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LEGAL UPDATE
PAN number is a must Company has no power over property under
for transaction over Rs 2 Securitisation Act
lakh The Bombay High Court has differed der the Securitisation Act was situated
from the Delhi high court view in the in Gujarat. Their view was that the tri-
The Centre has made it mandatory matter of jurisdiction of the Debt Re- bunal in that state will have jurisdiction.
for the buyer covery Tribunal where a dis-
of any goods pute under the Securitisation The Bombay High Court re-
or service to Act is involved. versed that position and ruled
produce a that the Mumbai tribunal
PAN card for In the case of GSL India Ltd vs could deal with the matter.
cash transac- Asset Reconstruction (India)
Ltd, the debt recovery tribu- Its interpretation of the pro-
tions of more than Rs 2 lakh which nal and the appellate tribunal in visions of the Debt Recovery
also including gold jewellery. Mumbai had rejected the application of Act, the Recovery of Debts due to Banks
GSL India, maintaining that the com- and the Securitisation Act differed from
"If you transact in cash for more than pany had no jurisdiction in the matter that of a full bench decision of the Delhi
Rs 2 lakh, a PAN number will be nec- as the property under proceedings un- High Court, which is applicable in Delhi
essary," Jaitley told legislators in Par- jurisdiction.
liament.
Lumpsum compensation for trademark violation
The decision to raise the threshold to
Rs 2 lakh was taken after several rep- In a trade mark case, the Delhi High plates, stickers, grip covers, ignition
resentations from central and state Court has ruled if the financial loss suf- switch plates and mud flaps using the
legislators and trade associations fered by the alleged victim of the in- same or deceptively similar names and
who felt that a lower threshold fringement finds that
would dent consumer spending. he/she had suffered designs registered by it.
more than earlier esti- Further investigation
PAN is an alphanumeric identity that mated, the litigant can showed that the real
taxpayers need to quote when they amend the petition and damage was much
file their returns. ask for a higher com- higher and, therefore, it
pensation. In the case, sought to amend the
But the new rules will be a blow to Eicher Motor Ltd vs Saurabh Katar, the demand raising it to Rs
buyers of jewellery who did not have manufacturer of Royal Enfield, Bullet 1 crore.
to furnish their PAN cards for cash- and other vehicles with registered
based purchases worth less than Rs trademarks had moved the court seek- The high court permitted its observing
5 lakh. ing compensation amounting to Rs 21 that normally such the prayer should
lakh. be granted unless it changed the na-
Rajiv Babbar, CEO of Rose Jewels ture of the suit or some prejudice is
alerted that sales would fall consid- Eicher alleged that a rival firm was caused to the opposite party. The high
erably as a large chunk of the money found selling through websites its vari- court does not look into the bonafides
circulated in the market comes from ous products like mudguard, number of the request; it is for the trial court
farmers and non-working ladies who to go into the merits of the case.
save money from household incomes.
Cold rolling is manufacturing: SC
The move is designed to crack down
on black money transactions in the The Supreme Court has dismissed the appeal of Gujarat Indus-
country. Earlier, the rules mandated tries Ltd against the ruling of the Custom Excise & Service Tax
that the PAN number had to be fur- Appellate Tribunal that the process of cold-rolling on hot-rolled
nished for any cash deposit above Rs stainless steel pattas undertaken by the firm on job work basis
50,000. The change is aimed at en- attracted levy as it involved manufacturing. It rejected the
couraging post office deposits that contention of the firm that no new commercially identifiable
have steadily declined in the recent commodity came into existence by the process.
past.
BANKING FINANCE | FEBRUARY | 2016 | 15
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