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By Vijay Kumar

Narcotics - but universally applicable

DRI loses a narcotics case because the officer receiving the information did not record it in writing - An officer who received such information was bound to reduce the same in writing and not the person who hears about it. NDPS Act is a penal statute. It invades the rights of an accused to a large extent. A right to be left alone is a right which would fall under Article 21 of the Constitution - An authority cannot be given an untrammelled power to infringe the right of privacy of any person - while a hotel may be a public place a room in the hotel may not be - Supreme Court

An authority cannot be given an untrammelled power to infringe the right of privacy of any person. Even if a statute confers such power upon an authority to make search and seizure of a person at all hours and at all places, the same may be held to be ultra vires unless the restrictions imposed are reasonable ones. What would be reasonable restrictions would depend upon the nature of the statute and the extent of the right sought to be protected. Although a statutory power to make a search and seizure by itself may not offend the right of privacy but in a case of this nature, the least that a court can do is to see that such a right is not unnecessarily infringed. Right of privacy deals with persons and not places.

Customs

DRI wins major case of Customs valuation - value of refurbished parts imported for maintenance of power plant should include the value of used parts sent back to the supplier under Rotable exchange programme.

In a significant case booked by DRI, involving revenue of nearly four Crores on valuation issue, the CESTAT has upheld the demand. The case relates to demand of customs duty on parts supplied by an overseas company under an agreement for maintenance of power plant in India.

Income Tax

Income on rigs hired to ONGC taxed but AO refuses to allow depreciation on the rigs as ownership is not proved; The onus to prove the apparent as not real is on the person who so alleges. Directors of two companies having the same surname does not prove any relation - ITAT

The assessee is a company engaged in providing various services to ONGC/OIL etc. such as short hole-drilling seismic data acquisition, deep well drilling, work over services, mud logging services, reservoir data acquisition services etc. In the course of assessment proceedings for the A.Y. 2001-2002, the AO noticed that there were additions to the assets in the form of purchase of two numbers 50 tonne work over rigs of IDECO make for a total consideration of Rs.375 lakhs. In support of the claim for depreciation the assessee filed a copy of the MOU entered into by the assessee with a company by name Assam Valley Logistics P.Ltd. ('AVL') dt. 15.4.2000. M/s AVL claiming to be the legal and constructive owner of the rigs agreed to sell the same to the assessee for a consideration of Rs. 375 lakhs. The rigs were at Ahmedabad at the time of the MOU and the assessee was to take delivery of these rigs from the site in which they were lying in Ahmedabad. On 23.5.2000 AVL had raised an invoice for Rs. 375 lakhs in respect of the rigs. On the very same day there has been a delivery challan singed by AVL handing over delivery to the assessee. The details of the rigs and its accessories have also been given in the annexure to the delivery challan. The assessee had acknowledged taking delivery of the rigs in the goods receipt note. The trailers were taken delivery by the assessee from the site at which they were lying to the site of ONGC at Ahmedabad. The assessee had engaged the services of one Global Transport Company P.Ltd. and paid them a sum of Rs.80,000/-. During the P.Y. the rigs were given on hire to M/s ONGC Ltd who have paid a sum of Rs.1,73,90,076/- as hire charges to the assessee. In respect of the payment M/s ONGC had also deducted tax at source. The assessee made payments to AVL though cheques.

See our columns tomorrow for the judgements