Service Tax: CESTAT was correct in holding that the respondent is entitled to avail the CENVAT Credit on outdoor ‘catering services’ provided in the factory for employees of the factory as a input service credit .

the transaction of purchase and sale of units when done as a business in a speculative manner, the loss therefrom could be set off only against profit arising in speculation business in terms of Section 73(1) of the Act. Assessee in fact claimed set off of loss from speculation business against income from tea plantation which in our view, is not admissible by virtue of the prohibition contained in Section 73(1) of the Act.

the Tribunal assumed it to be the requirement that the Commissioner should have recorded final conclusion on taxability. This view is legally erroneous. The Commissioner could have proceeded under Section 263 of the Act if the AO had made assessment without application of mind. The Commissioner held that as per order sheet no record was produced while in the order a contrary statement was made.

Whether amount received by the Assessee is Revenue income within the meaning of section 2(24) and taxable under section 4 of the IT act 1961.

ITAT was not right in holding that the calcined petroleum coke manufactured by the appellant was a “mineral oil” within the meaning of Section 80 HHC (2) (b) of the Act.

the word “may‟ used in Section 133A(3)(iii) of the Act clarifies beyond doubt that the material collected and the statement recorded during the survey is not a conclusive piece of evidence by itself. - it is settled law that though an admission is extremely important piece of evidence, it cannot be said to be conclusive and it is open to the person who has made the admission to show that it is incorrect.

Whether the expression "as such" appearing in Rule 3(4)(C) of the Cenvat Credit Rules, 2002 would cover used as well as unused capital goods or not? - Whether the assessee is required to reverse credit equivalent to credit taken when used capital goods are removed from the factory or not?"

Notification No. 16/2001, the Central Government introduced, with insertion of Section E-XA containing Rules 96-ZNA to 96-ZND in the Central Excise Rules, 1944, a special procedure [referred to as ‘the Compound Levy Scheme’/’the Scheme’] for discharge of liability for Excise Duty leviable on production, by specified process, of the specified goods [referred to as ‘the said goods’] by an ‘independent processor of textile fabrics’, on payment of the amount to be calculated per Rule 96-ZNC.

ITAT was justified in law in holding that the amount of Rs. 63,46,000 paid by the assessee for acquiring technical know-how was allowable as revenue expenditure? - the Tribunal was justified in its opinion that the payment made in question was allowable as revenue expenditure and not as capital expenditure allowable for deprecation under Section 32 of the Act.

Service Tax: the retrospective operation of the levy of service tax on renting of property shall only remain stayed. However, it will be open to the respondents to assess and levy the service tax with prospective effect.

the Tribunal's conclusion that on the very same issue of export obligation the Customs Authorities and DGFT are undertaking parallel proceedings and reaching opposite findings is not to be done/allowed, is correct in law in view of the fact that the two authorities act independent of each other in terms of statutory powers vested in them under two separate enactments, namely, under the Customs Act, 1962 and the Foreign Trade (Development & Regulation) Act, 1992.

Service Tax: Whether the penalty imposed equivalent to Service Tax short paid by the party under Section 78 of the Finance Act, 1994 is the maximum statutory limit or the minimum mandatory limit.

Service Tax: Petition for the issue of a writ of declaration declaring that the works carried out by the petitioner in respect of roads are not liable to be levied with service tax and consequently forbear the respondents from levying any service tax on the petitioner in respect of the work of re-laying of roads executed by him.

VAT-the battery charger is sold as composite package along with cell phone. Compared to the value of the cell phone, value of the charger is insignificant. Cell phone cannot be used without the charger. the charger cannot be excluded from the Entry for concessional rate of tax which applies to cell phones and parts thereof.

We request the President of the Tribunal either to frame rule or issue practice note making it clear to all concerned that in the event of change of address there should be amendment to the cause title of the memo of appeal followed by amendment in column 10 of Form No.36 with further reiteration that any correspondence in this behalf shall not be entertained by the Tribunal. If the procedure suggested is adopted, then the parties before the Tribunal would be compelled to amend their memo of appeal or cross objections as the case may be followed by amendment in Column No.10 of Form No.36 so that it will clearly indicate to the Tribunal the correct address of the appellant so as to enable it to serve the notice of hearing on the assessee at its given address. This will avoid exparte hearing and consequent challenge to the order of the Tribunal on the ground of breach of principles of natural justice for want notice. We hope the Tribunal shall take note of anxiety expressed by this Court and inform this Court the compliance of this order.

the object of the transaction namely the loan transaction is towards the purchase of the capital asset as against the running of the regular business such a receipt would be a capital receipt. Therefore, by applying the said principle laid down by the Honourable Apex Court there is no doubt that the grant of loan being one for the purpose of purchase of capital asset which was also utilised for the same is only a capital receipt.

there is a clear distinction between the terms "derived from and attributable to", the expression "derived from" has got to be given a very strict interpretation relatable only to income derived from the business and not to any other source of deposits made. It will have to be held that applying the said principles, the interest earned by the respondent from and out of Fixed Deposit cannot be brought under the expression "derived from the industrial undertaking".

AIT-2010-539-HC
M/s Shubh Timb Steels Limited Vs. Union of India and another

Service Tax: It cannot be held that renting of property did not involve any service as service could only be in relation to property and not by renting of property. Renting of property for commercial purposes is certainly a service and has value for the service receiver. Even if it is held that transaction of transfer of right in immovable property did not involve value addition, the provision cannot be held to be void in absence of encroachment on List II.

the provision for minimum mandatory penalty equal to the amount of duty even for slightest bonafide delay without any element of discretion is beyond the purpose of legislation. - impugned provisions in Rules 96(ZO), (ZP) and (ZQ) permitting minimum penalty for delay in payment, without any discretion and without having regard to extent and circumstances for delay are held to be ultravires the Act and the Constitution.

Challenge in all the petitions is to validity of statutory provisions in Sales Tax law in Punjab and Haryana for deduction of tax at source out of payment made to contractors for execution of works contracts involving transfer of property in goods at specified rate - whether the impugned provisions to the extent they provide for deduction of percentage of payment to be made under a works contract without limiting the deduction of tax to taxable turnover, can be held to be within the competence of State legislature.

the Tribunal has no power to reduce mandatory penalty under section 11AC of the Act. - In order to make the assessee/ noticee aware of the advantage flowing from the provisos, the adjudicating and/or appellate and/or revisional authorities under the Act are directed to make it explicitly clear in the operative part of the order that quantified duty liability along with interest under section 11AB, if paid within 30 days from the date of receipt of quantified demand, then the penalty payable would be 25% of the duty liability, so that the assessee can reap the advantage of paying reduced penalty.

In this appeal filed by the Revenue, order dated 05.12.2001 of the Income Tax Appellate Tribunal is impugned. The appeal was filed on 23.01.2007 and it is stated in the appeal that copy of the impugned order of the ITAT was received by the Department only on 29.09.2006. - Since repeated oral instructions given to the Department from time to time to set its house in order have fallen into deaf years, we have no option but to bring these aspects to the notice of the higher authorities by means of this order. We also feel it necessary to summon Secretary (Revenue), Govt. of India as well as Chairman CBDT.

the respondent can reverse the CENVAT credit availed on capital goods treating it as undesirable credit to claim depreciation under Section 32 of the Income Tax Act, 1962, and pay duty from PLA otherwise payable after exhausting CENVAT Credit balance thereby claiming refund of the same under Notification No.39/2001-CE dated 31.07.2001.

if the assess is only issuing invoices wherein there is no movement of the goods, they cannot be visited with penalty under rule 209A.

once a particular Undertaking or Enterprise becomes entitled to claim and is allowed deduction of certain amount of the profits and gains under Section 80IA of the Act, whether deduction to the extent of such profits claimed under Section 80IA would not be allowed for computing deduction under Section 80 HHC or whether the profits and gains are to be computed and deduction undertaken independently all over again, irrespective of the deduction already claimed and allowed under Section 80 IA of the Act.

the Appellate Tribunal was justified in holding that approach roads constructed by the assessee within the factory premises should be treated part of the building and depreciation allowed accordingly.

Whether the amount spent for rectifying the defects in the title to the property and removing encumbrance to transfer, is expenditure incurred in connection with the transfer for the purpose of computation of capital gains as per Section 48 of the Income Tax Act?

(a) Where the stipulated date of filing the return of income as prescribed under Section 139 (1)of the Act is over and return is not filed, it has to be normally held that the income has not been disclosed for the purpose of this Act.

ITAT was right in law and on merits by deleting the additions of income made as interest earned/acquired on the loan advanced to M/s Shaw Wallace by considering the interest as doubtful and unrealizable.

the Tribunal is jnot ustified in directing the Appellant to make pre deposit of Rs.Five Crores for entertaining the Appeal, when, in respect of similar appeals filed by the Appellant in the past, the Tribunal had granted full waiver of pre deposit

control samples drawn for testing are not chargeable to central excise duty under the provisions of Central Excise Act, 1944 and Rules made thereunder