Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

Stay - Pre-deposit - Commissioner (Appeals) to show that he has at least prima facie considered the submissions of parties: HC

AT the time of disposing of the stay application, the Commissioner (Appeals) is not required to consider all the submissions made by the parties in depth. However, as he would be exercising a quasi-judicial function while directing the petitioner to deposit or not deposit any amount for the purposes of entertaining the petitioner's appeal on merit, the same is required to be exercised by showing that he has at least prima facie considered the submissions of the parties before him. Merely because the petitioner has not pleaded any financial hardship, it would not follow that the amount of duty and/or penalty adjudicated by the lower authority has to be pre-deposited for the purposes of hearing of the appeal on merits. A strong prima facie case may at times constitute sufficient reason for dispensing with pre-deposit of any amount for the purposes of entertaining the appeal on merits. An illustration of such a case would be where the dispute is covered in favour of the party by a decision of a higher forum.

Income Tax

Whether when assessees reimburse costs to a third party for manufacturing steel in pre-determined ratio, such payments are to be treated as FTS, liable to withholding tax - NO: ITAT

THE issues before the Bench are - Whether when the assessees reimburse the costs to a third party for manufacturing steel in a pre-determined ratio, such payments are to be treated as FTS, liable to withholding tax and Whether the costs reimbursements made by the assesses has an element of income. And the verdict goes against the Revenue.

Customs

Import of printed items relating to textile colour designing/matching - Merely because textile material occupies more space it cannot be stated that they are not books: CESTAT

OBVIOUSLY, a textile material cannot be printed on a paper and has to be pasted. Further, below every textile chip the colour name and code is printed. Merely because the textile material occupies more space, it cannot be stated that they are not books. For example, in a book containing many photographs, the photograph may occupy more space than the printed matter. That does not mean that it is a photo album and not a book.

See our Columns Tomorrow for the judgements