Jurisprudentiol – Friday's cases

By Vijay Kumar

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

Central Excise - Commissioner chooses to ignore directions of Tribunal in de novo proceedings - Tribunal totally unhappy - matter remanded again - CESTAT

BY an order dated 22.1.1998, the Commissioner confirmed a duty of Rs. 1,00,97,626/- along with a penalty of Rs. 50 Lakhs. By an order dated 15.7.98, the Tribunal set aside the order and remanded the matter to the Commissioner for fresh decision. The Commissioner by his order dated 26.3.1999 again confirmed the same demand and penalty. By order dated 12.2.2002, the Tribunal again set aside the order and remanded the matter. The Commissioner is equally consistent and simply confirmed the earlier order.

Income Tax

Income tax - Whether depreciation can be claimed on amount of Customs duty paid on imported equipments although Customs duty is shown as advance payment in books and also as contingent liability - YES: ITAT

THE issue before the Bench is - Whether depreciation is to be allowed on the amount of custom duty paid on import of assets though the amount is shown as advance payment in the books of account and as contingent liability. YES is the Tribunal's answer.

Central Excise

Central Excise - Duty not liable to be paid on agarbathi perfumery compounds where Revenue has not produced any evidence of such products being bought and sold, in terms of Board Circular No. 495 dated 22.11.1999 - Duty demand confirmed only to extent of ‘venkateswara brand' where evidence was adduced for sale of such product from appellant's sister unit – CESTAT

THE assessee, Karnataka Soaps and Detergents Ltd, is engaged in manufacture of various excisable goods like soaps, detergents and agarbathi perfumes of various brands. These odoriferous compounds falling under Chapter 3302.90 which are liquid form are packed in drums/cans and stock transferred to their unit in Mysore where they are used in manufacture of agarbathis. The assessee paid duty till April 2000 on such stock transfers and thereafter stopped payment of duty in lieu of Board's Circular No. 495 dated 22.11.1999.

See our columns tomorrow for the judgements