Commercial vehicle depreciation, scientifically determined warranty provisions and exempt-income disallowances were resolved in favour of the taxpayer...
Inherited property sale proceeds require capital-gains treatment where ownership is supported by evidence, not suspicion or unverified signature doubt...
Cross-examination of retracted statements is essential where foundational evidence supports a benami allegation and documented funding explanations re...
Capital-goods exemption covers plant-modernisation accessories, while the import restriction applies only to earlier capital-goods components and spar...
CESTAT held that preferential exemption could not be denied by rejecting the Certificate of Origin and recomputing Local Value Added Content through an alternate method contrary to the Interim Rules of Origin. The Rules required computation with reference to FOB value and CIF value of non-originating materials, and the designated foreign authority's certificate could not be ignored without using the prescribed verification mechanism. Because the importer had produced the certificate and was not required to verify the supplier's internal cost structure, the exemption claim remained valid. Once exemption was upheld, the duty demand failed, and the extended period and penalties under Sections 114A and 114AA were unsustainable for want of wilful suppression or intent to evade duty.
CESTAT held that preferential exemption could not be denied by rejecting the Certificate of Origin and recomputing Local Value Added Content through an alternate method contrary to the Interim Rules of Origin. The Rules required computation with reference to FOB value and CIF value of non-originating materials, and the designated foreign authority's certificate could not be ignored without using the prescribed verification mechanism. Because the importer had produced the certificate and was not required to verify the supplier's internal cost structure, the exemption claim remained valid. Once exemption was upheld, the duty demand failed, and the extended period and penalties under Sections 114A and 114AA were unsustainable for want of wilful suppression or intent to evade duty.
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