Jurisprudentiol – Monday's cases

By Vijay Kumar

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

CENVAT Credit - Assessee has to satisfy the Assessing Authorities that capital goods in form of component, spares and accessories had been utilized during process of manufacture of finished product: Supreme Court

IN order to avail of Modvat/Cenvat credit, an Assessee has to satisfy the Assessing Authorities that the capital goods in the form of component, spares and accessories had been utilized during the process of manufacture of the finished product. Admittedly, in this case the Appellant was not able to identify the machinery for which the goods in question had been used. In the absence of such identification, it was not possible for the Assessing Authorities to come to a decision as to whether Modvat Credit would be given in respect of the goods in question.

Income Tax

Section 147- Whether reopening of assessment is permissible on direction of higher authorities: Held - No

ASSESSEE a company deals in shares and securities for the impugned year it has filed return the same was processed u/s 143(1)(a) of the Act, thereafter on the basis of information received from the investigation wing the AO reopened the assessment and made the addition alleging that the assessee has received accommodation entries- CIT (A)affirmed the order of the AO-Before ITAT, assessee challenged the jurisdiction of the AO u/s 147 of the Act, by way of additional ground. ITAT takes the view that the case of the assessee is covered by the order of Delhi High Court in the case of Atul Kumar Jain.

Customs

Imported goods lying uncleared auctioned – successful bidder files Bill of entry and original importer also files Bill of Entry – As per terms of the Tender Notice, respondents can withdraw any lot or part from sale at any time before it is actually physically delivered out of the campus without disclosing reasons for such withdrawal which petitioner was also aware – the original importer could not clear the goods due to the fact that goods were prohibited due to Notification issued by Department of Animal Husbandry which was later removed – action of respondents in favour of original importer is based on cogent reasons – Writ petition dismissed.

IN response to the auction notice issued by the CONCOR, the petitioner had offered a tender amount of Rs.41,42,435 for the consignment of 'pig bristles' which had arrived in a container, but lying uncleared. As the petitioner was the highest bidder for the said consignment, as notified by CONCOR, which specifically approved the petitioner's bid, the petitioner applied for clearance, as per CBEC Circular No.13/2007-Cus dated 02.03.07.

See our columns Monday for the judgements