M/S J.K. Synthetics Limited vs Union Of India And Ors on 20 December, 1996
Further, in J.K. Synthetics v. U.O.I. [1981 (8) E.L.T. 328] it was held that the Income-tax authorities cannot change their views capriciously from a finding arrived at in an earlier order. There should be either fresh facts or a change of law or at least a suggestion that while arriving at the conclusion of the earlier order certain material facts or provisions had not been considered and that if they had been considered, a different view might have been taken. In the absence of any such material, there can be no departure from the view taken in a similar order. The Hon'ble High Court had held that the rule is based both on the principle that there should be a finality to litigation even in Income-tax matters as well as on principles of natural justice. It was further held that it was not open to tax authorities to take a different view without any valid reason and to start levying excise duty on the basis of very same facts when on the very same item, no duty had been levied in the previous orders.