Jurisprudentiol - Friday's cases

By Vijay Kumar

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

Imported switchgear marketed by appellant after putting their labels - prima facie view is that putting of labels on product would amount to manufacture, as labels not only have name of appellant but also their logo and Section 2(f)(iii) does not say that labels affixed in process of labelling or re-labelling must also have MRP mentioned on them - Pre-deposit ordered of Rs.3 Crores: CESTAT

THE appellants are engaged in the manufacture of switchgear products and part and accessories thereof. Besides this, they also import switchgears, which were cleared by them on payment of duties of customs and thereafter were being sold by them after putting their labels indicating their name and logo.

THE manufactured goods were being cleared by the appellant directly to industrial users and also to the dealers by classifying the same under heading 8538 90 and on payment of duty on their transaction value u/s 4 of the CEA, 1944.

Income Tax

Whether when assessee engaged in telecom consultancy, earns some interest on inter-corporate deposits, it can be said that it was carrying money lending activity, and deduction for irrecoverable bad debt is allowable - NO: HC

THE assessee provides consultancy services in electronic and telecommunications. In the return filed for the AY 2001-02, the assessee had claimed a total amount of Rs. 6.09 crore as advances paid by the assessee company, but which had become not recoverable and therefore written off in the books of accounts during the accounting period corresponding to this AY.

Customs

To err is human and hence mistake on part of captain in not declaring hardened cement, 20 year old dozer caterpillars and out of order motor bike in IGM can be on account mis-understanding of law and is procedural in nature without any intention to evade duty - Law should not take cognizance of trifles - Penalty imposed on Master of Vessel set aside and appeal allowed: CESTAT by majority

A penalty Rs. 50,000/- was imposed on the master of the vessel on account of non-declaration of 700 MT of cement, two Dozer Caterpillar and one motor bike in the IGM.

So, the Captain is before the CESTAT.

See our columns Friday for the judgements