Jurisprudentiol – Friday's cases

By Vijay Kumar

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

Apex court's ruling on “preponderance of probabilities” in D.Bhoormull was rendered in the context of sustaining demand of duty – apart from making a material mistake in the electricity consumption figures for computation of demand no evidence gathered from purported suppliers of materials and buyers – Prima facie case – Stay granted: CESTAT

A duty demand of '74 lakhs and an equivalent penalty has been confirmed against the appellant on the ground of clandestine manufacture and clearance of M.S.Ingots. There is also a penalty of' 10 lakhs imposed on the Managing Director u/r 26 of the CER, 2002.

Income Tax

Sec 147 - Revenue cannot reopen assessment for second time merely on ground that subsequent judgement of Apex Court has gone in favour of Revenue: Madras High Court

REASSESSMENT is a very common action which is resorted by most AOs. But the interesting issue in this case is that whether an assessment can be reopened for the second time u/s 147. Can Revenue reopen an assessment which was already reassessed u/s 147, based on subsequent judgement of the Apex Court. Does it amount to change of opinion. And the answers to these questions go against the Revenue.

Customs

Penalty dies with deceased – no cause of recovery from legal heirs – As for duty liability, same is recoverable from his legal representative to extent of property of deceased coming to hands of legal representative – affidavit filed by wife that no estate was left by deceased – no counter affidavit filed by department – Stay granted: CESTAT

“GENERALLY penalty dies with the deceased. It is settled principle that penalty cannot be imposed after death and even if it was imposed but not recovered during his life time, the same cannot be recovered from the legal heirs. In other words, penalty cannot be imposed after death of the concerned person and if imposed the same cannot be recovered from the legal heir.”

See our columns Tomorrow for the judgements