Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Electric Bulbs and Rubber Strips fall within ambit of components, spares and accessories of goods falling under Ch. 85 of CETA, 1985 and are capital goods entitled for CENVAT Credit: High Court.

IT is the contention of the Department that CENVAT credit on electric bulbs and rubber strips is incorrect since these are neither eligible capital goods as per Rule 2(b)(i) of the CENVAT Credit Rules, 2001 nor are the spares/components/accessories of the capital goods as defined under Rule 2(b)(ii) of the Rules.

Income Tax

Does disallowance of losses claimed in exports transactions with non-resident parent company amount to enhancement of income - if yes, is it obligatory for AO to issue fresh notice - YES, says ITAT

THE issue before the Tribunal is - Whether disallowance of losses claimed by the assessee company in its export transactions with the non-resident parent company amounts to enhancement of income. If yes, whether it is obligatory for the AO to issue fresh notice. And the answer is YES.

Customs

When there is no liability to pay tax, merely because the authorities took a contrary view in an appeal, if pre-deposit is insisted upon, it would not only cause undue hardship, but would also cause untold misery to appellant - : High Court

INASMUCH as since the Supreme Court decision is applicable to the facts of the case, there is no liability to pay tax and hence when there is no liability to pay tax, merely because the authorities took a contrary view in an appeal, if the pre-deposit is insisted upon, it would not only cause undue hardship, but would also cause untold misery to the appellant.

See our columns Monday for the judgements