Jurisprudentiol – Tuesday's cases

By Vijay Kumar

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

Higher duty paid on export goods calculated on the CIF value – Revenue was not right in reducing rebate claim to extent of duty payable on FOB value - re-credit taken of rejected rebate amount - prima facie applicability of LB decision in BDH Industries is in doubt - Stay granted: CESTAT

THE appellants had paid higher duty on the export goods calculated on the CIF value and their claim for rebate was reduced to the extent of duty payable on FOB value. Consequently, the appellants have taken credit of the balance amount suo motu .

The department was of the view that there is no provision for taking suo motu credit. Reliance is placed on the decision of the Larger Bench in the case of BDH Industries vs. Commissioner of Central Excise (Appeals), Mumbai (2008-TIOL-1211-CESTAT-LB).

Income Tax

Exporter receives trade advances - Can balance trade advances after adjustment of value of exports goods be treated as taxable income? - NO, says ITAT Third Member

IT is normal practice that business entities receive trade advances against exports orders. Now the issue before the Third Member of the Tribunal is - Whether trade advances which were received from foreign buyers and remained in the books after adjusting the value of goods supplied, can be treated as income of the assessee ignoring that the same has been remitted back in subsequent year after taking approval from RBI. And the Third Member verdict goes against the Revenue.

See our columns Tomorrow for the judgements