Jurisprudentiol– Tomorrow's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Summons – Anticipatory Bail

Imposition of conditions before arrest not legal or valid - power to arrest a person by a Custom Officer is statutory in character and cannot be interfered with – A person summoned is bound to comply: Supreme Court

THE expression ('anticipatory bail') has not been defined in the Code. But anticipatory bail means a bail in anticipation of arrest. The expression `anticipatory bail' is a misnomer inasmuch as it is not as if bail presently granted in anticipation of arrest. Where a competent court grants `anticipatory bail', it makes an order that in the event of arrest, a person shall be released on bail. There is no question of release on bail unless a person is arrested and, therefore, it is only on arrest that the order granting anticipatory bail becomes operative.

Income Tax

Transfer Pricing provisions are to prevent flight of profit outside India and cannot be invoked in all cases, particularly where Sec 10A benefits being availed by the taxpayer: Bangalore ITAT

THE Transfer Pricing provisions of the Indian Income Tax Act have been evolving rapidly, and with all the necessary healthy interpretations from the judiciary. Close on the heels of the Sony India case, the Bangalore Bench of the Tribunal has held in the case of Philips Software Centre that the basic premise of the TP provisions is to prevent the flight of profit outside India, and since the assessee in this case was happily availing Sec 10A benefits, it was not a fit case for application of TP laws.

Central Excise

Whether Revenue appeal is to be dismissed or decided on merits – whether Doctrine of Merger comes into play – Difference of Opinion – matter referred to Third Member

THE respondent company raised a preliminary objection on the sustainability of the appeal inasmuch as they argued that the doctrine of merger applies and since the appeal was filed by the Revenue after the Tribunal had passed the order, the order of the Commissioner had merged with the order of the Tribunal and, therefore, the Tribunal could not pass any further order.

Customs

No depreciation on capital goods is allowed for EOUs on failure to fulfil export obligation: CESTAT

THIS is a routine case of non-fulfilment of export obligation by a 100% EOU and demand of duty foregone on imported capital goods, but the findings are not routine. The Tribunal has answered some of the valid and important questions that arise in cases of non-fulfilment of export obligation.

See our columns tomorrow for the judgements