Jurisprudentiol – Friday's cases

By Vijay Kumar

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

Goods Cleared to EOU - Not liable to pay duty: High Court

OBVIOUSLY, the assessee committed an error in paying the excise duty. When the said goods were returned because of certain defects, in law they were entitled to claim CENVAT credit which they did. Later, after rectifying the defects in pursuance of a fresh purchase order, they supplied the very same goods to their customer, a 100% EOU. They were under no obligation to pay any duty as payment of duty was exempted vide notification No. 22/2003. On the date of second supply they were also in possession of CT3 certificates. When these facts are not in dispute, though there is no liability on the part of the assessee to pay excise duty, the proceedings initiated against the assessee claiming excise duty was without jurisdiction.

Income Tax

Whether when Sec 148 notice is not served on Principal Officer of assessee-company, such notice is to be treated as illegal, and assessment made on its basis is bad in law - Yes, says ITAT

THE issue before the Tribunal is - Whether when Sec 148 notice is not served on the Principal Officer of the assessee-company, such notice is illegal, and the assessment order passed on this basis is bad in law. YES is the Tribunal's decision.

Customs

Imported Cottonseed Oil detained by DRI - Ordered to be sent for chemical examination and clearance to be allowed if found fit: High Court

SINCE the directions have been issued merely to obviate the hardships that could be caused to the petitioner on account of an irreversible situation arising in case the petitioner finally succeeds in the adjudication proceedings, it is clarified that the petitioner shall not claim any equity based on this order.

See our columns Tomorrow for the Judgements