Jurisprudentiol–Tomorrow's cases

By Vijay Kumar

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

Exemption – ‘Used within the same factory' does not mean that the goods which were to be used must be manufactured in the same factory – Revenue Appeal dismissed with costs – Supreme Court

THE short question which arises for consideration is: Does the `nil' rate of duty, as provided for in the notification No. 4/2006 dated 1.03.2006, subject to the condition that the same are used in the same factory would mean that the goods which were to be used must be manufactured in the same factory?

Income Tax

Demand raised on PSU - recovery - As soon as a reference is made to CoD, recovery process automatically gets suspended - grant of any stay by Tribunal at this stage will only be an academic and parallel exercise which is unwarranted: ITAT

THE Public Sector Undertakings constitute a different class so far as their litigation with Revenue is concerned. Since they are also treated as one of the arms of the Government, the Committee on Dispute (CoD) in the Cabinet Secretariat was devised, following the Apex Court order in the ONGC case. But despite such a system being in place, it is not uncommon to see aggrieved PSUs moving the Tribunal for a stay or the Revenue taking hasty and impatient steps to recover the demand raised in order to meet their own revenue collection target. But, is it a legal act on part of the Revenue to issue garnishee notices to bank to make recovery and freeze the accounts of the PSU even as their application to the CoD has been pending for a decision?

Customs

Valuation - once nature of goods has been mis-declared, value declared on imported goods becomes unacceptable - Chief Commissioner's Standing Order is only for guidance, not mandatory: Supreme Court

IT does not in any way affect the legal position that the burden is on the Customs Authorities to establish the case of mis- declaration of goods or valuation or that the declared price did not reflect the true transaction value. Once transaction value is rejected on valid grounds, the Customs Authority has to proceed to determine the value of goods by following Customs Valuation Rules and on the basis of contemporaneous import. However, in the absence of any evidence with regard to contemporaneous import, reference to foreign journals that may indicate the correct international price for the purposes of Section 14 may not be irrelevant and relying upon such journal cannot be said to be altogether unreasonable.

See our columns Tomorrow for the judgements