Jurisprudentiol– Tomorrow's cases
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No VAT from both contractor and sub-contractor -AP High Court order upheld – Supreme Court
Nearly two years ago we had carried the landmark decision of the AP High Court -
Now the Supreme Court, on an appeal from the State, has confirmed the Ruling, both on facts and law.
Now will this have any implications in Service Tax?
Customs
Erroneous drawback – whether appeal concerning redemption fine on goods exported hit by s 129A (1) of Customs Act – ROM application against Tribunal order rejecting appeal also dismissed.
THE Assistant Commissioner denied the drawback of Rs.33 ,882/- and imposed an equivalent penalty. However, no redemption fine was imposed holding that the goods are not available for confiscation.
The appellant was not successful before the Commissioner (Appeals) and hence filed a Revision Application before the Government of India which too was dismissed.
Later in the day, Revenue noticed that no redemption fine was imposed by the adjudicating authority and so they too took the matter to the Commissioner (A) who remanded the matter .
The exporter is aggrieved with this order and knocks the gates of the Tribunal only to be shown the door.
Service Tax
When actual cost of food and beverage is available, there is no need for paying service tax for amounts received on account of their sale especially when sales tax has also been paid - No Suppression of facts is found, to invoke longer period – Pre-deposit waived and stay granted: CESTAT
SERVICE tax levy has reached the skies. Service tax authorities in Bangalore have sought to levy service tax on supply of food and beverages provided by the assessee to various airlines. The assessee is engaged in the following activities:Wrapping/handling of food, loading and transportation of food trolleys, storage, handling and setup of catering equipment, storage and handling of dry stores other recycling items and cleaning of equipment, handling of waste, cabin service and laundry services. They are registered with the department and discharging service tax under the category of ‘Outdoor Caterer's service. There is no dispute in this regard. The only dispute is whether the consideration received for supply of food and beverages is includible in the value of taxable service.
Income Tax
Benefits under RBI's Optional Early Retirement Scheme – eligible for deduction under Section 10 (10C): It is well-settled that circulars can bind Income-tax Officer but will not bind the appellate Authority or Tribunal or Court or even assessee: Bombay High Court.
HIGH Courts are divided on this issue.
Logic alone will not be determinative of a controversy arising from a taxing statute. Equally, common sense is a stranger and an incompatible partner to the Income-tax Act. It does not concern itself with the principles of morality or ethics. It is concerned with the very limited question as to whether the amount brought to tax constitutes the income of the assessee. It is equally settled law that if the language is plain and unambiguous, one can only look fairly at the language used and interpret it to give effect to the legislative intention. Nevertheless, tax laws have to be interpreted reasonably and in consonance with justice adopting a purposive approach.
Until Tomorrow with more DDT
Have a nice Day.
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