Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

Conditional Exemption - Conditions are to be followed to avail exemption - Substantial compliance not enough: SC

A provision for exemption, concession or exception, as the case may be, has to be construed strictly and if the exemption is available only on complying certain conditions, the conditions have to be complied with: The language of Rule 192 of Chapter X of the Rules is clear that for availing concession from excise duty on excisable goods used in a specified industrial process, a person must obtain a registration certificate from the Collector and that "the concession shall, unless renewed by the Collector, cease on the expiry of the registration certificate".

Income Tax

Whether when assessee lets out premises to related concern, refundable security deposit received by assessee is to be treated as deemed dividend - NO, rules ITAT

IT was stated by the assessee that the said security deposit received by virtue of a new agreement superseding the earlier agreement did not come under the ambit of dividend as defined in sec. 2(22)(e) of the Act, because the said amount had neither been given as an advance nor a loan in this case but was given as a security deposit for obtaining a lease from the assessee-company. It was further stated that such security deposit cannot be treated as deemed dividend by invoking provisions of sec. 2(22)(e) of the Act.

Customs

Customs - Refund under Section 18 should have been made without any application for refund: High Court

THE substantial question of law: Whether Customs, Excise and Service Tax Appellate Tribunal is right in holding that refund under Section 18 of the Customs Act should have been made without any application for refund and that Section 18 was applicable and Section 27 of the Customs Act, 1962 was not applicable?

See our columns Tomorrow for the judgements