Jurisprudentiol– Tuesday's cases

By Vijay Kumar

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

Central Excise – When Tribunal already directed pre-deposit of duty and penalty by factory, interest of Revenue would be served if appellants (individuals) furnish security of Rs. 5 lakhs each, other than cash or bank guarantee – High Court

THE Commissioner of Central Excise, NOIDA confirmed duty demands amounting to Rs.8,45,11,283/-, Rs.15,68,167/-, Rs.75,80,380/-, Rs.14,70,682/- and Rs.3,90,734 and imposed equivalent penalties on the assessee viz., M/s Lamicoat International Private Limited. Further, penalties of Rs. 8 crores and Rs. 3 crores were levied on two directors of the company and a penalty of Rs. 2.5 crores was imposed on the manager of the assessee-company.

Income Tax

Income tax - assessees are US-based FIIs - file returns of income declaring capital gains and dividend income - later, based on Advance Ruling, file revised return seeking to treat same as business income, not taxable under provisions of DTAA - AO invalidates revised return - Penalty u/s 271(1)(c) - Levy of penalty based on invalid returns not sustainable: ITAT

The assessing officer, in the assessment order, states that the original return as well as the revised return were processed u/s. 143(1) of the Income-tax Act. This is a contradictory finding and the assessee claims that it has not been served with any intimation evidencing processing of the revised return u/s. 143(1) of the Act.

Customs

Customs – DEEC – Nexus with product exported – transferee of licence is under no obligation to establish nexus with export goods when export obligation had already been fulfilled by transferor exporter: CESTAT

The DEEC licences used by the importers to make duty-free clearances of the batteries had been issued to the exporters who had completed export obligation. The respondents were transferees of such licences. When imports are made against licences issued after completion of export obligation, benefit of duty-free import of inputs was available without the importer having to establish nexus between the imports and the export product.

See our columns Tomorrow for the judgements