Jurisprudentiol –Wednesday's cases

By Vijay Kumar

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

MODVAT - assessee was entitled to avail of MODVAT credit in respect of steel plates and M.S. channels used in the fabrication of chimney for the diesel generating set, by treating these items as capital goods – Supreme Court

THE issue involved is MODVAT credit in respect of steel plates and M.S. channels used in the fabrication of chimney for the diesel generating set, by treating these items as capital goods in terms of Rule 57Q of the Central Excise Rules, 1944 . Period involved is prior to August 1999.

Income Tax

Interest u/s 234B - Are Settlement Commission's powers to levy interest governed by chargeability of interest in original assessment - NO, it is automatic, says Bombay HC

INTEREST is generally an interesting turf of battle in the Income Tax Act. In this case the issue is about the powers of the Settlement Commission to charge interest u/s 234B - whether the Commission's powers are governed by the chargeability of interest in the original assessment or it is automatic by virtue of Sec 234B(4). And the answer is that it is automatic and the Commission's powers are not subject to any limitation.

Customs

Application for condonation of delay on the ground of transfer of appraising officers – Major part of the delay is on the part of the review Committee – Appellant has not satisfactorily explained delay – No question of granting equitable relief - Application rejected and appeal dismissed as time-barred: CESTAT

THE Commissioner of Customs(Import), Nhava Sheva has filed the two applications, one for Condonation of delay in filing the appeal and the other for stay of the operation of the order dated 12.3.2008 passed by the Commissioner of Customs(A), Nhava Sheva. The order dated 12.3.08 of the Commissioner(A) was received on 23.4.2008 by the department and the appeal was filed on 18.05.2009. The extent of delay is nearly 300 days (whereas the department mentions that it is 387 working days!).

See our columns Tomorrow for the judgements