Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Refund of SAD – VAT paid by debiting the VAT credit account and certificate obtained from Assistant Commissioner of Sales Tax in this regard – Conditions of notification 102/2007-Cus complied with: CESTAT

THE Bench after examining the records held that the respondents had complied with the conditions of Notification No. 102/2007-Cus and the same were examined by the Assistant Commissioner while sanctioning their refund claim. Holding that there is no infirmity with the order of the lower appellate authority, the Revenue appeal was rejected.

Income Tax

Whether payment of net present value of future liability can be classified as cessation of liability so as to attract provision of Sec 41(1)? - NO, says ITAT Special Bench

THE issue before the Special Bench is -Whether the payment of net present value of the future liability can be classified as remission or cessation of the liability so as to attract the provisions of section 41(1)(a). NO, says the Tribunal.

Central Excise

Capital goods purchased prior to obtaining registration - CENVAT credit available: CESTAT

AS per CBEC clarification, SSI units can accumulate credit of duty paid on capital goods which can be used after it crosses the aggregate value of exempted clearances as per the notification. It was further held that as per Rule 4(2) of CCR, 2004, an assessee can avail capital goods credit up to 50% in the year of receipt of the goods and the balance in the subsequent financial years. There is no prescription that credit to any extent has to be availed in the year of receipt of capital goods.

See our columns Monday for the judgements