Jurispruden tiol – Tomorrow's cases Legal Corner Icon — the image was hosted by the publisher and was not captured.

By Vijay Kumar

Central Excise

Section 4A of Central Excise – SWAM rules do not envisage declaring particular region where MRP is to be made applicable - If there is maximum price fixed for institutional buyers, same would also qualify for being considered as ' retail sale price ' : CESTAT

OF all the sections contained in the Central Excise Act, 1944, the general perception is that Section 4A is now being given a step-motherly treatment. After its pompous introduction by the Finance Act, 1997 and some amendments in the latter years, the last being by the Finance Act, 2003, the Central Government has chosen to remain complacent & not make any changes thereafter presumably because the revenue earned on these notified commodities has far exceeded their expectations!

As they say, one has to move with the changing times, but for reasons best known, no worthwhile amendments have been made to section 4A during the past four Union Budgets, excepting of course expanding its coverage.

Income Tax

Income Tax – Deduction under Sec 80IA - Steam is power - assessee cannot be forced to claim depreciation so as to reduce deduction u/s 80IA : ITAT

This issue had been decided by the Tribunal in several cases earlier where it was held that steam is a form of energy and is thus power and, therefore, the assessee was eligible for the deduction.

Foreign Trade Policy

Exim Policy - Policy Relaxation Committee has no power to amend Exim Policy framed by Government – export of substandard yarn – policy had not prescribed the standard of yarn : Bombay High Court

It is clear that the power to formulate and announce export import policy is conferred on the Central Government and that power can be exercised by issuance of a Notification in the Official Gazette. This power was exercised in respect of the product Rayon Viscose Filament Yarn. The Notification does not specify any specification of the filament yarn whether it be standard or sub-standard.

It was open to the Central Government considering the power conferred on it under Section 5 if it chooses to amend that policy. That was not done. The petitioner was sought to be denied the benefit based on the recommendations of what is described as PRC . Under Section 5 of the Foreign Trade Act no power has been conferred on the said committee to amend the export and import policy as notified by the Central Government.

See our columns Tomorrow for the judgements