Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

Penalty - Section 78 - Assessee has to be informed about benefit of paying 25 percent penalty: HC

AN assessee is required to be informed to avail the benefit of second proviso so that he can deposit 25% of the penalty amount. Such option alone will satisfy the purpose of insertion of the proviso as it is a benefit, which is conferred on the assessee. The Adjudicating Authority has not given such option. Since the amount of duty was already paid even before issuance of show cause notice, the direction to deposit 25% of the penalty amount in terms of the second proviso to Section 78 is fair, reasonable and meets the ends of justice.

Income Tax

Whether when AO has tangible materials, exercise of power to reopen assessment beyond four years period is not in excess of jurisdiction - NO, rules Bombay HC

THIS is a case where the AO has tangible material which has come before him in the course of the assessment proceedings for Assessment Year 2008-09 and which would form the subject matter of further investigation once the assessment proceedings for AO 2004-05 are reopened. The exercise of the power to reopen the assessment, though beyond a period of four years, is therefore not in excess of jurisdiction so as to warrant the issuance of a writ of certiorari.

Customs

Penalty on Customs Officer - Involvement of officer with exporter in DEPB fraud established - appeal dismissed: HC

THE appellant is a Preventive Officer of Customs who had been imposed heavy penalties by the Commissioner and confirmed by the Tribunal for his involvement in fraudulent claim of DEPB by an exporter.

See our columns Tomorrow for the judgements