Jurisprudentiol - Friday's cases

By Vijay Kumar

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

Refund of Additional duty - Amending notification 93/2008-Cus has not been implemented retrospectively - time limit of one year is not applicable in case of refund claim filed against duty paid prior to 1.8.2008 - Rejection of refund claim on ground of time bar is not sustainable - appeal allowed with consequential relief: CESTAT

NOTFN. 102/2007-Cus dated 14th September, 2007 grants exemption from the additional duty of customs leviable thereon under sub-section (5) of section 3 of the said Customs Tariff Act by way of the "refund" procedure. The exemption contained in this notification is/was being given effect by the jurisdictional Customs officer by way of sanctioning the refund on satisfying himself that the conditions referred to in paragraph 2 of the notification are fulfilled.

It will be interesting to note that there was no time limit prescribed within which the refund should be claimed by the importer.

So, the Board did the unthinkable. It issued a strange circular to fix a time limit of one year and informed that ‘necessary change in the notification is being made...'

Income Tax

Whether assessee is entitled to deduction u/s 54EC on investment made in REC bonds in names of minors against their LTCG in case their income is clubbed with assessee u/s 64(1A) - YES: ITAT

THE assessee's minor children being beneficial owners of shares, earned LTCG on sale of beneficial shares. The assessee and minor children purchased REC Capital Gain Bonds and claimed deduction u/s 54EC. Assessee invested Rs. 50 lacs in REC capital gain bond in his own name and also made investment separately in the two minors' names for Rs. 49 lacs and 39 lacs and claimed deduction u/s 54EC. AO while framing assessment clubbed LTCG for minor children but disallowed deduction claimed by assessee on account of two minors and restricted deduction u/s 54EC of the Act at Rs.50lacs invested by assessee. CIT(A) allowed the appeal of the assessee and deleted the disallowance.

Central Excise

CENVAT credit availed on bought out items which allegedly were not required for final product - denial of credit - final product exported along with bought out items on payment of duty - whether rebate admissible on these bought out items - rebate claim to be kept pending till appeal is disposed of in matter of CENVAT credit: CESTAT

IT is contention of the Revenue that the show cause notice was issued for denial of credit of Rs.5.91 Crores which the respondents had wrongly taken in respect of the bought out items which were not required for their final product nor the value of such goods were added to the assessable value of the finished goods. Inasmuch as the finding of the adjudicating authority that the respondents are entitled to claim rebate (provided they satisfy the Jurisdictional Central Excise officer that the impugned goods have in fact been exported and also that all other conditions are satisfied) is beyond the scope of show cause notice is the submission of the Revenue and hence the application for Stay.

See our columns Tomorrow for the judgements