Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Once demand for previous period has been held as time barred, demand for subsequent period has also to be necessarily held as time barred: CESTAT

ONCE the demand for the previous period has been held as time barred, the demand for the subsequent period has also to be necessarily held as time barred especially when a copy of the agreement was available with the department and all the facts were known to it. Therefore, without going into the merits of the case or expressing any opinion thereon, we hold that the entire demand is time barred and consequently we set aside the same. As the duty demand is set aside, the demand of interest and imposition of penalty also do not sustain.

Income Tax

Whether when registered society of company employees receives voluntary contribution from company, such receipt can be treated as income within meaning of Sec 2(24) - NO, rules HC

THE assessee is a registered society comprising of the employees of M/s. BHEL, and the same is registered under the Karnataka Societies Registration Act. According to the assessee except the grant received from M/s. BHEL which was a voluntary one, there was no other income which could be termed as taxable for the AY. The issues before the Bench are - Whether when registered society of company employees receives voluntary contribution from company, such receipt can be treated as income within meaning of Sec 2(24) and whether the contribution received by the club from its members only for their benefit and without being indulged in any charitable activities can be brought within the purview of the provision of section 2(24) as income. NO is the High Court's decision.

Customs

Anti-Dumping Duty on Acrylonitrile butadiene rubber - Notification No. 1/2009-Cus dated 01.02.2009 upheld: CESTAT

SUNSET review can be initiated by the Designated Authority, to ascertain the need for continuance of definite Anti-dumping duty and hence is prospective in nature. Since the continuance of Anti-dumping duty is of prospective nature, it is also settled law, that the Designated Authority need not follow the rigours of the original investigation initiated for imposition of definitive Anti-dumping duty.

See our columns Monday for the judgements