Jurisprudentiol - Friday's cases

By Vijay Kumar

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

Whether, if appellant has waived his right to SCN he foregoes his right to challenge the proposed action in SCN forever - Matter referred to third Member: CESTAT

Difference of opinion:

WHETHER the appeal has to be rejected by upholding the order of Commissioner (Appeals) vide which he has enhanced the assessable value of the imported goods and has confiscated the goods with redemption fine of Rs. one lakh and has imposed penalty of Rs. 2 lakhs, as held by Member (Technical)

OR

The appeal has to be allowed in respect of assessable value, by accepting the transaction value as correct value of the imported goods and the redemption fine and penalty has to be reduced to 10% and 5% of the declared value, as held by Member (Judicial)

Income Tax

Whether once charitable institution gets registered u/s 12AA, it ipse dixit entitles assessee to get benefits under Ss 11 or 12 - NO: AP High Court

THE assessee, a charitable institution registered u/s 12AA had invested in immovable property which was found to be not in consonance with the objects of the trust and therefore, the benefits of section 11 and 12 was not granted. The assessee went in appeal before the CIT(A) and then before the Tribunal which remanded the matter to the AO. On remand, the assessee submitted that as per the resolution passed, it had decided that at the end of each year, 75% of its income would be accumulated for the purpose of construction of building and accordingly 75% of the net income was transferred to Building Fund Reserve Account.

The issue before the Bench is - Whether once the charitable institution gets registered u/s 12AA, it ipse dixit entitles the assessee to get the benefit under Section 11 or 12. And the answer is NO.

Central Excise

CENVAT - there is no bar in CCR, 2004 that capital goods cannot be sent to job worker - although 'capital goods' could not be returned "as such" after usage, in that circumstances also credit cannot be denied: CESTAT

THE respondents are manufacturers of C.I. Castings. As the respondents were not having the facilities for machining, grinding etc. to manufacture the auto components from C.I. Castings they procured tools and tips as per the requirement of the job workers and the same were sent to the job-worker for further processing. These tools and tips were received back within 180 days by the respondent but not "as such" and they took credit on the same. The Revenue was of the view that the respondent is not entitled to take CENVAT credit on these tools and tips as the same have not been received "as such".

A show-cause notice was issued. The order passed confirming the demand was set aside by the Commissioner(A). And so, the Revenue is in appeal.

See our Columns Tomorrow for the judgements