Jurisprudentiol - Thursday's cases

By Vijay Kumar

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

Customs - Target Plus Scheme - ‘Broad Nexus' between imported goods and exported goods - The word ‘nexus' obviously refers to a larger group of similar goods and not very exported goods itself.

THE Appellants, M/s Gimpex Ltd. (GE) and M/s Sree Enterprises (SE) are engaged in the export of Iron ore, Bentonite, Feldspar, Granite slabs and articles of mild steel /alloy steel, respectively. Due to incremental growth in exports when compared to the exports made in the previous year, the appellants obtained Target Plus Scheme (TPS) Licences from the DGFT.

Income Tax

Income tax - Whether rule of consistency is applicable in every case, more so when Revenue's viewpoint was contrary to law in earlier year, although in favour of assessee - NO, rules Delhi HC

THE issues before the Bench are - Whether the amortization of lease premium paid by the assessee for a period of 90 years is revenue expenditure and Whether the rule of consistency is applicable in every case, more so when the point of view of the Revenue was contrary to law in earlier year, although in favour of the assessee. And the answers to these questions go against the assessee.

Central Excise

Interest on delayed refund of pre-deposit – period for which petitioner is entitled to interest on pre-deposit of delayed refund was the same as in the case of ITC Limited - parity demands that the petitioner is also entitled for interest @ 12% per annum - Revenue cannot take advantage of the fact that this Court while referring to the circular dated 08.12.2004 did not mention the rate at which interest was to be paid to the petitioner: High Court

IT is the case of the petitioner that it had preferred an appeal under Section 35G of the Central Excise Act, 1944 against the order dated June 15, 2007 passed by the CESTAT insofar.

See our columns Thursday for the judgements