Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

Wires and Cables cleared in running length of 25 and 100 metres prima facie cannot be considered as parts of automobiles: CESTAT

THE applicants are engaged in the manufacture of wires and cables and paying duty as per the provisions of Section 4 of the Central Excise Act, 1944. The case of the Revenue is that the impugned goods are liable to be assessed in terms of section 4A of the CEA, 1944 by virtue of Notf. 11/2006-CE(NT) dated 29.05.2006 which notified parts, components and assemblies of automobiles falling under any heading. The issue involved in this case is whether the cables, which were cleared in running length of 25 and 100 meters, can be considered as parts, components or assembly of automobile. The applicants have a strong case. Therefore, the amount already deposited is sufficient for hearing of the appeal. Pre-deposit of the balance of duty, interest and penalty is waived and recovery thereof stayed.

Income Tax

Whether when undertakings of assessee were eligible for Sec 10B benefits prior to 1.4.1999 when period of tax holiday was extended to 10 years, assessee can continue to claim extended exemption for old as well as new but independent units - YES, rules ITAT Special Bench

ASSESSEE is a company engaged in the manufacture and mainly export of cotton yarn, grey & finished knitted cotton fabrics & readymade garments. During the assessment year 2001-02, the assessee claimed income exempt u/s 10B of I.T. Act for three units namely original unit, which started production from A.Y. 1992-93, spinning unit no. III, which started production from A.Y. 1996-97 and spinning unit no. IV, which started production from A.Y. 1999-2000. During the course of assessment, the Assessing Officer observed that the first year of operation of original unit was assessment year 1992-93 and as there was loss, as per provisions of Section 10B(3), the assessee company exercised its option not to avail exemption u/s 10B of Income-tax Act, 1961, for assessment years 1992-93, 1993-94 and 1994-95.

Customs

Import of Oats - Tribunal directed Customs to release goods under certain conditions - Customs directed to implement Tribunal Order: HC

IT is clear that the petitioner would have to comply with a number of conditions before the goods in question are released. Sufficient safeguards had been incorporated in the order of the Customs, Excise and Service Tax Appellate Tribunal, South Zonal Bench, Chennai, to make sure that the goods in question are fit for human consumption, as they would be released only after appropriate inspection by the Port Health Authorities. The respondents are directed to implement the order of the Customs, Excise and Service Tax Appellate Tribunal, South Zonal Bench, Chennai, dated 27.10.2011, within a period of two weeks.

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