Jurisprudentiol- Tomorrow's cases

By Vijay Kumar

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

Reference Application - High Court's power to condone delay - High Court's powers cannot not be circumscribed by Central Excise Act - In view of the Apex Court earlier decision in 2008-TIOL-24-SC-CX matter referred to Larger Bench - Supreme Court

THE Reference Application was required to be made by the Commissioner to the High Court. It was not required to be made to the authority under the Act. The powers of the High Court were not circumscribed by the statutory provisions. The power of the High Court to condone the delay cannot be circumscribed by the provisions of Section 35. Secondly, in this case, we are concerned with the scope of Section 35H and not with Section 35 of the 1944 Act. Under Section 35H, on an application for reference, the High Court exercises its advisory jurisdiction in a case where it is of the opinion that the substantial question of law of public importance arises. Therefore, in such a case, there is no question of a vested right accruing in favour of either party.

Income Tax

Cooperative bank - exemption u/s 80P(2)(a)(i) - assessee cannot claim exemption for interest income earned by advancing housing loan or loans from PF deposits to own employees as they are not members of society: High Court

COOPERATIVE banks are a common sight in rural India. They are registered societies and have also been permitted to carry on the business of banking operations. For interest income earned on loans given to their Members, they have been given income tax exemption u/s 80P(2)(a)(i). But is this exemption also available to society-banks on interest income earned from loans given to their own employees from PF deposits or housing loans? NO, says the latest decision of the Rajasthan High court.

Customs

Hospital Equipment - Withdrawal of Customs Duty Exemption Certificate by DGHS without following principles of natural justice - Not sustainable: Bombay High Court

AN opportunity of being heard, before passing the impugned order, is not an empty formality, but is a valuable right of an individual and is also requirement of law, particularly, when the order has civil consequences.

See our columns tomorrow for the judgements