Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

Warehousing - Rate of Duty - goods are cleared from warehouse after expiry of permitted period deemed to have been improperly removed - Duty on date of expiry of permitted period applicable: SC

SECTION 72 of the Act, provides for the consequences for improper removal of goods from warehouse. It is plain that Section 15(1)(b) would be applicable only when the goods are cleared from the warehouse under Section 68 of the Act, i.e., within the initially permitted period or during the permitted extended period. It is trite to say that when the goods are cleared from the warehouse after the expiry of the permitted period or its permitted extension, the goods are deemed to have been improperly removed under Section 72(1)(b) of the Act, with the consequence that the rate of duty has to be computed according to the rate applicable on the date of expiry of the permitted period under Section 61.

Income Tax

Whether waiver of principal component of loan as settled by bank is capital in nature, and cannot be taxed as income receipt u/s 41(1)- YES, rules ITAT

THE issue before the Tribunal is - Whether waiver of principal amount of loan as settled by the bank is capital in nature and cannot be taxed u/s 28 & 41(1) of the Income tax Act. The second issue is - Whether the expenses can be disallowed when the business was temporarily closed down due to lull in the business. And the verdict goes in favour of the assessee.

Service Tax

Commissioner (Appeals) has power to remand in Service Tax cases: CESTAT

PROVISIONS of Section 35A of the Central Excise Act, 1944 are not applicable for appeals relating to Service Tax - Commissioner (Appeals) derives power to decide the appeals from Section 85 of the Finance Act, 1994 which does not preclude the Commissioner (Appeals) from passing a remand order if he thinks fit. Revenue appeal has no merit.

See our columns Tomorrow for the Judgements