Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

Menthol Crystals BP/USP manufactured from peppermint may also be called “Mint” and is liable to Export Cess under the Spices Cess Act, 1986 – CESTAT orders pre-deposit of Rs.50 lakhs.

The Bench held that it was constrained to take a view that the applicant had not made out prima facie case against the demand of cess on Menthol Crystals under section 3 of the Spices Cess Act, 1986. Noting that the applicant had not pleaded any financial hardships the CESTAT directed the appellant to make a pre-deposit of Rs.50 lakhs and report compliance.

Income Tax

Income Tax – Appeal to High Court – Limitation Act not applicable - Hongo India followed – High Court

The remedy of appeal is a statutory right and hence it has to be presented in accordance with the procedure, the manner and within the time prescribed by the Statute, and the principles of natural justice are not remotely attracted so far as the question of limitation is concerned.

Excise

Bogus invoices allegedly issued by non-existing manufacturing units – first stage dealer issuing invoices based on these invoices and second stage dealer following suit – Revenue failing to conduct probe and gather evidence in respect of invoices issued by first stage dealer –Commissioner(A)'s order setting aside penalty upheld – CESTAT

The Revenue has failed to bring the evidence on record that “the respondent has contravened the provisions of law”. The revenue arrived on the conclusion without investigation and evidence.”

See our columns Tomorrow for the judgements