Jurisprudentiol – Friday's cases

By Vijay Kumar

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"PXI Controllers - Computers - Data Processing Machines" – Not Really – SC

PACs/Programmable Process Controllers and I.O. Modules by themselves are not measuring, regulating or controlling instrument (system). Physical variables such as temperature and voltage are measured by device, like sensors which constitute measuring and control systems. In other words, controllers and I.O. Modules each have a specific function to perform being parts of a measuring and control system i.e. Sensors.

Customs/Central Excise

Imported goods warehoused in premises of a 100% EOU and used for purpose of manufacturing in bond as authorized under Section 65 of Customs Act, 1962, cannot be treated to have been 'removed for home consumption'. CESTAT Larger Bench.

When the matter reached the Tribunal, a question arose as to whether the removal of goods from the warehouse for consumption within the EOU should be treated as removed from warehouse and duty is attracted on such removal.

THERE is no requirement under law to file ex-bond Bill of Entry for consumption in an EOU - Section 65 of the Act which deals with manufacturing in bond does not require any filing of ex-bond bills of entry or payment duty before taking warehoused goods for manufacture inside the bonded premises - Section 66 of the Act empowers the Central Government to exempt imported material used in a warehouse - It is thus clear that neither the scheme of the Act nor the provisions contained in the Manual require filing of ex-bond bills of entry or payment of duty before taking the imported goods for manufacturing in bond nor there is any provision to treat such goods as deemed to have been removed for the purpose of Customs Act, 1962 – reference answered in favour of the EOU.

Income Tax

Assessee receives enhanced compensation for standing trees on land acquired by State - it is to be taxed as capital gains and Sec 45(5) has overriding effect over Sec 45(1): HC

COMPULSORY acquisition of land is a regular event in a developing economy. States are often compelled to acquire land and other assets of common citizens for development of infrastructure and other industries. An interesting aspect of such acquisition is that along with land, other assets situated at the same land are also acquired. What would be the tax treatment of such other assets if there is no cost involved in creating them. In the instance case, the issue is - Whether the provisions of section 45(5) have overriding effect over the provisions of section 45(1), and hence the AO was justified in taxing the amount of enhanced compensation received by the assessee on account of acquisition of standing trees pursuant to the implementation of Jagirdari Abolition Act:. And the answer is YES.

See our columns Tomorrow for the judgements