Jurisprudentiol – Friday's cases

By Vijay Kumar

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

CENVAT Credit – exempted and dutiable goods – Once Credit is reversed, it is deemed that Credit is not taken – Revenue Appeal Dismissed – High Court

TRIBUNAL has considered all the relevant material on record and has afforded reasonable opportunity and by placing reliance on the notification and also the judgment of the Apex Court in the case of Chandrapur Magnet Wires Pvt. Ltd., Vs. CCE, Nagpur (2002-TIOL-41-SC-CX) and applying the ratio of the said case to the facts in hand, has reversed the order passed by the assessing authority and held that assessee is not liable to pay 8% of the price of the exempted goods and consequently, allowed the appeal.

Income Tax

Retrospective amendment to Sec 234B - Whether interest to be charged on assessed income or declared income in case of failure to deposit advance tax - assessed income, says High Court

THE issue before the Bench is - Whether interest under section 234-B is to be chargeable with reference to the assessed income or declared income, particularly in the light of retrospective amendment to section 234B. And the answer is assessed income.

Customs

Import of Cut and Polished diamonds – declaration in Bill of entry showing consignment as of 19 packages but on examination only 18 packets were found – mis-declaration is not going to give any benefit to importer - moreover, it is a mistake admitted by supplier - no evidence that packet has been left with knowledge of importer – Penalty and confiscation set aside: CESTAT

THE appellant had imported a consignment of assorted Cut and Polished diamonds and sought clearance on the same under Bill of Entry through their CHA. In the Bill of Entry the weight of the said consignment was declared as 1946.550 CTS and the assessable value of the said consignment as Rs.2,56,94,307/-. A supporting invoice, issued by the supplier, was also submitted by the importer wherein it was mentioned that there were totally 19 packets of cut and polished diamonds. The said consignment was examined by the customs officials. On examination, only 18 packets were found inside the box as against the 19 declared in the supplier's supporting invoice. One packet, having declared weight of 96.38 CTS, value of Rs.14,75,819/- was found short. The goods were confiscated and redemption fine of Rs.2,50,000/- was imposed along with a penalty of Rs.50,000/- under section 112(a) of the Customs Act.

See our columns Tomorrow for the judgements