Jurisprudentiol – Wednesday's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Foreign Trade (Development and Regulation) Act

Failure to fulfill Export Obligation - High Court should not have ordered more pre-deposit than what had been ordered by Appellate Authority : Supreme Court

THE Division Bench of the High Court should not have passed the impugned order for deposit of Rs.20,00,000 /- for each of the appeals when the Appellate Authority had directed the appellant to make pre- deposit for Rs.5,00,000 /- for both the appeals.

Income Tax

Sec 12AA - Whether when assessee incorporated u/s 25 of Companies Act generates some surplus while carrying out micro-financing activities to help poor in society, and uses same to attain charitable objects, AO is right in denying registration on ground of profit-making - NO: ITAT

THE issues before the Tribunal are - Whether companies incorporated under section 25 of the Companies Act are entitled to registration u/s 12AA of the Income Tax Act and whether when assessee generates some surplus while carrying out micro-financing activities to help poor in the society, and uses the same to attain its charitable objects, AO is right in denying registration merely on the ground of profit-making. And the verdict goes in favour of the assessee.

Central Excise

Aluminum Circles - Exemption not entitled if Modvat Credit is availed - No interference against concurrent findings of fact of three lower authorities: Supreme Court

THE order-in-original, the orders passed by the appellate authority and as also by the Tribunal concurrently held that admittedly the appellants are availing such Modvat Credit in respect inputs used in the manufacture of the aluminum circles. Consequently, the appellants are not entitled to avail the benefit of Notification granting exemption inasmuch as for availing such benefit under the said notification the pre-condition is that the aluminum circles are to be cleared for intended use in the manufacture of utensils and no credit of duty paid on inputs has been taken in respect of the inputs used in the manufacture of the aluminum circles. All the aforesaid three authorities below having held concurrently in the same manner; finding recorded by the Tribunal and the two authorities below are findings of fact and such findings in absence of evidence on record to the contrary is not subject to interference.

See our columns Tomorrow for the Judgements