Jurisprudentiol – Friday's cases

By Vijay Kumar

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

Can provisions of Sec 43B be invoked on a statutory liability which by flux of time changed its character - NO, says ITAT

THE assessee was awarded sales-tax deferral benefit under the State Incentive Scheme for setting up Industries. Under this scheme, the Industrial Unit of the assessee was permitted to retain the sales tax collected from its customers for a period of 14 years. This scheme of the State Government was revised and as per the provision thereof the deferred amount of sales tax stands converted into interest free loan in the records of the State Government thereby losing its character of current liability. Against these facts, since the deferred amount has lost its character of current liability, the provisions of section 43B are not applicable to sales tax deferral scheme.

Central Excise

Central Excise – Commr(A) confirms invoking Section 11AC, but reduces penalty – Revenue challenges reduction of penalty; assessee does not appeal. Tribunal should not have confirmed reduction when the assessee had not appealed – High Court

THE show cause notice issued against the Respondent-Assessee was confirmed by an order-in-original dated 13.03.2003. The Commissioner (Appeals) vide its order dated 30.06.2003 applied the provisions of Section 11(AC) of the Central Excise Act, 1944 considering the facts and circumstances of the case and went on to reduce penalty under Section 11(AC). The said order was subject matter of challenge, not at the instance of the Respondent-Assessee but at the instance of the Appellant/Revenue, before the Tribunal.

Customs

Commissioner(Appeals) cannot condone delay in filing an appeal beyond condonable period of 30 days on ground that ‘law point' was involved – Revenue appeal allowed: CESTAT

SECTION 154 of the Customs Act, 1962 does not authorize correction of mistakes made while presenting Bill of Entry. If it was the assessee's case that they made erroneous entries in the Bill of Entry, it was up to them to seek amendment of the Bill of Entry before assessing authority on the basis of documentary evidence which was in existence at the time of clearance of the goods.

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