Jurisprudentiol – Thursday's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Income Tax/Wealth Tax

Wealth Tax - Two years exemption period of tax on industrial plots held by assessee to be reckoned from date of acquisition of plots, not from date of conversion of agricultural plots to industrial plots: High court

THE assessee had purchased agricultural land for the purpose of Industrial use in the years 1991-92 to 1994-95. The permission to change of the land use for industrial purpose was granted by the department of Town and Country Planning, Haryana on 26.7.1995 and 28.7.1995. The assessee claimed exemption of wealth tax in view of explanation to section 2 (ea) of the Act. The said explanation excludes any unused land held by the assessee for industrial purposes for a period of two years from the date of its acquisition by him from the definition of asset. The Assessing Authority negatived the claim of the assessee and assessed its wealth tax after adding the value of the land in the assessment order.

Central Excise

Dismissal of ROM application without appreciating direction of High Court in proper perspective deplorable: High Court

THE assessee filed this petition under Article 226 of the Constitution praying for quashing of the order passed by CESTAT dismissing the ROM application filed by the assessee. Earlier, while dismissing the ROM application, the Tribunal had not considered the applicability of Circular No. 6/92 dated 29.05.1992 vis-à-vis clubbing of clearances for the purpose of determining exemption limit and the ratio of Apex Court 's decision in Supremo Washers (P) Ltd.

Customs

DFIA obtained after discharge of export obligation – endorsement of transferability also obtained – if condition of production of certificate regarding non-availment of CENVAT credit is stipulated in respect of DFIA issued prior to 01.04.2a007, appellant would have to pay CVD foregone – Decision of lower authorities stayed: CESTAT

THE appellant discharged export obligation and then applied for DFIA. A Duty Free Import Authorization (DFIA) was issued to the appellant authorizing him for duty free import of Hot-Rolled Non-alloy steel sheets/strips/wide coils as well as Zinc and for export of galvanized steel sheets/strips/wide coils. Before they could make any imports, the lower customs authorities insisted on production of certificate from the proper officer of Central Excise regarding non-availment of CENVAT credit on inputs used in the manufacture of the products already exported by them.

See our columns Tomorrow for the judgements