Jurisprudentiol – Thursdya's cases

By Vijay Kumar

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

Confiscation of Indian Currency - The Tribunal has totally misdirected itself in setting aside confiscation without referring to statements recorded or why retraction of statements has to be considered - Department's appeal allowed - Bombay High Court

THE Tribunal has erred in recording a finding that the conditions mentioned in Section 121 of the said Act, in so far as the seizure of the Indian Currency is concerned, have not been fulfilled. The statement as recorded of the Respondent under Section 108 of the said Act is a material piece of evidence against the Respondent for contravention of the provisions of the said Act, in so far as, the amount of Rs.2,27,100/ is concerned.

Income Tax

If agricultural land is not cultivated for long time, whether it changes characteristics from agri to non-agri land - Whether assessee is eligible for exemption for gains on transfer of such land? - YES, says High Court

THE issue before the HC is - if assessee does not cultivate its agricultural land for longer period, whether the land changes its characteristics from agriculture to non-agriculture - Whether Tribunal is correct in exempting the gains arising on transfer of such land. YES, rules the High Court .

Central Excise

Recovery of duty short paid on capital goods removed as such – As per CESTAT decision in Geeta Industries case if depreciation is allowed on value of capital goods and proportionate credit sought to be reversed, it would tantamount to payment of duty on value, which is contrary to LB decision in Modernova Plastyles case – Matter placed before President for advice - CESTAT

AFTER hearing both sides, in the instant case, the Single Member bench observed that the decision of Delhi Bench in Geeta Industries case may be contrary to the decision of Larger Bench in the case of Modernova Plastyles Ltd. It was further observed that if any depreciation on the value of capital goods is allowed and reversal of proportionate credit is sought, it would tantamount to payment of duty on a value which is arrived after allowing depreciation and in turn nullify the decision of Larger Bench which held that credit has to be reversed irrespective of whether capital goods were cleared as such or after usage.

See our columns Tomorrow for the judgements