Jurisprudentiol–Tomorrow's cases

By Vijay Kumar

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

LCD panels having multi-use in Televisions and computer monitors are correctly classifiable under Chapter heading 9013 8010 and not 8529 9090 - CESTAT

THE company is before the Tribunal contending that the goods in question were LCD panels having multi use in televisions and computer monitors etc. and these are specifically covered under Chapter Heading 9013.8010 which is specific heading relating to Liquid Crystal Device (LCD). It was also submitted that the entry referred to by the revenue i.e. Chapter Heading 8529 9090 relates to parts of television and parts cannot be considered as a specific heading.

Income Tax

When an order passed by AO on an issue which is still in dispute or unanswered to the point, then it cannot be said that his order was erroneous for initiating action under Section 263

ANY authority under the Direct Tax Law who is entrusted with the task of implementing or enforcing the law is entitled to interpret the relevant portion involved. Further there is administrative and judicial hierarchy under the tax laws. Therefore any interpretation placed upon a provision by a higher authority will be binding on the lower authorities and his freedom to interpret is thus restricted. Thus an interpretation placed by a higher authority becomes a precedent for the lower authorities until it is reversed or modified by a still higher authority. The precedent is thus binding on the lower authorities.

Customs

Import of telecom hardware and related software in CDs and inclusion of value of software for discharge of duty – Bharti Airtel and Ericsson get a reprieve – Pre-deposit of Rs 440 Crore waived and stay granted: CESTAT

THE primary allegation is that the software which was imported separately in CDs/ODs/Floppies are in the nature of firmware, which are pre-loaded at the suppliers factory and the split in the value of software and hardware at the time of import was only to evade duty on the value of software.

See our columns tomorrow for the judgements