Jurisprudentiol - Wednesday's cases

By Vijay Kumar

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

Import of GSM Dual SIM Mobile phones having one IMEI number - Customs authorities confiscating consignment on ground that dual SIM phones should have two IMEI numbers as per DGFT Notification - import of same cannot be prohibited: CESTAT

THE appellant filed bills of entry for clearance of 2000 pcs of GSM Dual SIM 2.6” Mobile Phone Model TS-99 and 2000 pcs of additional battery bundled and classified the goods under CTH 85171290. The Customs officers examined the consignment and found that the goods were having only one IMEI no. instead of two despite the goods being “Dual SIM Mobile Phone” with two slots for SIM.

The authorities quickly brought into picture the DGFT Notification 112(RE-2008)/2004-2009 dated 16.06.2009 wherein the import of mobile sets without IMEI/improper IMEI is prohibited. Probably, without bothering to find out what IMEI stands and what it is meant for, the imported goods were confiscated under section 111(d) & (m) of the Customs Act, 1962, but the benevolent adjudicating authority gave an option to redeem the goods on payment of Rs.4 lakhs for re-export and also imposed a penalty of Rs.2 lakhs.

Income Tax

Whether if advance received on sale of property prior to its registration is invested in specified assets, Sec 54EC benefits are available on such investment - YES: ITAT

WHETHER earnest money or advance money received on sale of property will qualify for exemption u/s 54EC if the assessee invests such earnest money in specified assets before the date of transfer of the asset; Whether the AO can make an addition on the basis of the Stamp duty valuation; Whether value adopted or assessed by any authority of the State Government for the purpose of payment of stamp duty in respect of land or building cannot be taken as sale consideration received for the purpose of section 48 and Whether for the purpose of section 49(i)(ii), where the capital asset became the property of the assessee under a gift or will the cost of acquisition of the asset shall be deemed to be the cost for which the previous owner of the property acquired it, as increased by the cost of any improvement of the assets incurred or borne by the previous owner or the assessee. And the verdict partly goes in favour of the assessee.

Service Tax

ST - Definition of ‘Vocational Training Institute' in Notfn. 3/2010-ST dated 27/02/2010 cannot be applied retrospectively - It is impermissible for an authority conferred with power to enforce provisions of Act to interpret Act or exemption Notifications issued thereunder by resorting to assumptions impermissible in law - Adjudication order is fallacious, misconceived and unsustainable, hence quashed - Appeal allowed: CESTAT

THE assessee provides commercial training or coaching and administers a school for individuals who wish to pursue a career as actor-performers in the entertainment industry. The assessee conducts full time professional courses for stipulated durations providing intensive specialized training in acting to the students.

See our Columns Wednesday for the judgements