Jurisprudentiol – Tuesday's cases

By Vijay Kumar

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

Common Adjudicating Authority - Department directed to consider request of petitioner: HC

PETITIONER requests for a common adjudicating authority to ensure that there are no divergent orders. The writ petition is disposed of with the direction to the Department to decide the request of the petitioner within a period of six weeks from the date copy of this order is communicated. In case of an adverse decision, it will be open to the petitioner to revive the present writ petition.

But is a common adjudication authority valid under the Law?

Income Tax

Whether when assessee follows project completion method as per AS-7, it is entitled to set off receipts from sale of TDR against costs of work-in-progress - Whether such sum is taxable in year of receipt - NO, says ITAT

ASSESSEE, a builder, had taken up a slum rehabilitation project and started the construction of transit building on the land provided by Municipal Corporation of Greater Mumbai (MCGM) - in FY 2005-06, MCGM came up with a proposal that if assessee was ready to handover the possession of transit buildings it would grant TDRs – the assessee received TDR vide certificate dated 2.10.2005 and another TDR measuring vide certificate dated 3.6.2006 - the TDR dated 2.10.2005 had been sold by the assessee for a sum of Rs 9,92,04,469/- and the TDR dated 3.6.2006 had been sold for Rs.5,55,86,123/- in the same FY in which these were received i.e. AYs 2006-07 and 2007-08 respectively.

Central Excise

Had single registration been granted initially, clearances would have been exempt u/Notfn 67/95-CE - In such a scenario, prima facie case made for grant of stay from recovery of interest: CESTAT

THOUGH as per the apex court judgment, whenever there is a delay in payment of duty, interest is automatic and consequential, however in the instant case the facts are different and distinguishable. The appellant had applied for single registration, which was denied to them initially and subsequently after the order of this Tribunal, which was upheld by the High Court, they were granted single registration in 2007.

See our columns Tomorrow for the judgements