Jurisprudentiol – Monday's cases

By Vijay Kumar

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

EXIM – Writ - disbursement of Cash Compensatory Support and Replenishment Licenses – Petitioner directed to submit copies of all documents and Revenue directed to examine claims and pass speaking order - Petitioner entitled to ventilate grievances against such order in accordance with law: High Court

IN terms of EXIM Policy of 1988, the Chief Controller of Import & Export announced a scheme giving Cash Compensatory Support (CCS) and replenishment licences (REP licences) to registered exporters against export performance. The said exporter accordingly submitted applications for grant of CCS, REP licences and traditional licences against the export of ready made garments, textile products and handicrafts, which were summarily rejected by the authorities.

Consequently, the exporter filed a writ petition seeking a direction to the authorities to disburse the 45 per cent premium in lieu of the replenishment licences (REP) and to release the Cash Compensatory Support (CCS) against export documents received by them. The Petitioner also sought compensation for non-release of the incentives in terms of the prevalent EXIM policy which resulted in losses in their export business.

Central Excise

There is no condition under Rule 173H that defective goods received back should be kept in segregated manner with separate accounts – such condition is stipulated only under Rule 173L: CESTAT.

THE appellant had received back defective goods under Rule 173 H of the Central Excise Rules, 1944 for repair, remaking etc., on which duty was initially paid. They have maintained records wherever the impugned goods have been remade amounting to manufacture and in respect of such goods the appellants have again paid duty. In respect of the remaining goods only minor repairs have been done and the same have been cleared without payment of duty as permitted under Rule 173H. They have filed necessary intimation under D3 and they were not asked to follow any procedures nor any additional documents were required to be maintained by them either under the Rules or under the instructions of the Commissioner.

Income Tax

Indo-US DTAA - PSU enters into contract for supply of hardware, software and related services for installation - since software is a part of package for upgrading automation system at IGI Airport, it has no value unless technical knowledge is made available - payments are fees for included services but payments made for hardware are not taxable in India: Advance Ruling

THE Applicant is a PSU. It enters into contract with non-resident company for 'automation upgrade for third runway at IGI Airport, New Delhi'. The US-based non-resident supplies hardware, software and providing services relating to installation - whether payments made to non-resident are royalty or fees for included services. In the absence of a PE whether the payments received by the non-resident are business income. Whether the payments made for hardware are outright purchase and not taxable in India.

See our columns Monday for the judgements