Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

Appeal is not maintainable before CESTAT against an order passed under section 110A of Customs Act, 1962 in respect of provisional release of seized goods: CESTAT by Majority

JUDICIAL propriety demands that the decision of the Division Bench is to be followed in preference over the decision of the Single Member, which is passed without taking into consideration the earlier decision, passed by the Division Bench.

Income Tax

Whether non-payment of interest to cooperative bank attracts provisions of Sec 43B - NO: Bombay HC

THE assessee is an individual engaged in the business of trading in cotton bales. For the AY 2004-05, the respondent-assessee filed his return of income declaring a loss. In his return, the respondent assessee had claimed a deduction/expense on account of interest payable by him to Shree Mahalaxmi Mercantile Co-operative Bank Limited on a loan taken. During the course of the assessment proceedings the AO noticed that the amount of interest of Rs.52.85lacs had not been actually paid even upto the date of filing of return of income. Consequently, the AO disallowed the deduction/expenses u/s 43B of the Act and added it back to the income of the assessee.

Central Excise

Soft cotton waste arising during carding and combing of ginned cotton - Process does not amount to manufacture - CESTAT.

THE appellant are a 100% EOU engaged in manufacture of 100% cotton yarn falling under Chapter heading 52.05 for export. In course of manufacture of cotton yarn, soft waste arises at carding and combing stage, which was being cleared by the appellant to DTA without payment of duty. According to Department, soft cotton waste became excisable with effect from 16/3/95 and was chargeable to Central excise duty at 12.5% adv. and the appellant neither paid duty on DTA clearance of soft cotton wash, nor informed the Department about these clearances.

See our columns Tomorrow for the judgements