HC's relief to BSNL on service tax

BANGALORE: Karnataka High Court on Friday quashed the order of the single judge bench directing BSNL to pay `550 crore as service tax.

The HC quashed the interim order dated August 10, which directed BSNL to pay the tax to the commercial taxes department within four weeks.

Mohan Parasaran, Additional Solicitor General of India, appearing for BSNL, argued that the levying of `6,600 crore sales tax was unconstitutional and the singlejudge bench order was not sustainable in the eye of law.

The division bench asked the singlejudge bench to hear the matter without pressing the petitioner to deposit the amount. The petition is posted for hearing before the singlejudge bench on September 14.

The transmission of voice and data over optical fibre cable to customers amounted to transportation of goods and hence attracted sales tax, the department had said. The local VAT officer of commercial taxes department had imposed the sales tax on BSNL.

Insurance co fined for frivolous petition

The High Court has slapped a fine of `1 lakh to Oriental Insurance for filing frivolous petition.

Justice L Narayanswamy imposed the fine after he dismissed the petition of Oriental Insurance.

In a motor vehicle accident claim, tribunal had directed the insurance company to award compensation of `23 lakh to the claimant, Varadayya of Tumkur. The company had challenged the tribunal's decision before HC.

On September 26, 2001, Varadayya had met with an accident near Tumkur. The tribunal had awarded the compensation to him.

HC resumes hearing of Jaya case

The High Court has resumed the hearing of a petition filed by Jayalalithaa, seeking retranslation of all the documents pertaining to her case of possessing assets disproportionate to income.

Justice Subhash B Adi adjourned the hearing to Tuesday.

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