Jurisprudentiol - Friday's cases

By Vijay Kumar

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

CHA Licence can be suspended without hearing: High Court

WHERE immediate action is required, power under Article 20(2) can certainly be invoked. In the present case, reason given for immediate action is that investigation was pending which could be hampered and further irregularities could take place unless licence was suspended.The High Court cannot re-appreciate correctness of such assessment. Such power has to be exercised on assessment of a fact situation by the concerned authority.

Income Tax

Sec 30 - Whether expenses incurred for modernisation of plant and to replace particular machinery used for a particular process out of various processes are current repairs - NO, says AP High Court

THE two issues before the HC are - Whether the expenses incurred for modernization of the plant and to replace particular machinery used for a particular process out of various processes are current repairs and whether where assessee neither claimed investment allowance in the return nor created any investment allowance reserve, the ITAT is correct in giving an opportunity to the assessee to create the reserve as per Explanation to Section 32A(4).And the verdict has gone against the assessee.

Central Excise

EOU- Assessee not mentioning applicable serial number in the notification - Assessing officer should have raised objection at the time of assessment - No suppression: High Court

IN case the assessee had not indicated the serial number of the relevant notification, it was for the concerned Assessing Officer to point out the same to the assessee and call upon it to state the proper facts. Without calling upon the assessee to state the serial number under which the goods would fall, and without pointing out any defect in the bill of entry filed by the assessee, the concerned officer had assessed the bill of entry and had not raised any demand of countervailing duty or special additional duty. The assessee had rightly or wrongly claimed liability to pay duty at a particular rate.

See our columns Tomorrow for the judgements