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By Vijay Kumar

Writ Jurisdiction

Just because Article 227 was mentioned in the writ appeal instead of Article 226, writ should not have been dismissed: Supreme Court

The High Court seems to have gone by the nomenclature i.e. the description given in the writ petition to be one under Article 227 of the Constitution. The High Court did not consider the nature of the controversy and the prayer involved in the Writ petition. The prayer was to quash the order of assessment passed by the Assistant Commissioner, Commercial Tax levying purchase as well as Entry Tax - there is no manner of doubt that the orders and proceedings of a judicial court subordinate to the High Court are amenable to writ jurisdiction of the High Court under Article 226 of the Constitution.

Central Excise

Exemption for captive consumption - emergence of by products, no reason to deny credit - methane and ethane automatically emerging during cracking of naphtha: Apex Court

The Tribunal's finding that the ethylene and propylene used as refrigerant has been used in or in relation to the manufacture of the same goods. The inevitable and automatic emergence of ethane and methane, therefore, by itself is no ground for denying the exemption contained in the notification. The Tribunal came to the categorical finding that the respondent could not have manufactured ethylene and propylene without manufacturing its by-products ethane and methane. The Tribunal held that in any technology the emergence of ethane and methane was inevitable and hence while it is no doubt correct to say that the ethylene and propylene have been used in or in relation to the manufacture of ethane and methane, the identical quantity of the same goods has simultaneously been used in the manufacture of ethylene and propylene. The emergence of ethane and methane, therefore, cannot be a ground to deny the benefit of exemption to the respondent

Income Tax

When AO completes assessment proceedings verifying all material facts he cannot retrace his steps to allege that appellant failed to disclose fully and truly all relevant facts – Notice issued under Sec 148 quashed - Delhi High Court

Mere reason to believe that the income had escaped assessment is not a sufficient ground to reopen assessment beyond the four year period under s.147 . It should also be occasioned by the failure on the part of the assessee to disclose material facts, fully and truly, in the absence of which no action under s.147 could be taken against them.

Customs

Import of cars – Import Policy required a certificate from a Japanese Ministry which refused to give certificate; law cannot ask a person to do the impossible – Revenue Appeal dismissed: Delhi High Court

As per the Import Policy the importers were required to obtain the Type Approval Certificate/ COP from the international accredited agency of the country of origin of the goods. In this case the cars have been imported from Japan and, therefore, it was only the Ministry of Land, Infrastructure and Transport which could have issued the Type Approval Certificate/ COP. The respondents had applied to the said Ministry for the Type Approval Certificates/ COPs but the Ministry had flatly refused in so many words. In such a situation the respondents could not be expected to submit the Type Approval Certificate/ COP from the said agency

See our columns tomorrow for the judgements