Legal Wrangle - Episode 40 (Corporate Law)

2016-TIOL-74-SC-CT

STATE OF PUNJAB Vs BHARAT PETROLEUM CORPORATION LTD : SUPREME COURT OF INDIA (Dated: May 11, 2016)

Punjab General Sales Tax Act, 1948 - Sections 11(1), 11(3) & 11CC.

Keywords: retrospective amendment - period of limitation - principal amount of sales tax - interest.

Whether in case an assessment is saved by the subsequent retrospective amendment, the assessee is liable only for principal amount of sales tax and no interest or penalty shall be paid - YES: SC

Revenue's appeal allowed

2016-TIOL-960-HC-DEL-IT

TATA TELESERVICES LTD Vs CBDT : DELHI HIGH COURT (Dated: May 11, 2016)

Income tax - Sections 119(1), 119(2), 143(1), 143(2) & 143(1D)

Keywords - accumulated losses - discretion of AO - Instruction issued by CBDT - pendency of scrutiny - processing of return & refund

Whether the CBDT can proceed to interpret or instruct the income tax department to 'prevent' the issue of refund, by the device of issuing an instruction in purported exercise of its power u/s 119 - NO: HC

Whether the decision to process a return, in respect of which a notice is issued to the Assessee u/s 143(2), is discretionary upon the concerned AO, and an Instruction issued by the CBDT should not be relied upon to deny refunds to the Assessees in whose cases notices might have been issued u/s 143(2) - YES: HC

Assessee's petition allowed

2016-TIOL-959-HC-DEL-CUS

BALAJI ACTION BUILDWELL Vs UoI : DELHI HIGH COURT (Dated: May 13, 2016)

Cus - Anti-dumping duty - Writ Petition filed against final notification 02/2016-Cus (ADD) dated 28.01.2016 imposing anti-dumping duty on imports of Melamine imported from PR China - Alternative remedy is provided under the Customs Tariff Act, 1975 of an appeal before the CESTAT - However, petitioner states that there is huge pendency in CESTAT and, therefore, High Court should entertain the Writ Petition. Held: Court does not find the said plea to constitute a sufficient justification to permit the Petitioner to bypass the statutory remedy of an appeal provided under the Customs Tariff Act, 1975 - It would be open to the Petitioner to request the CESTAT, as and when an appeal is filed, to dispose it expeditiously - Petition and application dismissed: High Court [para 3, 4]

Petition dismissed

INDUS TOWERS LTD Vs CST : DELHI HIGH COURT (Dated: May 16, 2016)

ST - CENVAT credit on Telecom Towers & Pre-fabricated shelters - Appeal against LB decision 2016-TIOL-539-CESTAT-DEL-LB - Delay in re-filing appeal condoned - Subject to the Appellants having already deposited 7.5% of the demand or 10 crores, whichever is lower, in terms of Section 35F of the CEA, 1944, during the pendency of these appeals, no coercive steps shall be taken against the Appellants.

Following questions of law are framed for consideration:

ii) Whether the Appellants are entitled to claim Cenvat Credit on the towers, shelter as ‘accessories' either as capital goods or input goods in terms of Rule 2(a) or 2(k) of the Cenvat Credit Rules, 2004?

iii) Whether the CESTAT erred in applying nexus test with reference to MS Angles and Channels, whereas according to the Appellants what was brought to the site were towers, shelter and accessories for providing services?

iv) Whether the Appellants were justified, in terms of Rule 4 (1) of the Cenvat Credit Rules, 2004, in claiming Cenvat credit of excise duty paid by the manufacturer of towers and shelters after receipt of such towers and shelters at their premises (i.e. tower sites)?

Matter to be listed in the week beginning 5th September, 2016: Delhi High Court [para 1, 3, 6]

Applications disposed of

NOTIFICATIONS

ctariff16_033

Exemption withdrawn in respect of  import of Paints, consumables etc. for use in manufacture of aircrafts, including helicopters; capital equipments for manufacture of SU-MKI aircraft, for manufacture of compressor/Turbine blades for AN-32 aircraft, MI-8, MI-17 helicopter, Advanced Jet Trainer, Intermediate Jet Trainer by M/s HAL; goods imported for the purpose of Dhanush programme of Defence Ministry. 

etariff16_23

Notification 12/2012-CE amended  -

 i. to exempt excise duty on RBD Palm Stearin, Methanol and Sodium Methoxide for the manufacture of bio-diesel (alkyl ester of long chain fatty acids obtained from vegetable oils, commonly known as biodiesels) on actual user basis for a period upto and inclusive of 31st March, 2017;

 ii. to withdraw excise duty exemption on biodiesel with effect from 1st April, 2017; and

 iii. to levy 6% excise duty on biodiesel and its inputs namely, RBD Palm Stearin, Methanol and Sodium Methoxide with effect from 1st April, 2017.

ctariffadd16_018

Provisional Anti-dumping duty imposed for a six month period on Seamless Tubes, pipes & hollow profiles of Iron, Alloy or non-alloy of steel imported from PR China