Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

Penalty – Tribunal sets aside penalty on ground that there was no charge of conspiracy in Notice. Revenue contents there was such a charge - matter remanded - Supreme Court

THE ASG appearing for the Revenue contented that the impugned judgment suffers from serious infirmities. The ASG drew the attention of the Supreme Court to the Show Cause Notice, wherein it was mentioned, “ Shri Balbir Singh Sethi, was actively involved in the entire operation as an authorised signatory of M/s. Meerut Exim, Meerut, and ensured the improper clearance from Customs and subsequent storage of goods”

The Commissioner's order reproduced the same words of the Show Cause Notice.

Income Tax

Whether provisions of Sec 41(2) can be applied for granting set-off against brought forward losses? - NO, says ITAT

THE issues before the Tribunal are - Whether the provision of section 41(2) can be applied for granting set off against brought forward losses; Whether loss on account of trading in shares constituted speculative loss and Whether depreciation on land can be claimed by the assessee on the argument that the value of land could not be ascertained because of composite purchase deed.

Central Excise

Alleged unjust CENVAT ‘enrichment' by vehicle manufacturers - When Section 5A(1A) of CEA, 1944 does not compel appellant to avail exemption notification like 6/2002-CE, it cannot be forced on them by interpreting CCR - CESTAT

A demand notice was issued to the assessee contending that the assessee was “enriching” himself by a CENVAT credit factor of Rs.10,000/- per clearance of “Dumper”. It is also alleged that the said act of the assessee was also in contravention of the explanation to the Rule 3 of the CENVAT Credit Rules, which lays down that where the provisions of any other rule or notification provide for grant of whole or part of exemption on condition of non-availability of credit of duty paid on any input or capital goods, or of service tax paid on input service, the provisions of such other rule or notification shall prevail over the provisions of these rules.

See our columns Tomorrow for the judgements