Jurisprudentiol – Thursday's cases

By Vijay Kumar

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

Since appellant had preferred appeal against entirety of adjudication order which included imposition of penalties, revisional proceedings initiated by SCN and culminating in order in revision are in clear transgression of provisions of Section 84(4) of FA, 1994 - Appeal allowed: CESTAT

IF an issue is pending in appeal, the revisional jurisdiction under Section 84 could not be exercised. Since the appellant had preferred an appeal against the entirety of the adjudication order dated 22.2.2007 which included imposition of penalties thereunder as well and the issue regarding validity of imposition of penalty was equally the subject matter of appellate proceedings pending before the appellate Commissioner since 25.5.2007, the date on which the appeal preferred to that authority had culminated in the order dated 29.8.2007 dismissing the appeal, the initiation of revisional proceedings is unsustainable.

Income Tax

Whether interest is payable on refund of self assessment tax from date of assessment order till grant of refund - YES: HC

THE assessee, for the Assessment Year 1986-87, paid tax comprising of advance Tax, tax deducted at source and self Assessment Tax. The assessee filed its return of income declaring income. Assessing Officer passed order under Section 143(3) assessing assessee's income and determined tax payable. The Assessment Order after giving credit for taxes paid demanded the balance tax along with interest from the assessee.

THE issues before the Bench are - Whether Self-Assessment Tax has to be treated as tax paid pursuant to the order of Assessment; Whether interest is payable on refund of self-assessment tax from date of assessment order till grant of refund and Whether in exercise of powers under Article 226 of the Constitution, Court can direct the statutory authorities to grant interest as outside the statute. And the verdict goes in favour of the assessee.

Customs

EOU- De-bonding - Depreciation on value of capital goods imported but not used fully for purpose of manufacture so as to discharge export obligation - Depreciation allowed - CESTAT

THIS is a Revenue appeal. Revenue is on the point whether depreciation is admissible on the value of capital goods imported but not used fully for the purpose of manufacture so as to discharge export obligation. According to the Revenue, while respondent has target of one lakh pieces to export, it exported 300 pieces during the entire export period. Upon de-bonding of unit, the Adjudicating authority allowed depreciation on the value of capital goods imported

See our Columns tomorrow for the judgements