In this appeal moved by National Insurance Company, the driver had a licence for light motor vehicle. The accident occurred when he was driving a passenger vehicle. The company did not prove that the owner had been negligent in verifying the licence. Therefore, it was held liable to pay compensation awarded by the motor accident tribunal. The Supreme Court dismissed similar appeals by other insurance companies |
Sugar mills win case in Apex Court
The Supreme Court last week upheld the cancellation of permission granted to Vardan Linkers to lift 85,000 quintals of molasses from five sugar mills in Uttarakhand at a price of Rs 127. The high court had quashed the order of the state secretary in charge of sugar industries cancelling the permission.
However, the state government, Kisan Sahakari Chini Mills, Doiwala Sugar Mills and Kichha Sugar Co appealed to the Supreme Court. Setting aside the high court order, the Supreme Court said that Vardan Linkers breached conditions in the tender, apart from offering a low price when others were offering up to Rs 310.
Moreover, the firm was in transport business and not a bona fide consumer as asserted by it. Mills in Punjab benefited by the deal. The court also stated that facts showed collusion between the transporter and the District Magistrate, Udham Singh Nagar and the Assistant Cane Commissioner, to dispose of large quantities of valuable molasses at a throw-away price without proper negotiations.
IT assessee to be heard before special audit
The Supreme Court has held that income-tax department must give reasonable opportunity to an assessee to present its case, before an order for special audit is passed. A three-judge bench clarified the law referred to it by a two-judge bench while allowing appeals of the Sahara Group.
The new judgment clarified that the assessee should be given an opportunity to be heard before the Assessing Officer orders special audit under Section 142 (2A) of the Income Tax Act, 1961. The court said there was confusion over this field of law and now that it is settled, the rule will operate prospectively.
Oil rigs to pay customs duty
The Supreme Court last week ruled that oil rigs engaged in operations in the exclusive economic zone or the continental shelf of India, falling outside the territorial waters of India, are liable to pay customs duty for consuming imported stores there. They are not "foreign going vessels" as defined by Section 2(21) of the Customs Act, 1962.
Therefore, this duty benefit is not available to them, the Supreme Court said in a batch of appeals against the Bombay high court judgment moved by Aban Loyd Chiles Offshore Ltd, Jindal Drilling & Industries Ltd and Great Offshore Ltd. The area of discharge of unloading is within India according to the Maritime Zones Act.
Customs appeal dismissed
The Supreme Court has dismissed the appeal of the Commissioner of Customs in its case against J D Orgochem Ltd and stated that when there is varying price in the market, transactional value disclosed by the importer should be accepted unless otherwise proved.
The company imported "Dinitro Crysazine" declaring its price as $13.2 per kg. Earlier, it had imported the same goods from the same supplier at $18.7 per kg. The authorities rejected the value declared by the importer and insisted on the higher value declared earlier.
The Customs, Excise & Service Tax Appellate Tribunal ruled in favour of the importer stating that it had given justifiable reasons for reduced prices of the same goods from the same importer for the subsequent imports. They had also contended that future imports have been done at still lower prices. The Supreme Court upheld this ruling.
