Binding tax clarification must guide goods classification before higher levy is sustained on rectification review.

A statutory clarification issued to ensure uniform assessments is binding on the assessing authority and must be considered when deciding rectification or classification disputes over tax liability. The dispute concerned whether the goods sold were earth moving machinery eligible for a reduced-rate entry or vehicles taxable at a higher rate. The rejection of the rectification request was unsustainable because the authority did not properly apply the clarification or examine the nature of the goods in that light. The matter was set aside for fresh consideration, leaving the classification question open for decision by the assessing authority.

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Issues: Whether the rejection of the rectification application was sustainable without considering the Commissioner's clarification issued under the statute, and whether the matter required reconsideration on the nature of the goods.

Analysis: A clarification issued by the Commissioner for maintaining uniformity in assessments is binding on assessing and must be taken into account while deciding the tax liability of the goods. The dispute turned on whether the goods sold were earth moving machinery covered by the notified reduced-rate entry or vehicles liable to tax at a higher rate. The impugned endorsement did not effectively apply the clarification to the petitioner's rectification request, and the authority was required to examine the nature of the goods in light of that clarification before affirming the higher levy.

Conclusion: The rejection of rectification could not be sustained in its present form, and the matter was set aside for fresh consideration of the clarification and the nature of the goods.

Final Conclusion: The petitioner secured a limited relief by obtaining reconsideration of the rectification request, while the substantive classification dispute was left open for decision by the assessing authority.

Ratio Decidendi: A statutory clarification intended to ensure uniform assessment is binding on the assessing authority and must be applied when deciding rectification or classification disputes relating to tax liability.

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