Jurispruden tiol – Tomorrow's cases
Legal Corner Icon — the image was hosted by the publisher and was not captured.Central Excise
Whether interest is payable on differential duty paid before finalization of provisional assessments? - Matter goes to Larger Bench
THE revenue failed to get the matter referred to the Larger Bench earlier at Mumbai, but they had success at Chennai. The issue is, in case of provisional assessments, when the assessee pays the differential duty on his own before the finalization of the assessments whether he is liable to pay interest under Section 11AB?
In case of M/s Tata Motors Ltd Vs CCE Pune , when the matter came up before the Tribunal, it was held that no interest is payable under Rule 7(4) of Central Excise Rules, 2002 in such cases. The Tribunal observed that the interpretation of Rule 7(4) by the Commissioner (Appeals) while confirming that interest is payable is not proper
Customs
Cess – Export of fish – Prawns not fish: Madras High Court
HE questions is whether the term “Fish” under the Agricultural Produce Cess Act, 1940, would include “Prawn”. This matter was dealt at length by the Tribunal in Chennai in Commissioner of Customs, Tuticorin Vs Edhayam Frozen Foods in where the Tribunal held that Fish and Prawn are two different items and held that the Cess under the Agricultural Produce Cess Act, 1940, will not apply for export of Prawn. In the departmental appeal, the Hon'ble Madras High Court did a thesis on this issue and had delivered a very detailed decision. There are several facts about Fish and Prawn which are bound to be great interest to those who have an appetite for Fish and Prawn as well as for those who have an appetite for interpretation of law.
Income Tax
Benefits under RBI's Optional Early Retirement Scheme – Not eligible for deduction under Section 10 (10C): Madras HC
THE assessee was an employee of Reserve Bank of India and has during the year retired under the Optional Early Retirement Scheme floated by the Reserve Bank of India . The assessee in his return of income for the assessment year 2000-05, has claimed exemption under Section 10 (10C), out of the compensation received under the said Scheme.
The assessing officer disallowed the claim of the assessee as the scheme which was adopted by the assessee was not in consonance with the rules prescribed under Rule 2BA of the Income Tax Act. Aggrieved by the said order, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals), who upheld the order of the assessing officer and dismissed the appeal. The assessee preferred an appeal to the Income Tax Appellate Tribunal, which allowed the appeal.
Revenue is before the High Court
Until Tomorrow with more DDT
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