Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Input Services used for exempted goods and trading - Proportionate reversal of CENVAT Credit Ordered: CESTAT

IN this case undoubtedly the appellants have not maintained separate account of input service credit (in dispute) separately for dutiable as well as non-dutiable exempted goods. The only option left with the appellants either to reverse proportionate input service credit or to reverse 10% of the value of the exempted final product at the time of clearance.

Income Tax

Whether it is necessary for assessee to own a ship for purpose of claiming deduction under Sec 33AC - NO, says ITAT

THE issues before the Tribunal are - Whether, for the purpose of deduction u/s 33AC, it is necessary for assessee to own a ship; Whether contractual receipts are also admissible deduction and Whether, if receipt from operation of ship is less than other receipts, penalty is leviable. And the decision goes in favour of the assessee.

Customs

Suspension of licence under Regulation 20(2) of CHALR, 2004 is ordinarily resorted to either pending investigation or while contemplating it - undue delay does violence to the mandate of Regulation 20(2) - : CESTAT

THE licence issued to the CHA by the Commissioner of Customs, Aurangabad was suspended on 07.07.2010 under Regulation 20(2) of the Customs House Agents Licensing Regulations, 2004 after noting the role played by the CHA in relation to certain export handled by them at ‘Mundra Port' within the jurisdiction of the Commissioner of Customs, Kandla. Subsequently, after following the principles of natural justice, the Commissioner confirmed the suspension order on 9.9.2010. Incidentally, the CHA was operating their business at two other places, namely, Mumbai and Pipavav in addition to Aurangabad and Mundra.

See our columns Monday for the judgements