Jurisprudentiol – Monday's cases

By Vijay Kumar

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

Rebate received paid back along with interest and CENVAT Credit taken subsequently - Refund claim filed under rule 5 of CCR, 2004 regarding accumulated CENVAT Credit - prima facie case in favour - unconditional waiver of pre-deposit granted: CESTAT

THE appellant filed refund claims of Rs.3,03,64,498/-, Rs.1,68,38,399/- and Rs.1,01,97,308/- under Rule 5 of CENVAT Credit Rules, 2004 towards unutilized CENVAT Credit availed on inputs used in the manufacture of final products which were exported, during the period April 2008 to June 2008. The claim was filed on the ground that they were not able to utilize such credit of duty paid on inputs used in the manufacture of goods exported under bond/LUT during the said quarter.

Income Tax

Income tax - Whether when assessee pays entire tax with interest before conclusion of penalty proceedings, immunity u/s 271AAA(2) cannot be denied to assessee - YES, rules ITAT

THE issues before the Tribunal are - Whether when assessee pays the entire tax with interest before conclusion of penalty proceedings, immunity u/s 271AAA(2) cannot be denied to the assessee and whether when the statute does not prescribe any time limit for payment of tax with interest, AO cannot lay down any outer limit of payment before filing of tax return. And the questions are answered in favour of the assessee.

Customs

Customs: Stay and Waiver of Pre-deposit: Import of urea; Violation of License condition; appellants directed to make pre-deposit of Rs 5 Lakhs against demand of Rs. 32 Crores - CESTAT

LICENCE was issued by the DGFT to PSU Fertilizer Company for import of urea to be taken into the appellants-factory for manufacture of NPK Fertilizer. However, the same was packed and sold by the appellants to authorized dealers to be used as manure for agricultural use by the farmers in accordance with the provisions of Essential Commodities Act, 1955 and Fertilizer Control Order, 1973. Commissioner confirmed duty demand of over Rs.32 Crores, confiscated the impugned goods valued at over Rs. 97 Crores and imposed penalty of over Rs. 32 Crores.

See our columns Monday for the judgements