Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

Dues owing by assessee cannot be recovered from properties of appellant, who is bona fide purchaser in auction - In law, person cannot be remediless, particularly in respect of matter, which is void ab initio from day one - If action complained of is non est from day one, same can be challenged even after 100 years in writ petition: HC

A unit belonging to an assessee was mortgaged in favour of U.P. State Financial Corporation. Since the assessee failed to honour its commitment to U.P. State Financial Corporation, the Corporation took over the unit of the assessee and, thereafter, by public auction, sold the same to the appellant.

It is the case of the appellant that after the unit was sold the C.Ex Department contended that as the assessee failed to discharge its dues due and owing to the Excise Department, the appellant being the successor is liable to pay the same.

Income Tax

Whether, for purpose of depreciation, wind electric generators are to be treated at par with wind mill - NO: ITAT

THE assessee had claimed 100% depreciation on wind electric generators, The CIT(Central) Hyderabad in its order u/s 263 of the Act had pointed out that the depreciation at 25% only was allowable on electrical equipment. Consequently, the Assessing Officer during the course of assessment proceedings found that the assessee had claimed 100% depreciation on wind electric generators. The Assessing Officer was of the view that the wind electric generators are in nature of electrical equipments and depreciation is allowable at 25% only but not at 100% as claimed by the assessee. Accordingly, the Assessing Officer calculated the depreciation at 25% and added back the balance as excess depreciation claimed by the assessee.

The issues before the Bench are - Whether wind electric generators, for the purpose of depreciation, can be treated at par with Wind Mill; Whether wind electric generators are ancillary or an integral part of Wind mill; Whether is it required to see the rate of wear and tear for the rate of depreciation and Whether Functional Test is required to check for granting higher rate of depreciation. And the verdict goes in favour of the Revenue.

Service Tax

It would be absurd to allege that an institution run by State Government and which is associated in implementation of various welfare schemes of centre and State Government by organizing various training programmes to improve the skills of poorer sections of society of having evaded service tax by taking recourse to fraud, willful misstatement, suppression of facts etc.-neither longer limitation period nor penalty is attracted: CESTAT

THE appellant is an undertaking of the State Government of Madhya Pradesh, Public Financial Institutions and lead banks of the State and was set up with the sole objective of up-lifting socio economic conditions of the people below poverty line and weaker sections of the society by the way of imparting to them skill development as well as entrepreneurship so that they can earn their livelihood on their own through meaningful employment and for this purpose, the appellant institution conducts various livelihood development and training programmes. According to them, they undertake various training programmes under the welfare scheme of the Central Government and State Government like Prime Minister Rozgar Yojana (PMRY), Prime Minister Employment Generation Programme (PMEGP), Mass Employment Generation through Science & Technology (MEGSET), Entrepreneurship Awareness Camps (EACs), Entrepreneurship Development Orientation Programmes (EDOPs), Swayam Siddha project for upliftment and development of women in the rural areas, Rani Durgawati Swarozgar Yojana (RDSY), Management Development Programmes/Development Orientation Programmes (MDPs/DOPs), CM Gharelu Kamkaji Mahila Yojana (CMGKMY), National Health Rural Mission (NRHM) etc.

See our Columns Tomorrow for the judgements