| Case ID |
103a1447-9d42-4357-a1f8-3888c049ad22 |
| Body |
View case body. Login to View |
| Case Number |
CIVIL WRIT No. 1207 OF 1967 |
| Decision Date |
Apr 30, 1971 |
| Hearing Date |
|
| Decision |
The court dismissed the petitions filed by the Associated Cement Companies Ltd. against the Director of Inspection, Customs and Central Excise. The court noted that the tax credit certificates were to be calculated based solely on the basic excise duty levied under the Excise Act and not on any additional special excise duties. The court emphasized that the definitions provided in the Income-tax Act regarding 'duty of excise' were to be strictly adhered to and that any special duty levied under the Finance Act could not be included in the calculations for tax credit certificates. The court also addressed the issue of a time-barred supplementary application for a tax credit certificate, ruling that the Central authority lacked the power to condone delays beyond the stipulated period. Thus, the decision reinforced the importance of adhering to legal definitions and timelines in tax matters. |
| Summary |
In the case of Associated Cement Companies Ltd. v. Director of Inspection, Customs and Central Excise, the Delhi High Court addressed critical issues surrounding the calculation of tax credit certificates under the Income-tax Act, 1961. The petitioner, a prominent player in the cement industry, contested the rejection of their appeals regarding tax credits based on excise duties. The court clarified that the calculation must strictly follow the definitions provided in the Income-tax Act, particularly section 280ZD, which pertains to tax credit certificates for increased production. The court ruled that the special excise duties imposed by the Finance Act, 1965 could not be factored into the tax credit calculations, as these duties do not fall under the definition of 'duty of excise' as defined in the Income-tax Act. This case underscores the significance of precise legal definitions and adherence to procedural timelines in tax-related disputes, making it a pivotal reference for similar future cases. The ruling serves as a guide for companies seeking tax credits, emphasizing the need for compliance with statutory definitions and deadlines, ultimately impacting tax planning strategies in the corporate sector. |
| Court |
Delhi High Court
|
| Entities Involved |
Associated Cement Companies Ltd.,
Director of Inspection, Customs and Central Excise
|
| Judges |
H.R. Khanna, CJ,
P.N. Khanna, J.
|
| Lawyers |
Mr. Kolah,
Mr. B. Kishore
|
| Petitioners |
Associated Cement Companies Ltd.
|
| Respondents |
Director of Inspection, Customs and Central Excise
|
| Citations |
1972 SLD 9,
(1972) 84 ITR 811
|
| Other Citations |
Chhotabhai Jethabhai Patel and Co. v. Union of India AIR 1962 SC 1006
|
| Laws Involved |
Income-tax Act, 1961,
Central Excises and Salt Act, 1944,
Finance Act, 1965
|
| Sections |
280ZD,
280ZE,
3,
80
|