Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Barcode Printer imported for sale in Shopping Malls - Retail sale price is required to be declared on package: CESTAT

BARCODE Printer imported for sale in Shopping Malls – Shopping Mall or Stockist cannot be regarded as Institutional Consumer – they are also not similar to service industry or akin to a transporter or hotel as defined under rule 2A of the SWAM Rules, 1977 – Retail sale price is required to be declared on package and Additional duty of Customs to be calculated based thereon.

Income Tax

Income tax - Whether when assessee provides lab testing services to sample collection centres on on-exclusive basis, provisions of Sec 194H will not apply to discount offered as there does not exist principal-agent relationship between them - Yes, ITAT

THE issues before the Bench are - Whether when assessee provides lab testing services to sample collection centres on non-exclusive basis, provisions of Sec 194H wll not apply to discount offered as there does not exist a principal-agent relationship between them and whether when the assessee has not paid or credited any amount to the account of the the collection centers, section, provisions of Sec 194H will not come into play. And the verdict goes in favour of the assessee.

Central Excise

For imposition of penalty under rule 26 of CER, 2002 goods should be held liable for confiscation: CESTAT

TO impose penalty, the first requirement is that the goods should be held liable to confiscation. In the show cause notice issued in the instant case there is no proposal to confiscate the goods which have been cleared for export but diverted under Rule 25 of the Central Excise Rules. Similarly, in the impugned order passed by the learned Commissioner, there is no finding whatsoever, either confiscating the goods cleared or holding that the goods are liable to confiscation. In the absence of such a finding, imposition of penalty under Rule 26 on the appellants is not sustainable in law.

See our columns Monday for the judgements