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

By Vijay Kumar

Income Tax

Sale of diamonds to non existing customers – reopening of assessments – High Court not to interfere : Allahabad HC

According to the Revenue, under the Voluntary Disclosure of Income Scheme of 1997 (VDIS), unscrupulous assessees in Maharashtra, Gujarat, Madhya Pradesh, Bihar, Karnataka, West Bengal, Goa, Tamil Nadu, Punjab, Uttar Pradesh, Delhi, Andhra Pradesh etc. disclosed unaccounted money in the form of non-existent diamonds in their possession. These non-existent diamonds were shown to have been sold, immediately after the disclosure, by the assessees to 4 concerns

Customs

Duty paid on 'ghost' goods received in a container – Refund not hit by vires of Section 28D of Customs Act – well reasoned order of Commissioner (A) upheld by Tribunal

CERTAINLY there is a limit to the fantasies of the Revenue. Here is a case where the respondent company paid duty on the ‘supposed consignment’ received in a container. Lo & behold, when the container was opened for examination in the presence of the Customs officials it was found “absolutely empty” – nothing, not even a speck of the supposed consignment was there in it!

Central Excise

Duty - Supplementary invoice due to revision in prices – Interest payable? – Matter referred to Larger Bench of CESTAT

Tribunal referred the matter to a Larger Bench to consider and decide on the following issues:-

(a) Whether, in the facts of these cases, the additional amount paid by the buyer towards price of the goods in terms of the supplementary invoice issued by the assessee after removal of the goods can be considered to be part of the ‘transaction value’ under Section 4 of the Central Excise Act;

(b) Whether the payment of duty under the supplementary invoice by the assessee is covered by sub-section (2B) of Section 11A of the Act;

(c) Whether, on the amount of duty paid under the supplementary invoice, interest is leviable under Section 11AB from the first date of the month succeeding the month in which duty was paid in the first instance in terms of the original invoice.

See our columns Tuesday for the judgements