TaxTMI 
TaxTMI 
2017 (1) TMI 1622
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.... submitted the literature and brochures pertains to the said products. The applicant has informed the nature of products and its use as under. He has shown the samples of the products to the authority. 2.1 The back bag is used for carrying the Laptop for travelling purposes. It is made up of polyester, nylon or leather. As per usage requirements, you can choose backpacks with few and many compartments for storage. These backpacks are available in a large variety of colors and designs and you can easily buy branded laptop backpack. 2.2 The AC adapters help reduce the size of a laptop computer by alleviating the need for a standard sized power supply. The AC adapter is made up of a central unit which draws power from an AC outlet, converts the power to DC that is used by the computer, and a second cord that plugs into the computer. 2.3 The Tablet is a thin, flat mobile instrument with a touchscreen display, which is usually in color, processing circuitry, and a rechargeable battery in a single device. Tablets often come equipped with sensors, including digital cameras, a microphone, and an accelerometer, so that images on screens are always displayed upright. The working of ....
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....t' will be covered by said Notification. In the Notification issued under schedule entry C-56, in the column of goods described against heading 8471 30, in addition to description as per Excise Tariff Code 'personal computer' is also mentioned. However, it is contended that the addition of personal computer has been made in order to expand the scope of subheading 8471 30. This would not restrict the scope of 8471 30 for VAT purpose. Tariff items 8471 30 10 and 8471 30 90 are automatically covered under said Notification. He further stated that the interpretation as put forth by the applicant is not accepted then the entry will become redundant. All the items covered by description in sub-heading 8471 30 are further classified in tariff items. Tariff item 8471 30 10 covers personal computers. If above interpretation is not accepted and as 8471 30 10 is also not specifically mentioned in Notification under entry C-56, it will remain outside entry C-56. Similarly, the items covered under Tariff item 8471 30 90 also will remain outside the scope of the said notification. Thus, nothing will get belonging to sub-heading 8471 30. Obviously this cannot be interpretation as expe....
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....uthority arrives at different opinion, and it is held that impugned goods are not covered by the said schedule entry as contended and relied by the applicant, then the benefit provided in section 55(9) shall be given and prospective effect to the order of Advance Ruling may be given. a) He invited our attention to the decision of MSTT in case of German Remedies Ltd. (A.No.97 of 1991 dt.18.5.1996) and argued that in the said case, the dealer was misled by the earlier assessment orders, therefore, the prospective effect was granted by the Tribunal. The same principle will apply to the facts of the instant case as the dealer has been constantly assessed at lower rate in respect of impugned goods and this has led to assessee believing that the lower rate of tax is applicable to the goods sold by him. b) He has also placed reliance on the DDQ in case of Apsom Technologies (India) Pvt. Ltd. I Negi Sign System & Supply Co. DDQ-1/2007/Adm-3/17-18/B-592 dt. 2.9.2009 and argued that, the learned Commissioner of Sales Tax noting that the importers have imported the impugned items in that case, i.e. ink jet printers under different Excise heading, granted prospective effect. The same pri....
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....ribed for Laptop. He has invited attention towards section 7 of MVAT Act, 2002. a) Section 7:-Rate of tax on packing materials:- Where any goods are sold and such goods are packed in any material, the tax shall be leviable under section 6 on the sales of such packing material, whether such materials are separately charged for or not, at the same rate of tax, if any, at which tax is payable on the sales of the goods so packed. On analysis of charging section 7 of MVAT ACT, 2002, it is revealed that the rate of tax on packing material is applicable in specific condition which read as where any goods are sold and such goods are packed in any material. b) In the present case, the Laptop is packed in cartoon box and delivered to customers. The customer, as per his / her requirement, purchases 'back bag' and uses for conveyance during journey. Hence, it is not 'packing material' as prescribed under section to levy tax under section 7 of MVAT Act, 2002. The applicant stated that the 'back pack' is cleared under same heading of Laptop by Custom Authority. It is settled principle that the clearance of good is not relevant for the purpose of levy of sales ....
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....of interpretation. The schedule entry, C-56 read time to time as under:- SE. No. Name of the commodity Conditions And exceptions Rate of Tax with effect from C-56. IT Products as may be notified by the State Government, from time to time. 4% 1.4.2005 to 31.3.2010 C-56. IT Products as may be notified by the State Government from, time to time. 5% 1.4.2010 to 31.3.2016 C-56. IT Products as may be notified by the State Government from, time to time. 5.5% 1.4.2016 to date C-56. IT Products as may be notified by the State Government from, time to time. 6% 17.9.2016 to date 4.3.2 The State Government has issued Notification (hereafter referred to Notification) in respect of S/E-C-56 as under and its interpretation:-Notification No. VAT 1505/CR-237/Taxation-1, Dated 17th October, 2005. ln exercise of the powers conferred by entry 56 of the Schedule 'C' appended to the Maharashtra Value Added Tax Act, 2002 (Mah. IX of 2005) and in supersession of the Government Notification, Finance Department, NO. VAT-1505/ CR-116/ Taxation-1, dated the 1st April 2005, the Government of Mah....
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....Rules for the interpretation of the provisions of the Central Excise Tariff Act, 1985 read with the Explanatory Notes as updated from time to time published by the Customs Co- operation Council, Brussels apply for the interpretation of this Notification. Note.- (2) Where any commodities are described against any heading or, sub-heading or as the case may be, tariff item, and the aforesaid description is different in any manner from the corresponding description in the Central Excise Tariff Act, 1985, then only those commodities described as aforesaid will be covered by the scope of this Notification and other commodities though covered by the corresponding description in the Central Excise Tariff will not be covered by the scope of this Notification. Note.-(3) Subject to Note 2, for the purpose of any entry contained in this Notification, where the description against any heading or, as the case may be, sub-heading, matches fully with the corresponding description in the Central Excise Tariff, then all the commodities covered for the purposes of the said tariff under that heading or sub-heading or as the case may be, tariff item, will be covered by the scope of this Notificat....
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....mil Nadu vs. Kasiraja Nadar (1981 47 STC 337) (Mad), has discussed the term "namely" in the entry, Cattle feed, namely, hay or straw or rice bran or wheat bran or husk and dust of pulses and grams, but excluding - (i) broken of pulses and grams (ii) oil-cakes; and (iii) cotton seeds." Further Hon. court relied on various judgments and interpreted the word "namely" as: "17. As far as the word "namely", is concerned, there can be no difficulty in understanding what exactly the word means. In the Concise Oxford Dictionary the meaning of the word "namely" has been given as "that is to say". In the Shorter Oxford English Dictionary the meaning of the word "namely" has been given as "particularly"; "to wit"; "that is to say"; "videlicet". In the Chamber's Twentieth Century Dictionary the meaning of the word "namely" has been given as "by name"; "that is to say". Consequently there can be no doubt about the meaning of the word "namely", that is, it is restrictive in the sense that the general expression which precedes the word "namely" is confined to the itemised expressions that follow the word "namely". Consequently the meaning of the word "namely" can only be restrictive and can....
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....pus Juris Secundum, volume LXIV, at page 1084, where it is stated that the term 'namely' is a term which imports interpretation, that is, indicates what is included in the previous term. Thus, when the legislature used the expression 'namely' after the word 'fertilisers', the meaning given to the word should be restricted to those that are enumerated. c) Honorable Andhra High Court in the case of Balaji General Stores vs. Deputy Commissioner, (1987 65 STC 108 AP) has discussed and interpreted word namely .while interpreting entry "Cosmetics and toilet preparations, namely, face powders, talcum powders, hair lotions, creams and pomades." The general expression "cosmetics and toilet preparations" used in entry 36 is not defined in the Act. That general expression is followed by the word "namely" which in turn is followed by certain enumerated goods. We have to ascertain the meaning of the word "namely" in the context in which it is used. Where that word restricts the scope and ambit of the general expression "cosmetics and toilet preparations" only to the enumerated items mentioned in the entry or it is merely illustrative, is the crucial point for consi....
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....es of the law of sales tax. The object appears to us to be to tax sales of goods of each variety and not the sale of the substance out of which they are made......... As soon as separate commercial commodities emerge or come into existence, they become separately taxable goods or entities for purposes of sales tax...... The law of sales tax is also concerned with 'goods' of various descriptions. It, therefore, becomes necessary to determine when they cease to be goods of one taxable description and become those of a commercially different category and description." e) Hon. Supreme Court of India in the case of Rajasthan Roller Flour Mills Association Versus State of Rajasthan [1993] 91 STC 408 (SC), has also taken similar view for interpretation of word that is to say while deciding the issue Whether the expression "wheat" in section 14(i)(iii) of the Central Sales Tax Act, 1956 (Act) includes flour, Maida and "suji"? .The Hon. Supreme Court has endorsed the view as under- "The quotation, given above, from Stroud's Judicial Dictionary shows that, ordinarily, the expression 'that is to say' is employed to make clear and fix the meaning of what is to be e....
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....recedes the word "namely" is confined to the itemized expressions that follow the word "namely". Consequently the meaning of the word "namely" can only be restrictive and can be neither illustrative nor expansive. The purpose of such specification and enumeration in a statute dealing with sales tax at a multi point in a series of sales would, very naturally, be to indicate the types of goods each of which would constitute a separate class for a series of sales. Otherwise, the listing itself loses all meaning and would be without any purpose behind it. Considering the settled principles of interpretation as declared by the Hon. Apex Court from time to time, the contents of the Notification are required to be interpreted strictly and not liberally. If it is interpreted liberally then, the intention of legislature to notify specific goods for the purpose of exemption of sales tax would be defeated. C) The Notification issued by State Government in pursuance of Schedule entry. C-56 is of exemption in nature and needs to be construe strictly. We have already discussed the content of Notification issued by state Government for the purpose of schedule entry C-56. The Notification....
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....wise. Similarly, the Central Excise Tariff Heading, sub-heading and item No. along with descriptions of commodities are linked with it, in order to grant the benefit of concessional rate of VAT. Hence, it is necessary to compare the both heading and their descriptions. 4.3.3 The tariff heading, sub-headings and item No. and their descriptions under Central Excise Act is required to be compared with tariff heading, sub-headings and item No. and their descriptions provided in IT product Notification is to be applied with the help of the rules provided in four foot-Notes appended to the Notification. Those four Notes are very basic rules of interpretation provided for how to read the said Notification and to conclude as to whether a certain product is included or otherwise for the concessional rate of tax under sales tax Statute. In view of this background, it is worthwhile to compare the CETH under Excise Tariff and Notification issued by State Government for the exemption of rate of tax. a) The Central Excise Tariff Heading:- The central excise Heading No. 8471 of Chapter 84 of the Schedule appended to the said Act inter alia provides for:- Automatic data processing machine....
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.... 84716027 * * * * 84716029 --- Other u 12.5% 84716030 * * * * 84716040 --- Keyboard u 12.5% 84716050 --- Scanners u 12.5% 84716060 --- Mouse u 12.5% 84716090 --- Other u 12.5% 847170 - Storage units: 84717010 --- Floppy disc drives u 12.5% 84717020 --- Hard disc drives u 12.5% 84717030 --- Removable or exchangeable disc drives u 12.5% 84717040 --- Magnetic tape drives u 12.5% 84717050 --- Cartridge tape drive u 12.5% 84717060 --- CD-ROM drive u 12.5% 84717070 --- Digital video disc drive u 12.5% 84717090 - Other u 12.5% 84718000 -- Other units of automatic data processing machines u 12.5% 84719000 --- Other u 12.5% We have already reproduced the IT product Notification issue....
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....weighing not more than 10 kg, consisting of at least a central processing unit, a keyboard and a display: 8471 30 10 --- Personal computer 8471 30 90 - Other - Other digital automatic data processing machines: The State Government has issued Notification for exemption of sales tax by tagging it with Central Excise Tariff heading with certain interpretation rules laid down in the Notes appended with said Notification. The Notification is provided with schedule and its purpose is to identify the specific goods which are identified as "Information Technology products" for the purpose of Schedule Entry C-56. Once the goods are covered by Notification then it is eligible for exemption of sales tax in terms of reduced rate of 6% instead of 13%. Hence, it is necessary to compare the description, heading of IT product Notification and Central Excise Tariff heading. The Notification is appended with specific four Notes. The impugned product falls under description "OTHER" and hence it is necessary to see which foot-Note is applicable. d) Applicability of Notes: As discussed above, the Tariff Heading, sub-heading and item No. along with descriptions of commodities of Not....
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....State Government has purposefully included certain products having Heading "OTHERS" related to tariff item No. 8471 60 29. 8471 60 90 and 8471 90 00 in Notification to give exemption and purposefully not included certain products having Heading "OTHERS" related to tariff item No. 8471 30 90. 8471 41 90 and 8471 70 90 to deny the exemption. The product covered by Excise Heading Tariff item No. 8741 30 90 is not a part of Notification issued for the purpose exemption of tax. Hence, Notes appended to Notification issued by State Government are very significant. g) It is revealed that the schedule related to Notification includes description of personal computers having tariff- heading 8471 30 10 and does not include the heading and its description read as "others" related to item No. 8471 30 90. Hence the interpretation rules provided in Note-2 and Note -4 shall be applicable. h) The sub-heading 8471 30 is described as: "Portable digital automatic data processing machines, weighing not more than 10kg, consisting of at least a central processing unit, a keyboard and a display including personal computer." The word -"including" has been used in the said description. It is contenti....
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....ainments, amusements, betting and gambling would come within such understanding." i) The judicial pronouncements for interpretation of sales tax Notification linked with Excise Headinq:- A) Hon. Apex Court in the case of State of Punjab & Others Versus Nokia India Pvt. Ltd. 2014 (12) TMI 836, has interpreted the relation of sales tax schedule entries which are linked to CETH No. for specific purpose to decide the rate of tax and held thus- 14. On behalf of the State it was rightly argued that when Entry 60(6) (g) of Schedule 'B' of theAct does not mention accessories for the purpose of taxing the item/product at the rate of 4%, they need to be charged at 12.5% as per Schedule 'F'. It was contended that the battery chargers are not covered under Entry 60(6) (g) and even otherwise there is no mention of the charger in HMS Code 8525.20.17 under the Excise Act, and therefore, charger is liable to be taxed at the rate of 12.5%. 15. Sub-sub heading code 8525 and tariff no.8525.20.17 of the Central Excise Duty Act, is as under: Chapter 85 Sub-heading Code 8525 Sub-sub heading Code 8525.20.17 Tariff No.8525.20.17 Electrical machinery and equipment....
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....y, E-1 and liable to tax at the rate of 13.5%. 4.4 The rate of tax in case of 'Adopter':- The AC adapters help in a standard sized power supply. The AC adapter is made up of a central unit which draws power from an AC outlet, converts the power to DC that is used by the Laptop, and a second cord that plugs into the Laptop. Thus, it is electric transformer and converter. It is important to Note that the said product is covered by CET Heading read as "others" and having CETH No. 8504 40 90. The said item excise heading is related to chapter No.85 Of Central Excise Tariff and having heading as electrical transformer, static converter (for example, rectifiers) and inductors. The Adopter cannot be considered as unit being it is unable to accept or deliver data in a form (codes or signals) which can be used by the system. Thus, it does not fulfill the criteria of unit of system. The detailed analysis is prepared regarding schedule entry C-56 and Notification issued in pursuance of said schedule entry in earlier paras. The similar principles are applicable to decide the rate of tax on sales of Adopter. The product, "Adopter" having CETH No. 8504 40 90 is not a part of Notifi....
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....re must be parity in levying and recovering the tax among the various dealers selling the same commodity. He has submitted that as the supplier has levied the tax at the rate of 4%. Considering the principle of parity laid down by Hon. Bombay High Court, the tax should have been also levied at the rate of 4% in case of assessee. On that ground also, he contends that the tax rate should have been at 4% and not 12.5.With respect to aforesaid ground raised in respect of the parity, it is necessary to refer to the provision of the MVAT Act, which mandates the method of determination of rate of tax of the goods when the sale is effected by the seller. Section 6 of the MVAT Act, provides that there shall be levied a Sales Tax on the turnover of sales of good specified in column 2, in schedule B, C, D, or, as the case may be, E, at the rates set out against each of them in column 3 of the respect to schedule. Hence whenever goods are sold by a seller, same are liable to tax at the rate set out against them in the schedules attached to the VAT Act. It is relevant to refer to the section 6 of MVAT Act. Section 6: Levy of sales tax on the goods specified in the Schedules:- (1) There....
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.... breach of legal provision of section 6. Hence the appellant's contention is founded on unsound principles and bound to get rejected. We respectfully submit that only higher judicial forums have authority to decide the issue of parity. Being the authority created under MVAT Act, It is binding on us to follow the provisions of charging Section 6 of MVAT ACT, 2002. The applicant has contended that the sellers have paid the VAT @ 4 % hence appellant may be allowed to levy the tax at 4%.The various court authorities have been referred to, wherein it has been held that equity, parity or equality has no place in fiscal statute. What matters is that the literal interpretation of the language used in the statue, which shall be given meanings to and it shall be implemented as provided in the statute, irrespective of the fact whether such law causes the hardship to the assessee or not. ii) In M/s. Saraswati Sugar Mills v. Haryana State Board and Ors., the Hon'ble Supreme Court held that there can be no room for any intendment, nor is there equity about a tax. Nothing is to be read in and nothing can be implied. While interpreting the taxing statute, one has to look fairly at th....
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.... subtraction on the ground of legislative intendment and reading it otherwise would defeat the legislative intent. Similar view has been reiterated in Shyam Kishori Devi v. Patna Municipal Corporation AIR 196c SC 1678; Gulam Yasin Khan v. Sahebrao Yashwantrao Walaskar and Anr.; Orissa State Warehousing Corporation v. Commissioner of Income Tax; Arulnadar v. Authorised Officer, Laid Reforms; and Jagdish Chandra Pathak v. State of Orissa. viii) In Karamchari Union, Agra v. Union of India and Ors.; the Hon'ble Supreme Court has held that while interpreting the fiscal statute, general and plain meaning of the words have to be given by the Court. Equity and hardship to an individual assessee are out of place in interpretation of tax statutes. Similar view has been reiterated in Commissioner of Income Tax, Bhopal v. Hindustan Elector Graphites Ltd. Indore AIR 2000 SC 1481; and Travancore Rubber & Tea Co. Ltd. v. Commissioner of Income Tax. Trivendrum. ix) In Molar Mai v. Kay Iron Works (P) Ltd., the Hon'ble Supreme Court held that unless the statute, read as a whole, indicates a different meaning or provides for inconsistency, the Court has to interpret the language of the ....
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.... rate of tax by the Commissioner under section 94 of the KVAT Act is the only solution and clarification in this case is not only desirable but is required because, manufacturer is called upon to pay tax at four per cent by the very same Department and at the same time dealer is directed to pay tax at 12.5 per cent. We are deciding the matter vide specific section, i.e. 55 OF MVAT Act, 2002 of Advance Ruling. The details of purchase documents (i.e. documents related to sales of venders) are verified. Moreover, under VAT regime the Tax Paid in to Government treasury is available for ITC. The assessment orders passed by departmental Authorities under MVAT Act, 2002 are subjected to Rectification under section 24 or Review under section 25. The legislature has taken the care to cure the impropriety in the assessment order. The legislature has intentionally provided the remedies to avoid loss to Government Treasury for a mistake commited by any assessing officer. We are afraid to hold that once the assessing authority has decided the rate of tax, then it is final and ultimate decision for all trade. If it is held otherwise, then remedies provided under MVAT Act, 2002 to take correct....
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....ter drums are to be taxed as "containers" because they are used to store water as a container. The Hon. Court found that there are two competing entries regarding Sintex water drums. It is possible to take the view that it is an article made of Polythene and tax it under entry 110. At the same time it is also possible to consider it to be a "container". The item under entry 118 was simply "containers other than gunnies". If so, every container, that is, any article which is treated as a container will have to be taxed accordingly. The same idea is conveyed when it is said that if an article is to be taxed and the said article may fall within two entries, the entry which is more beneficial to the assessee will have to be accepted as applicable to the article in question. We have perused said judgment and observed that if there are two competing entries the entry which is beneficial to the assessee will have to be adopted. In the present case we do not find two entries in which impugned products really fall or possibility to classify the products in two different schedule entries for levy of sales tax. However the issue is related to interpretation of Notification issued for the s....
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....esent case there is neither two test of interpretation applicable nor can two constructions be equally drawn to interpret the schedule entry. However, we are dealing with interpretation of Notification issued for schedule entry C-56. Hence, the ratio is not applicable. f) Mr. C. B. Thakar, Advocate has invited the attention to MSTT judgment in the case of Ashok Alco chem. Ltd. 2009 - (ST2)-GJX-132-STMAH Decided on June15, 2009. The Hon. MSTT has compared the Notification and Heading of Central Excise Tariff Act and decided the matter. The tabular format is prepared to compare the Central Excise Tariff Headings and the Notification issued by State Government for the purpose of said schedule entry. CENTRAL EXCISE HEADING STATE GOVT. NOTIFICATION 29.15 Saturated acylic mono carboxylic acids and their anhydrides, halides, peroxides and peroxy acids; their halogenated, sulphonated, nitrated or nitrosated derivatives. Entry sr. no.82. 29.15 Saturated acylic mono carboxylic acids and their anhydrides, halides, peroxides and peroxy acids their halogenated, sulphonated, nitrated or nitrosated derivatives. 2915.10 Acetic Acid NA NA 2915.20 Acetic Anh....
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....a) The Adopter cannot be considered as unit being it is unable to accept or deliver data in a form (codes or signals) which can be used by the system. Thus, it does not fulfill the criteria of unit of system as laid in chapter Note No. 5(c) of chapter 84 of Central Excise Tariff Act, 1985. Hence, the contention advanced by learned Advocate cannot be accepted and accordingly liable to be rejected. b) Mr. C.B. Thakar, Advocate referred to Government Resolution of Industry Department Regarding the Maharashtra IT/ITES Policy-2009 Dated 29 August 2009. He stated that he product adapter being covered in appendix -1(A), priority intermediate products should be considered for lower rate of tax. We have perused government Resolution (GR). The GR is issued by Industry Department and related to policy to develop specialized infrastructure, balanced regional growth, IT investments and to provide local skills and entrepreneurial talent with greater opportunities, generate employment in backward regions of Maharashtra. The policy suggested that- "11. VAT on sale of IT products will generally be charged at the minimum floor rate recommended by the concerned Empowered Committee at the Cen....
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....se heading / item -8471 3090 which reads as - Other- other digital automatic data processing machines. The issue is mostly related to interpretation of Notification issued by the State Government for S/E- C-56. If the impugned product is covered under the said Notification, then automatically it would be covered by schedule entry C-56. a) The State Government has issued Notification for exemption of sales tax (concessional rate of tax at 6%) by tagging it with Central Excise Tariff heading by providing certain interpretation rules laid down in the Notes appended to the said Notification. The interpretation advanced by various Courts confirms that when the words "namely" is conjointly read with "following goods", then a correct interpretation of Notification emerges and it discloses that the Notification is applicable to the goods as enumerated in the said Notification only and not otherwise. The scope of the Notification has been kept restricted by the State Government. The word namely means specifically and used here in the context so as to restrict the Notification entries to specific listed goods. The Hon. Apex Court and various High Courts already decided that the Notificati....
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.... covered by the description given in the column, then commodities/goods will fall under the residuary tax rate. Hence, we have compared the headings/sub-headings/ items of Notification and headings/sub-headings/ items of Central Excise Tariff Code as they are linked with the matter in order to grant sales tax exemption or concessional rate of VAT. In case of mis-match or difference in the description of goods in the entries in Notification and Central Excise Tariff Code, only those commodities which are described in the notification by name would be entitled to be covered by notification and consequently S/E C-56. Such goods would be eligible for concessional rate of VAT at 5.5/ 6 % as the case may be. e) On comparison, it is found that the State Government has included the goods as per heading, sub-heading and tariff item wise in details under Chapter 8471 to incorporate very specific goods only. All goods having headings 8741 covered by the Central Excise Tariff heading are not covered by the Notification. The Notification has provided further sub-heading and further item no. with the description of the commodities for the purpose of exemption of rate of sales tax. Similarly, ....
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....mission and said DDQ order. It is seen that the prospective effect is given from the date of DDQ order. The Commissioner of sales tax has elaborately discussed the issue of interpretation of Notification in order. The CETH No. 8443, 8471, and Notification of information Technology issued for schedule entry C-56 were the issue of interpretation. The dealer has represented that their product was inkjet printer and not Ink Jet Printing Machines. The Commissioner of sales tax has considered the submission and recorded opinion that there existed some ambiguity in respect of the classification of the impugned products. The ambiguity was further guided by the wrong interpretation. Under such circumstance the prospective effect to order was given. On the fact of this case, issues dealt with in earlier para regarding interpretation of State Government Notification, it is necessary to analyse the provisions related to relevant Act. For clarity the provisions are reproduced as under. (c) Section 55 (9):- The Commissioner or, as the case may be, the Advance Ruling Authority, may direct that the Advance Ruling shall not affect the liability of the applicant or, if the circumstances so war....
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....scretion in genuine and bonafide cases. He must be satisfied that there is a real need and the circumstances warrant exercise of the same. The power being wide, the satisfaction must be backed by cogent and strong reasons which can be tested in a Court of law. 12. The words are of wide amplitude and if the Commissioner exercises the discretion injudiciously or arbitrarily and contrary to the object and purpose sought to be achieved by the enactment itself, his exercise of the discretionary power is always capable of being questioned. Therefore, when the Commissioner finds that there was never a disputed question to be determined and the law is very clear and free of doubt, equally its applicability, then, refusal by the Commissioner to exercise the discretion is rightly Upheld by the Tribunal. Just as the Commissioner was obliged to assign reasons for not exercising his discretionary power equally the Tribunal was in upholding his order. The Tribunal in paragraph 22 of its order found that the entire process was utilized so as to delay compliance with the mandate of the Act. The Tribunal has also found that the Commissioner refused to grant relief holding that there is no ambigu....