Jurisprudentiol - Thursday's cases

By Vijay Kumar

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

Reassessment - Customs directed to pass reasoned order on importer's application for re-assessment: High Court

THE petitioner cleared the goods under protest and paid Rs. 2.94 crores on 04.04.2012. Soon thereafter on 09.04.2012 it sought for reassessment in terms of Section 17(5) of Customs Act. It is stated that till date no order has been made. The petitioner concurrently had applied for refund on 17.05.2012. A show-cause notice was issued which was eventually confirmed on 12.11.2013. Direction issued to the Customs Authority to pass a reasoned order on the petitioner's application for reassessment.

Income Tax

Whether when assessee, engaged in exports, outsources preparation of food items and does not supply any controlled raw materials to its jobworkers, it can even then claim Sec 10B benefits - NO: High Court

THE assessee company is engaged in the business of manufacturing and exporting of food items such as mathia, chorafali, paratha and other tandoor items. It had claimed benefit u/s 10B. The Revenue contested the claim on various grounds including that the assessee cannot be stated to be manufacturing or producing an article or thing. On appeal, Tribunal split the issue in two parts. Insofar as the majority of the claims of the assessee for deduction was concerned, the plea was accepted holding that the assessee had a manufacturing unit in Kandla Special Economic Zone which was a 100% EOU. The food items manufactured by the assessee thus would qualify for such deduction. The Tribunal held that the assessee was an industrial undertaking and was engaged in manufacturing or producing article or thing when it produced different food preparations.

The issue before the Bench is - Whether when the assessee, engaged in exports, outsources the preparation of food items and does not supply any controlled raw materials to its jobworkers, it can even then claim Sec 10B benefits. And the verdict goes against the assessee.

Central Excise

Classification - ATM Rolls, Printed lottery ticket rolls and printed bus ticket rolls are 'Products of Printing industry' and classifiable under CETH 4901 of CET attracting Nil rate of duty : CESTAT

THE respondents are manufacturers of various excisable goods on which they pay CE duty. They also manufacture printed ATM Rolls, printed lottery ticket rolls and printed bus ticket rolls which were classified by them under CETH 49019900 of CET attracting nil rate of duty, as being the product as "products of the printing industry".

The assessee availed CENVAT Credit on inputs used in the manufacture of both dutiable and exempted products but did not maintain separate accounts and, therefore, at the time of clearance of the said products, the appellant paid an amount of @10%/8% of the value of the exempted goods.

The department harboured a view that the impugned goods merit classification under heading 48234000 as "rolls, sheets and dials, printed for self-recording apparatus" and are chargeable to appropriate rate of duty. Accordingly, a SCN dated January 2010 was issued demanding excise duty of Rs. 14,12,26,755/- for the clearances made during December 2005 to October 2010.

See our Columns Tomorrow for the judgements