Jurisprudentiol-Tuesday's cases

By Vijay Kumar

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

Rule 6(3)(b) CENVAT Credit Rules, 2004 - Eligibility of CENVAT Credit on inputs used exclusively in exempted goods when 10% amount paid - Finding of fact of CESTAT that inputs are used for both categories - Department not countered fact - Finding of fact cannot be disturbed - Assessee eligible to avail credit - Department's appeal dismissed: HC

IN civil miscellaneous appeal filed by the Revenue, the issue was whether CENVAT Credit could be availed on the inputs used exclusively in the manufacture of goods, which are exempted when assessee had paid 10% under Rule 6(3)(b) the CENVAT Credit Rules, 2004.

The High Court held that on a reading of Rule 6(1) and Rule 6(3), it is clear assessee who had opted not to maintain separate account of inputs in respect of the two categories of clearances, would be entitled to avail the CENVAT credit, if they paid the amount in terms of Rule 6(3)(b) and there can be no other interpretation on the admitted fact.

Income Tax

Income tax - Whether if remission of a liability is made pursuant to premature repayment of loan, such remitted sum can be treated as income - NO: Bombay HC

THE issue before the Bench is - Whether if the remission of a liability is made pursuant to "premature repayment of loan", such remitted amount can be considered as a receipt on account of revenue. NO is the answer.

Customs

While disposing appeal filed under Customs Act, 1962, whether Tribunal can remand matter to Central Excise Commissioner? - Yes - Section 129B does not restrict the power of Tribunal: HC

THE notice was adjudicated by the Commissioner of Customs. On appeal filed by the assessee, Tribunal remanded the matter to the Commissioner of Central Excise accepting the plea of the appellant that the Commissioner, Customs has no jurisdiction after debonding. The assessee challenged the order of Tribunal on the ground that under Section 129B of the Customs Act, 1962, Tribunal cannot remand the matter to an authority other than which passed the impugned order.

High Court held:

A conjoint reading of Section 129B with Section 2(1) of the Customs Act makes it clear that the order should be passed only by a competent authority who has jurisdiction to pass an order and therefore, the Tribunal, if it found an error in the order passed by an authority, is justified to remand the case back to the competent authority. Section 129B does not restrict the power of the Tribunal to remand the matter back to the competent authority having given a ruling thereon.

See our Columns Tomorrow for the judgements