Jurisprudentiol – Tomorrow's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Income Tax

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

The formation of belief by the assessing officer is within the realm of subjective satisfaction and at the stage of issuance of notice the only question is whether there was relevant material upon which a reasonable person could have formed requisite belief or not. Beyond this there is no scope of judicial review in such matters. Remedy under Article 226 of the Constitution of India is discretionary and even if there is some irregularity or illegality, the Court is not bound to exercise discretion at the instance of the petitioner if it is satisfied that it is not otherwise a fit case warranting exercise of discretionary jurisdiction under Article 226 of the Constitution.

Central Excise

Cenvat Rule 6 issue goes to Larger Bench – SC decision in Chandrapur was delivered in the context of rule 57C & not 57CC or rule 6 of CCR – present rule is unambiguous & clear – matter referred to LB as coordinate benches hold contrary views - Tribunal.

The following question is framed for the purpose –

“Whether the provisions of Rule 6(3)(b) of the Cenvat Credit Rules, 2002 are applicable or not, when the amount equivalent to the Cenvat credit attributable to the inputs used in, or in relation to, the manufacture of the exempted final product has been paid prior to the removal of the exempted final product from the factory?”

UP Trade Tax

Yeast is a chemical - The Executive Act of issuing a notification is a legislative action. The authorities are supposed to know the meaning of the word used therein. - Supreme Court

Yeast is a chemical: 'Yeast‘, admittedly, has a chemical composition. It has a chemical formula. It was accepted to be a chemical by the assessing authority for a long time.

Classification: It is now a well settled principle of law that in interpreting different entries, attempts shall be made to find out as to whether the same answers the description of the contents of the basic entry and only in the event it is not possible to do so, recourse to the residuary entry should be taken by way of last resort. It not only takes within its sweep as to what it would be, but what it can be or what it does. if there is a conflict between two entries one leading to an opinion that it comes within the purview of the tariff entry and another the residuary entry, the former should be preferred.

See our columns tomorrow for the judgements