Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

Section 11AC of CEA, 1944 being a penal provision providing for mandatory penalty cannot have retrospective operation - it cannot be invoked in a case where period of dispute or offence is prior to 28th September, 1996: Bombay High Court.

THIS appeal was admitted in September, 2005 to consider the substantial question of law whether the provisions of section 11AC are applicable to cases where show cause notice is issued subsequent to the enforcement of provisions of section 11AC i.e. 28.9.1996 even though the period of dispute is prior to 28.9.1996?

Income Tax

Income tax - Sec 10A - business losses of non-STPI unit not to be set off against profits of STPI unit for determining allowable deduction under Sec 10A: ITAT Special Bench

THE Section 10 was introduced way back in 1981 but the number of disputes continue to mount. In the latest decision the dispute was - Whether the business losses of non-STPI unit are to be set off against the profits of STPI unit which is eligible for deduction u/s 10A for the purpose of determining allowable deduction u/s 10A. And the Tribunal's Special Bench verdict says NO.

Customs

Import of newsprint without payment of duty under actual user condition and allegation of diversion of imported goods – When serious allegations are made in the SCN regarding mis - declaration, undervaluation and diversion of goods imported duty free into domestic market, Commissioner right in imposing stringent conditions for provisional release of seized goods – High Court

ON 22nd December 2006, a show cause notice was issued by the Directorate of Intelligence (DRI) stating that it had received intelligence that some unscrupulous importers of Paper and Paper Board (falling under Chapter Heading No.48 of Customs Tariff) were evading customs duty by way of mis -declaration of the description of the imported goods and undervaluing the same, in connivance with various holders of certificates issued by the Registrar of Newspapers in India

See our columns Tomorrow for the judgements