Jurisprudentiol - Tuesday's cases

By Vijay Kumar

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

Toys or Games? Not fun to decide - Classification of Chip N Dale, Duck Tale Disney, Fox and Geese and Rally manufacture by Funskool - Matter referred to Third Member.- CESTAT

THE issue involved is classification of the articles manufactured by the appellant assessee, Funskool (India) Ltd. While revenue classified them under 9504.90 as games, the assessee claimed classification under 9503.00. The classification claimed by the assessee attracts Nil rate of duty while the classification by revenue attracts 16% duty. The appeals are taken up by the Tribunal consequent to the directions of the Supreme Court to decide the classification of the goods manufactured based on the tests laid down in the earlier order of the Supreme Court in 2009-TIOL-118-SC-CX.

Income Tax

Whether additions are warranted when there is substantial increase in consumption of electricity but without corresponding increase in production and also no mention of work-in-progress in books - YES: HC

THE issues before the Bench are - Whether additions are warranted when there is a substantial increase in consumption of electricity but without corresponding increase in production and also no mention of work-in-progress in books; Whether merely providing an explanation that Electricity Board would issue bills for minimum contracted units, whether they were consumed or not, can constitute sufficient evidence for showing the discrepancy between the power consumption and actual production and Whether the books of accounts can be rejected when in addition to the huge discrepancy between the productivity compared with the electricity consumption, the assessee has also not recorded the work in progress in its books of accounts. And the verdict goes against the assessee.

Customs

Anti Dumping - Appeal against Anti-dumping Notification No 33/2008 Cus dated 11.3.2008 fails - no flaw in Notification and the proceedings: CESTAT

VIDE Customs Notification No.33/2008 dated 11/03/2008, definitive anti dumping duty was imposed with effect from 19th June 2007 on import of acetone (hereinafter referred to as the subject goods) originating in or exported from EU, Chinese Taipei, Singapore, South Africa and USA. The ADD was imposed based on the final finding of the Designated Authority vide Notification No. 4/04/2006-DGAD dated 04/01/2008 as amended by Notification No. 14/04/2006-DGAD dated 28.01.2008 recommending the said levy equal to the lesser of margin of dumping and margin of injury. These Notifications are under challenge in this appeal by the exporter appellant M/s Sasol Solvents from South Africa.

See our Columns Tomorrow for the judgements