Jurisprudentiol – Friday's cases

By Vijay Kumar

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

Imported apples from USA - detained by Customs - As the goods are perishable, conditional release ordered - High Court

AS the goods in question are perishable in nature, the Court found it appropriate to pass orders, directing the respondents to release the goods in question. The petitioner shall pay 30% of the differential duty, and for the balance amount, the petitioner shall furnish a personal bond. On compliance of both the conditions, the respondents shall release the goods in question, forthwith.

Income Tax

Income tax - Whether CBDT Circular revising monetary limits for filing Departmental appeals will have retrospective effect, and will apply to appeals pending prior to issuance of Circular - NO, rules HC Full Bench

THE issue before the Full Bench is - Whether CBDT circular prescribing revision of the monetary limit for filing of appeals by the Department is applicable to appeals already filed prior to the date of the issuance of the circular, irrespective of prescribed monetary limit applicable at the time of filing of that appeal. And the answer is NO.

Service Tax

Stay No Stay merely because a prima facie case has been shown; Tribunal's Stay of over 100 Crores quashed High Court

THIS is a Revenue appeal in the High Court against a stay order of the CESTAT.

Applications for stay should not be disposed of in a routine manner unmindful of the consequences flowing from the order requiring the assessee to deposit full or part of the demand; Three aspects to be focused while dealing with the applications for dispensing of pre-deposit are: (a) prima facie case, (b) balance of convenience, and (c) irreparable loss; Interim orders ought not to be granted merely because a prima facie case has been shown; The balance of convenience must be clearly in favour of making of an interim order and there should not be the slightest indication of a likelihood of prejudice to the interest of public revenue; consideration of undue hardship, and imposition of conditions to safeguard the interests of revenue have to be kept in view; When the Tribunal decides to grant full or partial stay, it has to impose such conditions as may be necessary to safeguard the interests of the revenue. This is an imperative requirement;

See our columns Tomorrow for the Judgements