Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Clearance of wires and cables specially designed for aircrafts, satellite launch vehicles and battle tanks – Lower authorities do not regard them as parts of aircrafts, satellite launch vehicles and battle tanks – Member Technical partially agrees while allowing appeal and Member Judicial allows appeal fully as appellant eligible for benefit of one of the notifications – No difference of opinion :CESTAT

Can aircrafts, battle tanks and satellite launch vehicles operate without wires and cables? Excise authorities think so. Because their reasoning goes beyond common sense application of exemption notifications. Fortunately or unfortunately, even CESTAT partially came to this conclusion but allowed the appeal of the assessee. Fortunately, for the assessee, claim of exemption under different notifications saved the day.

Income Tax

When the expenditure of interest is incurred in relation to income which does not form part of total income, it has to suffer the disallowance irrespective of fact whether any income is earned by assessee or not - case held against assessee in 2008-TIOL-509-ITAT-MUM-SB-ITAT-SB

When there is no income, it cannot form part of anything and certainly it does not, in any case form part of total income. In a contrast to put it differently, can one say 'does it form part of total income' the answer is no. The words "does not" of course, denotes the present situation, and not the future events as apprehended by the Counsel to have been contemplated/attempted by the Revenue.

Customs

Conversion of free shipping bills to DEEC Shipping Bills - appellants have established link between imported goods and exported products – order of Commissioner rejecting conversion is set aside:CESTAT

The assessee had obtained three DEEC licences and imported parts, raw materials and components, for the manufacture and export of Transformers and spares. However, Transformers and spares were exported under free shipping bills, instead of DEEC shipping bills. Realizing the error, the assessee applied for conversion of the free shipping bills to DEEC shipping bills which was rejected by the Commissioner.

Tomorrow is a HOLIDAY

See our columns Monday for judgements