Jurisprudentiol – Friday's cases

By Vijay Kumar

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

Income tax - Whether, if assessee is paid non-compete fee for manufacturing and trading activities, and experts allocate sum between both activities in certain ratio, can AO substitute views of experts without taking views of other experts? - NO, says HC

THE issue before the HC is - Whether, if the assessee is paid non-compete fee for its manufacturing and trading activities, and a professional firm makes allocation of the sum towards both the activities based on a detailed study before the sum is returned to tax, AO is entitled to substitute the studied view of the experts and make additions. Is it necessary for the AO to seek the views of other experts before it rejects the study furnished with the return. And the HC's answer goes in favour of the assessee.

Central Excise

Central Excise - Demand - Stay and waiver of predeposit - Appeal and stay application filed before Tribunal - High Court cannot be used as stopgap arrangement for securing an illegal order to postpone payment: HC

THE short question is whether the petitioner is entitled to have the benefit of an interim order from the High Court pending hearing of his stay application as well as an application to waive pre-deposit pending before the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT )?

Customs

Customs - Oil cleared from SEZ Unit - Duty demanded from recipient - No Jurisdiction - Full waiver of duty of over Rs . 66 Crores and equal penalty - CESTAT

CUSTOMS duty of Rs.66,62,662 /- and interest and penalty of identical amount was confirmed against M/s. Reliance Industries Limited in respect of the duty free procured furnace oil from a Special Economic Zone (SEZ) unit M/s. Adani Enterprises Limited by misrepresenting the fact that the vessel was on foreign run, whereas the same was found to be on coastal run.

Tomorrow is a holiday – Dr. Amedkar's Birthday.

See our columns Friday for the judgements