Jurisprudentiol - Thursday's cases

By Vijay Kumar

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

Availment of CENVAT credit on inputs used for job work, proper - Revenue appeal rejected: CESTAT

THE assessee availed CENVAT credit on inputs used in the job work of crimping and soldering of materials supplied by principal and the job worked goods have been removed under job work challan by following the procedure as per Rule 4(5)(a) of CENVAT Credit Rules, 2004. It is the case of the department that the CENVAT credit has been availed wrongly on account of job work without intimating these facts to the department and by suppressing these facts of taking such irregular credit.

Income Tax

Whether Revenue can invoke Sec 43(1) even in a case where parties are unrelated and transaction is at arm's length - NO, says ITAT

THE issue before the Tribunal is - Whether the provisions of section 43(1) are applicable to a transaction which is at arm's length and entered into between unrelated parties and whether the AO was correct in treating the amount in excess to book value of the assets as good will, particularly when the assets were acquired from a public limited company as a going concern. NO is the Tribunal's answer to both the questions.

Customs

When there is no duty liability, any amount deposited under protest liable to be refunded: CESTAT

Holding that in the present case the assessment of bills of entry were not required to be challenged and could be corrected under section 154 of the Customs Act, 1962, the impugned orders denying refund claim were set aside and the appeals were allowed with consequential relief.

See our columns Tomorrow for the judgements