Jurisprudentiol - Wednesday's cases

By Vijay Kumar

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

INTEREST on warehoused goods - Importer cannot be saddled with interest for delay in assessment by revenue - Date from which interest would start accruing would be date on which bill of entry for warehousing was finally assessed and enabled importer to file ex-bond bill of entry : CESTAT

THE dispute relates to the question of payment of interest on warehoused goods and the date on which the goods should be treated as warehoused and whether the importer would be entitled to utilise the benefit of DEEC scheme for clearing the good on expiry of the bond period.

Income Tax

SEC 37 - Difference between market value of shares and value at which they are allotted to employees as ESOP - Is employer entitled to debit same in P&L Account as revenue expenditure? - No, says ITAT

THE issue before the Tribunal is - Whether difference between the market value of shares and the value at which they were allotted to the employees is allowed to be debited in the P&L of the company as revenue expense. NO, says the Tribunal.

Central Excise

PROCEEDINGS under Income Tax Act and acceptance to pay tax on un-assessed income cannot be a ground for alleging clandestine removal and demanding Central Excise duty: CESTAT

TO establish clandestine removal, it is settled law that the charge of clandestine removal has to be proved through corroborative evidence such as procurement of input, electricity consumption, labours, removal of goods, transportation etc. From the records and facts of the case, nothing is coming out in support of the allegation made by the department. Accordingly, in the facts and circumstances of the case, impugned demand is not sustainable.

See our columns Tomorrow for the judgements