2006 (7) TMI 67 - AT - Service Tax

Rectification of mistake-Contention of appellant is that duty amount indicated twice resulting in double demand in the impugned order-No mistake apparent on he face of record-Impugned plea in RoM application rejected

Summary

Issues:
- Rectification of errors in Final Order
- Applicability of proviso to Section 28(1) of the Customs Act, 1962
- Finalization of provisional assessment
- Revenue recovery and legitimate dues

Rectification of Errors in Final Order:
The RoM application under Section 129B(2) of the Customs Act, 1962, sought rectification of errors apparent on the face of the record in Final Order Nos. 858 and 859/2006. The errors included the double indication of the demand amount and the failure to address important grounds raised by the appellant in the order. The Tribunal accepted the first prayer for correcting the demand amount and rectified the error accordingly. However, the other grounds raised were thoroughly analyzed to determine if they constituted errors in the Final Order.

Applicability of Proviso to Section 28(1):
The appeal raised questions regarding the applicability of the proviso to Section 28(1) of the Customs Act, 1962. The key issue was whether the proviso was applicable when there was no evidence of the importer's involvement in fraud. The Commissioner's order directed finalization of provisional assessment, which was challenged by the appellant. The Tribunal examined each ground raised by the appellant, addressing concerns about provisional assessment, non-involvement in fraud, and the Commissioner's decision to finalize the assessment in the interest of revenue recovery. Judicial precedents were cited to support the principles of revenue recovery and the responsibilities of Revenue officers.

Finalization of Provisional Assessment:
The Final Order directed finalization of the provisional assessment, which was contested by the appellant. The Tribunal analyzed the grounds raised by the appellant, emphasizing the importance of revenue recovery and the duty liability of the appellants. The Commissioner's decision to finalize the assessment was upheld based on the circumstances of the case, including the discovery of forged DEPB scrips and the need to protect the government's revenue. The Tribunal concluded that the Commissioner's order was justified and did not find any mistake apparent on the face of the record in this regard.

Revenue Recovery and Legitimate Dues:
The judgment highlighted the principles of revenue recovery and the government's right to collect legitimate dues. It emphasized that public bodies and individuals should not benefit illegally or withhold legitimate dues to the government. The Tribunal supported the Commissioner's decision to order finalization of the provisional assessment to recover the revenue lost due to the use of forged DEPB scrips. The judgment underscored the importance of taking legal steps to recover dues owed to the government and upheld the Commissioner's order in the interest of revenue protection.

In conclusion, the Tribunal rectified the error in showing the demand amount twice and rejected the other prayers in the RoM application. The judgment emphasized the importance of revenue recovery, legitimate dues, and the responsibilities of Revenue officers in protecting government interests.