Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Relationship of principal and agent should exist for bringing agent within ambit of C & F Agent – Storage of crude received on behalf of client and transfer through pipe lines to vessels is taxable under category of ‘Transport of Goods through pipeline or conduit service' w.e.f 01.05.2006: CESTAT

CLASSIFICATION of activities undertaken by service providers to determine the taxability will take its time for resolution in the absence of clear definitions in the statute. However, there are instances where the Board has clarified the taxability or otherwise of activities undertaken by service providers but these clarifications usually fall on deaf ears in the field. With the result, the assessees are put to the rigmarole of receiving demand cum show cause notices, quasi judicial processes, confirmation of demands at the lower levels. The assessees get respite only when the issues are resolved at the Tribunals. Things have come to such a pass in the field formations that the lower authorities neither heed the clarifications issued by the Board nor act judiciously to discharge their quasi judicial functions.

Customs

There has been no loss to exchequer and on contrary excise duty paid is more than amount of differential CVD demanded – After dispensing with requirement of pre-deposit, Tribunal grants Stay

THE adjudicating authority is on a penalty imposition spree . He confirmed a CVD demand of Rs.1.70 crores and imposed equivalent penalties on the appellant, an importer, and its Director and gave a similar treatment to the deemed manufacturer and his Managing Director.

So, what was the reason for his magnanimity?

Income Tax

Section 50C (stamp duty value for transfer of capital assets) – constitutional validity upheld - to tax something, it is not necessary to tax everything – Madras High Court

Tax could be evaded by breaking the law or could be avoided in terms of the law. When there is a factual avoidance of tax in terms of law, the Legislature steps into amend the income tax law to catch such an income within the net of taxation.

See our columns Monday for the judgements

HAPPY INDEPENDENCE DAY