Rectification jurisdiction cannot reopen merits, and appeal deposits cannot be retained after final disposal of the appeal.

Rectification jurisdiction under section 35C is confined to clerical mistakes or errors apparent from the record, and cannot be used to obtain a rehearing on the merits or to re-agitate factual disputes. The article further states that a deposit made as a condition for entertaining an appeal cannot be retained by the Department once the appeal has been finally disposed of. The result described is that the rectification request and the request to retain the deposited amount were both rejected, with the position favouring the assessee.

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Issues: (i) Whether the rectification application could be used to seek rehearing of the appeal on merits under section 35C; (ii) Whether the Department could retain the amount deposited as a condition for entertaining the appeal after disposal of the appeal.

Issue (i): Whether the rectification application could be used to seek rehearing of the appeal on merits under section 35C.

Analysis: The statutory power under section 35C is confined to clerical mistakes or mistakes apparent from the record. A long-drawn factual or argumentative review cannot be converted into rectification proceedings, and an alleged error of fact does not fall within that limited scope.

Conclusion: The rectification application was not maintainable for reopening the appeal on merits and was liable to be dismissed.

Issue (ii): Whether the Department could retain the amount deposited as a condition for entertaining the appeal after disposal of the appeal.

Analysis: Once the appeal had been finally disposed of, there was no justification to continue holding the amount deposited for the purpose of securing entertainment of the appeal.

Conclusion: The application to retain the deposited amount was misconceived and was dismissed.

Final Conclusion: The applications failed in full, and the orders were passed in favour of the assessee by rejecting the Department's attempt to reopen the merits and to retain the deposited money.

Ratio Decidendi: Rectification jurisdiction is limited to apparent mistakes and cannot be used as a substitute for rehearing on merits; a deposit made as a condition for appeal cannot be retained after the appeal stands disposed of.

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