Pure question of law on levy classification remanded so the assessee could contest whether the impost was countervailing duty

The nature of a levy on import of spirit was treated as a pure question of law arising under the excise rules, so it could not be excluded merely because it had not been perfectly pleaded earlier. However, fairness required the assessee to have a specific opportunity to meet the case on whether the impost was countervailing duty. The earlier decisions were set aside and the matter was remanded to the Tribunal for determination of that issue alone, with the merits of the levy left open.

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Issues: Whether the dispute concerning the nature of the levy on import of spirit should be remanded to the Tribunal for adjudication on the question whether it was countervailing duty.

Analysis: The matter had not been squarely and clearly raised at the earlier stages, but the levy arose from the excise rules governing import of spirit and the record showed that the Department's case encompassed the nature of the impost as duty. The issue involved a pure question of law, which could not be shut out merely on the ground of imperfect pleading. At the same time, fairness required that the assessee be given an opportunity to meet the case specifically on the question whether the levy was countervailing duty. The earlier decisions were therefore set aside and the controversy was sent back for determination of that issue alone.

Conclusion: The matter was remanded to the Tribunal for decision only on the nature of the levy, and the merits of that question were left open.

Ratio Decidendi: A pure question of law relating to the nature of a tax or duty may be considered even if not perfectly raised earlier, but where fairness so requires, the matter should be remitted so the affected party can answer that specific issue.

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