Jurisprudentiol – Tuesday's cases

By Vijay Kumar

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

Goods Cleared to DTA from EOU without permission – Duty payable under Section 3(1) of Act and not under proviso - Shrimp seeds chargeable to nil duty of excise - No duty payable on DTA clearances - Supreme Court

CHALLENGE in this batch of appeals filed by the revenue is to the orders passed by the Customs, Excise and Service Tax Appellate Tribunal, South Zone, inter alia, holding that the duty of Central Excise on shrimps and shrimp seeds produced and removed by the respondent ("the assessee"), a 100% Export Oriented Unit ("EOU"), in the Domestic Tariff Area ("DTA") without the approval of the Development Commissioner, would be payable under Section 3(1) of the Act and not under the proviso appended thereto.

Income Tax

Sec 68 - Does inability to prove complete identity of creditors and source of funds constitute failure on part of assessee to discharge onus to prove genuineness of the transaction under section 68 - YES: Delhi High Court

ASSESSEE company filed its return declaring a loss. It had raised loans from five different parties. Scrutinizing the loan details, the AO required assessee to prove the genuineness of the cash credits. Assessee explained that the loans were raised by cheques and bank drafts, and the depositors had also subscribed towards shares of the assessee company. Assessee also filed letters from each of the five creditors. Not satisfied, the AO sought the personal presence of the creditors.

Central Excise

Valuation - RSP - pet jars/ poly bags containing individual pieces of Eclairs weighing less than 5.5. gms each - Assessment to be under Section 4A – CESTAT LB (By majority)

IN view of the finding of fact by the referral Bench in this case that the impugned poly packs and pet jars are multi-piece retail packages and the total weight of the pieces in such packages exceed 20 gms, the exemption under Rule 34(b) is not applicable and consequently, the assessment is required to be done applying provisions of Section 4A.

See our columns Tomorrow for the judgements