Jurisprudentiol - Thursday's cases

By Vijay Kumar

Central Excise

VCD players cleared for free supply along with sale of CTVs - appellant's contention that MRP of VCD is to be taken as 'nil' is totally incorrect - issue of levy of duty u/s 3 of CEA, 1944 on clearance of goods manufactured by an assessee cannot be mixed with issue of valuation u/s 4 or 4A - matter remanded: CESTAT

During the period from Feb.2003 to March, 2003 the appellant manufactured VCD players and also different models of colour T.V. sets. Both these items were chargeable to duty on the basis of the MRP declared on their packages in terms of s.4A of the CEA, 1944. As a promotional offer, the appellant during this period cleared combination packs of certain models of CTVs along with VCD players, the VCD being given free along with those models of CTVs. The duty was paid by the appellant on the value determined on the basis of MRP of the combo pack of the CTVs along with VCD players.

Income Tax

Whether when assessee is engaged in shipping business, receipts like recruitment fees and visa processing fees can also be treated as part of shipping income subject to tonnage tax - YES: ITAT

ASSESSEE, a company was engaged in the business of shipping operations and was approved u/s 115 VI(3) to pay Tonnage Tax in respect of its income from shipping business. It owns and operates ships comprising tankers, bulk carriers and offshore supply vessels. During assessment, AO noticed that there was an agency division operated by the assessee which was engaged in recruitment of personnel on foreign lines.The issues before the Bench are - Whether recruitment fees received can be treated as a part of the shipping income subject to Tonnage Tax as per Chapter XII-G - Whether there is any scope for addition of the same separately by treating such fees as income not incidental for computing shipping income under Tonnage Tax Scheme - Whether when an assessee receives miscellaneous income on account of VISA processing fees, charges for seaman book and had claimed adhoc expenses in respect thereof, the same can be allowed by the assessing authority. And the verdict partly goes in favour of the assessee.

Customs

Principles of unjust enrichment do not apply to fine and penalty but only duty - appeal allowed with consequential relief: CESTAT

IN a case relating to imports under DEEC scheme, the appellant had made a pre-deposit of Rs. 7.5 lakhs in cash and Rs. 40 lakhs as bank guarantee, as a transferee of the DEEC licence. The said amount was appropriated by the department towards redemption fine and penalty. The said decision was appealed against before the CESTAT and the Tribunal set aside the said order and allowed the appeal. The department did not prefer any appeal against the order of the Tribunal which became final.

Consequently, the appellant became eligible for refund of Rs. 47.5 lakhs which was allowed by the adjudicating authority but credited to the Consumer Welfare Fund on the ground that the appellant allegedly did not fulfill the condition of unjust enrichment.

See our Columns Thursday for the judgements