Jurisprudentiol – Friday's cases

By Vijay Kumar

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

When duty cannot be demanded under section 11A, question of demanding interest under section 11AA also does not arise: CESTAT

THE provisional assessments have to be finalized and the final duty amount has to be determined under the provisions of Rule 9B of Central Excise Rules, 1944 and duty cannot be demanded under section 11A, as has been held in the judgments cited (supra). When duty cannot be demanded under section 11A, the question of demanding interest under section 11AA also does not arise….

Income Tax

Whether, merely because non-resident assessee writes to RBI seeking nod for closing down branch office in India, Revenue is justified in presuming that assessee had discontinued trading and thus disallowed depreciation on premises - NO, says ITAT

THE issues before the Tribunal are - Whether, merely because non-resident assessee writes to RBI seeking permission to close down its branch office in India, AO is justified in making the presumption that the assessee had discontinued its trading activity in India, and thus disallowed the depreciation claimed and whether no depreciation can be claimed if there is a lull period in any business. And verdict goes in favour of assessee.

FTP

Import of marble blocks – Petitioner's turnover was well above required one Crore - showing turnover as 24 Crores instead of 22 Crores does not alter eligibility criterion: HC

THE counsel for the Union of India also does not dispute the position that the petitioner would not have gained any additional benefit by showing inflated figures from Rs. 22 crores (approx.) to Rs. 24 crores (approx.) in the CA Certificate and that their entitlement would not have been in any manner affected on that count. Even according to the DGFT, by increasing the figures of the domestic sales turnover, there would have been no change in the entitlement of the petitioner and no malafide intention could be ascribed to them and that the misdeclaration on the part of the petitioner may be on account of negligence or carelessness. The respondents are directed to grant the licence for import of marble blocks for the year 2010-11 to the petitioner forthwith.

See our columns Tomorrow for the judgements