TIOL-DDT 2796 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body> <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=23157"><img src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2015_1.jpg" alt="DDT in Limca Book of Records - Third Time in a row" width="300" height="148" hspace="5" border="0" align="right" ></a> <p align="justify"><strong><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 2796 </font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br> 29 02 2016 <br> Monday </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Before you go for the Budget, please have a look at these two important recent cases. </font></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">What is meaning of word "include” in a statutory definition? Supreme Court Larger Bench Explains </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> Division Bench of the Supreme Court had in 2010 (<strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=32&filename=legal/sc/2010/2010-TIOL-102-SC-CX.htm" target="_blank">2010-TIOL-102-SC-CX</a></strong>) observed, "<em>it appears that by employing the phrase "and includes", legislature did not intend to impart a restricted meaning to the definition of "inputs" and therefore, the interpretation of the said term in Maruti Suzuki Limited <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=32&filename=legal/sc/2009/2009-TIOL-94-SC-CX.htm" target="_blank"><strong>(2009-TIOL-94-SC-CX)</strong></a>, may require reconsideration by a larger bench"</em>. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And the Larger Bench recently ruled that the word <em>"include” in the statutory definition is generally used to enlarge the meaning of the preceding words and it is by way of extension, and not with restriction.</em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The issue in this case started sometime in 2002 when Show Cause Notices were issued to the assessee for recovery of erroneous credit on welding electrodes. The case had taken twists and turns and is now again to be decided by the Division Bench based on the findings of the Larger Bench. </font></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTExNjI5" target="_blank">2016-TIOL-20-SC-CX-LB</a></font></strong></p> <p align="center"><em><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><font color="#006600">Can Tribunal Order pre-deposit under earlier version of section 35F of Central Excise Act 1944, in appeal filed before 6th August 2014? </font></strong></font></em></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AGAINST </strong>Orders in Original dated 30th August 2013 and 9th October 2013 passed by the Commissioner, Central Excise, the assessee filed appeals before the CESTAT with applications for waiver of pre-deposit. While the appeal and applications were pending, Section 35F of the CE Act, as it stood then (Where Tribunal could grant waiver of pre-deposit subject to conditions imposed), was substituted with effect from 6th August 2014 by the present Section 35F of the CE Act which mandates pre-deposit of seven and a half percent of the duty. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By an order dated 22nd December 2015 , the CESTAT ordered pre-deposit of an amount of Rs. 3 Crores. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The assessee is before the High Court with the plea that since there is no saving clause qua the provision as it stood prior to the amendment, there is as of date no provision in the CE Act which mandates pre-deposit in appeals pending before the CESTAT prior to 6th August 2014. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court found prima facie in the absence of any saving clause, the Appellant has a statable case on the strength of the decision of the Constitution Bench of the Supreme Court in <em>Kolhapur Canesugar Works Ltd. Vs. UOI - </em><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=32&filename=legal/sc/2002/2002-TIOL-188-SC-CX-CB.htm" target="_blank"> <em><strong>2002-TIOL-188-SC-CX-CB</strong></em></a>. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, the Court has admitted the appeal and framed the following question of law for determination: </font></p> <blockquote> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Whether on the facts and in the circumstances of the case, the CESTAT could direct the Appellant to make a pre-deposit under the earlier version of section 35F of Central Excise Act 1944, in the appeal filed before 6th August 2014? </font></em></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Court stayed the impugned order dated 22nd December 2015 passed by the CESTAT and directed that the CESTAT will proceed with hearing of the appeals without insisting on a pre-deposit by the Appellant. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The case is posted for hearing on 17th May 2016. </font></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTExNjI4" target="_blank">2016-TIOL-387-HC-DEL-CX</a></font></strong></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Modi's Exam Today! </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN </strong>yesterday's Mann Ki Baat, the Prime Minister said, </font></p> <p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FDDED7" span="span">I have an exam too. 125 crore Indians are going to test me; tomorrow is the Budget. I am healthy and full of self-confidence. Let us hope my exams that start tomorrow and yours the day after are good. If we succeed, the country will succeed. </font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_2796_g_l.jpg" alt="Legal Corner Icon" width="230" height="75" hspace="5" border="0" align="center"><br> </font></p> <div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_2796_budget.jpg" alt="Legal Corner Icon" width="237" height="77" hspace="5" border="0" align="center"></font> </div> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br> Starting today afternoon, we will try to explain the Greek and Latin in the Budget 2016. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please send your comments on the BUDGET to <a href="mailto:editor@tiol.in" target="_blank"><strong>editor@tiol.in</strong></a></font></p> <p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT </strong></font></p> <p><strong><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day. </font></strong></p> <p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="mailto:vijaywrite@tiol.in"><font color="#FF6666"> </font>vijaywrite@tiol.in</a></strong></font></p> </body> </html>