Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

CENVAT Credit rules do not mandate that credit on capital goods should only be availed in very same year in which capital goods were received – No error in CESTAT order allowing 100% credit in subsequent year: HC

GOODS received in the year 2006-07 and the assessee availed 100% credit in 2007-08 – Such availment is not inconsistent with the rules - Rule 4(2)(a) of the CENVAT Credit Rules provides that only to the extent of 50% of the CENVAT Credit could be utilized by the assessee during the year it is availed of - However, the said Rules do not mandate that the credit should be utilized in the very same year. Once the credit is not utilized in the same year, then Rule 4(2)(b) provides that it can be utilized in any year and to the full extent – No error in the order of the Tribunal allowing the credit.

Wealth Tax

Whether value of land situated in a village which was declared surplus under Urban Land Ceiling Act, can be treated as taxable wealth of assessee - Revenue's appeal partly allowed by Delhi HC

THE issue before the High Court is - Whether value of land situated in a village which was declared surplus under the Urban Land Ceiling Act, 1976, can be treated as wealth of the assessee. And the Revenue's appeal was partly allowed.

Customs

Duty Drawback - Not entitled when DTA unit exports goods manufactured by EOU - Strictures against Customs Department - Revenue Counsel miserably failed: HC

THIS, reflects the sorry state of affairs that prevails not only in the department of revenue of the finance ministry, Government of India, but also lack of understanding on the part of their standing counsel, which is all to the detriment of the larger public interest and the people of this country. It is high time people in administrative position and wielding power, realize their responsibilities and duties and acts with some degree of commitment and sincerity to their work.

We keep expressing our dismay, disappointment and disillusionment, but to no avail, as there is no commensurate response from the commissioner nor the counsel.

See our columns Tomorrow for the judgements