Jurisprudentiol -Friday's cases

By Vijay Kumar

Central Excise

Discretion in passing interim orders is not an arbitrary discretion - Whim and caprice are alien to judicial process: High Court

THE High Court order started with the following guiding principles which should be kept on the desk of every adjudicating authority and are worth memorising every day before the start of work

Income Tax

Whether when Revenue searches several persons, a combined satisfaction recorded can be said to be legally valid for initiating action under Sec 158BD - YES, rules ITAT

THE issues before the Bench are - Whether ground relating to assumption of jurisdiction under section 158BD can, for the first time, be taken in the second round of litigation; whether completion of assessment proceedings in the case of searched person is sine qua non for initiating action under section 158BD; Whether for judging the correct date of notice of 158BD typographical errors should be ignored; Whether combined satisfaction, when the searched persons are more than one, can be recorded for initiating action under section 158BD and Whether undisclosed income unearthed during search can only be added under chapter- XIV-B. And the verdict partly goes in favour the assessee.

Central Excise

Manufacture of base cream of toothpaste - Since on the quantity of base cream used for R&D the applicant pays duty, the remaining quantity not used is also to be considered as marketable and not a waste - Pre-deposit ordered: CESTAT

THE applicant manufactures base cream of toothpaste for Research & Development purpose. On that quantity which is used in research and development purpose, the applicant pays Central Excise duty. However, the remaining quantity is cleared as waste without payment of any duty on the plea that the same is not marketable.

See our columns Tomorrow for the judgements