From our Legal Corner - tomorrow's cases

By Vijay Kumar

Customs

Customs appraiser's prosecution quashed - When departmental adjudication fails, on same facts, no prosecution - It would be an abuse of process of court to allow any action which would result in injustice and prevent promotion of justice : Bombay HC

THE prosecution charge against the Customs appraiser is that

1. The appraiser connived with certain smugglers to evade Customs duty.

2. He used to accept misdeclarations made in Bills of Entry without reference to actual goods imported and covered.

3. For this work he used to receive monetary consideration.

4. Since he denied his signature and rubber stamp on the Bills of Entry, they were referred to the Government Examiner of Questioned Documents who certified that the signatures on the 11 pre-marked Bs/Entry tallied with the signature of A.O.

The perseverant appraiser got through the legal maze and finally the High Court quashed his prosecution.

Central Excise

Recovery of audit fees u/s 11 of Excise Act can be made by adjustment of refund payable to particular person and not from another unit of same company : Tribunal

CONTRARY to the general perception, the provisions of Section 14AA of the CEA'44 are still on the scene & are being used by some Commissioners of Central Excise.

This section permits the Commissioner to direct the manufacturer to get the accounts of his factory, office, depot, distributor or any other place, audited by a Cost Accountant, if he has a reason to believe that the credit of duty availed of or utilized is not within normal limits etc.

Supreme Court- sales tax

Toughened safety glass including wind screen, constitutes 'glass' or 'glassware' - While interpreting a provision court only interprets law and cannot legislate it : SC

APPELLANT assessee being aggrieved by the denial of total exemption of sales tax on the purchase of raw materials and packing materials, filed an appeal which was allowed by the Assistant Commissioner (Judicial) by order dated 11.1.1989. This order was confirmed in Second appeal by the Tribunal, as Revenue's appeal before the Tribunal was dismissed. An application for revision was filed before the High Court which, confirmed the view of the Assessing Officer. It was held that the expression "glass" or "glass ware" does not include the articles manufactured by the assessee.

Income Tax

Entire work done in Singapore - no part of service rendered in India and thus, it cannot be held to be an assessee in default for non-deduction of TDS : ITAT

THE assessee is engaged in the Real Estate Development. It entered into an agreement with M/s. Site Concepts Int. Ltd. for development. The agreement stipulates that the entire designs and drawings will be transferred at Singapore either to the assessee or its agent by M/s.Site Concepts International Ltd., British Virgin Islands. It also stipulates that the entire work will be carried out by M/s Site Concepts International Ltd. in Singapore and no part of the work will be carried out in India. The assessee made payments to "M/s Site Concepts International Limited, without deducting any tax at source after obtaining a certificate from Chartered Accountant in accordance with the procedure laid down under section 195.

See our columns tomorrow for the judgements