Textiles cess demand notice set aside for improper assessment inconsistent with the return and the governing rules.

A demand notice for textiles cess was found unsustainable where the assessee's return showed nil cess but the assessment was not made consistently with the return and in accordance with law. The cess had been processed under Rule 6 of the Textiles Committee (Cess) Rules, 1975, followed by a demand under Rule 7, but the notice was treated as ex facie erroneous because proper assessment had not been completed lawfully. The demand notice was set aside and the matter remanded to the Assessing Officer for fresh assessment of cess in accordance with law.

---

---

Issues: Whether the demand notice raising cess liability was sustainable where the cess was not assessed in accordance with the return filed by the appellant.

Analysis: The return filed by the appellant had shown nil cess, but the cess was assessed under Rule 6 of the Textiles Committee (Cess) Rules, 1975 and a demand notice was then issued under Rule 7. On the material placed, the demand notice was found to be ex facie erroneous because the cess had not been assessed consistently with the return and the proper assessment had not been made in accordance with law.

Conclusion: The demand notice was set aside and the matter was remanded to the Assessing Officer for fresh assessment of cess in accordance with law.

---