From our Legal Corner - tomorrow's cases
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By Vijay Kumar

Income Tax

Employer does not credit TDS to Govt - Can it be recovered again from employee by Income Tax? No, says Bombay HC

BEWARE, your employer may run away with your TDS or refuse to give you a TDS certificate! What happens then? Here is a case where the employer did not credit the TDS in government accounts an amount of Rs.6.6 Lakhs, and so the powerful Income Tax department attached the bank account of the employee and recovered from him Rs. 12.7 Lakhs! Imagine the plight of an employee, if Rs. 12 Lakhs of his hard earned money is looted illegally by the taxmen!

Central Excise

Mandatory penalty under Sec 11AC is not maximum - No discretion to reduce penalty : CESTAT Larger Bench

Revenue has won a humungous victory. If penalty is imposable under Section 11AC, now nobody has discretion to reduce the penalty. The Larger Bench held that Once it is held that imposition of penalty under Section 11AC of the Act is warranted, the wordings of Section 11AC do not leave any option for imposing a reduced penalty.

Santogen Textile loses Rs 5 Cr case booked by DGCEI - Not 1/95 - Diversion of raw materials - Duty to be paid by consignee and not consignor if consignee has taken delivery of material : Tribunal

THEY came to Settlement Commission to explore whether that can be a safe haven - they were wrong. They knocked the doors of the Bombay High Court - but a similar fate awaited them there too!

Even a trudge to the Supreme Court resulted in utter failure.

So, what's the case all about - nothing novel, but the oldest trick in the EOU Industry - diversion of raw materials procured duty free.

In classification matters, view of Tribunal should not be interfered with unless patently wrong : Supreme Court

See our columns tomorrow for the judgements