Departmental clarification without statutory backing cannot prejudice assessee; tariff classification remitted for fresh determination.

A departmental clarification issued before insertion of section 28A could not be relied on to fasten liability on the assessee, even though it had been obtained at the assessee's instance, because it lacked statutory authority. The classification of electronic gas stove ignitors/lighters was also left unresolved, as the authorities had not examined whether the goods fell under entry 36 of Part C of the First Schedule or the relevant items in Parts F and G for the assessment periods in question. The common order was set aside and the matter remitted for fresh consideration on the correct tariff entry.

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Issues: (i) Whether a clarification issued by the tax department before insertion of section 28A could be relied upon against the assessee; (ii) which tariff entry governed electronic gas stove ignitors/lighters for the relevant assessment years.

Issue (i): Whether a clarification issued by the tax department before insertion of section 28A could be relied upon against the assessee.

Analysis: The clarification dated 27.02.1995 was issued before the statutory provision enabling such clarifications had been introduced. A clarification without legal backing could not be used to fasten liability on the assessee, even if it had been obtained at the assessee's instance.

Conclusion: The clarification could not be relied upon against the assessee.

Issue (ii): Which tariff entry governed electronic gas stove ignitors/lighters for the relevant assessment years.

Analysis: The authorities below had not examined whether the goods fell under entry 36 of Part C of the First Schedule or under item No. 18 of Part F for the earlier period and item No. 5 of Part G for the later period. As the proper classification issue required factual and legal examination, the matter had to go back for reconsideration.

Conclusion: The assessment on classification required fresh determination by the assessing officer.

Final Conclusion: The common order was set aside and the matter was remitted for fresh consideration on the correct tariff entry applicable to the commodity.

Ratio Decidendi: A departmental clarification issued without statutory authority cannot be used to prejudice an assessee, and where the applicable tariff entry has not been examined, the assessment must be remitted for proper classification.

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