Jurisprudentiol– Tomorrow's cases

By Vijay Kumar

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

If software whether customized or non-customized satisfies Rules as 'goods', it will also be 'goods' for purpose of Sales Tax: Madras High Court

GOODS may be a tangible property or an intangible one. It would become goods provided it has the attributes thereof having regard to (a) its utility; (b) capable of being bought and sold; and (c) capable of being transmitted, transferred, delivered, stored and possessed. If a software whether customised or non-customised satisfies these attributes, the same would be goods.

Income Tax

Rent received by aircraft operator payable to AAI - No income in hand of aircraft operator chargeable to tax: ITAT

THE contention of appellant is that it is not subject to tax in India in terms of Article 8 of the DTAA between India and Netherland. It is also contended that the receipt by way of recovery of rent from CSC India P. Ltd. (CSC) in respect of rent payable to Airport Authority of India (AAI) is not chargeable to tax and even if so, the rent paid to AAI is to be reduced from the rent recovered from CSC which brings the taxable income to nil.

Central Excise

Once gate passes clearly show that duty has been recovered from customers, there is no need of looking into balance sheet to find out as to whether duty so paid was considered as a receivable or not - Refund hit by unjust enrichment: Tribunal

BOTH the lower authorities and the Commissioner (Appeals) have referred to the gate passes issued by the appellants during the relevant period which shows breakup of the assessable value and the duty paid on the assessable value and the total price reflected in the gate passes inclusive of duty matched with the corresponding price reflected in commercial invoices which establishes that the duty has been recovered from the customers.

Service Tax

Plea of ignorance cannot be taken when fact remains that respondents collected service tax from their customers and pocketed the same - Penalties imposable - Tribunal allows revenue appeal

THIS is not a simple case where the respondents were just not aware because of newly introduction of Service Tax; On the other hand, the respondents were not only aware but were also recovering service tax from their customers and not paying to department; They were actually pocketing the same and it was on detection by the department that the amount of tax and interest was paid; In such a case the plea of ignorance cannot be accepted as they could have enquired the same from the department and paid the service tax; There is no ground for leniency as shown by Commissioner(Appeals) by setting aside the entire amount of penalties.

See our columns tomorrow for the judgements