Jurisprudentiol–Thursday's cases
Legal Corner Icon — the image was hosted by the publisher and was not captured.Central Excise
Inputs exclusively used for manufacture of exempted final products – once the 8% amount is paid under rule 6 of the CCR , 2004, the credit cannot be questioned – CESTAT
THE Single Member Bench after hearing both sides observed that the issue stood settled against the Revenue in a plethora of cases, one of which is the Mahindra & Mahindra Ltd. vs. CCE, Mumbai [] rendered by West Zonal Bench, Mumbai, and which is binding on him.
Income Tax
Minimum Alternative Tax - carry forward is available for a total of six years - It is trite law that statutory provisions prevail over a Circular in case of contradiction between the two: ITAT
IT is trite law that statutory provisions prevail over a Circular in case of a contradiction between the two: The period of 'five assessment years', mentioned in sub-paragraph (2) contradicts with what is stated in sub-section (3) of section 115JAA. It is trite law that statutory provisions prevail over a Circular in case of a contradiction between the two. This position was reiterated by the Supreme Court in the case of Commissioner of Central Excise vs. Ratan Melting & Wire Industries.
Customs
Whether demurrage charges are includable in the assessable value prior to 26.9.2006? – Matter referred to President for constitution of Larger Bench – CESTAT
THE issue relates to inclusion of demurrage charges in the assessable value. Netizens may please recall our earlier stories on this issue (THE B(L)INDING EFFECT OF BOARD CIRCULARS ON REVENUE! and SHIP DETENTION CHARGES - STILL IN DEEP WATERS!). In the famous IOCL case, the department lost revenue of Rs 975 crores because of a Board Circular dated 14.8.1991, which had clarified that the demurrage charges are not includable in the assessable value. In 2001, vide another Circular No 14/2001 dated 02.03.2001, it was clarified that the demurrage charges are includable in the assessable value. However, consequent to the IOCL judgement, another circular No 26/2006 dated 26.9.2006 was issued stating that the assessments for the period after 02.03.2001 should be finalised by including the demurrage charges. In a recent case before the Tribunal, revenue filed appeal against the non-inclusion of demurrage charges for the period 21.6.2001 to 5.2.2002. It is the contention of the revenue that after the issue of Circular No 14/2001, demurrage charges are includable in the assessable value.
Until Tomorrow with more DDT
Have a nice day.
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