Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

Removal of inputs to job worker without reversal of SAD credit availed – amount later reversed – no cause for imposition of any interest as there is no intention to evade duty and the fact that credit had not been utilized: CESTAT

ON import of the inputs, the appellants pay duties of Customs including CVD and SAD leviable under sec. 3 of the Customs Tariff Act, 1975 and takes CENVAT credit . These inputs are removed to job workers/ancillary units for making PCBs (printed circuit boards) by reversing the Cenvat credit availed. It so happened that during the period March 2006 to September 2006, the appellants failed to reverse the SAD availed on the components while clearing the same to the job workers/ancillary units.

Central Excise

Central Excise - Section 4A – exemption under rule 34(b) of SWAM Rules, 1977 - Conditions for 'wholesale package' laid down under clause (x) of Rule 2 of SWAM Rules have to be independently considered and not in conjunction – Goods rightly assessed under section 4 of the CEA, 1944 - Revenue appeal dismissed: CESTAT

THE lower adjudicating authority and the Commissioner (A) rejected the proposal contained in the show-cause notice for assessment of the subject goods in terms of Section 4A of the Central Excise Act. They held that the goods in question in the form it was cleared by the respondent was exempt under Rule 34(b) of the Standards of Weights and Measures (Packaged Commodity) Rules, 1977 from the requirement of declaration of MRP and thereby from the application of Section 4A of the Act.

Income Tax

TDS – Retrospective amendment – non deduction of tax on concessional rental accommodation to employees - Assessee not liable to deduct TDS - ITAT

THE ITAT found that the issue whether in the facts of the case, the assessee could be held to be in default for non-deduction of tax at source on the perquisite value of the residential accommodation provided at a lesser figure of rent than actually paid by the assessee to the lessor of the premises, in view of the amendment in law with retrospective effect from 1.4.2002, is covered in favour of the assessee

See our columns Tomorrow for the judgements