Jurisprudentiol – Friday's cases

By Vijay Kumar

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

Penalty - transporters abetting in passing on fake Modvat documents, liable to penalty: High Court

THE Transporters had helped the dealers to raise bogus/fake modvatable documents under the Central Excise law in order to fraudulently help the buyers to avail modvat credit. They had not transported the goods, but yet, had issued blank books of G.R.s and had thus, abetted in passing of the fake/bogus modvatable documents to various manufacturers resulting into loss of duty amounting to Rs.62.90 lacs to the Government.

Income Tax

Section 154 - Whether the assessee by way of rectification application is entitled to claim a deduction of nature of disputed liability after expiry of four years and that too in a year in which same is not crystallized.

THE only issue before the Tribunal is - Whether the assessee by way of rectification application, is entitled to claim a deduction of the nature of disputed liability after the expiry of four years, and that too in a year in which the same was not crystallized. And the answer is NO.

Customs

Assessee chose to take benefit of finalised assessment by availing MODVAT credit of CVD - Having done so, they are estopped from contending that refund claim should be considered as a challenge to the assessment order in so far as other duties of customs are concerned – Appeal rejected: CESTAT

IN this interesting case, the assessee had imported goods declared as "second-hand refurbished motor winding line with standard parts and accessories" in B/E dtd. 13.8.1998 and claimed benefit of Customs Notification 23/98-Cus. dated 02.06.1998 (Sr.No.138). The goods were assessed provisionally to duty and released to the importer on 9.11.1998 against production of bank guarantee for the differential duty amount of Rs.1,63,16,799/- including CVD.

See our columns Tomorrow for the judgements