Page 14 - Banking Finance July 2017

LEGAL UPDATE

LEGAL

CASES
CASES
CASES
CASES
CASES

Protection order for dis- Dead notification cannot be revived
Once a notification on anti-dumping duty expires, it cannot be automatically
puted amount extended by another notification, the Supreme Court has ruled
The Supreme Court last week im- while dismissing the appeals of the central government and
posed re- an Indian manufacturers’ association. In this case, anti-dump-
strictions ing duty was imposed on a type of rubber imported from Ko-
on the rea and Germany since 1996. The government was continu-
utilisation ing with the duty after each five-year period after investiga-
of Rs. 94 tion. The last notification expired on January 1, 2014.
crore de- However, the government extended the earlier notification by one year on Janu-
posited by the National Highways ary 23, 2014. The importers challenged the action in the Delhi High Court which
Authority of India (NHAI) in the held the reissue of notification after the expiry of the earlier one was bad in law.
Calcutta High Court on the acquisi- The government and the Indian manufacturers appealed to the Supreme Court.
tion of vacant land of Baranagar Jute It upheld the high court judgment in the case, Union of India vs Kumho
Factory plc. Petrochemcials Ltd.
In view of contrary claims on the The judgment emphasised that continuation of the duty cannot be automatic
amount, the high court had ordered and since the notification was in the nature of temporary legislation, it could
NHAI to deposit the entire amount, not be amended after its lapse. The court also noted that the country is obliged
to follow the World Trade Organization treaty and the agreement on antidump-
but when the company received Rs.
ing duty which has been incorporated in Section 9A of the Customs Tariff Act.
10 crore as refund for TDS, it used the
amount to pay running expenses. Compensation for death increased
The company’s employees’ union The Bombay High Court dismissed the appeal of New India Assurance Ltd against
moved a contempt petition against the award of Rs. 71 lakh for the death of a man-
it. The court said the refund must ager of the Patalganga project of Reliance Ltd,
also be deposited in the court and the whose takehome monthly salary was Rs. 52,000.
company should not operate its bank The court raised the compensation to Rs. 78
accounts till then. “Merely because lakh. The 46-year-old executive was killed in a
the amount goes through the income road accident and his widow and children moved
tax department, it does not cease to the motor accident claims tribunal. The insurer
be part of compensation,” the judg- argued that the manager, Sudam Auti, was talking on his mobile phone while
ment said. driving his car and contributed to the collision with a van. The tribunal and the
court disbelieved the story as no phone was recovered from the site.

14 | 2017 | JULY | BANKING FINANCE

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