Jurisprudentiol – Friday's cases

By Vijay Kumar

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

Rebate of duty paid on Polyester Yarn converted into Polyester Thread exported which is exempted from duty is not admissible – Writ Appeal of revenue allowed - Madras High Court

AS per Rule 12 of the Central Excise Rules, 1944 read with Notification No.197/62, the goods must be directly exported from the factory so as to be eligible for the rebate. In respect of claim of rebate, proviso (1) stipulates that the goods are exported after payment of duty in cash direct from a factory or a warehouse. Since both the conditions are not satisfied, rebate is not admissible.

Income Tax

Sec 147 - Whether AO can reopen assessment on basis of subsequent decision of HC ruling that depreciation to be excluded while computing deduction u/s 80IA - Does Apex Court decision in Kelvinator India come to assessee's rescue - AO's action sustainable: ITAT

THE issue before the Tribunal is - Whether AO can reopen assessment completed u/s 143(1) on the basis of subsequent decision of jurisdictional HC holding that depreciation is to be excluded while computing deduction u/s 80IA. Whether the Apex Court decision in kelvinator India is of no help to the assessee. Tribunal rules in favour of the Revenue.

Customs

Import without IEC number tantamount to violation of Foreign Trade (Development & Regulation) Act, 1992 - CESTAT

AS per section 111(o) of the Customs Act, 1962, the goods become prohibited if there is violation of the provisions of Customs Act or any other Act in force – Commissioner(A) holding that no officer of Customs has been notified u/s 13 of the FTDR Act and hence s.11 cannot be applied is totally wrong and illegal.

See our columns Tomorrow for the judgements