Jurisprudentiol – Friday's cases

By Vijay Kumar

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

Rover sports Car stolen in UK and imported into India as brand new - Owner of vehicle making application as Intervener for re-export of Car – Re-export allowed but redemption fine not imposed by adjudicating authority - Non-imposition of RF is not proper - One lakh rupees ordered to be deposited as RF: CESTAT

ONE Abdul Hassan Mohammed Khan , filed bill of entry for clearance of a vehicle declared as “Brand new Rover Sports Car – RHD Model No. 4.2 ( V8 ) ” . On enquiries, it was revealed that the vehicle was a used car. It was further found that the importer did not satisfy the condition mentioned in the import licensing note appended to Chapter 87 of the ITC (HC) classification. Lombard North Central PLC , the intervener submitted documents before the adjudicating authority to prove that they had filed a complaint to the UK Police that their vehicle was stolen and exported to India . It was also requested that the car be permitted to be cleared for re-export after adjudication.

Central Excise

Refund - Duty paid twice – in view of self-assessment and Central Excise officers having not served an order, challenging of order does not arise at all – Proposition that “assessment” includes “self assessment” is not correct for purpose of appeal under section 35 of the Central Excise Act, 1944 – CESTAT

THIS appeal is filed by the appellant against the order of the Commissioner(Appeals), wherein he rejected the refund claim holding that the refund claim contrary to the assessment order is not maintainable without the order of assessment having been modified in appeal.

Income Tax

Non-resident hired to work in India - employer promises to pay additional tax burden in excess of one payable in home country - tax liability in India turns out to be lesser - difference retained by employer as 'hypo tax' - AO for taxing it - hypo tax is not income in hands of non-resident taxpayer - not taxable: Delhi HC

IS 'hypo tax' an income? Is it taxable in the hand of non-residents working in India? With more and more non-residents coming to India either on deputation or to seek employment, foreign employers have been devising innovative employment conditions to attract good talents agreeing to work on India. One of the carrots which is often promised to non-resident individuals is that in case of any extra tax liability in excess of the ones being paid by them in their own countries, the employers will take care of that. But, as the luck would have it, the tax rate is lower than many countries in the world, and the non-residents have to pay lesser tax. The difference between the tax paid in India and the tax they would have paid in their own countries, is known as 'hypothetical tax'.

See our columns Tomorrow for the judgements