DUTY PAYMENT BY MISTAKE OR OVERSIGHT
IN THE HIGH COURT OF JUDICATURE AT BOMBAY, while disposing of the Writ petition no. 2838 of 2009 on 16/06/09 in re: HERO CYCLES LTD vs U.O.I., the Court observed as follows:-
QUOTE: In the instant case, the Petitioners admittedly, based on the said notification were being granted benefit of the notification previous to the imports in issue and also subsequent to the imports in question. In other wrods, both the parties were aware of the said notifications. If the petitioner on account of an inadvertent error chose not to apply for the benefit, would that result in denial of the benefit. In our opinion that by itself would not be answer as a duty is cast on the authority to assess the goods and impose duty according to law which includes a statutory notification, if duty cannot be demanded if otherwise not payable. Once there be a power to assess there is a corresponding duty to assess according to law. The fact that the Petitioner has paid the duty under mistake of law and or in the instant case by oversight, cannot result in being assessed to duty which was otherwise not payable. In our opinion, this will be a case of manifest injustice and on the face of it erroneous. The facts of this case being so obvious, this would be a fit case for us to exercise our extra ordinary jurisdiction.UNQUOTE
[for full text of the judgement please visit http://www.taxesinindia.com and click on the citation taxind_2009_hc_bom_wp_2838]
HIGH COURT ORDER
VENKATRAMAN RAGGHUPATHY, Web admin.
