Jurisprudentiol - Wednesday's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Central Excise

Classification - Assessee claims a particular Tariff Heading after getting clarification from the Department - No Suppression - No extended period of Limitation

THE assessee was entitled to entertain a bona fide belief that the product manufactured by it would fall under the said sub-heading. If upon entertaining such a belief the assessee has made a claim that the goods manufactured by it are classifiable under Chapter sub-heading 56 of the Tariff Act, that too after obtaining clarification in this regard, the same cannot be equated with suppression ormis-declaration. The Tribunal, upon appreciating the evidence on record has found that there is nomis-declaration of the description of manufacturing process. As to whether there is suppression,mis-statement ormis-declaration is basically a question offact whichdoes not give rise to any question of law. In the circumstances, on facts when the Tribunal has found that there is nomis-declaration, it was fully justified in holding that the extended period of limitation could not have been invoked.

Income Tax

Whether ITAT has inherent power to recall order in entirety u/s 254(2) - Tribunal can rectify only error apparent and cannot review own order: Delhi High Court

THE issues are - Whether ITAT has inherent power to recall the order in entirety under Section 254(2) of the Act and whether the judgement of the Apex Court in the case of Honda Siel Power Products Ltd is the authority for the proposition that the tribunal has the power to recall. And the HC verdict is that the Tribunal can rectify only error apparent.

Customs

Valuation - norms fixed by Commissioner cannot be mechanically applied, irrespective of genuineness of transaction value; Normally High Court not to interfere with assessment, but when valuation has not been fixed as per statutory provisions, same has to be set aside

THE said norms cannot be mechanically applied, irrespective of genuineness of transaction value or value as may be arrived at as per statutory requirements. Normally, it is not for this Court to lay down the valuation in individual cases or to interfere with an order of assessment or appellate order on the issue of assessment of value but when valuation has not been fixed as per statutory provisions, the same has to be set aside and matter remanded for fresh assessment.

See our columns Tomorrow for the judgements