Jurisprudentiol – Tuesday's cases

By Vijay Kumar

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

Modvat - Deemed Credit - Burden of proof was on revenue to prove that inputs used by assessee were not being duty paid or charged to Nil rate of duty: High Court

THE revenue cannot possibly be heard to say that it is for the assessee to show that the conditions are satisfied, but in fact the revenue has failed to prove that the inputs used by the assessee are recognizable as not being duty paid or charged to Nil rate of duty. In that eventuality, the exemption already availed by the assessee must be regarded as having been rightly availed. Therefore, it is held that burden of proof was on the revenue to prove that the inputs used by the assessee were not being duty paid or charged to Nil rate of duty and in the absence of any cogent material on record in this relevant connection, the assessee cannot legally be denied the right to avail the facility of MODVAT credit.

Wealth Tax

A mere right to receive enhanced compensation is an inchoate right which cannot be treated as wealth for taxation purpose: High Court

THE issue before the Bench is whether in view of the scheme of Land Acquisition Act, a mere right to receive compensation is an inchoate right and cannot be termed as final right. And its answer is YES. Now the question is whether such an inchoate right can be treated as wealth of the assessee under the provisions of W.T.Act as they stood at the relevant time. And this time the answer is NO.

Customs

Imported Goods yet to be cleared - Writ Petition premature - Proper Officer directed to adjudicate: High Court

IT is now well settled that the power of judicial review of the Court under Article 226 of the Constitution of India includes all cases where the orders are passed by the authorities or even where the authorities have failed to exercise jurisdiction vested in them.

See our columns Tomorrow for the judgements