Jurisprudentiol – Wednesday's cases

By Vijay Kumar

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

Notice of defect memo sent to appellant by registered post is deemed to be served in terms of S. 37C(1)(a) of CEA, 1944 read with S. 27 of General Clauses Act, 1897: HC

NOTING that the appellant had taken more than six years to remove the defects in the appeal, the High Court held that order of the Tribunal did not raise any substantial question of law. In fine, it was held that the conduct of the appellant during the last 8 years did not make out any case for any indulgence in law or equity and accordingly the appeal was dismissed.

Income Tax

Whether when assessee claims Sec 54F benefits, settlement cost paid towards purchase of property from official liquidator of the High Court is allowable deduction - NO: ITAT

THE two issues before the Bench are - Whether the purchase of textile mill and treating the same as residential property is eligible for exemption u/s 54F and Whether when assessee claims Sec 54F benefits, the settlement cost paid towards purchase of property from official liquidator of the High Court is allowable deduction. The answer to the first question is a remand and NO for the second question.

Customs

Although the Bank Guarantee executed by appellant was valid upto year 2015, Revenue had encashed same - since Stay granted by CESTAT in year 2006 has been extended vide order dated 01.08.2012, Revenue directed to refund amount of Rs.50 lakhs within seven days and appellant to keep alive BG till disposal of appeal: CESTAT

IN this Customs case, the CESTAT had granted the applicant a Stay in the matter in December, 2006. The Bench had directed the applicant to furnish a Bank Guarantee of Rs.50 lakhs.

Incidentally, the appeal is still pending before the CESTAT. In the meantime, in the year 2009, the Revenue was scared that the applicant would do the vanishing trick. So, they filed a Miscellaneous application before the CESTAT praying that the stay of recovery already granted by the Bench be vacated.

The bank guarantee executed by the applicant has been encashed on 19.07.2012.

See our Columns Tomorrow for the judgements