I-T - Interest earned by finance company by advancing funds for trading in shares and securities, are chargeable to tax under Interest Tax Act: HC

I-T - Expenses incurred prior to and in connection with setting up of R&D facility duly approved by Government, are completely eligible for weighted deductions: HC

I-T - If an employer provides education subsidy to school where children of its employees pay only part school fee, such subsidy is not to be taxed in hands of employees as perquisite : HC

VAT - Rejection of declarations made under tax amnesty scheme would not automatically entail tax liability for applicant: HC

CX - Assessment being final and excise duty had been discharged correctly with no indication of sales tax 'paid' or 'payable', no variation in assessable value at a later stage is permissible: CESTAT by Majority

I-T - NPA being irretrievable, Department should not tax notional interest income earned on accrual basis: ITAT

I-T - If two reasonable constructions of a taxing provision are possible, construction that favours the assessee is to be necessarily adopted: ITAT

CX - Allegation is that invoices were arranged for availing Credit - No investigation was done at transporter's end - order denying credit set aside: CESTAT by Majority

SERVICE TAX

2018-TIOL-1473-CESTAT-BANG

Verisign Services India Pvt Ltd Vs CST  

ST - Assessee is in appeal against impugned order wherein their refund claim has been rejected on the ground that services for which they filed refund claim are not input services as per Rule 2(l) of CCR, 2004 - Renting of Immovable Property for parking space is a part of output service as without that space persons visit to office of assessee cannot reach to the office and for that purpose, parking space is required - In that circumstances, Renting of Immovable Property for Parking Space is entitled to cenvat credit - Employees of an output service provider are required to avail services of cafeteria which is essential for employees - If cafeteria services have not been provided to employees, efficiency of employees shall come down as they have to go outside the premises for cafeteria and they will not able to work in their full capacity - Therefore, tangible goods supplied to cafeteria is entitled for cenvat credit as per Rule 2(l) of Rules, 2004 - The issue has been raised at the time of filing of refund claim under Rule 5 of CCR, 2004 by assessee - Availment of cenvat credit cannot be disputed on later stage - In that circumstances by relying on decision of Technip India Ltd. 2017-TIOL-3708-CESTAT-MUM, refund claim cannot be denied merely on premise that services in question on which cenvat credit remained unutilized in cenvat credit are not 'Input Services' - Assessee is entitled for refund: CESTAT - Appeals allowed: BANGALORE CESTAT

CENTRAL EXCISE

2018-TIOL-1476-CESTAT-MUM

CCE, C & ST Vs Indian Petrochemicals Corporation Ltd  

CX - Respondents cleared goods to customers against Advance licences which were surrendered in their favour - it is the case of the department that the contract price was influenced and the benefits under the said licence is includible in the Assessable value - demand confirmed by original authority but Commissioner(A) setting aside the same on the ground that the demand is time barred and revenue neutral - Revenue in appeal before CESTAT.

Held: In the case of Reliance Industries Ltd. Order no. A/564-566/WZB/AHD/2009 dated 17.03.2009, the Tribunal by a Majority decision had in identical matter set aside the demand on the grounds of revenue neutrality - following the same, impugned order is upheld and Revenue appeal is dismissed: CESTAT [para 4] - Appeal dismissed: MUMBAI CESTAT

CCE Vs Sequent Scientific Ltd

CX -Respondent opted out of EOU and continued their operations as DTA unit under the same CE registration - on date of debonding, respondent EOU unit had unutilized balance of CENVAT credit of duty paid on inputs and capital goods which was utilized by them for the clearance effected as a DTA unit - SCN issued on the ground that the CENVAT credit stands lapsed on debonding and the same could not be transferred to DTA - demand confirmed by original authority but Commissioner(A) setting aside the same - Revenue in appeal before CESTAT.

Held: Identical issue has been decided by Division Bench in the case of Tecumseh Products India P. Ltd. 2015-TIOL-3066-CESTAT-BANG where it is held that CENVAT credit lying unutilized can be transferred to the DTA unit - following the same, the impugned order does not require any interference - Revenue Appeal rejected: CESTAT [para 7, 8] - Appeal rejected: MUMBAI CESTAT

CUSTOMS

NOTIFICATION

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Amendments in Standard input Output Norms, Appendix-4B and 4J of Hand Book of Procedures 2015-20

CASE LAW

Ajith P Vs CC

Cus - Issue relates to penalties imposed under Section 112(a) and Section 114AA of Customs Act, 1962 - Shri Ajith P is a Chartered Engineer, M/s. Ajay Overseas is the Custom broker and Shri E.N. Unnikrishnan is the local representative of importer in Cochin - Penalties under Section 114AA has been dropped against main importer because the requirements of Section 114AA are not fulfilled - Therefore, since the penalty under Section 114AA dropped against the main importer and there is no material evidence against Shri Ajith P to impose penalty under Section 114AA, penalty against him also dropped - Section 112(a) provides for imposition of penalty on any person who abets the doing or omission or any act or omission which will render the goods liable to confiscation - In impugned order, no such cogent evidence has been recorded - Further for penalty under Customs Act, 1962, it is apparent that mere filing of Bill of Entry without the knowledge or a role in importation of cargo is not sufficient - Report submitted by Chartered Engineer has been signed by three officers of Customs as the examination of good was done in their presence - In case of New Amar Goods Carriers, it was held that in absence of evidence regarding knowledge of appellant about the contents of the cargo, penalty cannot be imposed - Penalty imposed under Section 112(a) on three appellants as well as penalty under Section 114AA imposed on Shri Ajith P, Chartered Engineer is not sustainable in law: CESTAT - Appeals allowed: BANGALORE CESTAT