Jurisprudentiol – Friday's cases

By Vijay Kumar

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

Free bicycles of a model other than that supplied to dealer for sale cannot be considered as Trade discount but as advertising or sales promotion expenses undertaken by appellants to enrich value of goods – Duty to be paid on such bicycles offered free of charge to dealers – Appeal dismissed: CESTAT

THE appellants are manufacturers of bicycles of different models and parts thereof. During the visit of the officers of the Department to the appellants', it was revealed that the appellants had been supplying to their buyers a free bicycle for lifting the specified quantity of bicycles manufactured by the appellants. However, no excise duty was paid on such bicycles offered free of charge to the dealers. It was also revealed that the bicycles offered free of charge under the scheme were of a model other than those which were supplied to the dealers for sale to the customers.

Income Tax

Sec 32(i)(ii) - 'Brand' of a company is part of registered Trade Mark - depreciation admissible: ITAT

THERE are two issues involved in the instant case. First, whether the term “Brand” falls within the ambit of section 32(1)(ii) of the Act so as to be eligible for depreciation, and the second one is whether the transferee of the business is eligible to claim deduction in respect of the liability taken over from the transferor for which the payment was subsequently made by the transferee.

Customs

Short Landing - No short landing established - no penalty – In case of short landing penalty to be reworked: High Court

The impugned order to the extent it imposes penalty for short landing of the bags of Chinese Polished Beans, is quashed and set aside. In this view of the matter, the quantum of penalty will have to be redetermined. Penalty can only be imposed to the extent of short landing of one piece of Seamless Steel Pipe, the quantum of which the adjudicating authority will have to redetermine. For this limited purpose, proceedings are remitted back to the adjudicating authority to redetermine the quantum of penalty vis-a-vis short landing of one piece of Seamless Steel Pipe.

Tomorrow is a Holiday

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