Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

CX - SSI Exemption - Use of brand name - Sticker of another company is enough bar to exemption; Use of such sticker not informed to Department - extended period of Limitation applicable - CESTAT by majority

SINCE in this case the Respondent were availing of SSI exemption and for assessment of duty payable by a unit availing of SSI exemption, the fact as to whether or not the unit is using the brand name/logo of another person is a necessary input for the Assessing Officer to determine as to whether the duty self assessed, as reported in the ER-1 Returns, is correct or not and since in this case the Respondent, while using the logo of SEL, Baroda, had not informed the Department in this regard and since the language of SSI exemption on the point of use of another person's brand name/logo is absolutely clear and unambiguous and on the issue involved in this case, there were no conflicting judgments or circulars, the Respondent's omission to inform the Department about use of logo of M/s. SEL, Baroda on the R-Core transformers being manufactured by them cannot be said to be bona fide, as no evidence has been produced by them to prove their bona fide.

Income Tax

Whether when there is no approved layout plan and any instance of sale, resorting to development method is 'most appropriate method' for purpose of valuation of property - YES; High Court

THE issue before the High Court is - Whether when there is no approved layout plan and any instance of sale, resorting to development method is the 'most appropriate method' for purpose of valuation of property. And the verdict goes against the assessee.

Customs

Conversion of Shipping Bill from DEPB to Drawback - Exporter cannot be penalized for the inaction of the department at the time of allowing the shipment and thereafter - CESTAT

THE appellant exported a consignment of 100% cotton yarn dyed Terry Towels under the claim of DEPB scheme under three shipping bills. They claimed benefit of DEPB Credit @ 11% on FOB and obtained a DEPB Licence dated 25.02.2000 having a validity period of 12 months for the duty credit of Rs.1,83,361/-. However, the Dy. Commissioner disallowed DEPB on 22.03.2000 on the ground that the export goods were yarn dyed but not processed and the appellant could not prove the fact of processing of fabric with the help of AR4 in terms of Board's Circular No. 54/99-Cus since the appellant were Merchant exporters.

See our Columns tomorrow for the judgements