Jurisprudentiol – Wednesday's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Import & Export (Control) Act

Penalty – The Sub clause under which penalty is attracted not mentioned in order; order not sustainable:

SECTION 4-I IEC Act is a penal provision which admits only of a strict construction. It sets out the circumstances under which the importer's liability to pay penalty up to five times the value of the import gets attracted. A careful reading of the various sub-clauses of Section 4-I IEC Act would show that the failure to fulfil an export obligation is not listed out expressly as an instance attracting the liability to pay penalty thereunder. In the circumstances, if the ADGFT in the instant case intended to levy a penalty on the Petitioner under Section 4 –I IEC Act, it was incumbent on him to indicate which of the sub-clauses of Section 4-I (1) IEC Act stood attracted. On this aspect, there can be no doubt that the there was non-application of mind by the ADGFT.

Income Tax

Sec 276B - Whether, for launching prosecution against Director of company, AO needs to issue notice u/s 2(35) expressing intention to treat him as 'principal officer' - YES, says Delhi High Court

THE issue before the High Court is - Whether, for launching prosecution under Section 276-B of the Act against the directors of a company, Assessing Officer has to issue notice under Section 2(35) of the Act expressing his intention to treat such directors of a company as “principal officers”. And the High Court says YES.

Central Excise

Revenue wins Gutka battle – CESTAT on remand from Supreme Court holds that Gutka is classifiable under CSH 2106.00 and is assessable under Section 4A.

THE Appellants are manufacturers of Pan masala containing Tobacco called Gutka and the common point of dispute is as to whether during the period from November 2000 to 28th February 2001,Gutka was classifiable under Sub-heading 2106.00 pertaining to Pan masala, as claimed by the Department or under Sub-heading 2404.40 pertaining to chewing tobacco and preparations containing chewing tobacco.

See our columns Tomorrow for the judgements