Dependent Agent PE unresolved for lack of factual inquiry; arm's-length distribution accepted; royalty claim rejected; 15% refund interest (Section 24...
Exemption under s.10(23C)(iiiad) upheld; appeal allowed, interest and dividends excluded from annual receipts, disallowance deleted, capital gains exe...
CESTAT held that the record fails to establish the foreign origin or smuggled character of seized gold recovered from domestic premises, and the seizure lacked the necessary subjective satisfaction and contemporaneous material to justify a reasonable belief of smuggling. Consequently, Section 123's reverse onus is inapplicable until the Revenue first proves foreign origin; the onus therefore remained on the Department, which it did not discharge. In absence of proof that the gold constituted prohibited imports, confiscation and penalties under Section 112(b) could not be sustained. The Commissioner (Appeals) correctly set aside confiscation and penalties, and the Revenue's appeals were dismissed.
CESTAT held that the record fails to establish the foreign origin or smuggled character of seized gold recovered from domestic premises, and the seizure lacked the necessary subjective satisfaction and contemporaneous material to justify a reasonable belief of smuggling. Consequently, Section 123's reverse onus is inapplicable until the Revenue first proves foreign origin; the onus therefore remained on the Department, which it did not discharge. In absence of proof that the gold constituted prohibited imports, confiscation and penalties under Section 112(b) could not be sustained. The Commissioner (Appeals) correctly set aside confiscation and penalties, and the Revenue's appeals were dismissed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4823 
Join Channel 
