Jurisprudentiol– Tomorrow's cases

By Vijay Kumar

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

It is trite law that it is for Revenue to substantiate allegations and not for assessee to prove the contrary- CESTAT

IT is so easy to raise a demand notice alleging undervaluation, confirm the same with lots and lots of penalty and interest and then let the Tribunal decide the fate of the same. Probably, such demand notices invoking extended period are issued under the umbrella of ‘safeguarding government revenue' when either the Audit or the CERA or the Anti evasion authorities highlight the enormity of the alleged duty evasion. And the moment the same is confirmed by the adjudicating authority, it is job well done.

Income Tax

Captive power project - deduction is available even if primary business of assessee is not power generation or distribution: Delhi High Court

THE term ''business" which prefixes generation of power in Clause (iv) of the Explanation to Section 115JA is not limited to one which is prosecuted only by engaging with an outside third party. The meaning of the word 'business' as defined in Section 2(b) of the Act includes any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture. The definition of 'business', which is inclusive, clearly brings within its ambit the activity undertaken by the assesses, which is, captive generation of power for its own purposes.

Service Tax

Construction of individual houses is not taxable under 'construction of complex service' or under 'works contract': CESTAT

IT appears that there is an opinion among many that in case where the individual houses are constructed in what they call as “gated communities”, such construction service is also taxable as it has “more than twelve residential units.”

See our columns tomorrow for the judgements