Jurisprudentiol– tomorrow's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.UP Trade Tax Act

An order of assessment or re-assessment which was in existence at the point of time notice was issued, continues to be effective unless it is varied: Supreme Court

IF it is not varied it goes without saying that it continues to be operative and effective. The period for making assessment or re-assessment is provided in sub-section (2) of Section 21. The period fixed for making assessment or re-assessment under any provision of the Act for any assessment year is two years from the end of the concerned assessment year. However, this period can be extended in terms of the proviso to sub-section (2) if the Commissioner on his own or on the basis of reasons recorded by the assessing officer is satisfied that it is just and expedient to do so to make the assessment or the re-assessment after the expiration of the period provided in sub-section (2) but in any event not after the expiration of 4 years from the end of such year notwithstanding that such assessment or re-assessment may involve a change of opinion.

Central Excise

Removal of capital goods, whether used or not , is to be done after reversal of CENVAT Credit availed: Larger Bench of Tribunal

THE expression “as such” has to be interpreted as commonly understood, which is in the “original form” and “without any addition, alteration or modification”. It does not have any connection with the goods (capital goods) being new/unused or used. In Sarkar's “Words & Phrases of Excise, Customs & Service Tax” , the expression “as such” has been defined as “in or by itself alone”. It does not distinguish between a new/unused and a used product.

Income Tax

Income tax – Export of rice to Cambodia through STC with the appellant acting as a supporting manufacturer to Govt of Cambodia comes under the category of ‘protocol exports' – CBDT Circular No. 562 dated 23-05-1990 is a beneficial circular covering such transaction and should be interpreted liberally to extend the benefits – ITAT

IT is seen that the exports made by the assessee could be characterized as 'protocol exports', as it was done on the basis of some agreement or understanding with government of India, and was made at the instance of Govt. of India. The realizations have been made in Indian currency. The basic conditions stated in the circular are covered. That the government has realized some foreign currency or has not realized any would not be criteria for characterization of the transaction nor for claiming benefit of the circular. The circular, being a beneficial one, has to be interpreted liberally, to promote the objective namely to provide benefit to the exporters who have carried out protocol exports and have made realization in Indian currency.

Customs

Refund granted while reference application was pending and Tribunal's order was stayed – assessee asked to pay back the refunded amount with interest – matter remanded to Tribunal: Supreme Court

SURPRISINGLY refund was granted by the Department even when the Reference was pending in the High Court. No appeal was filed by the Department against the grant of refund.

See our columns tomorrow for the judgements