Jurisprudentiol–Monday's cases

By Vijay Kumar

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

CENVAT Credit – Outward Transport – CESTAT does not consider the binding Precedents of High Court order in Ambuja Cements - 2009-TIOL-110-HC- P&H -ST and the Tribunal Larger Bench in 2009-TIOL-830-CESTAT-BANG-LB both of which are binding; Tribunal has failed to address itself to the applicability and binding effect – High Court

THE tribunal has to maintain a balance between the interest of revenue and rights and interests of an individual and should not refrain itself from exercising the discretionary powers conferred by the Statute, if the facts and circumstances of the case so justify, merely on the pretext that interest of revenue cannot be jeopardized.

Income Tax

penalty - where assessee bonafidely believes a sum as not chargeable to tax and subsequent orders of appellant authority show that such a stand was a justifiable one, it cannot be deemed as a case of concealment or furnishing inaccurate particulars: ITAT

NO doubt, as per law laid down by the Apex Court in Dharmendra Textile Processors case levy of penalty is a culmination of civil proceedings and such penalty is only compensatory in nature, and there is no question of any element of mens rea . But where an assessee bona fide believes a sum as not chargeable to tax and subsequent orders of the appellant authority show that such a stand was a justifiable one, it cannot be deemed as a case of concealment or furnishing inaccurate particulars. Just because an assessee could not offer explanation referring to the concerned case laws in an exact manner, it would not make any significant difference in the state of law as it existed at the time of filing the return.

Customs

Imported ‘Socket female' & ‘Cable connector male 4p ' come under the category of ‘other connectors' classifiable under 8536 69 90 – Eligible for exemption under S.No.244 of Notification 21/2002- Cus – CESTAT by majority

THE appellants imported ‘Socket female' and ‘Cable connector male 4p' claimed exempted under S. No. 244 of Notification 21/2002- Cus by classifying them as ‘connectors' under Chapter 8536 69 90. The lower authorities disputed the classification adopted by the importer and denied the exemption benefit. On appeal, the Commissioner (Appeals) allowed the appeals and hence the Revenue is before the CESTAT

See our columns Monday for the judgements