Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

CHALR - Licence to those who passed examination under old regulations - Department's appeal dismissed

ONE more round of litigation relating to Customs House Agents Licensing Regulations, 1984 (CHALR, 1984). This time it is the Writ Appeal filed by the Department against Order of the Learned Single Judge ( A Prabhakar Vs Commissioner of Customs - 2010-TIOL-289-HC-MAD-CUS) who had allowed the Writ Petition and directed the Commissioner to issue License under CHALR, 2004.

Income Tax

Whether when assessee purchases a running business in a slump sale with huge liabilities, goodwill acquired in such a deal is of no value, and no depreciation can be allowed: NO, it is allowable: ITAT

THE issue before the Bench is - Whether when assessee purchases a running business in a slump sale with huge liabilities, the goodwill acquired in such a deal is of no value, and hence no depreciation is allowable on the same. And the answer favours the assessee.

CENTRAL EXCISE

Notfn 3/2001-CE - Merely because manufacturer has not brought back goods to his factory to avoid transportation expenses but clears same on payment of differential duty from premises of OEM themselves, it does not create an interest liability u/s 11AB of CEA, 1944 on supplier of goods - Appeal allowed: CESTAT

THE appellant are manufacturer of tyres. During the period of dispute i.e. from 11.8.2001 to 18.08.2004, they had cleared tyres to Original Equipment Manufacturers (OEM in short) at concessional rate of duty under Notification No. 03/2001-CE dated 01.03.2001. Some of the goods so cleared were rejected by the consignee and such goods rejected were cleared by the appellant from the premises of OEM on payment of appropriate duty.

See our columns Tomorrow for the judgements