Penalty for estimation of income and disallowances for tax non-deduction clarified: estimation-based penalties not sustainable; additions without conc...
Managerial remuneration disallowance under s.40A(2)(b) challenged over alleged tax-avoidance; appellate decision restored deletion of addition for dir...
The dominant issue was whether an importer could claim customs duty exemption under an earlier notification for import of gold dore bars when the DGFT import licence stated that imports were "subject to" a later notification prescribing duty. The Tribunal held that the licence condition only subjected the import to the later notification and did not bar availing any other applicable exemption; hence, the adjudicating authority's "if and only if" reading was untenable. Relying on the principle that customs authorities cannot deny exemption by questioning an uncancelled DGFT licence, it held duty recovery could arise only if the licence was cancelled by DGFT. Consequently, the duty demand, penalty, and redemption fine were set aside and the appeal was allowed. - CESTAT
The dominant issue was whether an importer could claim customs duty exemption under an earlier notification for import of gold dore bars when the DGFT import licence stated that imports were "subject to" a later notification prescribing duty. The Tribunal held that the licence condition only subjected the import to the later notification and did not bar availing any other applicable exemption; hence, the adjudicating authority's "if and only if" reading was untenable. Relying on the principle that customs authorities cannot deny exemption by questioning an uncancelled DGFT licence, it held duty recovery could arise only if the licence was cancelled by DGFT. Consequently, the duty demand, penalty, and redemption fine were set aside and the appeal was allowed. - CESTAT
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