Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

Refund of pre-deposit – Commissioner directed to return the amount of Rs.15 lakhs within a period of 30 days along with interest thereon @12% from October, 2005 to the date of actual refund: CESTAT

THIS application has been filed by the appellant before the CESTAT seeking a direction to be issued to the department in exercise of powers contained in Rule 41 of the CEGAT (Procedure) Rules, 1982 to return the amount of Rs.15 lakhs which was pre-deposited by them under section 35F of the Central Excise Act. It is further submitted that the Commissioner be directed to pay the appellant interest @12% p.a from 19.10.2005 till the date of refund.

Income Tax

Are forward contracts covered u/s 43A - Can losses arising from such contracts be claimed as deduction for computing taxable income - YES, says ITAT

THE issue before the Tribunal is - Whether forwards contracts are covered under section 43A and whether losses arising from such contracts can be claimed as deductions in computing taxable income. The second issue is that whether an assessee can be held liable for a deferred tax liability on a retrospective basis by reason of amendment u/s 115JB and be subject to interest u/s 234B. And the third issue is - Whether the payments made towards creation of a reserve set aside for ascertained capital expenditure can be deducted while computing book profits u/s 115JB.

Customs

Import of Counterfeit Nokia E-51 mobile phones – Absolute confiscation proper – since goods are to be destroyed, penalty reduced: CESTAT

The appellant has imported Mobile Phones with brand name NOKIA Model E-51 to Chinese origin but on examination it was found that it is not of Chinese origin but it was made in Finland. Moreover, these mobile phones were found in loose packing. On inquiry being made to the Nokia, their representative after examining the IMEI number found that these IMEI numbers were never issued to by M/s Nokia Ltd. The department has proceeded on the basis of the said report. Hence, no infirmity in the impugned order, same is upheld. With regard to the penalty, the penalty of Rs.3,50,000/- is on higher side and as the goods have been absolutely confiscated which are to be destroyed, penalty reduced to Rs.70,000/”

See our columns Tomorrow for the judgements