Jurisprudentiol – Wednesday's cases
Legal Corner Icon — the image was hosted by the publisher and was not captured.Customs
Tribunal has inherent powers to modify stay orders under Rule 41 of CESTAT (Procedure) Rules, 1982 - CESTAT
ORDER of Bombay High Court in Sarla Performance Fibers Ltd and Judgment of Apex Court in Benara Valves Ltd - followed – Condition imposed in stay order modified - Pre-deposit waived and in lieu of this, applicant directed to pledge his residential bungalow worth 6.28 crores - Appellant directed to submit all original documents relating to the property to be kept in custody of Assistant Registrar, CESTAT - Failure to comply with this order or if any document is proved to be wrong/illegal, appeal liable for dismissal itself – Stay order stands modified to this extent - Order not to be quoted as a precedent.
Income Tax
Whether when assessee imports gold for converting same into jewellery for exports purpose, such jobwork amounts to manufacture, and conversion charges earned are eligible for Sec 10A benefits - YES, rules Delhi HC
ASSESSEE received gold supplied by ‘R' from Dubai and the same after conversion into jewellery was “exported” by the assessee to ‘R' who remained the legal owner of the gold and had not sold the gold to the assessee and no sale consideration for purchase of gold was paid. The assessee was paid conversion charges or production/manufacturing charges for converting the gold into jewellery. AO disallowed the deduction claimed by the assessee u/s 10A stating that the assessee was not manufacturing ornaments/ jewellery and was not an exporter as he was paid making charges for the job work/services for making ornaments as per specification of third parties.
Central Excise
Interest on differential duty payable on price escalation - No limitation to demand interest: CESTAT
IT is now settled law that interest is payable on differential duty paid on supplementary invoices in view of the Supreme Court's order in case of SKF India Ltd - (2009 TIOL-82-SC-CX). In addition to the liability to pay interest, the issue in the present appeal relates to the time limit for demanding such interest.
Until Tomorrow with more DDT
Have a Nice Day.
Mail your comments to vijaywrite@taxindiaonline.com