ARTICLES

• The Rule of Perpetuities and the Need for Reform

The rules of law affecting perpetuities are based upon considerations of public policy. Although the principle of private ownership requires that an owner of property is to have power to dispose as he thinks fit, either during life or on death, of his whole interest in the property he owns, public policy requires that the power should not be abused. Accordingly from early times, the law has discouraged dispositions of property, which either impose restrictions on future alienations of that property, or fetter to an unreasonable extent its future devolution or enjoyment.

• CENVAT Credit and Capital Goods

The term “capital goods” as defined in the Section 2(a) of the CENVAT Credit Rules, 2004 is not an inclusive definition. The Hon’ble Supreme Court has further held that any exercise to treat an item as “capital goods” by adopting any interpretative process will be futile. An item can be treated as “capital goods” under CENVAT Credit Rules only if it satisfies that the goods fell under one of the specified chapters or headings of the Tariff or it is a spare part, component or accessory or that it falls under one of the specified items.