Petitioner imported machinery for manufacture of bulbs and tubes lights—Levy of sales and customs duty - Writ against Failure to mention number Notification allowing exemption— Level consequences - Withdrawal of exemption - Effect of Whether if person was otherwise found to benefit of Notification it could not be refused merely on account of wrong mention of notification - Held yes - Whether goods qualified for total exemption of sales tax under S.R.O. No. 506(l)/94, dated 09-06-1994 and customs duty to extent 35% of under SRO No. 384(1)796, dated 13-06-1996 - Held yes - Whether petitioner had opened L/Cs well before withdrawal of exemption on 13-6-1996 vide S.R.O. No. 384(l)/96, it could not be asked to pay sales tax both on theory of promissory estoppels and doctrine of vested rights - Held yes a wrong month. The adjudication authority disallowed the claimed input tax of the taxpayer for procedural lapse. Appellate Tribunal held such decision as harsh and allowed the input tax as vested right. Subsequently, High court also confirmed such decision. Relevant portion of Tribunal decision is reproduced for your ready referenceAvailing of input tax adjustment was an inalienable right of a registered person and in case he fails to avail the same tax period in terms of section 7 of Sales Tax Act, 1990, recourse has to be made to section 66 ibid The appellant committed a lapse by not claiming refund in terms of section 66 ibid and rather availed the same as input tax adjustment in terms of section 7 during the month of January 2000 while the input tax credit related to September, 1999 - The order passed by the adjudicating officer for this procedural lapse was too harsh and is not sustainable under law— 12.
In view of the above various detailed judgments, you would appreciate that claim of available exemption is a vested and constitutional right of the Green Star. Such entitlement can be claimed at any stage of assessment or appeal and cannot be refused or denied on the basis of mere procedural lapse.
Scope of Customs Act 1969 13.
Without prejudice to the above legal position, we further note that through the show cause notice that there is no intention shown regarding the change in nature of goods, rate of custom duty. In other words, the show cause notice does not involve any issue which changes the nature of declaration or information regarding the consignments by Green Star at the time of import in connection with any matter of customs. Therefore, it can be reasonably established that the charges raised through the show cause notice do not relate to any matter of customs, whatsoever. You have referred sections 32 (3), 79, 80 and 156(1)(14) of the Customs Act, 1969. We have read the relevant sections and note that; i)
Section 32 (3) particularly deals with the 'duty' or 'charge' which is not levied. Short-levied or erroneously refunded whether due to any inadvertence, error or misconstruction and thereby such is to be paid by the person liable to pay any amount on that account. As you are aware that the showPage 15 of 23