Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Clearance of goods to contractors by claiming exemption under Notification No. 108/95-CE - Benefit of exemption not available when goods are supplied to contractors: CESTAT

FOR exemption to be available under this notification, it clearly requires that the goods are to be supplied "to" United Nations or International Organisations for their official use or "to" the projects financed by United Nations or International Organisations and approved by the Government of India.

Income Tax

Sec 28(iv) - Whether loan taken for purchase of fixed assets if waived by bank under One Time Settlement Scheme, and credited to capital reserve account by assessee is taxable as revenue receipt? - NO, rules Madras High Court

THE issue before the Bench is - Whether the principal loan amount taken for the purchase of fixed assets, waived by the bank under the One Time Settlement Scheme (OTS), and credited by the assessee to its Capital Reserve Account in its Balance Sheet is assessable to tax as a revenue receipt u/s 28(iv) of the Act. And the High Court ruling goes against the Revenue.

CENVAT Credit

Recovery of 10% amount under Rule 6(3)(b) of CCR, 2004 on clearance of finished goods viz., tubes and pipes to SEZ developers – Stay allowed and pre-deposit waived but matter goes to Larger Bench: CESTAT

MATTER goes to Larger Bench due to disagreement with judgment of Bangalore Bench in Sujana Metal Products Ltd case - 2009-TIOL-1096-CESTAT-BANG - Whether amendment to Rule 6(6)(i) by Notification No. 50/08-CE is clarificatory and retrospective or not to be decided by Larger Bench.

See our columns Monday for the judgements