Jurisprudentiol–Tuesday's cases

By Vijay Kumar

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

Goods falling under Tariff Heading 55.06 manufactured from duty paid inputs falling under Heading 55.01, entitled for exemption under Notification No.30/2004- C.E : Bombay High Court

THERE is nothing in the Notification No 30/04 to suggest that the term `staple fibre' has been used in a restricted sense so as to apply only to inputs falling under Heading 55.03/55.04. On the contrary, reading the Notification as a whole it is seen that the said Notification is issued to ensure effective implementation of the new tax regime so that the manufacturers are required to pay only the mandatory excise duty and not required to pay excise duty at different stages specified in the CET. Therefore, there is no reason to construe the terms `staple fibre' narrowly so as to restrict it to unprocessed staple fibres used as inputs in the manufacture of Tops.

Income Tax

Non-resident company - gets contract - follows percentage of completion method - No income need to be offered for taxation if work is not completed up to 25% of project; If there is no income the law does not cast a duty upon a person to file return of income; HO expenses prior to setting up project office in India allowable deduction: ITAT

IS non-filing of return an offence under the Income Tax Act? When is the need to file return triggered? In the case of a non-resident engineering contract firm which followed the percentage completion method and filed no return, the AO disallows the claim of deduction for expenditure on work in progress in the preceding year merely because no return was filed. The Tribunal in this case has observed that every person, including a company, is liable to file return if its total income assessable under the Act during the previous year exceeds the maximum amount which is not chargeable to income tax. Thus the requirement for filing the return is activated only when there is some income chargeable to tax. If there is no income, then the law does not cast a duty upon a person to file the return of income.

Customs

Benefit of exemption notifications not allowed – Refund without challenging assessment – writ maintainable – High Court

THE law is well settled that mere statutory remedy even of an appeal by itself, will be no bar to the exercise of the extra ordinary jurisdiction of the High court. The High Court if it finds that there has been a breach of the fundamental principles of justice, would certainly not hesitate to issue a writ of certiorari and the fact that the alternative remedy is available would be no answer. The fact that the Petitioner has paid the duty under mistake of law and or in the instant case by oversight cannot result in being assessed to duty which was otherwise not payable. This will be a case of manifest injustice and on the face of it erroneous.

See our columns Tomorrow for the judgements