Jurisprudentiol – Wednesay's cases

By Vijay Kumar

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

An appeal is liable to be dismissed for non-compliance of pre-deposit directions and it is not necessary that same has to be disposed of on merits: CESTAT

THE appellants failed to comply with the order of pre-deposit passed by the Tribunal under proviso to Section 35F of the Central Excise Act, 1944. Consequent to the failure to comply with the requirements of Section 35F in relation to deposit of the duty as well as non-compliance of the order in terms of the proviso to the said Section 35F, they were required to show cause as to why the appeals should not be dismissed on that count.

Income Tax

Whether addition can be made on mere difference in reconciliation of account even though payment are transacted through banking channel - NO, says ITAT

ASSESSEE is in the business of distribution of Coca Cola Products under name and style of M/s Sathish Agencies. Department conducted survey at the business premises of the assessee. During assessment proceedings the AO observed some discrepancy in account of assessee firm and M/s Hindusatan Coca Cola. AO made addition as unexplained cash credit. On appeal before CIT (A) assessee explained the entries and CIT (A) deleted the addition.

Customs

MRP/RSP on Video Games re-labelled after import with higher price and sold in market – Differential CVD demand seems proper – CESTAT.

THESE days the easiest cases of undervaluation booked by the Customs authorities veer around the MRP conundrum. An importer imports goods which are notified under section 4A of the CEA, 1944 viz. valuation based on RSP/MRP. He declares an MRP/RSP and pays the CVD on the same. After clearance, these ‘notified goods' are re-labelled with a fresh MRP/RSP for sale in the domestic market and which obviously are higher than that on which the CVD has been paid.

The Customs authorities issue a demand notice seeking differential duty of CVD and the same is confirmed by the adjudicating authority with loads of penalty.

See our columns Tomorrow for the judgements