Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

Electricity although mentioned in the CETA, 1985 from 28.02.2005 is not ‘exempted goods' in terms of rule 2(d) of the CENVAT Credit Rules, 2004 – Rule 6(3)(b) has no application – Prima facie case for granting waiver - CESTAT.

THE impugned demands are on the premise that the appellant, during the period of dispute, manufactured and cleared both dutiable and exempted final products. The dutiable final products were cane sugar and molasses and there is no dispute regarding this. The exempted final product, according to the Revenue, is electricity which finds mention in the Central Excise Tariff Schedule from 28.2.2005 vide sub-heading 2716 00 00 in chapter 27 of the said Schedule. Prior to 28.2.2005, there was no entry for ‘electrical energy' in the Tariff Schedule. The above entry was incorporated with effect from 28.2.2005 in connection with alignment of the Central Excise Tariff Schedule with the Customs Tariff Schedule.

Income Tax

Levy of interest is automatic and mandatory and has to be charged without reference to assessee; Special bench order in Ashima Syntex followed in preference to High Court decision in Snowcem India: ITAT Third Member

IT all boils down to this, namely, whether the order of the Special Bench upholding the levy of interest in light of sub-section (4) of sec. 115JA should be followed or the judgment of the Bombay High Court in Snowcem India Ltd also rendered in the context of sec. 115JA, has to be applied.”

Customs

Import of second hand machinery - Change in EXIM POLICY – goods already ordered and extension allowed – Import valid and goods not liable for confiscation: Bombay High Court

THE 1st petitioner is carrying on business of manufacturing Precision Screw Gauges and is an export oriented company where 50% of their production is exported. For the purpose of manufacturing procedure Precision Screw Gauges they needed to import a second hand ‘Plain Thread Grinding Machine” from U.K. In the Import Export Policy of April 1988 to March, 1991 Thread Grinding Machines were listed at Serial No.128 of Appendix I Part B, which Appendix covered “Capital Goods allowed under Open General Licence”.

See our columns Tomorrow for the judgements