From our Legal Corner - Tomorrow's cases

By Vijay Kumar

Central Excise

Intention to evade duty by invoking extended period of limitation has to be proved by Department; When there is a bona fide doubt on excisability of goods, extended period of limitation cannot be invoked; when facts are known to Department, it cannot be held that there is suppression on part of assessee:: High Court

WHEN there was a bona fide doubt on the payment of duty with regard to the samples of Cigarettes drawn for testing and the same was cleared only with the decision of the Apex Court, it cannot be held that there was suppression of facts or any willful intention to evade duty. In fact, intention to evade duty by invoking the extended period of limitation has to be proved by the Department. When there is a bona fide doubt on the excisability of the goods, the extended period of limitation cannot be invoked. Further, when the facts are know to the Department and when the officers of the Department have been inspecting the products and have also been in constant correspondence with the assessee, who has in turn replied to the various letters of the Department, it cannot be held that there is suppression on the part of the assessee, so as to justify invokation of proviso to Section 11A of the Act. - Revenue Appeal Dismissed

Income Tax

Sec 36(1)(iii) - Share application money - Is it debt for assessee till share allotment is done? - Can assessee claim deduction for interest paid on such debt? - YES, says ITAT

THE issue is - Whether share application money is debt for the assessee company till the time the share allotment is done. Whether interest paid on such debt is allowable.

Customs

Settlement Commission bound to follow Valuation Rules while settling a valuation issue: High Court

IN settling the case of under valuation, the Settlement Commission is also required to determine the duty liability by adopting the lowest value in terms of Rule 5 and Rule 6 of the Valuation Rules. The Settlement Commission cannot ignore and/or overlook the provisions of Rule 5 and Rule 6 of the Valuations Rules.