Jurisprudentiol – Wednesday'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

Sec 194C - Individual exporter utilises manufacturing facilities of a company for meeting exports deadline and reimburses costs - TDS provisions are applicable to such cases only from 1.6.2007: ITAT

EXPORT is a time-sensitive business. Export orders are normally executed against a fixed delivery schedules. In case an exporter misses the scheduled periods, there are heavy penalties incorporated in the agreements. In some cases even the orders are cancelled irrespective of the facts that the consignments have landed in the country of importer but could not be delivered for either because of delayed customs clearance or delayed shipment etc. In the instant case, the individual exporter has a tight deadline and she knows that unless part of production is done elsewhere she cannot meet the demand. So, she gets into a kind of oral contract with a company for utilising the manufacturing facilities against reimbursement of salaries of its employees and other costs.

Customs

Conversion of free shipping bills into drawback shipping bills - Section 149 of Customs Act, 1962 clearly permits amendment of shipping bill – Commissioner directed to amend the Shipping Bill - CESTAT

SINCE Board's circular also does not clearly provide that Commissioner cannot allow amendment under Section 149 of Customs Act, 1962, Commissioner could have considered the request under this section.

See our columns Tomorrow for the judgements