Jurisprudentiol– Friday's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Central Excise

Undervaluing manufactured items and overvaluing bought out items, raising escalation bills but no proof submitted that these were not honoured - Cost Auditor's marathon efforts - Two crores pre-deposit ordered by Tribunal

THIS is a nearly five crore excise duty demand against the company engaged in the manufacture of Sugar Machineries and a penalty imposition of Rs.2.5 crores against the Chief Executive of the company. The assessee is manufacturing some of the goods in their factory and rest are bought out and supplied to the customers. The customers have notified composite purchase value for sugar plant or assemblies and have not prescribed 'transaction value' for individual parts and components.

Income Tax

India-Swiss tax treaty - non-resident claims exemption under DTAA - Tax treaty comes into picture only after it is adjudicated that an income is taxable as per domestic law: ITAT

IT is often said that cricket is a funny game. But, some of the cases in the domain of taxation are no less funny! It is well settled and well publicised as well by now that in the case of non-residents, it is first the tax liability which has to be determined as per the Income Tax Act, 1961 and then comes into the picture the provisions of the Double Taxation Avoidance treaties to claim exemption or concessions. However, Revenue tends to make this mistake in umpteen numbers of cases. And the same is the case with the assessee as well like in this case.

Service Tax

Sodexho Pass Services gets relief from Service Tax liability for the period prior to 01.05.2006 – Finding a prima facie case, waiver of pre-deposit and Stay of recovery granted - Tribunal

The applicants are issuing meal and gift vouchers to corporate clients and were receiving service charges. Lower authorities held that the appellant needs to discharge Service tax liability on the amount of service charges received from the clients to whom the meal and gift vouchers are sold and also from the amount which they paid to the affiliates.

The adjudicating authority dropped the proceedings initiated under section 65(96) but confirmed the demand under the services Business Auxiliary Services as being enumerated in section 65(19)

Tomorrow is a holiday.

See our columns Friday for the judgements