Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

Proposal made in SCN for imposition of penalty u/s 114A of Customs Act, 1962 - hence imposition of penalty u/s 112 is unwarranted as same not invoked: CESTAT

THE penalty imposed on the current appellant under Sec. 112 is unwarranted, as this section was not invoked in the show-cause notice issued to the appellant. In the absence of any such invocation or liability for confiscation of the goods on the appellant, as he is not the importer, the penalty imposed on the appellant is unsustainable and is liable to be set aside. The impugned order to the extent of penalty imposed on the appellant is set aside and the appeal is allowed.

Income Tax

Whether when individual assessee, who is a Director in company, lets out own premises to company, expenses incurred on renovation of premises are to be treated as deemed dividend in hands of assessee who also holds majority share in company - NO, rules ITAT

THE issue before the Tribunal is - Whether when individual assessee, who is a Director in the company, lets out his own premises to the company, expenses incurred on renovation of the premises are to be treated as deemed dividend in the hands of the individual assessee who also holds majority share in the company. And the Tribunal rules against the Revenue.

Central Excise

Even where demand of duty is for normal period of limitation, assessee is liable to be penalized under section 11AC if he is found to have evaded duty by adopting any of means specified in section: CESTAT

HAD it been the intention of the legislature that section 11AC was applicable only to cases where the proviso to section 11A(1) was invoked for recovery of duty, it would not have been necessary for the legislature to frame the text of section 11AC in the manner it did. It would, therefore, appear that section 11AC is not a provision exclusively applicable to cases in which the proviso to section 11A(1) is invoked. It could also be applied to a case in which duty is demanded for the normal period of limitation if any of the grounds laid down in the body of section 11AC is established against the assessee.

See our columns Tomorrow for the judgements