Allahabad HC order set aside

LEGAL DIGEST

The Supreme Court last week set aside the judgment of the Allahabad High Court in the appeal case, Commissioner of Trade Tax vs Kajaria Ceramics Ltd, and held that the revenue authorities rightly denied the benefit of trade tax exemption to the company.

The ceramic tiles factory was set up in Bulandshahr in 1988. As a new unit, it was given six years' tax exemption at that time.

Thereafter, the company undertook three expansion schemes within that period. It asked for tax benefit for the additional fixed capital for the expansions also.

The authorities denied it. The company moved the high court which allowed its plea. The government moved the apex court, which quashed the high court judgment stating that it had committed error in law.

The company was entitled only to a limited benefit for the expa-nsion schemes and not on the aggregate of the original inves-tment and the additional fixed capital, the apex court ruled.

Bookshops on railway platforms

The Supreme Court last week admitted the appeal of the central government against the Allahabad High Court order striking down the railway ministry's policy, which disqualified AH Wheeler and Higginbothams from getting licences to run bookshops on railway platforms.

According to the policy introduced in October 2004, the shops were reserved for unemployed graduates or their organi-sations with very high turnover.

Candidates must have a shop in the city where they were bidding. Though the govern-ment contended that the court could not interfere with a gove-rnment policy, the judges said that if the policy had no connec-tion with the object to be achie-ved, it could examine the issue.

Notice to N-E investors' body

The Supreme Court has issued notice to the North East Investors Association on a petition by Shopper's Stop retailer chain seeking transfer of the case against its recent public issue to the Supreme Court.

The Gauhati High Court had ordered stay of the issue and asked Sebi to see that its order was implemented. The company moved the Supreme Court a day before the issue was opened and got the stay removed.

The company argued that though the company was registered in Mumbai, the petition was moved in Shillong, which is not easily accessible.

The high court order was also against earlier rulings by the Supreme Court (Morgan Stanley case), which had stated that public issues could not be stopped by courts, which have no jurisdiction, that too just before they are opened.

NCC dismisses Delhi govt body's petition

The National Consumer Commission has dismissed the complaint filed by the Delhi State Civil Supplies Corporation seeking compensation from Oriental Insurance Company for 153 metric tonne of damaged vegetables imported from Dubai.

The government there certified that the consignment was fit for consumption before dispatch. But on arrival in Mumbai by ship, it was found heavily damaged and unfit for human consumption.

It was destroyed. Then the corporation made a claim before the insurance company. Its expert stated that inferior quality vegetables were bought and they were not packed in seaworthy material.

The National Consumer Commission accepted the stand of the insurance company and dismissed the claim of the public sector corporation.