Jurisprudentiol – Monday's cases

By Vijay Kumar

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

MODVAT - Capital Goods - Iron and Steel structures manufactured and used captively in factory for installation of Sugar factory - Not capital Goods - Anything required to make goods finished item can be described as component parts: SC

ANYTHING required to make the goods a finished item can be described as component parts. Iron and Steel structures would not go into the composition of vacuum pans, crystallizers etc. If an article is an element in the composition of another article made out of it, such an article may be described as a component of another article. Thus, structures in question do not satisfy description of 'components'.

Income Tax

Whether, even if assessee admits different sums of undisclosed income on two different days, and then retracts one of disclosure statements, no addition can be sustained for having recorded false statements during search - YES, says Madras HC

WHEN the assessee had explained his statement as not correct in the context of the materials produced, the Tribunal would not be justified in its conclusion that the statement made would clothe the assessment with legality. Except for the statements referred to by the Tribunal, it had not adverted its attention to the materials produced by the assessee before the CIT (A) explaining the claim that the said amount could not be included in the hands of the assessee.

FTP

FTP - Export of Cotton - Mis-declaration is a question of fact to be decided by DGFT; Allocation cannot be made under a new policy, when application was made under old policy: HC

WHETHER the Petitioners did make a misdeclaration is an important issue which must be adjudicated upon. That issue turns on an assessment of fact which must be left to the DGFT to determine. DGFT has proceeded on the erroneous assumption that the Petitioners had made a fresh application for allocation. This is erroneous because the Petitioners had made an application for the allotment of a certain quantity of raw cotton and after the issuance of three EARCs, the Petitioners claimed the issuance of six EARCs which remained in balance.

See our columns Monday for the judgements