Jurisprudentiol – Friday's cases

By Vijay Kumar

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

EOU – DTA clearances - maintained separate accounts regarding goods manufactured out of imported raw material and goods produced from indigenous raw material. – Duty paid correctly – High Court

THE Commissioner (Appeals) as well the Appellate Tribunal have both returned categorical findings of fact that the respondent had maintained separate accounts regarding the goods manufactured out of imported raw material and the goods produced from the indigenous raw material. There was also no evidence on record to show that the respondent had utilized any part of the imported raw material and had got them cleared in the DTA. Thus, in the absence of any proof on part of the Revenue that goods for sale in DTA were manufactured out of the imported raw material, the respondent cannot be held liable to pay duty in terms of Notification No.2/95

Income Tax

Assessee is non-resident - executes contracts in India - receives payments for offshore supplies - payment made outside India - Such income cannot be said to have accrued in India - not taxable; CBDT Circular 7 of 2009, withdrawing earlier Circulars is operative only from Oct 22, 2009: ITAT

NETIZENS may recall the CBDT had vide Circular No 7 of 2009, withdrawn three controversial Circular Nos 23 of 1969, 163 of 1975 and 786 of 2000, on the perceived ground that they had outlived their utility for the present time of taxation. Now the issue before the Tribunal is whether such withdrawal will be retrospective of prospective. An easy guess - the Tribunal has held that it is prospective, and their withdrawal will not affect the assessment of earlier years. It noted that the withdrawal is effective from October 22 of 2009. Along with this the Tribunal also reiterated that the payment made for offshore supply is not taxable in India.

See our columns Tomorrow for the judgements