Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

Common registration for three units - Commissioner was not justified in retrospectively revoking common registration given by Assistant Commissioner: CESTAT

SHOW cause notices were issued alleging that the facility of common central excise registration was not available to them inter alia on the ground that unit I is geographically at a distance of about 1.5 km from Units No.II and III, unit No.II & III are separated by another unit, unit II and III are not interlinked since the final goods manufactured in one unit are not inputs/intermediate products for the other unit. Demands were proposed in respect of clearances of goods from unit I to unit II & III and the clearances made from unit II to unit III holding that exemption under Notification No.6/02-CE dt.1.3.02 (S.No.296) and later under Notification No.6/06-CE 1.3.06 (S.No.92) were not available for the clearances of goods not used within the same factory of production.

Income Tax

Whether when warehouse is necessary part of infrastructure required for CFS to be operational, it is to be treated as different from stand-alone warehoue facility and thus Sec 80IA benefits are available to such facility - YES, rules ITAT

AO observed that the assessee company carried on two activities, namely, operating a ‘Container Freight Station' and ‘Operating a bonded warehouse'. Commissioner of Customs Madras declared the premises of the assessee as ‘Customs Area' and appointed the assessee as custodians for cargo at ‘Container Freight Station'. While both the ‘Container Freight Station' and bonded warehouse are infrastructural facilities, only a ‘Container Freight Station' had been notified to be an infrastructural facility for the purposes of section 80IA(4)(i). AO further observed that the assessee itself had not carried out the activity of renting the warehouse but let out the warehouses and rental income was derived from warehousing.

Service

Grant of temporary status for daily wage labourers and casual labourers in central excise and customs department - CAT did not check whether it was really necessary for labourers to satisfy conditions required for granting temporary status: HC

IMPUGNED order of the Tribunal is set aside. Entire matter is remanded back to Tribunal for fresh consideration in accordance with law. All contentions urged are left open to be urged before the Tribunal. Parties to bear their own costs. Tribunal shall take up this matter expeditiously, as sufficient and valuable time has been spent prosecuting the matter before this Court. Till those contentious issues are decided by the Tribunal, if the respondents are in service as on today, their services shall not be dispensed with.

See our columns Tomorrow for the judgements