Jurisprudentiol – Friday's cases

By Vijay Kumar

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

Fire accident in factory in 1998 but C.Ex authorities not informed – remission claimed after receipt of claims from Insurance company – SCN issued in year 2002 denying claim and invoking rules 57A/57Q of CER, 1944 – when rules no longer existed in statute book in year 2002, SCN not sustainable – Prima facie case – Stay granted: CESTAT

IN the month of June, 1998 a fire accident took place in the factory of the applicant. In this unfortunate incident, finished goods involving duty of approximately Rs.2 lakhs and capital goods involving duty of approximately Rs.4 lakhs were destroyed. At the time of fire, the applicant informed the Police, Fire Department, Insurance Company and Municipal Corporation but failed to inform the Central Excise department. Later on they filed a remission claim of duty of the goods which destroyed in fire.

Income Tax

Income tax - Sections 10A, 10B benefits cannot be denied when same have been allowed in previous AYs - Approval of SPTI Director sufficient to claim benefits: ITAT

THE issue before the Tribunal is - Whether Revenue can deny Sec 10B benefits particularly when benefits have been allowed in the previous AYs and Whether Section 10B requires that for the purpose of establishing a STP unit, approval is required to be sought from the Board appointed by the central government u/s 14 of the Industries (Development & Regulation) Act, 1951. And the verdict has gone against the Revenue.

Customs

Short Landing – Penalty – LCL or FCL – Question of fact – cannot be re – appreciated in writ: HC

THE submission advanced by the Counsel that it is a case of short shipping and not short landing holds no water in view of the fact that the letter sought to be relied upon to support this contention is nothing but an evidence created to prepare defence. This defence is nothing but an after thought. It was rightly rejected by the authorities below.

See our columns Tomorrow for the judgements