Jurisprudentiol – Friday's cases

By Vijay Kumar

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

Income tax - Whether activity of imparting training to merchant navy cadets can be construed as charitable activity, and hence assessee cannot be denied Sec 11 benefits - NO, rules ITAT

THE assessee is a registered Trust. It was claimed by the assessee that it imparted training to merchant navy cadets at subsidized rates with an object to make no material surplus (service). The assessee claimed that as the assessees activities were charitable in nature and hence, its income was exempt u/s 11 of the Act. The assessee filed an application for registration as a Charitable Trust/ institution on 17.12.2008 u/s 12AA of the Act before the DI (Exempt.), the assessee stated that it was conducting short-programmes for passenger-ship familiarization. The assessee also submitted the details of the courses and its company structure.

Central Excise

Rule 11(3) of CCR, 2004 inserted in statute book w.e.f 01.03.2007 and hence cannot be applied retrospectively - Appellant opting for exemption Notification 30/2004-CE – Refund of unutilized CENVAT credit available u/r 5 of CCR, 2004 - Matter remanded: CESTAT

THE appellant, a manufacturer of yarn and textiles, opted for exemption from payment of duty in terms of Notification No. 30/2004-CE dated 09.07.2004. Prior to July, 2004 the appellant was paying excise duty on the final product manufactured and removed by them. They were also availing CENVAT credit. On the date of opting for exemption there was an unutilized accumulated credit balance of Rs.31,20,523/- lying in the appellant's CENVAT credit account. They filed the refund claim as per Rule 5 of the CCR, 2004 but the same was denied by both the lower authorities.

Customs

Viscose Filament Yarn imported from People's Republic of China - imposition of anti-dumping duty as provided under serial no. 5 of Notification 45/2006-Cus, which is in respect of any goods imported from any other country except the People's Republic of China, is not sustainable - Appeal allowed: CESTAT

THE importer is before the CESTAT with an application for waiver of pre-deposit of anti-dumping duty of Rs.10,74,963/- and penalty of Rs.5,00,000/- imposed under section 112(a) of the Customs Act by the Commissioner of Customs (Imports), JNCH, Nhava Sheva. The adjudicating authority held that the goods are liable for anti-dumping duty as provided under serial no. 5 under Notification no. 45/2006-Cus dated 24.05.2006.

See our columns Tomorrow for the judgements