Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

EOU clearing fruit pulp to own DTA unit for processing into juice and sale thereof - Revenue demanding duty from EOU on MRP basis on juice cleared on ground that both units are related persons - payment of duty by EOU proper - applicant has prima facie case in favour - Stay petition allowed: CESTAT

THE applicant is a 100% EOU and cleared fruit pulp to their DTA unit on payment of appropriate duty under the permission granted by the competent authority. The DTA unit processed the fruit pulp and sold the juice. The Revenue is of the view that since the applicants and the DTA are related persons, therefore, the applicants are liable to pay duty on MRP on the juice cleared by the DTA unit.

Since the Commissioner(A) upheld the demand of Rs.28,16,877/- and interest and penalty, the applicant is before the CESTAT.

Income Tax

Whether principal of promissory estoppel can be invoked, once tax concession granted under specific Section of I-T Act, is taken away by any other Section under the Act - NO: HC

THE assessee is a company registered under the provisions of Companies Act, 1956 and had set up a newly established industrial unit in Silvassa, a notified backward area. The assessee had been claiming deduction u/s 80-IB. Section 11JB, Minimum Alternate Tax provision was introduced in the Income Tax Act retrospectively w.e.f April 1, 2001. While for one of the AY the section was made applicable for the assessee, for the subsequent two AYs, the assessee filed returns being fully aware of the provisions of this Section. The assessee had opposed the levy on various grounds and mainly contending that its entire income attributable to this activity was allowed as exempted income and therefore, the taxable income of the assessee was not as determined by applying the provisions of Section 115JB of the Act.

Customs

Argument that ‘flash memory' and ‘flash memory cards' are different items has no technical basis - product literature clearly indicates that the item is solid state memory card and is meant for external use with computer or laptop as plug-in-device - since product satisfies description given in notification 6/2006-CE, benefit of concessional rate of CVD allowed: CESTAT

THE appellant filed bills of entry for import of ‘flash memory cards' under CTH no. 8523 5100 and claimed exemption under notification no. 24/05-Cus dated 1.3.2005 and concessional CVD of 4% under notification 6/2006-CE dated 1.3.2006. The concessional rate of CVD was denied by the original adjudicating authority on the ground that the flash memory card imported by the appellant did not have any plug to function or serve as a plug-in-device and the goods were mostly and widely used in cell phones and cameras.

See our Columns Tomorrow for the judgements