate to him to do so but that subordinate officer has to be superior in rank to a peon, a sepoy or a constable.
Income Tax
It is option of the assessee to adopt a particular method of valuation of closing stock, cost or market price, whichever is lower, as per settled principles of commercial accounting: Gujarat HC
THE question before the High Court was
Whether, the Tribunal has erred in law and on the facts and failed to appreciate the circumstances prevailing on the valuation date i.e. 30.6.1983 for the purpose of valuation of two transformers ordered by Punjab State Electricity Board having regard to the material on record and thereby erred in holding the manner in which the company valued the closing stock of two transformers, and that such market value is not justified.
Until Tomorrow with more DDT
Have a nice Day.
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