TIOL-DDT 642 · Monday, 25 June 2007

From our Legal Corner – tomorrow’s cases

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Central Excise

Bisleri Club soda eligible for SSI exemption – Show Cause Notice is the foundation on which the department has to build up its case - If the allegations are not specific and are on the contrary vague, lack details and/or unintelligible that is sufficient to hold that the noticee was not given proper opportunity to meet the allegations – Supreme Court

In a rare case, the Commissioner passed an order in favour of the assessee – naturally the department went in appeal and lost in the Tribunal; not to be dissuaded by such small failures, Revenue took up the issue in the Supreme Court and royally lost.

Assistant Commissioner sits in judgement over Tribunal's orders - Order set aside - refund ordered within seven days - AC's Order contumacious : Tribunal

contumacious – It means stubbornly disobedient, rebellious And that is what most of our officers are!

An Assistant Commissioner had the audacity to sit in judgement over a Tribunal order and refuse to grant refund as directed by the Tribunal. Many of them believe that they can get away with flouting the orders of the Tribunal, because they know ultimately that Tribunal is very kind and don’t really initiate any action for such arrogant and flagrant disobedience. (Some other time I will bring you an interesting incidence where the Tribunal found an officer guilty on every count but let her off because she was too young! Now she is a very senior officer!). They can always tell their bosses – “after all I have been only protecting government revenue” But what they really do is damage the very respect for LAW!

Income Tax

Interest and remuneration paid to partners - liable to be excluded from Gross Total Income for purpose of deduction u/s 80HH : Bombay HC

See our columns tomorrow for the judgements