Jurisprudentiol– Tomorrow's cases

By Vijay Kumar

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

Providing cab with a driver and collecting charges on per km basis or lump sum amount is transport service and this activity is outside purview of ‘rent a cab operator's service: Tribunal

IN a significant judgement, the Principle Bench of Tribunal held that giving cabs on hire basis and collecting charges per kilometre or lump sum amount is outside the purview of Service tax under Rent-a-cab operator service.

Customs

Imported goods exported and re-imported after repairs – Customs Valuation Rules not applicable; No refund if assessment is not challenged; Appellants should assail infirmities in order and not abuse adjudication Authority - VitrioliCremarks and observations with acidiCsarcasm, devoid of elementary courtesy, condemned: CESTAT

THIS time around the CESTAT was angry that untribunalary words were used by the appellant against the Adjudicating Commissioner.

In the instant appeal we find that the appellants have made vitriolic remarks and observations with acidicsarcasm, devoid of elementary courtesy while referring to the adjudicating authority and his decision. We are at a loss to understand why the appellants, instead of assailing the infirmities in the order, have chosen to abuse the adjudicating authority .

Income Tax

Transfer fee earned from sub-licencees on transfer of licences to be excluded from profits for arriving at deduction u/s 80HHD but rent received from rooms given for long term occupation eligible for deduction: Tribunal

THE assessee is a popular five-star hotel, located close to the seat of powers in New Delhi . The dominant activity of the assessee is to provide hotel facilities to its customers and to earn income from such business activity.

A part of the building was leased out by assessee to various parties on the basis of interest free security deposit and without charging any rent. According to the AO, assessee is the owner of the premises by virtue of the license deed executed by NDMC in its favour and hence liable for notional income from House Property u/s 22 & 23 of the I.T. Act.

Central Excise

Credit availed on furnace oil used as a fuel for purpose of generation of steam in boiler – Benefit of Exemption notification 4/97- CE, 5/99- CE rightly denied in respect of Rubberised Textile fabrics: Tribunal

The Tribunal observed that even if the credit availed on furnace oil is minuscule; it would not make the assessee eligible for exemption under the notifications 4/97- CE and 5/99- CE as the notification stipulates that no credit should be availed on inputs.

See our columns Tomorrow for the judgements