From our Legal Corner – tomorrow's cases

By Vijay Kumar

Accused has no right to inspect investigation file of NCB (this applies to Customs too) - when handwriting expert dies, fresh specimen handwriting can be taken for referring to another expert : Delhi High Court

In the absence of a specific provision made in the statute indicating that offences will have to be investigated, inquired into, tried and otherwise dealt with according to that statute, the same will have to be investigated, inquired into, tried and otherwise dealt with according to the Criminal P.C. In other words, Criminal P. C. is the parent statute which provides for investigation, inquiring into and trial of cases by criminal Courts of various designations.

Customs and other Law enforcing Authorities can take the benefit of this order!

Income Tax

Income Tax - Deduction - Excise duty credited in PLA - goods not cleared - no deduction can be allowed - When an issue is referred to Special Bench, should a division Bench decide the issue? : ITAT

Is Excise duty credited in PLA allowed as a deduction? Incidentally this issue is before a Special Bench with the question, "Whether deduction for tax, duty etc. is allowed on payment basis without incurring of prior liability to pay such amount u/s 43B of the Act?". The assessee's counsel requested that the AO may be directed to follow the order of Special Bench, when it comes. But Revenue persisted that the Bench should decide the issue based on existing orders. And the Tribunal decided this issue against the assessee.

Interestingly the Special Bench order is out and we will bring that to you the day after tomorrow.

The whole purpose of constituting a Special Bench is to resolve conflicting decisions of co-ordinate benches. Then is it correct for a Division Bench to decide the issue when the matter is pending before the Special Bench? And why was Revenue so insistent that the issue has to be decided even before the SB decision comes?

Central Excise

Fraudulent credit taken by consignor and duty payment effected therefrom while removing manufactured goods - Credit availed by consignee on such inputs proper as transaction is bona fide : Tribunal

On the issue of availment of credit by the user-manufacturer, it is clarified that action against the consignee to reverse/recover the CENVAT Credit availed of in such cases need not be resorted to as long as the bona fide nature of the consignee's transaction is not in dispute.

Excise - MRP - repacking from bulk pack to retail packs would not, by itself, amount to 'manufacture' - Besides repacking from bulk pack to retail packs, there must be labeling or affixing of brand name also : CESTAT

Besides repacking from bulk pack to retail packs, there must be labeling/re-labeling or the affixing of a brand name also. In the impugned orders, Commissioner has not found both the ingredients to be cumulatively present in this case.

See our columns tomorrow for the judgments