Latest Information Related to Service Tax & Income Tax

Highlights

  1. Service Tax: Levy of Penalty – Short payment of service tax – Suppression of facts – Section 73(3) is not applicable in the case where suppression of fact is established – However, appellant has made reasonable cause for invoking of Section 80, penalty waived – Tri
  2. Service Tax: Imposition of penalty – Malafide intention – it is not the appellant who has committed an offence of non payment of service tax, it is the consultant, who has defrauded them therefore there is reasonable cause for waiver of penalty under Section 78 – Tri
  3. Service Tax: Penalty u/s 76 – there is no distinction between habitual and one time offenders u/s 73(3) – penalty u/s 76 is not imposable when the service tax liability alongwith interest is discharged before issuance of show cause notice. – Tri
  4. Central Excise: Duty on die research and development charges recovered separately by the appellant by way of debit note – on the cost of amortization, the duty has not been demanded on the final product cleared by the appellant, therefore, the demand of duty on die development charges is not sustainable – Tri
  5. Central Excise: Duty demand – CENVAT Credit – Ownership of the input material is of no consequences. – it is an admitted position that the made-ups are not manufactured by the appellant but by the job-workers. Hence the duty liability will be with the job-worker and not with the appellant – Tri
  6. Central Excise: Denial of CENVAT Credit – Respondent availed Cenvat Credit on duty on the strength of these invoices issued by M/s. JOPL. Later on M/s. JOPL failed to comply with certain formalities as per CBEC manual and supplementary instructions 2005. – Credit cannot be denied to the assessee – Tri
  7. Customs: Whether the provisions of sections 113(d) and 114 of the Customs Act, 1962 are invocable in the case of export under Duty Entitlement Pass Book (DEPB) scheme or not – Customs officers are empowered to invoke section 113(d) and 114 of Customs Act, 1962 in cases relating to export under claim for DEPB – Tri
  8. Customs: Suspension of CHA License – revocation of licence or any punishment on the CHA should be commensurate with gravity of the offence whereas the adjudicating authority ordered for revocation of CHA licence and forfeiture of deposit which appears to be very harsh when compared to the nature of lapse. – Tri
  9. Income Tax: Penalty u/s 271(1)(c) – assessee having under declared its receipt is exigible to levy of penalty under Section 271(1)(c) of the Act view of the concurrent findings of concealment of income – HC
  10. Income Tax: Scope of working partner within the meaning of Explanation 4 to Section 40(b)? – the assessee is not a partner of the firm – He is only representing the actual partner. Accordingly, AO was justified in holding that the assessee cannot be considered as working partner – Tri
  11. Income Tax: Claim of the assessee made u/s 54EC denied – short term capital gain u/s 50 on depreciable assets of shops – deduction u/s.54EC to be available on the capital gains computed u/s.50 – Tri
  12. Income Tax: Loss claimed as business loss – As all the three conditions of section 94(7) are not fulfilled, loss of sale of securities to the extent of dividend income cannot be disallowed or ignored invoking provisions of section 94(7) – Tri
  13. Income Tax: Addition on account of compensation for re-acquiring the rights of plots of land – the assessee has not treated the sale transaction as complete. Thus, when no asset is sold by the assessee, the question of reacquiring the same does not arise. – Tri
  14. Income Tax: Registration u/s 12A denied – fee collected from the students used for carrying out the objects of the society – . There is no time frame fixed by the Act that the assessee society has to make an application immediately when the society is constituted. – Tri