Jurisprudentiol– Monday's cases

By Vijay Kumar

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

Remanded case – Tribunal cannot go beyond directions of High Court - When a direction is issued to an Authority or Tribunal to do a certain thing in a certain manner, the thing must be done in that manner and in no other manner: High Court.

Where a power is given to do a certain thing in a certain way the thing must be done in that way or not at all. Other methods of performance are necessarily forbidden. In the instant case, the matter was remitted to the Income Tax Appellate Tribunal by this Court with certain directions and it was not open for the Tribunal to take fresh evidence in the matter as no such direction was issued by this Court. The impugned order by which a fresh direction has been issued by the Tribunal to the Assessing Officer is legally not sustainable.

Service Tax

Outdoor catering – In premises of the client – liable to tax: CESTAT

THE appellant is a caterer and has served food and beverages to the employees of M/s EID Parry (India) Ltd, Alwar as per agreement with the said company. The appellant was not having any business premises of their own to run their business independently. They were given space by M/s EID Parry in their own factory/place for the purpose of preparing and supplying the food to employees of the said company. The space was given without any rent. The food items were supplied at concessional rates to the employees. The subsidy involved was reimbursed to the appellant by M/s EID Parry.

Customs

When DRI did not consider evidence to be strong enough to call for immediate suspension of licence, no emergency can be said to exist after a time lag of 7-8 months so as to warrant suspending licence without issuing a show cause notice as contemplated under Regulation 20(2) of CHALR, 2004: Tribunal

THE issue is interpretation of the term “immediate action” contained in Rule 20(2) [Suspension or revocation of licence] of the Customs House Agents Licensing Regulations, 2004 which reads –

“(2) Notwithstanding anything contained in sub-regulation (1), the Commissioner of Customs may, in appropriate cases where immediate action is necessary, suspend the licence of a Customs House Agent where an enquiry against such agent is pending or contemplated.”

See our columns Monday for the judgements